In a poor economy your top producers are prime targets for your competitors and recruiters. The retention of your top-notch talent is critical in economic times such as these. Here is how to make a last minute save without selling yourself any shorter than you must.
1. Stop the Immediacy
Your employee may have made a rash decision and not thought things through. Some examples: just received a sizeable offer from one of your competitors, just got out of an argument with another employee, or they may be fed up with a particular difficulty of which you may not have even been aware. Furthermore, you need to be aware that your soon to be x-employee has walked into your office with a mindset of not taking no for an answer.
The way to handle this problem is to say, “I’d really appreciate a few minutes of your time. What you have said has kind of knocked the wind out of me. Can you give me a few minutes of your time after lunch? Will 1:30 work for you?”
2. Ask them, “Why are you leaving?”
You can’t fight what you can’t see. Be prepared for a canned answer, and be sure to explore the issue beyond what is being said. How did they find the other job? What inspired them to look in the first place? What is it about the new job that makes it better than what they’ve got going in their current position?
3. Stop the bleeding
Your employee may be going through a personal financial problem. Its not a good idea to offer someone a raise to keep them from leaving because it sets a precedent, as well as a new bar for them to overcome salary-wise. It is reasonable, however, to offer someone a loan if they’re in trouble, or to change their work hours on a temporary or even permanent basis. For example, a single mother may be looking for a job closer to home so that its easier for her to take her children to and from school.
4. offer one or more perks
Perks are valuable, usually intangible benefits that one can only receive as long as they stay. Use of a company car. Use of your cabin in the woods. Flextime. Telecommuting. Perks such as these go a long way to show employees you are willing to accommodate for their personal needs.
5. offer medium term financial incentive
“If you stay until Thanksgiving I’ll give you a $1000 bonus. And on top of that, if you stick things out until January I’ll add another $1000 on top of that. In the meantime, lets work together to make this a win-win situation for both of us. I want you to stay here for the long haul.”
6. Don’t accept an immediate yes
Taking a fast win in a situation such as this may be a mistake. Tell your employee to sleep on their decision and get back to you with a well considered answer. They are going to reconsider their position anyway, and if they yo-yo (agree to stay and then quit the next day), you’re no longer in a position that is reasonably negotiable. On the other hand, if they sleep on things and come back with a soft no, you’ll still be able to talk with them one more time.