HELP! I need to write up a "Pay to Stay" offer letter by 2 today!!!

slasall

My boss just asked me to write up a "Pay to Stay" offer letter to an employee who is interested in leaving our company. Does anyone know any legality issues that I need to be aware of in writing this offer? Does anyone have a sample letter? Thanks so much!

Don D

[font size="1" color="#FF0000"]LAST EDITED ON 02-03-03 AT 09:31AM (CST)[/font][p]I suppose you're talking about a counter offer to match/exceed an offer a current ee (says he) has gotten. Although I'm sure some will disagree, I've never known such counter offers to be made in writing to current ees if all you're trying to do is keep somebody from leaving. Are you intending to form some sort of contractual obligation for the ee to remain employed for a certain period of time in exchange for a pay increase? I'll defer to the lawyers on the Forum in that event. Now that this subject comes up though, we never really know the legitimacy of such things as offers employees tell us have been made to them or the accuracy of salary levels our candidates give us. Wonder how many bucks we've all thrown at inaccurate or falsely stated salaries?

slasall

Thanks! I realize that there are many legality issues in this letter. A con is also now that other employees may hear about this and want the same offer letter (since it includes a bonus). I also know that I can not make this sound like a contract since if this employee fails in his performance, we may decide to terminate him. But how should I even start this offer letter?

Pork

slasall: I, like "Dandy Don" do not really understand "pay to stay" offer. If Don is right, then my 28 years of HR work tells me to ask your boss. Where were we yesterday with the increase or letter of offer before you knew about the offer. It is best to keep these types of letters strictly "closehold". Otherwise, you should "save your letter of offer to stay" as a draft in your computer files because there will be more as the rumor gets out!

I have found that reaction to one's ligetimate offer to change vocational opportunities with a letter of offer, which would be a based on the value of the employee today verses the value yesterday, a "slap in the face". In offerring words to say, you should apologize for your companies' obvious,lack of vision and value pertaining to the leaving employee. Evidently, your boss has already made an offer verbally and the ee has said put it in writing, I certainly would! What has your boss promised? In this case, you might ask your boss for a draft to work from, just maybe he has one in his personal file.

In writing this offer use as generic and general words as possible. Only promise specifically what has been offered, verbally. A letter of offer like this can become a written contract, and you can bet, if the ee expects your company to respond he'll/she'll be back soon with another offer from another company. Before I would counter offer, I would like to have the offer received in writing, if it is not available, then tell the ee, good luck with your next job opportunity.

Employees who work for money in critical positions of authority and responsibility consider money to be a short term motivatior. An after the fact, offer is a demotivator. "What have I done for your today and what have you done for me yesterday" is where the ee's attitude is located. Be careful of this ee's loyality to the company! Pork

Balloonman

Rare is it that someone began looking soley because they were underpaid. I remember a friend who had his boss find out he was a finalist for a position. I will leave out all the details for brevity. Well he ended up keeping his job, and his boss gave him an $8,000 raise. I will never forget my friend laughing as he said, he thinks that will make me stay. All that means is that I will get a larger increase from my next employer. Money was not the reason he was looking.
What I always look at is the value of the employee, and how they approached me with the situation. There have been two occassions where I have increased salary and successfully retained the employees. On more occassions I have wished the employee good luck with his future. Those that told no one about the offer and approached me in an approriate manner are the two I was able to retain. They were employees we did not want to lose.
I would not put things like this on paper, unless I put a significant disclaimer on the bottom, or outlined increaed expectations to go with the sizable bump in salary.
Well that is my $0.02 worth.
DJ The Balloonman