Situation: A company just hired an individual to fill a key position. The position has a steep learning curve, and requires an on-site presence so the CEO made sure during the interview process to emphasize that he wanted a 3-5 year service commitment. Two days after the new individual started he told the CEO that his wife and child are moving to North Carolina and asked whether he could he work remotely from NC. The CEO said this was not an option. The employee says that he will stay, but the CEO is concerned whether this individual will fulfill his verbal commitment of service. How should the CEO handle this situation going forward?

Advice from the CEOs:

• Verbal commitments made during an interview process are difficult to enforce. Further, under California law once you have hired an employee, you cannot fire or let the employee go except for cause – performance or company financial adjustments such as layoffs.
• What should the CEO say to the employee at this point about the situation?
  • Thank him for his honesty. Let him know that if the situation changes you would appreciate knowing as soon as possible. Assure the employee that you will not fire or otherwise penalize him for giving you this notice.
• Is there anything else that the CEO can do to protect his training investment?
  • As the employee moves from training into productive work, make it one of his responsibilities to thoroughly document the position and responsibilities. If he eventually leaves, this may reduce the learning curve of his successor.

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