How to Match External Offers to Prevent Employees From Leaving the Company
Good employees are hard to find, and matching an external job offer might be in order to keep an employee from leaving. Managers should dig deep to find out why the employee is leaving and if she will reveal details about the new offer. Based on this information, strategize what might keep her from leaving; offer a promotion, greater responsibilities, compensation or benefits, as your budget and company will allow. When counteroffering, showcase the advantages of staying, such as vesting in 401k plans, accrual of time off, historical and internal knowledge and established relationships with management.
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Instructions
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Ask your employee what she would accept that might keep her in the company. You might be surprised that she is accepting another position for reasons such as distance, less travel and greater growth potential. Gauge your employee's interest in staying by asking if she'd consider staying if you could match her offer or give her a better deal in terms of compensation, benefits and promotion, depending on what she is seeking.
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Review your departmental budget to determine how much room you have to offer a higher salary or bonuses to keep your employee from leaving. Employees could stay if you match the external salary offer or the promise of one in the near future. Consider the costs for recruiting, loss of production and training a new employee if she leaves against the cost of offering her more dollars to stay.
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Offer the employee desirable benefits such as telecommuting, if this is something she is offered with a new position. Match this option, because telecommuting is an attractive benefit to many employees. If offered in conjunction with other benefits, such as enhanced technology, covering expenses for Internet and phones, a new laptop and smart phone and air card, the employee might not leave her current employer.
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Give your employee a promotion. She might be taking a job with a better title and more responsibilities than her current position. If the employee has worked hard enough for you to consider matching the title, responsibilities and opportunities that the new company's position holds, then promote her to keep her in-house.
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Tips & Warnings
Always work with your human resources department before making promises to employees. Ensure that your offers are within guidelines and comply with company policy before offering anything to your employee.
