Advice on "unusual" offer letter

Kymm · March 2004

Ok...here's the situation... we have the opportunity to hire someone that is very "highly regarded" in our industry. IF he comes on board, he is saying (and we believe this to be true) that he will bring with him some major customers/contracts for us. Now... the management wants me to put some type of offer letter together stating something to the effect of... "IF those customers/contracts do NOT come with him within 90 days of his employment, we will unfortunately have to terminate his employment with us." (As we would not have the work for him.) They have verbally talked to him about this and tell me that he is in full agreement with it... however... I'm very hesitant on this and the wording.... any suggestions? P.S. There is no problem with "confidentiality agreements" on this.

deniseE · March 2004

I would be hesitant to put specific names in writing...but you could say "after 90 days if your portfolio has not increased by x number of clients, your employment may not be continued."

This makes it a performance issue...you're probably on more stable ground there.

ritaanz · March 2004

If I were to write such an offer letter, I would not include names but I would state the sales volume or sales dollars or number of contracts expected in a certain time period.

Gillian3 · March 2004

Ditto to the others. There may be legal issues that revolve around someone "stealing" clients, the probable former employers point of view. You don't want to get embroiled in that mess.

cebudragonlady · March 2004

Wondering - does this "highly regarded " person have any agreements with his present employer that would prohibit him/her from working with your company ? or limit the customers/contracts he/she can bring ?

Chari

Crout · March 2004

[font size="1" color="#FF0000"]LAST EDITED ON 03-25-04 AT 01:49PM (CST)[/font][br][br]I'm wondering why the "special" offer letter is needed at all. Presumably this person will be judged on the ability to deliver the goods, which should be standard operating procedure. Is it a case where he's being given some extra compensation of some sort not normally offered to new employees?

Whatever · March 2004

I don't know what industry you are in, but I would be concerned about someone who is not only leaving their current employer, but are "promising" they'll being along some major accounts. I know it happens in a lot of industries, but I just can't believe it's ethical. And, of course, would he do the same thing to your company. Maybe it's me but I have always believed that a backstabber is a backstabber is a backstabber.

marc · March 2004

This situation often is referred to as bringing a "book of business" and you will find a number of ways to treat it. How about having the prospect identify the book of business to make sure that it is the same in writing as represented verbally to management? That way you are referring to the business he represents - you can add it as an addendum.

By the way, for something like this, I would have corporate counsel draw it up and not mess with uncertainties because of the very concerns other posters have mentioned.

These are his representations and should be treated as such.

TN HR · March 2004

It would seem to me that anyone with the capacity to bring key accounts and major clients with them to a new employer would probably be covered by some sort of non-compete/non-disclose. So, it appears to me that your offer letter would only serve as proof of your knowledge of this when the losing company sues for unfair business practices.

I would be against doing this. Now, you can certainly make your offer contingent on him attaining a certain sales goal in terms of volume or dollars. This would seem more reasonable and would limit your exposure.

Gene

Kymm · March 2004

I think most of you are assuming this potential employee is a sales person - he is not. He is a Project Manager. We feel that if he comes to work for us, some of the companies he now "services" will want to follow him (where ever he goes!)... so... hopefully, we will get additional business by hiring him (and his job with us would be to continue servicing that new business. Now... if that new business does not follow him... then we won't have the work necessary to keep him busy!! Hope that makes more sense...

Don D · March 2004

It is indeed typical for a sales professional, as part of his cover letter, telephone interview and round of personal interviews to promise the moon in bringing in customers. After all, this is what they do for a living. What he is promising however, is conTACTS, not conTRACTS. That R makes a difference. This is a standard line of BS inherent in the profession, rarely delivered but always promised. I've hired lots of high-dollar sales managers/directors and have never heard of challenging one of those promises with a contractual agreement such as "We will retain you if you do that and will not if you don't". This book of business they promise cannot be guaranteed to follow the salesperson. I don't know of many businesses who follow the salesman. I think most of us follow the product and customer service satisfaction. The salesman is gravy, but can easily be replaced. Unless your just buying fishing worms and they're all the same length and it doesn't matter where you get them.

Note: The preceeding is my personal opinion and has no value beyond that. Although it may be 'sorta offensive' or 'indeed offensive' to someone out there, it is offered without regard to that possibility. Should you find yourself alarmed by my post, you may privately mail me to protest or you may alert the principal's office. x:-)

Advice on "unusual" offer letter

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