How To Negotiate With An Employee Who Has A Better Offer
Canadian Workplace Specialist
“I’ve received a job offer from our biggest competitor,” your trusted IT Manager tells you. “They’re willing to pay higher and make my work schedule more flexible.” You hesitate. “I’d really rather stay here though,” they add, “if you can match their offer.”
Why You Might – Or Might Not – Want To Consider Negotiating
When It Makes The Most Sense To Counter-Offer
- The employee in question is truly an integral part of your team, and is worth the effort (and expense) of counter-offering
- It would be difficult, or overly expensive, to replace that person if they were to leave
- You can manage the expectations of your other loyal employees so that they don’t all run out to get competing offers of their own, assuming you’ll match them
- Your company can afford to match the valued employee’s offer dollar for dollar, OR can provide appealing alternatives to salary such as flexible hours, telecommuting, a better title, increased responsibilities, enhanced benefits that are inexpensive, etc.
- There is little likelihood the valued employee will take advantage of you by getting lazy, uncooperative or downright snooty after accepting your counter-offer
Play Up Your Non-Financial Benefits First
Can you offer personalized mentoring?
You are trying to emphasize the relative positives your company provides. If you can make the person feel valued or assign them to a great boss, on the whole these may outweigh a 20% pay raise (which will probably get taxed at a higher rate anyway).
Try Not To Be Outrageously Generous Financially
Agreeing To Part Ways