The reason I ask is, a Fortune 500 company has been courting one of my engineers for about six months. About three months ago, the engineer told me he would probably be leaving within 30 days as soon as he negotiated a contract with the Fortune 500 company. But then negotiations stalled. I've been waiting three months in limbo, not really knowing if he is staying or going, and he doesn't know either. He's been distracted and reluctant to start any long-term projects, because he doesn't want to leave us hanging. But I can't stay in limbo forever. I really want him to stay or go, so I can plan accordingly. I told him I needed an answer by the end of the month, and his answer was, "Yeah, me too." I don't think he's taking it seriously. So, I'm thinking about telling him I want a one-year employment agreement with. Either he signs it, or I'm letting him go, and he can hang in limbo by himself. Is that the best way to handle it? If so, what penalties should I use if he violates the contract? Loss of stock options? Really, I don't want him to feel like I'm pushing him into a corner. He is a good engineer, and I actually hope he stays. I just need him to make up his mind!
A few key things to consider to help the thought process (since the answers aren’t always obvious):
1. Locking him in: The approach of thinking about how to ‘lock him in’ is not a great one. It is understandable that you want him to feel rooted in the position, but the best way to do this is through positive, not negative, incentives. A person’s best work is driven by opportunity, not obligation. While it may be true that this engineer is talented, you will only scrape the surface of that human capital if he isn’t properly motivated.
2. Find the “Why”: The only question that is important right now is “Why is he attracted to this other position?”. Figure out the why, to Tom’s point earlier, and you will know whether you can provide that for him. Early in one company we had a lack of structure that was challenging for some new employees, so we had to have an open discussion about addressing those concerns and also setting expectations. You have to know the motivations to know what your options are (the tools you have to react).
3. Make the Call: You can’t wait for him to decide here - his indecisiveness has had an opportunity cost within your business, has expended your time and had an impact on the rest of your team. Knowing when to fire someone, especially if it is one of the first times you’ve done it, can be frustratingly debilitating because you do truly know what must be done but the action is particularly unpleasant. Mark Suster has a great post on this that helped me early on: http://www.bothsidesofthetable.com/2011/05/26/startup-mantra-hire-fast-fire-fast/
I know this can be tough so here is a link for a free call - happy to chat for a few minutes and walk through it: https://clarity.fm/bobgreenlees1/water8790
Answered 9 years ago
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