Recognition by Resignation

Recognition by Resignation ( R by R) is practice often followed by high fliers in a corporate setting.

The moment this top decile performer puts in the papers, it unnerves the system and initiates a series of cajoling sessions to retain the incumbent who is viewed at indispensable.

The hike he is getting elsewhere is matched and he stays back

But is it good, as an organisational policy to encourage R by R?

Doesn\’t it vitiate the culture of the organisation ?

If someone has resigned for a hike in compensation, then as a matter of principle, I personally feel he should not be stopped.

But there are other dimensions also.

Lets say, the pain point is stagnation – sheer frustration because things are not moving for a long period of time ?

What if he\’s ready for the next move and yet, purely because his great performance in the existing role, he\’s not being moved out because the system doesn\’t want to experiment with change?

What if the he and the boss have had an acrimonious relationship?

In such cases, will it not make sense to renegotiate?

Whats your view on this?