I am faced with a tricky situation and would like your opinion on this.
A department head has highlighted that one of his team member has taken money from him citing family crisis & urgency. Because it was weekend and petty cash was not possible at such short notice, Department head helped the employee with cash. However, it turns out that employee is a habitual defaulter and keeps asking money from other people in office also. We have also received calls from banks/collection agencies for this employee against default.
The department head has written complaint against him citing professional relationship at work might suffer and asked HR to take action. This employee (defaulter)had recently won performer of the month award too.
What kind of action would you take in such a case? I have already given this employee verbal warning. However, his behavior does not seem to change. How to resolve the situation.
From India, Hyderabad
A department head has highlighted that one of his team member has taken money from him citing family crisis & urgency. Because it was weekend and petty cash was not possible at such short notice, Department head helped the employee with cash. However, it turns out that employee is a habitual defaulter and keeps asking money from other people in office also. We have also received calls from banks/collection agencies for this employee against default.
The department head has written complaint against him citing professional relationship at work might suffer and asked HR to take action. This employee (defaulter)had recently won performer of the month award too.
What kind of action would you take in such a case? I have already given this employee verbal warning. However, his behavior does not seem to change. How to resolve the situation.
From India, Hyderabad
Just send a mail to the entire organization mentioning that employees shall be careful regarding lending money to anyone in the office. Don't mention any names. Talk to that person in private again and he could be given a written warning too.
From India, Delhi
614From India, Delhi
Dear Paul,
This is in addition to what Atul has said. My personal opinion is to somehow remove this employee notwithstanding his high level of performance. History is replete with examples wherein it shows that those who were caught in embezzlement, cheating etc had some sort of bad habit. Inability to manage finances is prominent amongst them.
Defaulting on payment of borrowed money speaks of personal values of the employee. Therefore, be cautious and nip this kind of employee in the bud lest he may create a big problem for you in future.
Ok...
Dinesh V Divekar
From India, Bangalore
This is in addition to what Atul has said. My personal opinion is to somehow remove this employee notwithstanding his high level of performance. History is replete with examples wherein it shows that those who were caught in embezzlement, cheating etc had some sort of bad habit. Inability to manage finances is prominent amongst them.
Defaulting on payment of borrowed money speaks of personal values of the employee. Therefore, be cautious and nip this kind of employee in the bud lest he may create a big problem for you in future.
Ok...
Dinesh V Divekar
From India, Bangalore
Hello Paul,
On one end if we see, as HR we cannot help much into the situation to the people to recover their dues because the lending of money happened at a personal level. Ideally the company and the HR will get involved only in professional relations.
Hence, to me if the lenders are coming with a complain that the person has defaulted and so I should take an action, is not the right option. Because I am the HR for professional issues, and lending money was personal issue. If the person has dues to company, as an HR it is my duty to ensure the person pays up or faces consequences.
On the other hand, as an HR it is also my duty to keep my staff motivated and engaged to the company and so taking no action will result in demoralization of employees.
Circulating an email to all your staff as suggested here will be rude, as I cleared this was a personal transaction.
You should circulate an email to all stating that "We do not encourage lending / borrowing of finances and or any other item in the company. If however, any staff member is lending any thing to their colleagues, it will be their personal transaction and the company by no means should be held liable to recover the dues."
Secondly, you can meet the defaulter and ask if he has any financial issues and then try to bring out from him why he borrowed money from his colleagues and when he plans to pay back. You can tell him that lot of people have complained against him and that the company will have to conduct an enquiry if the complains do not stop. Tell him that since he is a consistent performer at work, you would suggest him to pay back the dues to the lenders asap so that no enquiry is initiated and no blacklisting happens.
Hope this helps.
From India, Mumbai
On one end if we see, as HR we cannot help much into the situation to the people to recover their dues because the lending of money happened at a personal level. Ideally the company and the HR will get involved only in professional relations.
Hence, to me if the lenders are coming with a complain that the person has defaulted and so I should take an action, is not the right option. Because I am the HR for professional issues, and lending money was personal issue. If the person has dues to company, as an HR it is my duty to ensure the person pays up or faces consequences.
On the other hand, as an HR it is also my duty to keep my staff motivated and engaged to the company and so taking no action will result in demoralization of employees.
Circulating an email to all your staff as suggested here will be rude, as I cleared this was a personal transaction.
You should circulate an email to all stating that "We do not encourage lending / borrowing of finances and or any other item in the company. If however, any staff member is lending any thing to their colleagues, it will be their personal transaction and the company by no means should be held liable to recover the dues."
Secondly, you can meet the defaulter and ask if he has any financial issues and then try to bring out from him why he borrowed money from his colleagues and when he plans to pay back. You can tell him that lot of people have complained against him and that the company will have to conduct an enquiry if the complains do not stop. Tell him that since he is a consistent performer at work, you would suggest him to pay back the dues to the lenders asap so that no enquiry is initiated and no blacklisting happens.
Hope this helps.
From India, Mumbai
I would suggest stop helping him financially at all. We all know this basic quote is so much important in life. Many of the things you can count, don't count. Many of the things you can't count, really count. - Famous Great All In One <link updated to site home> ( Search On Cite | Search On Google )
Whatever mentioned in the quote is absolutely right.
Do count this and be strict in this case. Do not pay at all.
From India, Mumbai
Whatever mentioned in the quote is absolutely right.
Do count this and be strict in this case. Do not pay at all.
From India, Mumbai
Dear Paul,
People who are defaulter for non-payment of debts remains always defaulter. I feel that it is because they remain fulfilling their needs & demands of the family by any means of money and secondly they ask for loan to clear debt of that person whose is long outstanding. In the end, someone has to face that his debt is dead. They do not feel by asking for loan. They have trick that they will pay previous loan and after they will ask for more and lender is .....Many Loans extended by me on humantrain grounds are dead and I have not hope except forget.
So all should be warned.
Thanks
V K Gupta
From India, Panipat
People who are defaulter for non-payment of debts remains always defaulter. I feel that it is because they remain fulfilling their needs & demands of the family by any means of money and secondly they ask for loan to clear debt of that person whose is long outstanding. In the end, someone has to face that his debt is dead. They do not feel by asking for loan. They have trick that they will pay previous loan and after they will ask for more and lender is .....Many Loans extended by me on humantrain grounds are dead and I have not hope except forget.
So all should be warned.
Thanks
V K Gupta
From India, Panipat
Dear Paul
Greetings
Being HR Person you need to think with Cool mind....
AVOID SIN NOT TO SINNER.Pse go to the root cause of his problem....
If he is good performer ...He may be good asset for company...
You need to know deeply his habits...He need to be counselling...properly...
Correcting normal person is quite easy...solving his problem is really good and challenging task...
Hope you will solve his problem....All will throw him out but correcting him is the right way....If every one throws him out
some one has to accommodate him....
Hope you will go with POSITIVE MIND AND RESOLVE HIS ISSUE...
all the best
Raghu
From India, Mumbai
Greetings
Being HR Person you need to think with Cool mind....
AVOID SIN NOT TO SINNER.Pse go to the root cause of his problem....
If he is good performer ...He may be good asset for company...
You need to know deeply his habits...He need to be counselling...properly...
Correcting normal person is quite easy...solving his problem is really good and challenging task...
Hope you will solve his problem....All will throw him out but correcting him is the right way....If every one throws him out
some one has to accommodate him....
Hope you will go with POSITIVE MIND AND RESOLVE HIS ISSUE...
all the best
Raghu
From India, Mumbai
Dear Raghu,
I have strong difference of opinion with you. We run the enterprise and not the rehabilitation centre for the delinquents. Our objective is to satisfy our customers by running the business smoothly. We are not here to reform someone. A person who is career-conscious will be level-headed and will not play these kind of tricks.
You have recommended counselling however, I doubt he is of workman category. One should not borrow money at all. One should cut one's coat according to one's cloth. After borrowing money someone does not understands the importance of returning the money in time then that person lacks common sense. Should we teach someone common sense or handle the jobs that are in the interest of the organisation?
By terminating that person, a right message will be sent to one and all. The story will be discussed in gossips for the couple of years. This is far more important as this very informal communication shapes the organisation's culture.
Ok...
Dinesh V Divekar
Dear Paul
Greetings
Being HR Person you need to think with Cool mind....
AVOID SIN NOT TO SINNER.Pse go to the root cause of his problem....
If he is good performer ...He may be good asset for company...
You need to know deeply his habits...He need to be counselling...properly...
Correcting normal person is quite easy...solving his problem is really good and challenging task...
Hope you will solve his problem....All will throw him out but correcting him is the right way....If every one throws him out
some one has to accommodate him....
Hope you will go with POSITIVE MIND AND RESOLVE HIS ISSUE...
all the best
Raghu
From India, Bangalore
I have strong difference of opinion with you. We run the enterprise and not the rehabilitation centre for the delinquents. Our objective is to satisfy our customers by running the business smoothly. We are not here to reform someone. A person who is career-conscious will be level-headed and will not play these kind of tricks.
You have recommended counselling however, I doubt he is of workman category. One should not borrow money at all. One should cut one's coat according to one's cloth. After borrowing money someone does not understands the importance of returning the money in time then that person lacks common sense. Should we teach someone common sense or handle the jobs that are in the interest of the organisation?
By terminating that person, a right message will be sent to one and all. The story will be discussed in gossips for the couple of years. This is far more important as this very informal communication shapes the organisation's culture.
Ok...
Dinesh V Divekar
Dear Paul
Greetings
Being HR Person you need to think with Cool mind....
AVOID SIN NOT TO SINNER.Pse go to the root cause of his problem....
If he is good performer ...He may be good asset for company...
You need to know deeply his habits...He need to be counselling...properly...
Correcting normal person is quite easy...solving his problem is really good and challenging task...
Hope you will solve his problem....All will throw him out but correcting him is the right way....If every one throws him out
some one has to accommodate him....
Hope you will go with POSITIVE MIND AND RESOLVE HIS ISSUE...
all the best
Raghu
From India, Bangalore
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