Comments on: What would you do: Counter offer for a star employee? http://www.hrmorning.com/what-would-you-do-counter-offer-for-a-star-employee/ Your daily dose of HR Thu, 18 Mar 2010 13:43:13 -0400 http://wordpress.org/?v=abc hourly 1 By: Christy http://www.hrmorning.com/what-would-you-do-counter-offer-for-a-star-employee/comment-page-1/#comment-3127 Christy Tue, 04 Nov 2008 16:50:37 +0000 http://www.hrmorning.com/?p=379#comment-3127 I would counter and make sure there is cross training done immediately. Sooner or later she will end up leaving because I agree that it is not a money issue. The threat of her leaving again will surely come up and there would be back up for her position. I would counter and make sure there is cross training done immediately. Sooner or later she will end up leaving because I agree that it is not a money issue. The threat of her leaving again will surely come up and there would be back up for her position.

]]> By: Elizabeth http://www.hrmorning.com/what-would-you-do-counter-offer-for-a-star-employee/comment-page-1/#comment-3125 Elizabeth Tue, 04 Nov 2008 16:47:06 +0000 http://www.hrmorning.com/?p=379#comment-3125 I don't think I would offer the counter for this employee. I would sit down with her and see if there are other underlying issues. She wouldn't have known about this other job and the 30% increase if she didn't start searching for some other reason first. I'd try to determine what that reason was, and use it as a coaching opportunity with her Manager. I'm a firm believer that once someone has decided to leave the company, you should let them go. Offering more money likely won't resolve the underlying issues. Keeping them in the organization when they've indidcated they're ready to move on often leads to discontent and "presenteeism." Often times, people leave one job for a higher paying position, even when things aren't terrible at their current job. They either thrive in the new position, or they realize they should have thought less about the money and more about the details of the job. If the higher paying position doesn't end up meeting her expectations, be sure she knows the door is open for her to return if the position is still open. She will return more appreciative of the time and money your company has invested in her, and will bring with her a new skill-set from the other company, and is less likely to leave again. With this being her first job out of high-school...let her go, and by all means don't get the company into this situation again. By setting yourself up to be so reliant on one person, you're basically in a position where the employee is holding you "hostage" waiting for the big pay-off in the end. I don’t think I would offer the counter for this employee. I would sit down with her and see if there are other underlying issues. She wouldn’t have known about this other job and the 30% increase if she didn’t start searching for some other reason first. I’d try to determine what that reason was, and use it as a coaching opportunity with her Manager. I’m a firm believer that once someone has decided to leave the company, you should let them go. Offering more money likely won’t resolve the underlying issues. Keeping them in the organization when they’ve indidcated they’re ready to move on often leads to discontent and “presenteeism.” Often times, people leave one job for a higher paying position, even when things aren’t terrible at their current job. They either thrive in the new position, or they realize they should have thought less about the money and more about the details of the job. If the higher paying position doesn’t end up meeting her expectations, be sure she knows the door is open for her to return if the position is still open. She will return more appreciative of the time and money your company has invested in her, and will bring with her a new skill-set from the other company, and is less likely to leave again. With this being her first job out of high-school…let her go, and by all means don’t get the company into this situation again. By setting yourself up to be so reliant on one person, you’re basically in a position where the employee is holding you “hostage” waiting for the big pay-off in the end.

]]> By: Kacy http://www.hrmorning.com/what-would-you-do-counter-offer-for-a-star-employee/comment-page-1/#comment-3084 Kacy Mon, 03 Nov 2008 21:36:16 +0000 http://www.hrmorning.com/?p=379#comment-3084 It's not always about money, and I agree that 30% is quite a jump. She was obviously underpaid at her job, and as HR Tennessee said, it's almost an insult to counter with just a monetary offer. If you can suddenly afford to pay her 30% more why weren't you from the beginning? You could counter with just money, but I guarantee she'd keep looking for outside employment. Nine times out of ten people leave because they aren't appreciated (underpaid) and because they have no opportunity for growth. I bet if an exit interview was done the company would see that a pay increase is just a band aid fix for a bigger underlying problem. It’s not always about money, and I agree that 30% is quite a jump. She was obviously underpaid at her job, and as HR Tennessee said, it’s almost an insult to counter with just a monetary offer. If you can suddenly afford to pay her 30% more why weren’t you from the beginning? You could counter with just money, but I guarantee she’d keep looking for outside employment. Nine times out of ten people leave because they aren’t appreciated (underpaid) and because they have no opportunity for growth. I bet if an exit interview was done the company would see that a pay increase is just a band aid fix for a bigger underlying problem.

]]> By: Roland Lamontagne http://www.hrmorning.com/what-would-you-do-counter-offer-for-a-star-employee/comment-page-1/#comment-3076 Roland Lamontagne Mon, 03 Nov 2008 20:44:21 +0000 http://www.hrmorning.com/?p=379#comment-3076 Making a counter offer doesn't resolve the vulnerability of the company even if she accepted it. Assertive and star employees want and seek responsible positions they can promote into. In this case money, benefits and, maybe the possibility of advancement is hook and line that is drawing the employee away. I'd counter offer her with a promotion, with a salary that matched the responsibility of the position and have her train her replacement. Making a counter offer doesn’t resolve the vulnerability of the company even if she accepted it. Assertive and star employees want and seek responsible positions they can promote into. In this case money, benefits and, maybe the possibility of advancement is hook and line that is drawing the employee away.

I’d counter offer her with a promotion, with a salary that matched the responsibility of the position and have her train her replacement.

]]> By: Beth Lovell http://www.hrmorning.com/what-would-you-do-counter-offer-for-a-star-employee/comment-page-1/#comment-3072 Beth Lovell Mon, 03 Nov 2008 20:22:12 +0000 http://www.hrmorning.com/?p=379#comment-3072 I would like to know what the manager has to say about this situation. A good manager should know when an employee is considering jumping ship. there is always something "lurking" in the background that was probably apparent but never considered or discussed by the manager. Managers miss out on important information by not spending enough "quality time" with star employees. It is usually not just money - benefits, relationships, responsibility, standing in the company, training, flexible schedule, etc tend to carry more weight than just the compensation issue. However, if there is a huge jump in the offer - it may spell trouble with the company's entire compensation plan for employees. Are they outdated and out of touch with what the market bears? Why doesn't the manager know what the employees "hot button" is? Are there any other employees looking? I think it's too late to offer more now. It sends the message "If employees don't ask for more - don't offer more, unless they are ready to quit". I wouldn't stay if I were the employee. I would like to know what the manager has to say about this situation. A good manager should know when an employee is considering jumping ship. there is always something “lurking” in the background that was probably apparent but never considered or discussed by the manager.

Managers miss out on important information by not spending enough “quality time” with star employees.

It is usually not just money – benefits, relationships, responsibility, standing in the company, training, flexible schedule, etc tend to carry more weight than just the compensation issue. However, if there is a huge jump in the offer – it may spell trouble with the company’s entire compensation plan for employees. Are they outdated and out of touch with what the market bears?

Why doesn’t the manager know what the employees “hot button” is? Are there any other employees looking? I think it’s too late to offer more now. It sends the message “If employees don’t ask for more – don’t offer more, unless they are ready to quit”. I wouldn’t stay if I were the employee.

]]> By: Kay M http://www.hrmorning.com/what-would-you-do-counter-offer-for-a-star-employee/comment-page-1/#comment-3068 Kay M Mon, 03 Nov 2008 20:13:13 +0000 http://www.hrmorning.com/?p=379#comment-3068 I also agree it is not usually just money, there are other underlying issues that need to be addressed before the counter offer. I also would look at the salary ranges to see if we are paying competitively for this position in today’s market. 30% is a large jump for hiring a person in the door unless they were grossly underpaid. I also agree it is not usually just money, there are other underlying issues that need to be addressed before the counter offer. I also would look at the salary ranges to see if we are paying competitively for this position in today’s market. 30% is a large jump for hiring a person in the door unless they were grossly underpaid.

]]> By: Larry http://www.hrmorning.com/what-would-you-do-counter-offer-for-a-star-employee/comment-page-1/#comment-3067 Larry Mon, 03 Nov 2008 20:12:18 +0000 http://www.hrmorning.com/?p=379#comment-3067 Tom the VP is an idiot. He is responsible for this department and should have been more attuned to what was going on. He sounds like he was blind-sided, yet in reality he should have been aware of the situation. Having to make a counter-offer at this late stage is really his fault. I say fire him and move maria up to his position. Tom the VP is an idiot. He is responsible for this department and should have been more attuned to what was going on. He sounds like he was blind-sided, yet in reality he should have been aware of the situation. Having to make a counter-offer at this late stage is really his fault. I say fire him and move maria up to his position.

]]> By: HR Tennessee http://www.hrmorning.com/what-would-you-do-counter-offer-for-a-star-employee/comment-page-1/#comment-3064 HR Tennessee Mon, 03 Nov 2008 19:32:25 +0000 http://www.hrmorning.com/?p=379#comment-3064 I don't think that I would counteroffer with more money. If you think that the employee is worth more, then why were they not being paid that amount all along? It is almost an insult. I don’t think that I would counteroffer with more money. If you think that the employee is worth more, then why were they not being paid that amount all along? It is almost an insult.

]]> By: Sue D http://www.hrmorning.com/what-would-you-do-counter-offer-for-a-star-employee/comment-page-1/#comment-3061 Sue D Mon, 03 Nov 2008 19:23:59 +0000 http://www.hrmorning.com/?p=379#comment-3061 Great employees are hard to find these days, so I would also work up a counter. I agree with Rose, that it is rarely just a money issue, and it is critical to her continued longevity and growth with the company to find out what else is bothering her. We shouldn't make assumptions with this, as it's too important. It may not be advancement, and it could be a lot of other things. The counter offer will need to address the full situation. In hind sight, she should have been training "her replacement", just as everyone should be. It is remiss on the companies part, to be caught without a viable plan B. With almost all employees, there comes a day when things just don't "fit" like they used to, and the employee wants/needs to move on. A company must be ready for this day with all key positions! Great employees are hard to find these days, so I would also work up a counter. I agree with Rose, that it is rarely just a money issue, and it is critical to her continued longevity and growth with the company to find out what else is bothering her. We shouldn’t make assumptions with this, as it’s too important. It may not be advancement, and it could be a lot of other things. The counter offer will need to address the full situation.

In hind sight, she should have been training “her replacement”, just as everyone should be. It is remiss on the companies part, to be caught without a viable plan B. With almost all employees, there comes a day when things just don’t “fit” like they used to, and the employee wants/needs to move on. A company must be ready for this day with all key positions!

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