Counteroffers Are Counterproductive

When I turned in my resignation to my last employer in 1990, they immediately offered an increase in salary and vacation if I would consider staying. Now, that really ticked me off! If I were worth the money after turning in my resignation, why wasn’t I worth it the day prior? I thanked them, but moved along to bigger and better things.

We all know about the shortage of key manufacturing skills in the US. That scarceness extends beyond manufacturing as well. The same companies that removed tens of thousands from their payrolls just a few short years ago are now making counteroffers to key people who choose to resign. That “supply and demand” thing is amazing!

A good company ensures its employees are treated well with respect, pay, benefits, responsibilities and all the other components of what makes a job a good one or a bad one. If your employee will leave today for more money, he will do so tomorrow as well. Matching or beating a competing offer only delays the inevitable with that employee and speaks volumes to those who didn’t resign.

Provide an environment that attracts and retains good people. If a good person chooses to leave, wish them well. And make sure you’re treating fairly all those that didn’t leave.

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