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!
I always hate to chime in where I think there have been several quality answers but I think one thing everyone is missing here is that the main issue you are facing is communication based. The employee was fine communicating a threat to you but since hasn't proactively worked with you to create a directional movement and stability, causing you to feel held hostage. As a leader you have a few things to think about. The first one is that no matter how great of an engineer this employee is, if they can't communicate, long term employee retention almost has no chance.
If the employee is trying to leverage better offers from you, they are going to do that in the future proactively if you easily cave to it.
The best thing you can do is become a peer to the employee to try to create open communication and express your concerns. Based on the timeline there is a good chance the other offer fell through and the employee feels stupid but is still looking.
Once you open up communication by explaining to the employee that your goal is to better understand their needs, try to get feedback on the following questions:
What was most attractive about the offer you received? (What is motivating the move)
Can you provide me a copy of the offer so we can refine our compensation or career path strategy with you?
If you are unsuccessful in those, a final question:
Are you truly interested in retaining with us?
If that doesn't move the situation along, I would start hiring to replace ASAP and TERMINATE the employee. You can't be held hostage by someone who isn't even willing to communicate with you.
Answered 9 years ago
Access 20,000+ Startup Experts, 650+ masterclass videos, 1,000+ in-depth guides, and all the software tools you need to launch and grow quickly.
Already a member? Sign in