Tuesday, April 17, 2012

The Counter Offer and Other Acts of Desperation

At one time or another, we’ve all heard stories about that dreaded counter offer. We’ve either worked next to the guy who stayed because he received a hefty pay increase or we’ve had to pick up the slack for the gal who laughed at their attempt to keep her and left for the new, immensely more glamorous, position. Even though these things are supposed to be confidential, word always gets out.

On one hand you have the employees who are beside themselves for not thinking of it first, but on the other, and probably the most detrimental, you have employees who see it for what it is: an act of desperation. Your weakness. You’ve tipped your hand that at the moment, you feel said employee is worth more than the rest, or at least that’s the message you’re sending. Truth? Does it matter? If perception really is reality, then we now have a problem on our hands.

The Counter Offer isn’t the only way companies scream desperation to their employees. The company who throws money at new hires? What’s that all about? If the economy supports a certain pay range for your position and a company throws money at you (in other words, it means hiring you in at a significantly higher salary then you are currently making), be sure to ask yourself the tough questions. Am I really worth this to them? What do I bring to the table that they SO want? Why is this position paying so much higher than my current one? Is this company successful? Why is this position open? And taking it further…..what is going on with this company that they need to pay SO much more for this position? It’s a desperate attempt to hire employees without examining, or revealing the issue or cause for concern.

The stories we hear around this topic can be heartbreaking. I remember one employee who was approached by a competitor and lured with promise of a pay increase of $7/hr. That’s almost a $15k annual increase. She had done nothing to warrant that increase (no further education/masters degree, management role, etc.) and looked it as a lucky break. I encouraged her to dig deeper, make sure the offer was a good one since her current position afforded her husband to stay home with the kids and paid for their medical benefits in their entirety, as well as flexibility and overtime pay. She chose to stay in her current role and three months later she read in the news that the company who tried to hire her was closing up shop and moving their facility to Tennessee. She chose wisely.

When companies honestly communicate their situation and their intentions during the interview or recruiting process, the fallout will be reduced dramatically. More than likely, the companies will end up hiring like minded individuals who just may even be able to help turn things around. I would much rather discuss the position for what it really is and not in a sugar coated, hope-they-don’t-figure-it-out sort of way. When you do the right thing in communicating your intentions, the right results will follow. Your employees, clients, and competitors will see you as a solid entity, and not as someone acting out of desperation.

A great vantage point, if you ask me.

Wednesday, April 11, 2012

Survivors’ Guilt or Bad Business Decision?

SCENARIO: You own a business and are doing fairly well. Your friends know you are doing well, since you regularly pick up the tab when you all go out for drinks after work. One of these friends has had trouble getting a job and comes to you asking for one. You hire your friend for a sales position, knowing that there is one glaring reason that you shouldn’t have. Survivors’ guilt or bad business decision? Read on….

BACKGROUND: On the surface it seems that hiring friends might be the issue, but it’s not. There is much more to the story and as an employer, it’s up to us to do our due diligence and make sure our hiring is done with ethics and integrity in mind. The back story to this hypothetical situation is this: your friend has two DUI’s and has actually spent time in jail for these offenses. Fortunately no one was injured, but the offenses are still pretty serious. And, your friend lost their license, so you now have a sales person, in a position where they must drive to locations, driving with no valid license, AND YOU KNOW ABOUT IT.

So the question is, is it survivors’ guilt, since you have a position, and have the ability to hire your friend, or is an act of arrogance and a really bad business decision? I’m not a lawyer, nor to do I play one on TV, but I would think that there is some sort of liability as an employer, having an employee with no valid license (in a position where they have to drive) due to two DUI’s, AND YOU KNOW ABOUT IT. So, you have knowingly put someone in a position of further trouble, and have probably taken on some risk as well.

What about the clients you are sending this person to? What happens when they find out? Does that damage your reputation or increase your sense of compassion in their eyes? Will they see it as survivors’ guilt or a really bad business decision?

Regardless of friendship, I would think doing the right thing would take precedence. And by doing the right thing, I mean obeying certain laws and protocols. Hiring someone for a position which they are unable to perform FOR LEGAL REASONS seems a bit like arrogance to me. Unless they take the bus to appointments. THAT would be legal. Good thing this is a hypothetical scenario. I’d hate to be the employer in this situation.

You decide…Survivors guilt or really bad business decision?