How to Retain an Employee Who Just Resigned
How are you feeling right now manager? We know, it feels terrible. The training, their potential and the work they were doing… and that is only the beginning. Then you must post, interview, hire and retrain. It is a disaster, it is going to be expensive, and you have two weeks to try and fix it. What can you offer or say to get them to reconsider?
1. Find out why they are leaving. Their first reason will likely be the easiest and most simple way to not cause hard feelings. Really find out why.
2. Be honest with them. Chances are, them leaving has something to do with your lack of action or follow through. Admit your mistakes. Humility is important.
3. Ask them if there is ANY chance to keep them. If there is a chance, focus only on what you learned from item number 1 above.
4. Do what you are going to do FAST. You do not have 2 weeks; you have 1 day. Every day that goes by, leaving becomes easier for the employee.
That Is What You Wanted To Know, Here Is What You Need To Know
We got some good news and bad news for you. The bad news first… you messed up and took them for granted. They have another offer in hand. Realistically at this point it is probably too late and there is nothing you can do to get them to stay. I know this isn’t what you want to hear right now, but it’s the truth.
Now for the good news… the crisis is giving you an opportunity to focus on and fix the compensation issues or other problems that got you making this search today. Remember, people leaving for more money is a symptom of a bigger problem you have been too busy to tackle. One day of work now to not have to go through this again.
Also, if you are new to Threads, all the steps, models, etc. are free to read and download because we want to help you with your culture. Everything you need to solve this problem starts right here in our compensation plan.
1. Why You Won’t Be Able To Get Them To Stay
If the employee has put their two weeks in with a better offer, they know two things:
What they are currently worth on the market
That you did not value them enough to pay them what they were worth
This is why matching the offer, beating the offer, following through on promises you made but never kept, and coming up with a career plan for them now is wasting your time. They will listen and possibly even appreciate the confirmation of what their new offer has already told them. They know though, that you are doing it for yourself / what you are losing, and not ultimately for them. If it was for them, you would have done this already.
2. How To Handle The Resignation Like a Boss, NOT Bill
Once the person is truly leaving, and you can’t prevent it… stay classy. Be honest, take ownership and apologize if you would have been willing to pay them more now than before they put in their two weeks.
Your conversation should go something like this:
“We are really sorry to be losing you. We messed up and apologize for not following through on (ex - raising your pay at the rate your contributions increased, giving you a more defined path to partner, etc.). We should have done right by you when we had the chance. It sounds like you have a great opportunity. We are happy for you. If there is anything we can do let us know and please stay in touch.”
At the very least they will respect your honesty. Doing this will keep the door open for the future if you think there is a chance you will want to hire them back. Their new employer is most likely going to make the same mistake you just did with their compensation a few years down the road.
When that happens, you will have done the work to either show them you’ve learned your lesson, or you will have already attracted someone better.
3.Stop Making Excuses About Why They Left
Many managers we talk to suffer through this turnover problem over and over and start making excuses.... “Those damn millennials have no loyalty and work ethic,” “This is just a position with high turnover,” “This other company has benefits we can’t match.” None of that’s true in our companies, and it doesn’t have to be for you either.
In this case it was your compensation plan. It could also be that they are leaving their manager or that you knowingly have them working with a rotten manager that you are too scared to deal with. DING! DING! DING!… One of these 2 reasons is often the real reason they are leaving.
Every generation and group of people in society all want the same things at the core. All of these turnover problems can be fixed with a small time commitment and some courage from you. No excuses. Excuses are for cowards.
4. Identify The Underpaid People Who Are Leaving Next
The next person to leave your organization because of compensation will be a solid employee who is paid at the lower end of the pay range for their job title. This is true because they are a good employee and will be in demand in many other places. They currently don’t know their worth on the market or they do know and are being patient with counting on you to recognize it. Either way the clock is ticking.
While this seems obvious, I am willing to bet you have 1 or 2 or more employees in this situation within your organization right now and until today you weren’t actively doing anything about it. Changing jobs is disruptive, risky and a pain in the ass. These employees probably don’t want to leave, unless you make them.
To identify these people who are at risk of leaving next:
Develop accurate market based compensation levels for every job title you have
List your employees and their compensation
Flag the people below the median compensation for their job title
Now that you have your list, you can decide to win the battles months before they are ever fought.
5. Pay People What They Are Worth, Without Them Having To Ask!
Now that you have your list of underpaid employees compared to their market rates, identify the ones that you would be very sad about if they left tomorrow.
Make a plan for each underpaid employee to communicate their value to you and your team. This may include discussions of career planning, but should definitely include a raise to where they should be paid or a clear plan to get them there over time. Great employees, regardless of tenure, need to be at least equal to the MEDIAN WAGE of the range for the position they have.
But, but, I don’t have the money to pay great people more? LOL, of course you do… you are just spending it on the wrong people or things.
As bad as you felt having that resignation conversation yesterday, you will feel 180 degrees opposite after rewarding these employees unexpectedly. These conversations will motivate you as much as they motivate the employees who are now being treated fairly.
And guess what? Your action today will also fix your recruiting problems when these employees tell their friends working other places.