Counter Offers Make Sense
Carol Hymowitz is not a head-hunter. Her income is not on the line if you accept a counter-offer. So, when she wrote an article about counter offers in the Wall Street Journal it was quite unlike the horror stories produced by recruiters.
She quotes Peter Crist, the Vice Chairman of Korn/Ferry, the famous executive search firm. He believes that the average career now includes seven to ten company changes. Top talent employees have a lot of freedom of movement in this environment and it makes sense to make counter-offers to hang on to them.
Manoj Saxena is president of Exterprice in Austin, Texas. When two employees told him (on separate occasions) that they wanted to leave because they weren't being challenged he told them to write up their ideal job descriptions. Both were promoted to more demanding jobs and received raises.
The best way to avoid the need for counteroffers is to make sure your good people are challenged, promoted and rewarded before they are tapped by others.
Mentor staff about their career paths. Make sure they are in jobs that allow them to learn new skills and grow. If you want to keep the good guys, you have to provide a growth path that goes beyond money.
As for money, regularly poll the market to determine whether there are big gaps between salaries at your company and elsewhere.
Source via Jason @ Recruiting.com