Picture this: One of your top performers pulls you into a meeting and says they’re off—they’ve got a better offer with a sexier company. The news hits you like a ton of bricks. This person is a key player, a driving force behind your team’s success. Now they want out. So, how are you going to react?
Option A: Lose It
Maybe your first instinct is to lose it, storm out of the room, swear profusely, and kick the trash can on the way out. It sounds dramatic, but I’ve seen it happen. Emotions can run high, especially when you feel blindsided or betrayed. But let’s be clear—if this is your go-to response, you have no business being in a position of authority. Leaders need to maintain their composure, especially in difficult situations.
Option B: Take It on the Chin and Learn
The preferred route is to take the news on the chin. Sure, it stings, but this is a moment for reflection. Strive to understand objectively why this opportunity is better for them. What could you or the business have done differently to avoid this situation?
This is where real leadership comes into play. Asking the right questions and truly listening to their answers can provide you with insights that may prevent future top performers from jumping ship. It’s an opportunity for growth—both for you as a leader and for the organization as a whole.
Option C: Offer Them £5K to Stay
Ah, the counteroffer—sometimes a knee-jerk reaction for managers who want to avoid losing talent. You might be tempted to throw money at the problem, offering an extra £5K on their base salary to entice them to stay. But let’s talk about this for a moment.
There’s a popular statistic that recruiters love to share: 80% of people who accept a counteroffer leave within the next six months anyway. Now, I can’t vouch for the exact accuracy of that stat, but the underlying truth is undeniable. Counteroffers rarely work out in the medium to long run. Why? Because people typically don’t leave roles solely for money—unless they’re being paid significantly below market rate.
More often than not, the decision to leave is driven by deeper issues: lack of direction, poor leadership, unfulfilling work, or toxic work conditions. In fact, poor management is frequently cited as the #1 reason employees leave. So, while offering an extra £5K might seem like a quick fix, it’s just papering over the cracks. If the root cause of their dissatisfaction isn’t addressed, that extra £400 per month won’t be enough to keep them around when the excitement of the pay bump fades.
The Reality of Counteroffers
Personally, I’ve never extended a counteroffer to someone who’s resigning. In my experience, once someone’s mind is made up, it’s difficult to change it—at least not in a way that’s sustainable for the long term. But I’m curious: Has anyone had success with counteroffers? Have you seen it work out in the long run?
The bottom line is this: Losing a top performer is always tough, but it’s also an opportunity to learn and improve. Rather than scrambling to keep someone with a quick cash injection, take the time to understand their reasons for leaving. Use that knowledge to foster a better environment for the rest of your team. After all, your goal isn’t just to retain talent—it’s to create a place where talent wants to stay.
Discover insights and expertise from our guest blogger James Roadnight. With over 27 years of profound leadership in the recruitment agency realm, James has been an integral part of various recruitment ventures, guiding them from inception to acquisition. His illustrious career includes a notable achievement of securing third place on the prestigious Virgin Fast Track 100.