It appears that ground of "poor health" under which senior member resigned could be fictitious. He could be the one who is pulling in the new company one by one.
This happens at many places. At regional office when Regional Managers are given free hand to operate, they make clique and this starts acting as pressure group. Over a period of time, management succumbs to the pressure tactics of this group.
Your HR Head should have identified this problem long ago. If he had kept his ear to the ground, the situation could have been mitigated. However, the full-blown crisis is staring at you. Now your HR Head needs to travel to Mumbai and identify the problem. For this, he needs to talk to the team and find out what can be done to retain them. Obviously salary increase is one major factor for retention. HR Head needs to strike balance between viability of salary increase and organisational requirements.
What are the cons if management lets go entire team? How many members are there? How much time will it take to replace them? The negative feature of their retention is that they will keep on bargaining forever. This disease could spread to other offices as well. Is it possible to fix 1-2 of them in some disciplinary issue and terminate them? This could scare the remaining persons.
22nd September 2016 From India, Bangalore
Adding few points to dinesh post
The sooner that you detect that someone might be thinking of leaving, the better chance you have of changing their mind. This is why you should always be on the look-out for significant changes in the behavior of your members of your team.
The kind of signs that you might need to be concerned about include:
•Impatience, either with people or tasks.
•Disengagement from the team, perhaps by being "absent" mentally, or using increased sick leave.
•The venting of negative feelings in "water cooler conversations".
Be aware that any change in behavior may be significant when it comes to making sure that valued team members are happy. In some cases, a seemingly positive change may be just as much of a warning sign as an obviously negative one. For example, a team member whose productivity suddenly increases may perhaps see this as a way of impressing a potential new boss in another department, or she may be anxious to leave with a clear desk and conscience.
Similarly, a colleague who used to stay focused on his work, but who begins to chat at colleagues' desks, may be avoiding doing work that he no longer enjoys.
There's no need to become cynical about such changes, but do consider them in the context of that team-member's performance and behavior. Then you can decide the best way to sustain that person's contribution to the team.
There are particular times in the calendar year when you need to be especially alert to changes in people's attitudes. When people have longer periods away from their jobs, such as during summer or end of year vacations, they may be prompted to rethink their situation.
Such "moments of truth" can also occur at the signing-off of long projects, or even at the end of the financial year. Team members who’ve been in their role for some time may feel a responsibility, or even a moral obligation, to make a move only when one activity is finished and the next hasn’t yet started.
25th November 2016