Employment Law Axiom No. 21: Accept Resignations

 TLDR:

• Counteroffers create pay chaos and undermine your structure.
• Most who quit once will quit again.
• Quick goodbyes are cleaner than long goodbyes.

Let ‘em walk.

When someone quits, let them. Thank them. Wish them well. And start planning for life without them.

Do not beg. Do not panic. Do not rush to match offers, promise promotions, or make declarations you’ll regret. You can always hire them back later if it makes sense – but trying to keep someone who’s made the decision to go is usually a bad move.

We get it – breakups are hard. When a valued employee resigns, it leaves a hole in your organization and makes things difficult. It adds something else to your to-do list and is likely to cost you money. It can feel personal. But it usually isn’t. More often, they’re leaving for an opportunity that feels better to them right now. Respect their agency to make that choice. Accept the resignation and keep your dignity – and your leverage – intact.

There are a few big reasons why accepting the resignation is the right play.

First, even if you convince them to stay with more money, you’ve probably just blown up your compensation structure. Word will get around fast. Everyone in the department will realize they, too, can come in, wave a resignation letter, and get a raise. Congratulations – you’ve just opened the most expensive Pandora’s box in your company.

Second, even if you convince them to stay, it probably won’t last. Our experience is that people who are unhappy enough to resign once don’t magically become long-term, loyal soldiers because you threw more money at them. They may stick around for a few months, but the discontent that led them to look in the first place will almost certainly resurface. When it does, you’ll be right back in the same position – only poorer and more annoyed.

Third, employees who’ve already mentally checked out are rarely helpful culture-bearers. Having a “dead man walking” hanging around for two weeks – grabbing coffee, saying long goodbyes, swapping LinkedIn info – is a morale killer. Worse yet, they may be a risk: spreading negativity, recruiting other employees, or taking confidential information with them.

That’s why, as a general rule, when someone resigns, make the resignation effective immediately. Thank them for their service. Express disappointment if it’s genuine. And hand them a separation agreement with a reasonable two-week payment and get them to sign a general release of claims. Wish them well and move on.

Some Situational Caveats.

There are exceptions, of course. If you absolutely need their help with a transition,  fine – keep them on, but keep it tight. Short, remote, limited access. And only if absolutely necessary. Otherwise, letting them linger does more harm than good.

So, after you accept the resignation, and before you finalize any of the paperwork, talk to their supervisor. Maybe the supervisor was fed up with their performance and the resignation saved you from having to do the dirty work. If so, good riddance. If the supervisor is genuinely sad to see them go, then – and only then – you can start thinking about whether bringing them back later might make sense. But that’s a rehire, not a negotiation while you extemporaneously consider how to respond to their attempt to quit.

Now, another quick nod to Netflix’s “Keeper Test” from Reed Hastings and Erin Meyer’s No Rules Rules – because I know some of you are thinking about it right now.

In that book, Hastings and Meyer advocate for a constant, ongoing evaluation of talent. The “Keeper Test” is simple: If an employee told you they were leaving, would you fight to keep them? If the answer is no, you should start planning their exit before they do. If the answer is yes, you should be proactively engaging with them, giving them reasons to stay, and – even better – encouraging them to talk to recruiters. Seriously. Hastings suggests that A+ players should constantly be exploring the marketplace. Employees, after all, have better access to current market data than employers do.

The logic is that if you can have candid, open discussions about whether the grass really is greener somewhere else before the resignation letter shows up, you can sometimes head off the whole ordeal. Maybe you can’t match every opportunity out there, but at least you’ll have real conversations in real time, with mutual respect. Done right, this builds trust, not resentment.

But – and it’s a big but – this proactive recruiting and engagement happens before the resignation. If the resignation has already been tendered, the moment calls for acceptance first. Take a beat. Settle the goodwill. Get the separation on clean terms. Then, after things have cooled off, you can thoughtfully consider re-recruiting the departing employee – if it still makes sense for both sides.

Blurting out a desperate counteroffer in the heat of the moment is bad for the company, bad for the manager, and frankly bad for the employee. But structured, strategic re-recruiting? That’s a different ballgame – and it needs to happen with clear heads and smart plans, not knee-jerk reactions.

When an employee resigns, accept it. Honor their choice. Keep the door open if it makes business sense, but don’t try to wrestle them back in the heat of it. You’ll keep your culture cleaner, your compensation structure more intact, and your company running smoother – and you’ll still have the option to rehire on your terms, not theirs.

One truth: Trying to retain someone who’s already resigned is a losing game.

Two actions: Accept the resignation cleanly. Offer a short severance in exchange for a release.

Three benefits: No comp ripple effects, no cultural hangover, and a reputation for professionalism, not desperation.

“By all means, make a counteroffer – so they can quit again with a raise.”