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Dear Workforce How Do We Prevent Division Presidents from Undercutting HR

I’ve always believed that when an employee offers a resignation, it’s best to accept it rather than dissuade them, even with more money. Recently, a division president (without consulting human resources) agreed to give a significant increase to a group supervisor to prevent her from leaving the company. The new salary is well above the max for the position, and she has bragged about her "deal" to many other employees. What can be done now to prevent other employees from trying the same tactic?
June 4, 2004
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Related Topics: The HR Profession, Compensation Design and Communication, HR Services and Administration, Dear Workforce, Compensation
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Dear Miffed:

My first emotional reaction: fire the division president. This sounds radical, but it would sure send a message. Of course, the supervisor would quit, but she may quit anyway.
As far as preventing other employees from trying the same tactic, there isn't any way to do this. The question is how successful they would be.
Now, to my more logical reaction. What have we learned here about how engaged the human resources staff is with senior executives? In this company, it's obvious that the official did not have a high enough regard for human resources, and didn't know the right way to handle these situations, which is to consult the chief human resources officer.
It would be easy to point a finger and snicker at this one, but couldn't this happen in your company? If you say no, are you sure?
Conventional wisdom says you shouldn't "buy" loyalty if someone is ready to leave, and permitting an employee to brag about a deal without being disciplined is foolish.
SOURCE: Roger E. Herman, certified speaking professional and certified management consultant,The Herman Group, Greensboro, North Carolina, co-author of How to Become an Employer of Choice and Impending Crisis: Too Many Jobs, Too Few People, July 22, 2003.
LEARN MORE: Please read ourHR's Role Must Be Expanded in the Boardroom.
This article is intended to provide useful information on the topic covered, but should not be construed as legal advice or a legal opinion. Also remember that state laws may differ from the federal law.
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 The information contained in this article is intended to provide useful information on the topic covered, but should not be construed as legal advice or a legal opinion. Also remember that state laws may differ from the federal law.

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