Change of Control and Severance…For What???

Recently, a member of a client’s Board of Directors asked about the need for Change in Control agreements and severance given today’s scrutiny of those plans.

Folks, to use an old adage, don’t throw the baby out with the bathwater. We frequently need both of these to create a successful environment.

Stay focused on the benefits that the organization receives, and it becomes a bit easier. Two comments, based solely on my experiences:

1. Change of Control agreements exist to ensure that the management team can, in good faith, negotiate and execute the best potential deal (causing a change of control), realizing they will receive specific remuneration for doing so.

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You can’t quit — You’re FIRED!!

I get several questions each week, from various people across the country, on topics ranging from benefits administration, to compensation, to “I hate my boss, what should I do?” (Not sure how I get that one…)

Most, I simply respond to the email directly, as they don’t have universal appeal. Some, however, do… hence this entry, of course.

I received an email, subject titled, “QUIT JOB.” The sender asked, “If an employee gives notice they are quitting, can I fire them? If so, must I pay them out for their notice period?”

Now, as I’ve oft-said, I’m not an attorney, nor did I sleep at a Holiday Inn Express last night. However…

Generally, yes.

In most states, a resignation is just that – a resignation. The employee then offers to stick around for a couple of weeks to help the employer transition. The departing employee, however, doesn’t set their resignation “date,” the employer does. The employer can accept their notice, or not.

Having said that, there are two reasons to accept or pay out a resignation notice:

1. Other employees are watching. This particular employee may not be important, but others may now believe that giving any notice is futile, so that when they resign, they may do so without notice. Consider if you are agreeable to NO employees giving notice.

2. You could be liable for unemployment compensation for that notice period, if the employee is otherwise eligible. Not likely for an extended period of unemployment, but possibly for those two weeks, or whatever the notice period given.

So, do you whack ‘em instantly or let them see through their notice? It’s a business decision that requires some thought. If they are truly a substandard performer – such that you would have fired them within 30 days anyway – then by all means, show them the door. If you may later WANT employees to give you adequate notice, and this is a satisfactory employee, then you may want to consider either allowing them to work their notice period, or paying them for the notice period regardless.

Just my considered, un-legal opinion…

Flight Attendants — Unaccountable in the Sky…

Airline flight attendants are a bastion of idiotic anachronisms and misguided priorities. They start off by saying their “primary job is our safety…”

What???

The “safety” line, that many of them wear like a freakin’ shield to ward off demanding customers — oh, I’m sorry, “passengers” — is way past stupid. 95%++ of their job is about customer comfort; what occupation would allow you to do only 5% of your job well and remain employed?? (more…)

Can I Motivate Without A Budget?

But I don’t have any money… How can I possibly motivate my staff?

Can we motivate without money? Never mind that money, for most of us, isn’t much of a real motivator anyway… can we?

Sure, it’s simple — use your leadership skills and lead. Some tips to consider…

  1. Be honest and become really trustworthy. Do what you say you’ll do. 
  2. Remember always: You are not responsible for a person’s happiness.  (more…)

Be Real – Stupid SHOULD Hurt!

I recently presented “Leadership is Easy… until it isn’t: Successful leadership in challenging times“to six or seven hundred of my closest friends in San Diego at SHRM’s annual conference.

Both at the conference, and via email since then, I’ve received a hundred or so comments regarding the presentation. All positive so far, thankfully, but that could be misleading. More importantly, some of the specific comments included:

“Great presentation — the part on ‘no whining‘ was really relevant, and HR leaders would do well to take heed.”

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Be Real — Stupid Should Hurt!

I recently presented “Leadership is Easy… until it isn’t: Successful leadership in challenging times“to six or seven hundred of my closest friends in San Diego at SHRM’s annual conference.

Both at the conference, and via email since then, I’ve received a hundred or so comments regarding the presentation. All positive so far, thankfully, but that could be misleading. More importantly, some of the specific comments included:

“Great presentation — the part on ‘no whining‘ was really relevant, and HR leaders would do well to take heed.”

“I liked the part about the Three Stupids; took notes on that part for sure.”


“I agree — Stupid should hurt!”

“My biggest take-away was the coaching advice: ‘you don’t really know the limits of your authority until you exceed it.’”

…and many more, with similar positions.

My biggest learning?

We need to spend more time “telling it like it is,” and facing reality head-on. This politically-correct garbage we get entangled with is stifling our abilities to lead with any real success. Stop it! If someone is acting stupid, how about saying “Hey — stop acting stupid!” instead of taking two 20-minute ‘counseling sessions’ to talk around it and make the person feel good in the process?

Why should I care how an idiot feels?

How about “Stop acting stupid — you’ll feel better.”

See, I can be sympathetic.

But that’s just me…

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