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Bidding Wars

Should you match an offer an employee gets from another company?

This story appears in the April 2001 issue of Entrepreneur. Subscribe »

Competition for good employees is strong, so don't be surprised when your top people get offers from other companies. The question is, Should you try to match or beat those offers? Only if it's someone who's critical to your operation, says Alan Weiss, president of Summit Consulting Group Inc. in East Greenwich, Rhode Island. "You've got to make sure it's a high-value employee," he says. "Otherwise, don't do it."

Keep in mind, there's a strong likelihood that the issue involves more than just money. Before you make a counter-offer, Weiss says, "make sure it's a matter of money and not other things. If they're leaving for less than a 15 to 20 percent increase, it's not the money; it's something else-they don't feel like they have a career opportunity, they don't like the boss, whatever."

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