How to Craft a Retention Email After Offering a Salary Hike to a Resigning Employee

One of my team members resigned; he is in the notice period. We wanted to retain him, so we offered him a $5000 salary increase, and he is willing to stay back.

Now, I need to send him a formal email. Please advise on what to include in the email.

Yes, salary negotiations always occur when an employee resigns. However, from an administrative point of view, you need to separate resignation and salary increase.

I recommend that you instruct the employee to submit an application to withdraw his resignation letter. Have the withdrawal request approved and simultaneously obtain authorization for the salary increase. Subsequently, issue two letters to the employee: one for accepting the resignation letter and another for the salary increase.

Thanks,
Dinesh Divekar

Yes, the employee has to confirm the cancellation of his resignation either in a separate letter or in the same resignation letter in his own handwriting. Later, an increment letter can be issued. You may include an increment reversal clause in the increment letter, stating that "in the case of resignation within 2 or 3 months from the effective date of the increment (as per your company norms), the increment will be reversed." The reason is that many employees have lately used this as a technique to bargain for an increment with their current employer and then negotiate with a new employer immediately to gain more monetary benefits within a short period of time.

Also, advise the concerned employee to keep this information confidential, as otherwise, you may receive more resignations from others.

Thank you.