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Wednesday, February 8, 2023

The Downsides of Making a Counteroffer to Retain an Employee | HBR

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When Is the Wrong Time to Say “I Quit” Regarding Counteroffers? 

During the Great Resignation, millions of Americans resigned from their organizations. As the talent pool decreases, CEOs are willing to do everything to retain excellent personnel. A counteroffer may momentarily restore a leader’s sense of control over the situation. However, be wary of the apparent strength of the counteroffer. It likely does not solve the fundamental problems. 

Jill Katz suggests that a counteroffer should not be made in desperation to retain talent. In two months, fifty percent of applicants who accept a counteroffer return to the job market. If you invite a resigning employee to return, you must ensure that they are set up for success. When a colleague earns an unexpected promotion, the team’s morale might suffer. Not every aspect of a counteroffer will be disclosed to the rest of the group. 

It might lead to conjecture inside the team as to how and why it occurred. And if others believe the person did not merit the promotion, it might diminish respect for the individual. 

Source: https://hbr.org/2022/05/the-downsides-of-making-a-counteroffer-to-retain-an-employee

 

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