In this series, business correspondent Timothy Goh offers practical answers to candid questions on navigating workplace challenges and getting ahead in your career. Get more tips by signing up to The Straits Times’ Headstart newsletter.
It can help, but only if your employer genuinely believes you are prepared to leave.
If replacing an employee would cost the business more than retaining him or her, employers are likely to find ways to keep the staff, said Ryan Ng, founder and chief executive of career branding consultancy YouDigital.
Still, managers have seen plenty of empty resignation threats, and they can usually tell the difference between someone who is frustrated and someone who is genuinely ready to move on.
“One mistake I see people make is treating resignation as a negotiation tactic instead of a last resort,” said Ng.
“Once you’ve played that card, the relationship changes. Even if your employer agrees to a pay rise, they may start thinking about succession planning because you’ve signalled that you’re willing to leave.”
Archana Srinivasan, a certified senior professional at the Institute for Human Resource Professionals, said a resignation threat can “easily backfire”, as employees risk being seen as non-committed or disloyal – a perception that can adversely impact them from being considered for future promotions or stretch assignments.
“I’d rather encourage people to have an open and honest discussion with their manager or HR department about their expectations and challenges,” said Archana.
“Handling it maturely tends to yield better results, without damaging the relationship.”
In some critical situations, some companies do yield – say, when someone is a key resource on a high-stakes project and letting them go would jeopardise the client or the company’s reputation.
But such decisions are often not sustainable because a pay rise seldom resolves the deeper reasons an employee wanted to leave in the first place, said Archana.
“So I wouldn’t recommend it in the interest of the long-term relationship… Anything that is earned through performance and honest conversation is far more durable than what is extracted through an ultimatum,” she added.
Ng said it is better for employees to demonstrate the impact they have delivered, understand what their skills are worth in today’s market, and have an open conversation about their career and compensation.
“Those discussions tend to lead to better long-term outcomes than issuing an ultimatum,” he added.
“If you have to rely on a resignation threat to get paid what you’re worth, it’s also worth asking whether you’re in the right company to begin with.”
