Greener Grass!? Counter Offer!?
How Will You Be Impacted?   
Robin Throckmorton, MA, SPHR
Melissa Weigand

With unemployment rates soaring (7.2% in Ohio as of June per state Department of Job and Family Services), why would an employer feel pressured to worry about workers seeking employment elsewhere? Possibly due to the fact that statistics are saying that we are in a talent war with a shortage of "skilled" workers of somewhere between 7 - 10 million by 2010. It doesn't take a mathematician to figure out the only way these numbers add up is because many organizations are struggling to find individuals with the right skills to fit their needs. But when they do, it will be a talent war!!! Not until an employee has been convinced of how much greener the grass is on the side of another organization, does their current employer begin an impulsive counter offer attack, that maybe just a little too late…The counter offer is best described by Edward Koller in "The Counter-offer Crisis":

"The counter offer pitch is the result of poorly organized management attempting to play catch-up ball in the final innings of a badly played game."

Don't get us wrong, under certain circumstances; a counter offer may be the right solution. However, the way that counter offers have been played out recently, we'd say there are several big problems:

1. If the employee accepts the counter offer, they have now seen the green pastures on the other side of the fence; so how much longer will they actually stay with their current employer? What are you going to do to ensure they feel valued for the long-haul, in addition to the money that was thrown at them? According to Edward Koller "90 percent of the people in magazine publishing who accept a counter-offer from their employers won't be with that company one year from that date."

2. What if the employee doesn't accept? Why did the employer wait so long to let the employee know their value to the organization, which resulted in the employee's decision to go elsewhere?

3. What happens to the morale of those employees that remain with the organization in either case? If others find out that significant counter offers are presented to those employees attempting to resign, what is being done for those that don't attempt to leave? Do they have to submit their resignation in order to get a raise? Are they going to get stuck with double work if the counter offer doesn't entice the employee to stay?

What should you do?

1. Identify the individuals to be retained
   These individuals may have specific skills that are unique to your business or they may be individuals with a good business sense that can be an overall contributor within any area of your business. Bottom line - these are the people you can't afford to lose today or tomorrow.

2. Communicate openly
   This doesn't mean you are giving them an employment contract but let them know that they are seen as a valuable component that you plan to keep around as an integral part of the organization. Continue the open communication as often as feasible so there are never surprises for either of you.

3. Set Expectations
   Although this is common sense, often we don't do it. Set very clear goals and expectations with your key contributors so they know what you expect of them to help you and the organization succeed. This opens communication and helps them see how their individual contributions are directly impacting the organization. But, make sure they know YOU see it as well with feedback and recognition for it (see # 5).

4. Pay adjustments
   What pay increases would you make if you were going to lose these key contributors tomorrow? Why would you wait until you were going to lose them? Show them how valuable they are to you NOW! You can tie it to the business results or the expectations you set but don't save it until they are going to leave you.

5. Recognition and Rewards
   Do you have a formal recognition and rewards program? Formally or informally, these key contributors and any other A players should know they are successful even at the expense of losing a B or C player. If the same top players are getting recognized and rewarded it may motivate the others to do better or leave. You don't want to demotivate your top players by not recognizing them do you?

If you do have an individual come to you to resign, remember, they are your next public relations outreach. How you handle their termination will determine your next hire, next client, and so on. Do you treat them with dignity and respect or as a criminal? Talk to them. Find out why they are leaving and what you can learn from their decision. Find out what transition would work best for you and for them. Do they really need to be escorted to their desk and out of the building in "handcuffs" within 5 minutes of their notice to you? Would you ever want them to work for you again in the future?

The key to successful talent management is to be strategic, creative, flexible, and open minded.

Robin Throckmorton and Melissa Weigand are with Strategic Human Resources, Inc. (http://www.StrategicHRinc.com). If you have any questions or would like to share your comments or success stories with either of these consultants, contact them via Robin at: Robin@StrategicHRinc.com.