I agree that there is a lot of sense in this, and especially that money is not everything, however, what exactly is wrong with accepting a counter offer? Just curious as I want to compare it with a situation I was in previously.
I know that the work environment I have created for my staff is probably dramatically different to most environments (especially corporate) and before answering why I would not make a counter offer for my staff:
- We set targets at the beginning of the year and then have a mid- and a year-end review. We have weekly team-meetings and my staff know that they can approach me with anything (be it of personal- or work-nature)
- I know each and everyone's circumstances and individually we plan career-development and each employee is very well aware how far they can go with regards to salary and bonuses as well as skills development
- During reviews we discuss progress and how we can improve (mutually as employee and employer)
- At year-end I ask staff what their increase expectation is and in most cases I will push for more (which is easy to get past shareholders when performance is great).
- Seldom do we run into an issue where non-performance becomes a surprise at year-end increase discussions.
So when you take all of the above into account, each employee basically gets a higher salary than they wanted/expected and get performance based bonuses. Granted, our salaries are not necessarily in the top-range (comparable to corporates) and we do not provide all the fancy perks, but having said that, the work environment is challenging but casual and flexible without the corporate red-tape and BS. So when a staff-member comes to me and says "I have received a better offer elsewhere" it tells me that I either have progressed them far enough that they are on to new challenges or that I could not give them a better salary (which would be related to company constraints and not the actual performance of the staff).
For me as a manager it would be too late to fix something (especially considering that we have a very transparent work-relationship). We had cases were people had financial difficulties due to personal circumstances changing and there we help with company loans, salary advances or other means to bridge that gap.
BTW: When it comes to salary: When you jump from 7K to 20-30K it will make a big difference to your life. When you jump from 30K to 40-50K your life-style will not necessarily change as dramatically. I compare this to the "pancake"-principle: The first pancake you eat is awesome, the 2nd is great, the 3rd is good --- by the time you hit that 5th pancake, it is actually not that great anymore.