One of your key employees within the business hands in a letter of resignation, the first reactions many employers would do to secure their services is to make a counter offer, however is this too little too late?
Counter offers are not an effective means of securing the services of your most talented individuals. It is a reactive response and the employee concerned has already made the emotional commitment that they are leaving before the employer has even realised there is an issue.
Some firms and individuals may have been a little complacent in recent years as new opportunities were few and far between during the recession. Now, the landscape is very different.
The reason why people change jobs can be split into 2 main categories:
• Push factors – the reasons they leave
• Pull factors – the reasons they wish to join an employer
Employers have greater control over the “push factors” and need to be aware of what these are. Why was the individual seeking a new opportunity in the first place, was it due to money, lack of career progression, seeking a new challenge?
There will be many factors that are not within the control of an employer which could result in employees resigning, however are there things which can be done to prevent individuals looking in the first place.
Regular One to One’s/Staff reviews is certainly one key area. Having the forum to openly discuss topics such career aspirations, 360 reviews, areas of career development etc is a great way of allowing employees to understand how they are performing within their current role but also what their future career plans and opportunities are.
Setting KPI’s and targets and regularly reviewing these will ensure that the employee has set goals to achieve along with an understanding of what is expected of them.
Ongoing communication and follow up on action points is critical though. It’s easy to start out with good intentions, holding regular meetings etc, but it’s very easy for things to slip. The last thing you want to do is present employees with an “I told you so…” when the resignations happen and the counter offer does not work.
Justin Barber – Director at Barber McLelland Ltd – Bespoke Accountancy Practice Recruitment