Dear Sir, Is it possible to the company to retain the employee by offering more salary at the time of joining another company? Can the other (opposite company) have the liability to sue the company in this regard.

From India, Hyderabad

Understand the behavioral aspects at individual as well as organizational level →
Promoted: IIM Raipur Executive Development Program In Human Resource Management
Employees can't be retained all the time only by offering a salary hike. Employee's retention directly proportional to employee satisfaction. Dissatisfaction arises because of many reasons like salary issue, role issue, org culture issue, reporting issue, management issue, work overload issue and many more reason.

Hence it is HR's duty to identify the reason behind such steps taken by employees and take required actions.

Now replying to your query. .....yes you can retain employee by offering salary hike. But do this only if the employee is a performer and underpaid as per his calibre or if upon his separation, the performance of the department, which he belongs to, may substantially go down . Otherwise don't offer any salary hike, else some/few employees will try to get their salary hiked simply by putting resignation.

There are cases , where HR is bound to retain any such employee because of the scarcity of the resources for the said position. So you need to note on this fact also.

Regarding sue, the other company can neither do anything with your company nor with the candidate. Offer letter normally doesn't carry any legal T&Cs so no boundations at candidate's part. But now a days some real estate companies and may be others also started offering a combined offer letter cum appointment letter prior joining or on the day of joining. If it is so for the new company, then the candidate need to abide by the T&Cs mentioned in the letter else the company may take action against the candidate. You company is safe in any case.

From India, Delhi
Giving a raise after one has resigned is a bad practice. What is the guarantee that the same employee will not use this hike letter while negotiating his salary with his new employer?
What about dissatisfaction of the employees who have not resigned and still remain in the employment? Are you not giving a bad message to them that if you want a raise, try the stunt of resigning first. Is the employee so indispensable to the organisation ? - You are giving that signal to the resigning employee and asking for trouble in future. Instead I suggest try other pro-active actions in employee retention.
As regards your other question; whether the other company can sue you if you give a raise to the employee who intended to resign my answer is - no they can not sue you for such an action. Legal experts may opine on this.

From India, Pune
Dear Mr.Iahari,
This is not a healthy practice not only in the interest of management but also in the interest of employees. You cannot put the pressure on any employee that you are paying more and expecting equal to your offer. No. On the contrary you are spoiling the good working environment in the organization., and you are inviting the unprecedented problems. If anybody wishes to go out let them go. As the door is meant for both entry and exit. Mr.Roy has given his opinion excellent with examples of consequences Thanks to Mr.Roy,
Adoni Suguresh
Labour Laws Consultant..

From India, Bidar
Dear Mr.Sujan Roy, Greetings of the day. Thank you very much for the opinion given in this thread against query Mr.Iahari. Regards, Adoni Suguresh Labour Laws Consultant
From India, Bidar

1) If you ask whether it's possible to retain or not, Yes, it's possible but it would depend on the mood and circumstances/compulsions of the employee who intended to leave. If he minds the hike is what he wanted then he might accept the hike and continue. He may as well stick on to his decision to quit if either the hike offered is not convincing or if other factors prevails over the offered hike. As others said there are more than one reason for an employee to quit or otherwise. It's also possible that his intention could only be to feel the pulse of the present employer towards his retention or otherwise.

2) For your second query, Since this was only at the offer stage, yet there is no contractual, covenants established between your employee and his prospective employer. Therefore there exists no locus standi for the other employer especially against your co. Because there has been no contacts between you two.This is also clear from the point of view that you are still the present employer, and the co. got every right to offer anything to augment benefits to your employees. Even after quitting no one can question if your co. makes an offer to its employees or anybody else. I have no clue as to how this question arises in you that too as ' a liability' ?? Probably you meant to say 'right to sue' instead you used 'liability'.

No worry friend.

From India, Bangalore
As rightly Pointed out by Mr. Roy,there can be many reasons of employee dissatisfaction.The best practices in HR will never recommend alluring employees only by way of salary or any other monetary benefit.Today talent has its unique identity and employees are always on the move where there talent is respected and accordingly they are hired to positions that suits them,given all those comforts and welfare that makes them happy and proud about what they have achieved. In nut shell I can say that "employees need main stream involvement in the organisation and made to be committed towards organisational commitment andallow them to retrieve job satisfaction through self motivation"
From India, Vadodara
Dear Mr. Adoni Suguresh,
Greetings! !!
It is your kindness that you are saying thanks for the post whereas the original poster (Mr. Lahiri) is no where in the scene.
Moreover I am not the only one who should be thanked for the postings I make.People like you and other seniors who time to time put their valuable comments should also be thanked.
So thank you all.

From India, Delhi
Retaining employees by money only a short-term solution. To gain the loyal of an employee, the key is you have to grab their trust and help them feel satisfy as well as recognized. Here are some interesting facts about employee satisfaction to get the ideas to keep the best employees: Employee satisfaction's facts
From Vietnam, Hanoi
Dear RP,
In this case you can retain employee by offering hike salary. The other company cannot sue you; in India no employer can forcefully employ any employee. The offer raised by the company can be terminated by either side by employer or by the candidate. We need to put effort to retain core employee even after resigning.
You need to analyze the impact of this in your establishment. All employees will follow the trend and what will be your option. Find out the reason why employees are leaving your establishment. What measures can be adopted by the management for retaining talents.
You can find number of post and article regarding reasons for employees leaving an organization and ways to motivate and retain them. You can implement that suits your establishment. You need to understand employees behavior.
Salary is a basic thing and an employee doesnít leave just for the sake of salary hike there are other aspects also.

From India, Bhubaneswar

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