Recruiting Risk Management is our business. We take no chances. We dig deep, because a hire is not just a person filling a desk location. The management hire is a human being with immense ability to cause havoc in your organization.
I am assisting a business now who is hoping the person they hired 10 years ago will resign. Why? Because China will require them to pay the person 1 month salary for every year or part of year worked. A manager getting US$5000 a month will get $55,000 when you fire her after 10 years. Why would that woman resign? She gets nothing if she resigns and $55,000 if she can succeed in getting fired. Because she is not a very good person to have on the team in the first place, she knows she should hold on as long as she can. The really good manager you liked resigned and left because of her, but she will not leave.
The law says you cannot lower this person’s salary or give them a bad position against their will in an effort to get them to resign.
Recruiting Risk Management is a Bigger Topic in China
We have another customer who wants to change out his management staff, so if he changes 10 people at average cost or severance of $25,000, he will spend a quarter million just in severance.
I counsel companies to take their lumps and fire these people they have finally realized are not good for their future. I also try to help them not make these mistakes again.
First, hiring is important and you should think clearly who you need. You must emphasize you need a person who is teachable. No one can tell the whole future, A teachable person can move and grow with you.
Second, you need to get a person of good character who will not be a liability for you in the future. You must be careful of the things that are not in the resume like their integrity and ability to get along with others.
I did not say you need to think about their skills. I know you will be all over that. We need to look deeper and really know who that person is, and then you will dramatically lower your recruiting risk management needs.