When and How to Counteroffer: Keys to Effective Retention When Employees Threaten to Leave

Listen Now!

“I am outta here!”

An employee just walked in to say she’s leaving in a couple of weeks to pursue a new opportunity. After the shock of the announcement wears off, you start to panic. This employee is a superstar, and her absence will leave a gaping hole.

What should you do? Just as significantly, what should you NOT do?

You may be tempted to throw additional money or other benefits at top employees who say good-bye, in a last ditch effort to get them to reconsider. After all, if you give them more, they’ll stay, right?

Well, not always. Plus, even if an employee does stay, it may be only for the short term, which means you’ll be faced with having to deal with an inevitable and disruptive exit in the near future. However, if you can provide the her with what she's truly looking for, your counteroffer may well ensure many excellent years of service. The key is having a counteroffer strategy long before you need to put it into practice.