Dear Sir,

Is it possible for the company to retain the employee by offering a higher salary at the time of joining another company? Can the other (opposing) company have the liability to sue the company in this regard?

Regards,
Lahari

From India, Hyderabad
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From India, Delhi
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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 the future. Instead, I suggest trying other proactive actions in employee retention.

As for 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 cannot sue you for such an action. Legal experts may opine on this.

From India, Pune
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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 pressure on any employee by paying more and expecting them to meet your offer. On the contrary, you are spoiling the good working environment in the organization and inviting unprecedented problems. If anybody wishes to leave, let them go, as the door is meant for both entry and exit. Mr. Roy has given an excellent opinion with examples of consequences. Thanks to Mr. Roy.

Adoni Suguresh
Labour Laws Consultant.

From India, Bidar
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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
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If you are asking whether it's possible to retain an employee by offering a higher salary, then yes, it is possible. However, it would depend on the employee's intentions and circumstances. If the employee values the salary increase and it aligns with their expectations, they may choose to stay. On the other hand, if the offered hike is not compelling or if other factors outweigh the salary increase, the employee may still decide to leave. There are various reasons why an employee may choose to stay or leave, and sometimes an employee may only be testing the waters with their current employer regarding their retention.

Regarding your second question, since this situation is at the offer stage, there are no established contracts or covenants between the employee and their potential new employer. Therefore, there is no legal standing for the other employer to take action against your company. As the current employer, you have the right to offer additional benefits to your employees, even if they have decided to leave. It is within your company's rights to make such offers, and there should not be any grounds for legal action from the other company. It seems that you may have intended to use the term 'right to sue' instead of 'liability' in this context.

No need to worry, friend.

From India, Bangalore
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As rightly pointed out by Mr. Roy, there can be many reasons for employee dissatisfaction. The best practices in HR will never recommend luring employees only by way of salary or any other monetary benefit. Today, talent has its unique identity, and employees are always on the move to where their talent is respected. Accordingly, they are hired for positions that suit them, providing all the comforts and welfare that make them happy and proud of their achievements.

In a nutshell, I can say that employees need mainstream involvement in the organization, need to be committed towards organizational goals, and should be allowed to find job satisfaction through self-motivation.

From India, Vadodara
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Dear Mr. Adoni Suguresh,

Greetings!!

It is kind of you to express gratitude for the post, although the original poster (Mr. Lahiri) is not involved in this conversation.

Furthermore, I am not the sole recipient of thanks for the posts I make. People like you and other seniors who consistently provide valuable comments should also be appreciated. Therefore, thank you all.

From India, Delhi
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Retaining employees by money only is a short-term solution. To gain the loyalty of an employee, the key is to build their trust and help them feel satisfied and recognized. Here are some interesting facts about employee satisfaction to provide ideas on how to retain the best employees: [Employee satisfaction's facts](http://vnmanpower.com/en/employee-satisfaction-facts-to-help-keep-your-best-staffs-bl180.html)
From Vietnam, Hanoi
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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 doesn’t leave just for the sake of salary hike there are other aspects also.

From India, Bhubaneswar
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