If you think everyone at your company is sticking around for a while, think again: a survey by Jobvite found that 51% of employees are actively seeking another job. A lot of people aren’t happy with their current jobs and are out looking for new ones. Other people might be reasonably satisfied with their job but want to earn more money or land a more prestigious position. Our Employee Engagement Report found that a quarter of all employees would leave for a 10% raise, so it’s not surprising that they’re out looking for other work.
An employee has a better offer on the table, but you want to keep them around. Here are some tips on how to deal with that situation:
1. It might not be the money
While many employees would be happy to leave for a raise, dissatisfaction in their current position might not be rooted in money. Our research found that employee satisfaction is highly correlated to factors such as relationships with coworkers and passion for work.
Ask your employee why they were looking for another job in the first place. Their answers might surprise you.
2. But it might be the money
Think about it from your employee’s perspective: Another company has made an offer that shows they value your skills more than your current employer. Why wouldn’t you take that offer seriously? The market has demonstrated that your abilities are worth more than you’re currently being paid.
There are situations where a solid counteroffer is just what’s needed to keep your talented employee. However, you probably won’t encounter this very often. Employees leave for all kinds of reasons. They may have outgrown their job. They may want a shorter commute. They may not like the company. But a strong counteroffer to a valuable employee shows that you want to keep them around.
3. The value of perks
Offering a higher salary is sometimes not possible. The good news is that employees strongly value perks. A SnackNation survey found that 79% of employees would prefer better perks to a raise. The top perks employees want are better health insurance, more vacation days, and performance bonuses. These items come at less of a cost to your bottom line while still showing the employee that you value their contributions.
4. Be flexible but reasonable
Let the employee know that you’re willing to work with them to help them stick around. You can work on the compensation package or a new title or a promotion. But remember that many employees actively looking for other work have already decided to leave your company. They might give you a chance to provide a counteroffer out of a curiosity or because they think you’ll give them a fat raise.
They also might be happy to move on. Don’t sweat it. Let your employee know that they’ve provided valuable contributions to your team. Let them know you’d be happy to have them back in the future. They might gain experience elsewhere and, 5 or 10 years down the line, return to your company.
- 3 Employee Retention Technologies That Boost Engagement
- 8 Overlooked Areas Where Employee Retention Saves Companies Money