When it comes to offering employees a counteroffer, every situation is unique and needs to be addressed subjectively. Sometimes it’s best to extend a counteroffer, and other times, an employer needs to wish the employee well and let them go.
So, how do you know what’s best and when? Start by considering the employee’s value above replacement. Take the time to determine the costs associated with losing this person:
Also, consider the price of replacing them:
If after doing this exercise the employee’s value is high, then it could be the right time for a counteroffer – if for no other reason than providing a bridge to hiring their replacement. If the value is low, then replacing him or her could be beneficial over the long term.
But there are downsides to extending a counteroffer:
If you do decide to make a counteroffer, remember that you should enter into the negotiation with a good understanding of the monetary value you put on the employee and position. My advice would be to make one counteroffer putting your best foot forward, but negotiations should always be entered with an open mind.
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