Nothing pains me more than seeing a good teammate leaving. He told me about a better offer and how’s he’s under pay, what would you guys do in this case to keep him?

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Maybe…..

As long as your colleague isn’t making a big mistake and blindly chasing higher pay, I think the best thing we can do is to just be happy for them and celebrate them.

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Well I think there's two really good options. The first, is you have to offer them an incredible deal to stay - one that's better than their current offer. But you have to make sure that the offer will keep them there long term and not make them want to leave again. The second option is that you could actually follow them over to where they're going. If there's a lot of great work chemistry between the two of you, and you thrive off each other in a work environment, it might not be a bad idea and may pay off for you.

Hmm good point. Is hard because I know we are undercutting him but I’m unsure even if we match his offer he will stay. It might take the company offering an incredible deal for him to stay

First you need to dig into the real reasons they are leaving. It usually is more than money. Counter offers are fine but generally lead to upper management mistrust of the employee. Studies show that almost 75% of people that accept counteroffers leave less than 12 months later.

Better upside and 70k more OTE. I think that’s more than enough lol

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