One of the most valued employees came into your office to hand in their notice and inform you about their new job. All your natural managerial-instincts are telling you to make a counter offer to retain the employee by paying them a higher salary, offering better benefits and an upgrade on the job title - but what you should do is fight those instincts and stay put.
Yes, you read that right. Stay put.
While counter offers have been an accepted norm of the past, it is advised that employers realize the long-term of effect of such a contract. There is always the chance that the employee rejects your counter offer and is set on leaving your company regardless of what you offer them. Then there is the offset chance that they accept the counter offer, decide to stay in a job that they pretty much gave up on and 18 months down the line they feel exactly the same way.
Letting go and moving on…
The second scenario proves to be more harmful to the company’s future more than anything else. If the employee chooses to stay against their initial decision to leave, it not only demonstrates their level of commitment, but it shows the employer what really motivates them. More often than not, the reason employees want to leave their current job is bad management - which obviously comes down to you. If you are not set on changing your ways, then the employee is likely to feel the exact same way irrespective of what the counter offer is.
Furthermore, in the current economic climate does not allow many companies to afford to even make a counter offer. Higher salary? Forget it - you probably cannot afford to pay them their current salary as it is. The unfavorable financial standing of most companies have led to them relying on the loyalty card, hoping that employees will hang on through the storm in hope a raise at the end.
Bite the bullet and be professional
A surprising number of employers believe that if their employees are not complaining, they are happy with whatever they get paid. Newsflash - no one’s default setting is ‘happy’ and, more often than not, the reason your employees are not complaining is because they are already searching for another job. Loyalty is a highly valued trait of employees, but in today’s times, it comes at a price - one that not many employers can afford.
Even though you don’t want to lose the employee, it is integral that you let go and move on - this is the best solution for both parties involved. The best way to deal with an employee who hands in their notice is to wish them luck in their future endeavors and start looking for someone to replace them. The good news in this case is that the employee market is saturated with capable candidates - who will undoubtedly bring your company a fresh perspective!