Rainmaking Problem #21: When a Client Wants a Job with Your Firm
(As in prior years, I will posting only once a week in July and August>)
A client of mine is faced with a problem that all of us engaged in selling professional services encounter sooner or later. She was approached by one of her clients who asked if she could get him a job at her firm. He had been a good client for several years, and she didn’t want to alienate him as a client or a friend. Still, hiring someone away from a current account poses ethical problems and she didn’t feel that he was a particularly good fit for the firm, in any event. How should she handle this delicate situation?
August 10th, 2009 at 7:43 am
Is this really an ethical dilemma? I thin it cn be argud not. She made no overt attempts or suggestions to the client her company was interested in hiring him - in fact, she was approached by him.
That being the case one could assume the client is unhappy where he is. He is looking to make a change and feels possibly that her company may be a better place for him. Unless there is some sort of agreement in place that strictly forbids the hiring of each other’s employees, I think she is in the clear.
At this point the question really beacomes one of “Is he a good fit for my company?” and she needs to decide if he is someone she feels is worth recommending to the appropriate people inside her firm.
Martin Stockdale
Wireless Logistics Inc.
August 10th, 2009 at 9:49 am
I would agree with Martin, this is not really an ethical dilemma — unless there are contractual considerations. Nevertheless, she doesn’t feel that he would be a good fit which I think is a bigger issue.
I would recommend to start the dialog by asking your client what they are looking to do and what skills they have. By starting the conversation out focused on their needs she can identify other ways that she might be able to help them without saying no. She could have contacts at other firms that she could refer him to. Regardless, an offer of support and assistance would be greatly appreciated and I am sure when he does find a new home, he would have interest in helping her.
anne simmons
August 10th, 2009 at 2:02 pm
Martin and Anne:
It is an ethical problem. The client has hired you to help them. Assuming they value the person in question and you got to know him through your work for the client, you are using knowledge gained from time the client is paying for to do them harm by hiring the person. That is why executive search firms have negotiated off-limits agreements with their clients. One highly ethical consulting firm I know has a clause in all its contracts binding both client and consulting firm to pay a fee ($40,000 as I recall.) if either hires one of the other’s employees.
But even if you don’t see it as an ethical issue, there is a practical one. Offering the person more general job search help might deflect the question and is a good idea. But it also may not. He may still ask about opportunities at your firm. Then what?
Ford Harding
August 10th, 2009 at 8:38 pm
I’m not sure there are absolutes.
On the one hand, if your client is a small company and the person is a ‘key’ employee (however defined), and the loss of this employee would have a noticeable impact on the client, that poses one set of issues (but see below).
On the other, if the client is a large global firm with thousands (or more) of employees, and the employee is not ‘key,’ I would argue the situation is clearly different.
One thing I’ve found in my career is that it is rare that happy employees seek new opportunities, and thus this person has made a decision, consciously or not, that it is time to look elsewhere. Possibly with the blessing of the client firm. If the employee is really unhappy, and needs a change, it could actually be good both for firms. It could also create an unresolvable breach of confidence. But without further information, there is really no way of knowing.
All that said, I think the important thing, as you point out Ford, is a clear statement of the ethical policy - the firm you mention with the payment clause has thought this through and decided where it stands, unambiguously.
That, I would argue, is critical.
August 10th, 2009 at 8:42 pm
It seems the salient issue here is how to tell this client that they aren’t a good fit with the organization: the “I don’t like you like that” talk, which always raises the question of can we still be friends (or, can we still have a professional consultant / client relationship?)
For, if thet WERE liked like that, if they would in fact be a killer addition to the team, there’d be no hesitation to go ahead and steal them (how many professional companies have had their clients steal valued employees from them? In my area, building and construction, its fairly common, and seems to come with the territory)
There’s a number of variants (its not you, its me; we’re going thru a lot of changes and need some space to think; i’d love to but our industry recognized good practices agreement won’t let me; etc.) but it seems they all boil down to managing possible feelings of rejection in a client, something no one ever wants a client to feel (i’d much rather a client be pissed at me for a mistake than to feel rejected).
Relationships often define our practice, and some element of this relationship was mis-read by one or both of the parties; the truth (you’re not a good fit, trust me, i know you, and its great working with you, but neither of us will be happy if you come inside the wall, lets get a drink) seems the simplest way to resolve it.
David
August 11th, 2009 at 6:17 am
David Harkleroad
Well put. A firm policy will help avoid ad hoc decisions which may have bad outcomes. It will also provide the person approached for a job with defensiible limits to what he or she can do.
Ford Harding
August 11th, 2009 at 6:29 am
David:
You are right in saying that it is better for a client to be mad at you for a mistake than to feel rejected by you. Obviously, people with different personalities must be handled in different ways. Using the simple truth, as you suggest, has a lot going for it, including honesty, directness and simplicity. I think it best to use if it is possible to explain why the fit is bad without causing offense. I cases where the reasons for a bad fit are awkward to explain, it might not work as well.
Ford Harding
August 11th, 2009 at 10:03 am
Another thought:
I’ve found that many in industry don’t fully understand what working for a professional services firm really entails - they often assume that it is simply a matter of demonstrating technical expertise. So when someone expresses interested in making the shift, I point out the following:
1. You will be expected to travel, sometimes heavily, and sometimes with very little advance notice.
2. Success is measured very differently than what you are used to: at lower levels, utilization (billability) is paramount; at higher levels, it is business development.
3. Demand can fluctuate incredibly (feast or famine) - there are times when you simply can’t keep up, even with 80 hour weeks; there are others when you might wonder if you’ll ever get another gig.
You can always couch such a conversation with the preface that “we’re not in a position to hire someone right now, but because you are such a good client, I’m happy to describe what working here is like.”
August 12th, 2009 at 6:35 am
David
Good idea for clients unfamiliar with a professional service firm environment.
Ford Harding