“I’ve got an offer from another company...” says your rock-star employee. What to do?
Before you counter-offer, be aware that studies show that many employees who threaten to leave, then stay because of a counter-offer, end up leaving a few months later anyway.
Also make sure you can afford to keep the worker. If matching their new job offer would break the bank - or create obvious inequality with other high performers - let your rockstar go.
Finally, are they the type who’ll get lazy or arrogant if you offer them big money to stay?
After considering these questions, if you decide to counter-offer, here’s how.
Start with a conversation.
Find out why your employee is thinking of leaving - it might not be because they feel underpaid.
Consider non-monetary offers.
Could increased flexibility, extra paid vacation, or more authority and responsibility woo them?
Think hard about your financial offer.
Don’t shoot too high - or too low. If your employee is making 50K with you and has just been offered 60K, 52 or 53K isn’t going to motivate them to stay.
If you succeed - follow up.
Even if they accept your counteroffer, they’re likely to get restless again, so keep proactively checking that they’re happy and asking if they need anything to improve their experience.
If you don’t succeed - accept it.
If your employee is dead set on leaving, know when to stop fighting it and let their time with you end on a positive note. Who knows - they might put in a good word for you with potential hires.