When an employee brings in their resignation, it’s too late to get them wanting to stay. Of course, the “counteroffer” is still a thing, and many bosses are able to keep people around by offering more money or promotions.
However, this will often hurt your enterprise and the employee more than it actually helps. Here’s why.
The Real Reason for Their Resignation Doesn’t Go Away
Very rarely is money the primary reason for people to begin looking for a new job. Instead, it is most often a minor issue on top of other things. For example, they may feel stagnated in their role, undervalued or have had other personal priority changes in their life.
Thus, if you just give them a 10% raise, for example, it may convince them to stay for the time being. However, as these overreaching issues have not been addressed or resolved, but simply sugar-coated, you still have not got them fully onboard.
When another opportunity arises, they will eventually be gone. Many HR professionals including, Jenny McCauley, feel the same,
“In my experience, counteroffers don’t work 95 percent of the time. And when they do work it’s usually only for the short term — someone who wanted to leave is eventually going to leave anyway,” she said.
Another respondent has said, “My gut feeling and my observations tell me that people who accept are going to be gone, whether it’s in a year or two years.”
If someone gives you their resignation, it’s often best to just let them go as you’re not the only one losing by giving them a counteroffer, but so is the employee.
Research shows that when an employee accepts a counteroffer, they will lose, among other things, their trust, reputation, and loyalty within the company.
When it comes to keeping your talent onboard, make sure you do it through a solid business culture, adequate compensation, and equal opportunities, not with a counteroffer once their resignation is in your hand. By then, it will be too late.