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  1. #1

    Default Strategies to Maintain an Employee Who May Resign

    My question involves labor and employment law for the state of: Hawaii

    Thanks in advance for your help.

    I have a valuable employee who plays a major role in my small business. I was informed by another employee he had plans to leave the state in 2 months. When I confronted my valuable employee, he admitted he was leaving because the cost of living in Hawaii was too expensive. Since my valuable employee did not tell me this information, and I learned it through the grapevine, I need to know what are the best strategies to retain him (permanently, or a minimum of 8 months while a replacement is being trained)? Below are some ideas I want integrated into an employment contract to retain him. (Note: employee currently makes approximately $80k/year as a project manager of a construction company)

    Option #1 - Keep valuable Employee For 8 Months

    - Offer employee $10k bonus to stay for 8 months. Conditions of this bonus will include:
    -- Employee must not miss more than 3 days of work in the 8 mo period or employer will revoke bonus incentive.
    -- Employee must continue to act faithfully in the companies best interest same as he has in the past. If found to have acted in bad faith (personal use of company tools or resources, talking about this bonus with other employees, inaccurate time reporting, etc..) the bonus will be revoked.
    -- If employee voluntarily leaves before 8 mo period, the full bonus will be revoked.
    - Any other ideas to tighten the terms of this bonus structure? Are the above mentioned terms legal?

    Option #2 - Renegotiate wages and bonus structure

    -As part of a renegotiated wage and bonus structure, I plan to include:
    -- Non-compete, including starting his own business similar in nature to the work we perform.
    -- Employee must give 6 month notice prior to leaving company to be eligible for any bonuses that are in progress. Must give notice regardless of circumstances.
    -- Any other ideas?

  2. #2
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    Default Re: Strategies to Maintain an Employee Who May Resign

    This is a legal board. Although you may get some suggestions from the H.R. people who post here, that's not actually a legal question.

    What you ultimately need to do is make an offer that the employee finds acceptable. The more strings you attach to bonuses, the less appealing any bonus package will become.

  3. #3
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    Default Re: Strategies to Maintain an Employee Who May Resign

    If I were an employee, I'd probably tell you no thanks to either of those options. Too many restrictions or ways for you to weasel out of things.

  4. #4
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    Default Re: Strategies to Maintain an Employee Who May Resign

    Yes - dump both of the above ideas and start from scratch. The first one is insulting and the second one is unreasonable.

    Have you considered asking the employee what it will take to get him to stay?

    ETA - I am one of the HR people mentioned above.

  5. #5
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    Default Re: Strategies to Maintain an Employee Who May Resign

    Those are both ridiculous. the first is both arbitrary and too subjective. The second ties the employees hands so tightly so that that really cannot leave. If I already had a departure plan and you pitched either of these I'd laugh at you as I walk out the door. Both of these show what you really feel about the hired help.

  6. #6

    Default Re: Strategies to Maintain an Employee Who May Resign

    Thanks, I really appreciate the feedback regarding my question.

    "cbg" I have not yet asked him what it will take to keep him here. I guess that's the best starting place.

    Any other tips or suggestions to convince him to stay and give me the piece of mind he's going to commit to staying?

  7. #7
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    Default Re: Strategies to Maintain an Employee Who May Resign

    As far as the legal end of it...the second suggestion may be illegal as well. I am not up to par on Hawaii's labor law, but I don't think you can force a requirement of a 6 month notice to leave on anyone in any a state.

  8. #8
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    Default Re: Strategies to Maintain an Employee Who May Resign

    I think you need to wrap your mind around the fact that this guy is a free agent and we outlawed slavery in this country some time ago. You are free to make any kind of offer you like to try to convince him to stay, but the bottom line is that unless he signed a contract of employment for a specific term of employment that is not yet up, he is equally free to tell you to pound sand and walk away without a second glance. Start thinking about his needs and not your own for a while, and maybe you'll get somewhere. Everything you've suggested so far is essentially self-serving with a bone thrown to him, and the bones simply aren't good enough.

  9. #9
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    Default Re: Strategies to Maintain an Employee Who May Resign

    have to agree....if it's truly important to keep him, $10k over 8 months isn't going to be enough. And with all the strings, as soon as he misses his third day, he might as well walk since he wouldn't get any extra under option #1. I agree you need to think of this from his point of view. It's going to take a LARGE chunk of change to keep him for 6-8 months longer, especially if he has a job lined up elsewhere already.

    And something is wrong if it takes 6-8 months to train a replacement.

  10. #10
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    Default Re: Strategies to Maintain an Employee Who May Resign

    Quote Quoting lookingforanswer!
    View Post
    I have not yet asked him what it will take to keep him here. I guess that's the best starting place.
    It sure is.
    Quote Quoting lookingforanswer!
    View Post
    Any other tips or suggestions to convince him to stay and give me the piece of mind he's going to commit to staying?
    First, understand that $10,000 for 8 months turns out to be chump change after withholding.

    Are you willing to pay another $40,000 for 8 months?

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