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The last temptation
Ram, a marketing manager, has just handed in his resignation and his managing director tells him “Your contribution to the organisation is of immense value and in fact your work has helped us succeed. We want to promote you to the next level and head the marketing division, since we believe you have the potential to double our sales figures”. Ram can only laugh at the irony of the situation because he had never heard such words of praise or appreciation in his
three years of service. The compliments came as a surprise, more so because he was about to leave for a better offer. The director even offered to double his salary when he handed in his resignation.
The experience left a bitter taste in Ram’s mouth because while working for the organisation, his contribution was hardly recognised nor his work appreciated. The approach of the management to his exit just did not seem right, he was offered a promotion and a substantial increase in salary now. He was thinking that if he was really worth that recognition and promotion, why was he not offered it earlier. Why did the director make the offer now? It was obviously a bait to persuade him to stay on! But Ram would not fall into this trap. He had made up his mind to quit.
The story of Ram is not an isolated case. Many companies resort to making counteroffers when a key employee decides to leave. This is because the management is reactive rather than pro-active. They do not make efforts to recognise or reward an employee’s contribution appropriately nor do they have an effective recognition system in place. The result-disgruntled and unhappy employees who are ready to take up the first better job offer that comes their way. The management jumps the gun at this stage and makes a counteroffer (sometimes the offers can be outrageous) and when some employees bite into the bait, companies think such a retention strategy will always work.
Unfortunately, it’s not true. A more pragmatic and clever approach on the part of the management would be to take effective measures to prevent attrition. The first step would be to find out what the employees really want- the recognition and rewards they desire, the level of engagement they crave for and determine how far the company can help them in achieving personal and professional goals. A regular and productive interaction between the management and the employees on these issues will help the organisation zero in on matters affecting employee happiness and find solutions to problems.
If the issue is of compensation, it can be tackled by deploying justifiable and fair pay procedures. Problems in employee engagement can be resolved through clearly defined job roles and expectations. Efforts should also be made to bring about a degree of alignment between the individual goals of employees and that of the organisation. Companies can hold on to employees if they take measures to engage and motivate employees right from their induction. Periodic surveys and employee feedback is essential to find out their expectations from the company. .
Instead of making counteroffers to tempt employees to stay on, companies should adopt better retention strategies like:
• Letting employees know that the management is as much concerned about their career growth and development as they are
• Offer specialised training related to the employee’s job early on in his employment so that he can hone his skills
• Take steps to prevent career stagnation of an employee by providing opportunities to rise higher in the company hierarchy
• Managers must not only talk about the company’s vision but also work hard to achieve them, which can inspire their team as well.
• Reward managers not only for their technical and professional skills but also their people skills, especially the ability to retain people in their team
Putting a counteroffer before the employee when he wants to leave can be a faux pas because an employee looking at other job offers is no longer fully involved in his job.
A wise option would be to get to know what the employee wants even before he decides to leave. This will also help management foresee employee issues and take steps to solve them or pre-empt their occurrence.
This can be done only if there are clear lines of communication between the employee and his manager. The onus of maintaining a constant contact should be on the manager. He should be able to figure out what each of his team member wants and how best they can be fulfilled by the company. Eventually, the manager must be held accountable for retention of employees in his department. Researchers believe that a majority of employees quit jobs because they are unhappy with their managers and not their companies. So, it is necessary to keep a check on such managers and maybe even remove them if they lack people skills.
Another fallout of offering last minute pay hikes to employees who are leaving will send out a message to others that this is the only way to get a pay hike. It will encourage other employees to deploy such tactics for a better renumeration.
Last minute measures to retain employees are flawed in their very approach. Companies make a big mistake when they decide to hold on to their star employees by offering them a higher pay. Little do they realise that they are setting a dangerous example for other employees. Instead, if the management earnestly pursues a plan of timely rewards and gives them what they deserve, employee retention is ensured.
