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HIRING
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We put a lot of effort into hiring a key employee,and have selected one that will relocate to our area (where he is from originally). How can we be comfortable that the selected candidate is not just
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HIRING
posted at 4/22/2010 8:54 AM EDT
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Posts: 3
First: 4/22/2010 Last: 6/10/2011 |
We put a lot of effort into hiring a key employee,and have selected one that will relocate to our area (where he is from originally). How can we be comfortable that the selected candidate is not just using us as a quick stepping-stone to bigger and better offers in our city? |
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HIRING
posted at 4/22/2010 10:20 AM EDT
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Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
Agreed that the relocation package should include a pay-back clause. The last one I read said immediate payback or it was a 12% loan for 12 months to get the prorated amount paid back.
The proration was at 12 months service, they took off 50% of the balance; 24 months service totally cleared the balance. But the clause should also contain information on what happens if the employer chooses to let the employee go do to either no cause or cause, etc. I would have an attorney draft this package to make sure it is 100% legal. |
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HIRING
posted at 4/22/2010 11:30 AM EDT
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Posts: 562
First: 11/12/2009 Last: 9/14/2011 |
Then absent a contract of employment for any specific length of time, you will have no assurance that the person will stay. And even with a contract, you might not have much recourse were the person to terminate before the end of the contract period. |
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HIRING
posted at 4/22/2010 11:36 AM EDT
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Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
Oh! Well, then you could try a non-compete agreement/employment contract where there are some negative consequences for him leaving, but again you would probably need some kind of consideration to him to get him to sign it. AND you need to check your state laws on how enforcable it would actually be. I am honestly not a big fan of NCAs from either side.
That said, if you aren't paying relocation costs, sure you will have some onboarding costs....but in an at will agreement, that is a chance that the employer has to take to get new employees. You could try for a staying/retention bonus as a carrot. But you need to make sure that it is written correctly. And that it actually accomplishes something more than just giving the key ee money for staying. And there is nothing to say that he will stay longer than the day after payday. One other option is something like stock options that vest over a number of years. Do you have anything like that? Hopefully if you have a 401k plan it has vesting that helps a bit with employee retention. Of course a good key employee who wants to leave often can find another employer willing to pay a sign on bonus to make up for some of that loss. |
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HIRING
posted at 4/23/2010 11:37 AM EDT
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Posts: 544
First: 9/27/2004 Last: 9/13/2011 |
Do you have good retention rates? Why do you think this will be different? Is this some kind of gut feeling?
Employment relationships are two-way streets, you worry about being a stepping stone while on-boarding employees worry that you will use their knowledge short-term with no gaurantee of job security. Trust is fundamental to performance, best to not start this relationship with mistrust. |
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