3 Reasons an Organization Might Support an Employee Resignation
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I was listening to a conversation recently where someone said, “Companies will never let a great employee walk.” I totally get the spirit of the comment. Companies should create a great employee experience, so employees want to stay.
But the truth is that sometimes organizations should let employees tender their resignation. And not in a mean spirited, “Oh they’ll see how good they had it here” kinda way.
In my first HR job, I worked for someone who had been with the company for decades. They were well-liked and respected. They had no intention of leaving. If I wanted to get a promotion, the only way was for me to resign and go someplace else. My boss knew it too. That didn’t stop them from giving me the tools to advance my career and when I was ready to move on, they supported me. Years later, that company called me and asked if I’d consider coming back.
That’s why organizations might consider supporting an employee’s resignation. When they realize that they can no longer offer the employee what they want and/or need. Consider these examples:
(1) The company can’t pay the market rate for the job. I’m not talking about a subjective situation where an employee says, “I want $$$.” What I’m referring to is a situation where the organization realizes that the going market rate for a particular job is $$$, and they only have $$ in their budget.
Most organizations have formalized pay structures. It’s generally frowned upon to operate outside of that structure. It can create inequities that might be perceived as favoritism or even discrimination. It’s really tough when the organization has a great employee that they would love to pay more but the compensation system doesn’t support it.
(2) The organization can’t offer the employee professional development. This is related to the pay issue above. Sometimes organizations can’t pay at market rate, but they are able to offer a lot of perks and benefits, like professional development. An employee might be very willing to stay with an employer because they enjoy the job and the perks, even if the base pay isn’t all that great.
From personal experience, I’ve worked for companies where my base pay wasn’t the highest, but I did have access to free meals, dry cleaning, airline flights, hotel rooms, conference attendance, and more. And I was okay with the arrangement because I liked the job. Which leads me to the last reason …
(3) It’s better for the employee to leave on good terms. There might come a time when the organization realizes that they can’t offer a great employee what they need and/or want. Instead of letting the working relationship turn sour, they support the employee. Because maybe at some point, the employee will want to come back. Or they will refer other employees. Or they will refer customers.
In a perfect world, organizations should create employee experiences that make employees happy to be working there. But there might be times when we have a great employee that, because of internal constraints, we can’t give them what they need and want. The best thing to do might be to support their resignation and part as friends.
IceHrm underscores the importance of prioritizing employee career development in today's competitive landscape. By investing in learning and career advancement, companies can foster engagement, uncover hidden talents, develop future skills, facilitate succession planning, and attract top talent.
