Business/Economy

My employee is leaving for more money at another job. Should I make a counter offer?

Q: One of my employees dropped a bomb yesterday. I’d thought he was happy with his job, he’d told me so just the prior week. So it shocked me when he said, “I’m sorry to tell you this because I like you as a supervisor. Another company has offered me $12,000 a year more than I make here. I can’t afford to turn that down.”

When I asked him if he’d been looking for other jobs, he said “not really” but looked embarrassed. When I asked what “not really” meant, he said, “This offer just sort of came to me.”

Here’s what I need to decide. Do I offer him more money and ask him to stay so I don’t have to go through what it takes to train a replacement and maybe not get anyone better? Or accept his resignation and wish him well?

A: Is he a terrific employee you can’t afford to lose who wasn’t looking for a new job? If so, make him a counter offer, including both a raise and your willingness to fix other factors leading him to want to move on. Employees who let you know they plan to leave often cite “more money” when other issues such as the lack of challenge or the presence of difficult personalities on your staff may have pushed them to seek out new opportunities.

Your employee’s answers and demeanor, however, suggests that even if this particular opportunity came to him, he might have been searching. When our clients ask them to find applicants for positions they have open and we scan databases such as Indeed.com, we regularly find resumes from individuals currently working for our employer clients. How employees represent themselves on LinkedIn also give clues to whether they’re hoping for new opportunities. If so, giving a raise only postpones the inevitable.

You also need to decide if your employee’s talent and performance justify a raise. Before you offer a sizable raise to a “B+” employee, consider whether the same enhanced salary might land an “A” employee. Further, if you raise his salary, fairness requires that you review your other employees’ salaries. If you don’t, they’ll inevitably find out how he got his raise and wonder if they can wrangle one as well by placing themselves on the job market. In other words, remember that if you fix this one problem, it may create others.

Q: I started a small business last year and am about to hire my first employee. I interviewed several candidates and picked one. I was totally excited when I called the applicant I liked best and offered him the job.

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But when I said, “Would you like to come to work for me?” he said, “I think so, but I want to see your offer letter first.” His response really set me back. I had already told him in the interview what I could afford to pay. His comment made me feel like he didn’t want to work for me. I said sure, but now I’m not sure I want to hire him. Also, if I put something on paper, does it bind me?

A: One of two things may be true. He may want an offer letter to confirm what you’ve already told him. An offer letter names the employer, position, start date and compensation, along with an at-will statement. While an on-paper offer confirms what you’re taking him on as an employee for a certain compensation, the employment “at-will” statement means you can terminate the employment relationship for any reason or no reason at all, other than an illegal one.

Alternatively, most applicants apply for multiple jobs, often without knowing the compensation involved. When they receive an offer, they have to decide whether it’s the one job they most want or whether they should hold out for one of the others they interviewed for. Your reaction provides a great example of how that makes an employer feel when he excitedly calls the selected applicant and the candidate doesn’t promptly say yes. Occasionally this “I need more time” sentiment leads employers to withdraw their offers.

Before making an assumption, call your applicant and ask: "Is my job the one you want?”

Lynne Curry | Alaska Workplace

Lynne Curry writes a weekly column on workplace issues. She is author of “Navigating Conflict,” “Managing for Accountability,” “Beating the Workplace Bully" and “Solutions,” and workplacecoachblog.com. Submit questions at workplacecoachblog.com/ask-a-coach/ or follow her on workplacecoachblog.com, lynnecurryauthor.com or @lynnecurry10 on X/Twitter.

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