No one likes to see a loyal and hard-working employee go. Especially if they are a key player in your business. Though you may feel let down, there may be more to their resignation than meets the eye and, in many cases, negotiations and changes can be made to encourage them to stay on.
Ultimately, it’s your employee’s decision whether to stay or not, but here’s how to negotiate a win-win situation, or, at the very least, part on the best of terms:
Talk to your employee
This should be an obvious one but often it’s not done. Find out why they are considering to resign. When you understand your employee’s underlying motivation to leave, you have a better chance to map out a response strategy. Understand if they are leaving due to better compensation, new opportunities, or if there are aspects within your company that make them not want to continue.
Meet or beat their offer
While money may not necessarily be the reason why an employee is quitting, increasing their salary can motivate them to stay. You can raise their salary according to your salary scale without over-committing. It goes without saying that increasing their salary can act as much-needed leverage for you.
Check on the benefits
A critical consideration when you are making a counter-offer is the kind of benefits you offer your employees. It could be possible that your employee is leaving because their new job offers full medical aid, incentives, or more paid leave days. It may be a good idea to review the benefits that you offer your employees and identify where to improve.
Improve your workplace’s environment
Time is valuable, professionally and personally. If your employee is resigning based on work schedule, create a flexible working environment for them so that they are not working more than they should. This is especially important if your employee has young children. Consider allowing them to tele-commute or work from home one day a week, flexi-hours to avoid traffic, and adding on incentive-based half-days.
Your employee might accept your counter-offer and decide to continue working for you, but to prevent them from handing you another resignation letter it’s important to make sure that you touch base with them regularly to ensure they’re happy.
You may make a compelling case and offer an amazing package of benefits, but your employee might still decide to quit. Knowing when to stop trying and moving on is also important if your counter-offer negotiations fail. Respect your employee’s decision and focus on making a business environment where employees want to stay and thrive.
Want to up your SME game (so that employees stay, and not leave you in the lurch?). Contact Outsourced Finance today.