Show me the money
By Jacqui Cotterill | Recruitment Manager at Watts Next on 24 November 2011
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You meet them, something flutters inside you and you know they are the one; there is a connection and you’re sold. Yes! You have found your new employee! You call and let them know you’re interested and would like a permanent commitment. They say yes and you are ecstatic! It’s a great feeling when you have found the perfect person to fill that gap and the timely recruitment process is over.
And then you get the call: ‘I have been counter offered’. Suddenly, you don’t feel so great. How do you handle this? Do you throw money at them? Do you say no because they are just trying to up the offer? Or do you cry because you can’t afford what they are asking?
You need to ask yourself these questions:
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Why did they want to leave their current job?
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How much did they ask for during the salary negotiations?
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How much are they worth?
If they wanted to leave because there is no growth or opportunity, there efforts aren’t recognised or they dislike the company direction – then you need to remind them that an extra dollar won’t take that away. As people, we can become mesmerised by a shiny carrot – after all that’s why we work – so don’t hold this against them. If there move was purely motivated by money, there is a possibility that they needed an offer to seek a pay rise from their current employer and you were just a pawn in the game. It’s unfortunate, but it happens. I am sure they didn’t mean to hurt you...
Think about what they asked for in the negotiations. If you met their requirement and they have since upped the ante – is this really fair? You also need to assess what the actual role is, as aspects of the position may not be compariable to their current role. And cost out the ‘extras’ included. It might be location, package inclusions such as a phone or flexible work arrangements and see if that impacts the variance in salary offerings.
And – above and beyond all other questions - are they worth the extra money? When an employee resigns, the company has to assess whether they are worth trying to keep or not and if they want to flip the bill to re-recruit. If it’s a matter of throwing an extra few thousand their way and they don’t have to go through a recruitment process – it’s possibly an easier option – but doesn’t necessarily mean they are worth the higher amount.
As the economy fluctuates from an employer market to a candidate market and vice versa – you need to ensure you are paying for the talent you have, but not at the risk of having a team of super talented people – and no business.
To keep up to date with current market salaries –
Call Watts Next!
DISCLAIMER: This article does not constitute legal advice. If you require assistance with creating policies for your workplace, please email admin@wattsnext.com.au
