Competition in the financial services industry is extremely tough at the moment and more than ever companies are fighting hard to retain good staff. This is even more evident in the senior roles, especially where there is a business development focus to the role.
Competition in the financial services industry is extremely tough at the moment and more than ever companies are fighting hard to retain good staff. This is even more evident in the senior roles, especially where there is a business development focus to the role.
What should companies do when their top performer resigns? Fight to keep them, or let them go and learn a lesson as to why they left? The answer is to let them go and make sure it doesn’t happen again.
Once a person has made their mind up to go, offering them more money or a promise to bigger and better things is only a short-term solution. In six months time they will be unhappy again and will probably leave anyway.
Also, think of the message you send to the rest of your organisation. Everyone will hear about it and this will be de-motivating for the rest of your staff. “John got a promotion and all he had to do was resign.”
Make sure staff are happy now. The work environment is one of the top reasons employees stay or go. Make sure they are being remunerated equivalent or better than the rate the market is paying. Also, ensure you are instilling loyalty and providing a challenging environment with career progression. It is very difficult to head hunt a loyal and happy employee.
On the other side of the fence, if you are an employee, why should you have to threaten to resign to get a promotion or a raise? If the company hasn’t taken care of you in the past, why do you think things will change now? In six months time, the same reason you were unhappy will be there again, but maybe the other job offer won’t.
If you are unhappy with your current situation, you should speak to your manager first and make this known. If that doesn’t work, then you have done all you can, so it is probably the right time to weigh up your options.
A golden rule is to never accept a position with another employer and then back out to accept a counter offer with your current employer. Make up your mind before it gets to that stage. It is very unethical to sign an offer and then back out later. Your reputation will be tarnished and the company you did this to will have a very long memory and so will the headhunter.
The financial services industry is very small and people talk. If you have been approached and are just exploring the opportunity, no one expects you to commit to the offer until you are happy. However, don’t sign anything until you are 100 per cent committed. Never use an offer from another organisation to get a pay increase or promotion from your current employer.
Be up front with everyone from the start and tell the headhunter and the prospective employer that you are willing to explore the opportunity but that you are not committing at this stage. This way no one will be upset if you turn the position down later. Remember you may not want that opportunity but the company may have a better opportunity later and if you have conducted yourself professionally, you may be approached again.
Judith Beck is managing director of Thramer Corporation.
