Unfaithful employee

[Interpreneur]

A friend of mine who works at Human Resources for my main competitor just sent me a resume and cover letter from one of my top employees. She applied for a position at her company.

I guess that's pretty common, but the disturbing part is how she wrote about having access to "trade secrets" and "corporate plans that would derail my company if she were to take them to a competitor".

My first instinct was to fire her on the spot as soon as she comes in Monday morning, but I also don't want to get my friend in trouble with her employer for sending me this person's resume and cover letter, which I'm sure would also get her fired immediately.

This girl has worked for us for 4 years, rising from receptionist to VP of Marketing. She is very sharp, gets paid very well, and seems very happy with her position, so this came as a total shock to me.

Has anybody been faced with a similar situation? What's the best way to handle this? Obviously I don't want to give her more access to our corporate plans if she's that willing to stab us in the back, but I will need a legit excuse to fire her, and I don't want to throw my friend under the bus.

[Bradman]

Do you have a non-disclosure agreement? If not, make her sign one. In a few days, try to make her quit somehow. Tell her that her performance is slipping, etc. Wait a while longer and tell her "things aren't working up to our level of expectations" and sack her. That's how it's usually done.

[Rebecca800]

Sorry to hear, that's a crap situation to have with one of your best employees.

How likely is it that your competition will actually hire her?

If they have their heads screwed on, they will see her complete lack of integrity (and wonder if she will ever pull the same trick on them one day). It really is asking for trouble.

However to protect yourself I agree you should get her to sign a non-disclosure agreement on the spot Monday morning.

As for firing her... if she's applying for other jobs and selling you out professionally, she's already on the way out, so just let her go.

[NicoleNicki]

I would dump the friend. I am dumbfounded by her behavior.

As an employer if you feel that your employees have trade secrets that would be damaging to your business, they should be under anti-compete agreements which prohibit them, for a xxx period after leaving your employ, from working for a direct competitor.

[ellie]

Originally Posted by Interpreneur

A friend of mine who works at Human Resources for my main competitor just sent me a resume and cover letter from one of my top employees. She applied for a position at her company.

I guess that's pretty common, but the disturbing part is how she wrote about having access to "trade secrets" and "corporate plans that would derail my company if she were to take them to a competitor".

My first instinct was to fire her on the spot as soon as she comes in Monday morning, but I also don't want to get my friend in trouble with her employer for sending me this person's resume and cover letter, which I'm sure would also get her fired immediately.

This girl has worked for us for 4 years, rising from receptionist to VP of Marketing. She is very sharp, gets paid very well, and seems very happy with her position, so this came as a total shock to me.

Has anybody been faced with a similar situation? What's the best way to handle this? Obviously I don't want to give her more access to our corporate plans if she's that willing to stab us in the back, but I will need a legit excuse to fire her, and I don't want to throw my friend under the bus.

No matter what...what you're friend did was illegal and just as highly unethical. If your employee ever found out, I would assume she would have grounds to sue the company that gave out that information and you to could be in trouble for accepting the information. Well that's would happen in my country. Yep sucks, but everything you're friend said is heresay.

Yes, unfair at what she said/did, but at the same time...I would be pretty to pissed to find something which should be confidential be leaked by another company.

But somehow, you are going to have to get a non-discolusre, but presumably you wont be able to use it with this case.

[Indiana]

Frankly, I would consult your lawyer immediately. I'm not sure about the legality of implementing a non-disclosure agreement and making it a contractual obligation post facto, though that seems like the first thing you would want do.

Attempting to make your employee quit without being able to prove that her performance is genuinely slipping, and without going through the full legal process for dismissal can get you into serious trouble. In my country it's known as constructive dismissal and it is quite illegal. You could end up being sued by her.

I imagine you could reasonably dismiss her for gross misconduct if you can produce evidence of her job application, but in that instance, yes, you'll get your friend in the poo and as you don't have a non-disclosure agreement, nothing will prevent your employee from taking your trade secrets directly to a competitor just as she suggested she would.

I'm sure your friend was trying to do you a favour but frankly, she's put you in an extremely difficult position, as she has given you information that it appears you cannot legally use (ironic, really, given that your employee's behaviour is immoral, but not actually illegal).

Perhaps the best outcome of this is that you will reassess your systems for protecting your sensitive information. As for the employee, it seems obvious that you're going to lose her soon anyway, so your focus should be on working to mitigate the damage she can potentially do. If the information she can legally take with her really could destroy your business, your company structure clearly has some major flaws in it.

[NickW]

Do I understand the original post correctly?

A friend who works for your competitor is spying for you, conveying her company's information to you.

Your spy says a job applicant implies she would reveal her current employer's--your--trade secrets were she to be hired.

1--You're an ethical business person, correct? Why would you have a spy conveying confidential info to you about a competitor?

2--Why would a job applicant announce in a cover letter that the applicant will engage in theft? Does the applicant think that revealing she's an immoral, unethical thief will get her hired?

Frankly, I don't believe you.

[Andrew Brunelle]

That's kind of messed up. What your employee is trying to do is get more money by screwing your company over. I like the idea of a non-disclosure agreement, but I am no lawyer, so I'm not sure how that works. What I would do would have all your employees sign non-disclosure agreements about the inner workings of your company so that it doesn't look like you're singling out just that employee.

But you should consult a lawyer before going forward with anything.

[Rebecca800]

Originally Posted by NickW

Do I understand the original post correctly?

A friend who works for your competitor is spying for you, conveying her company's information to you.

Your spy says a job applicant implies she would reveal her current employer's--your--trade secrets were she to be hired.

1--You're an ethical business person, correct? Why would you have a spy conveying confidential info to you about a competitor?

2--Why would a job applicant announce in a cover letter that the applicant will engage in theft? Does the applicant think that revealing she's an immoral, unethical thief will get her hired?

Frankly, I don't believe you.

I hear what you're saying. It wasn't totally ethical what the HR woman did in the first place - but her intentions were good and she was only trying to protect her friend's interests. It was a defensive move. I believe her actions were on a very different level to maliciously giving away corporate secrets for profit. That's an attack.

Also, I do believe that the job applicant said she would give away trade secrets in her letter. That was probably her main selling point. She's hoping her potential employer is just as greedy and unethical as she is.

Anyway, it's not the OP's fault that this information was revealed to him. I'm assuming of course he didn't place his friend in the competing firm and tell her to report back.

[danthony]

Yep.

An NDA would help, you have grounds to sue or fire her on that if any of your secrets are leaked and you get word of it. Good luck with a positive outcome.

Originally Posted by Bradman

Do you have a non-disclosure agreement? If not, make her sign one. In a few days, try to make her quit somehow. Tell her that her performance is slipping, etc. Wait a while longer and tell her "things aren't working up to our level of expectations" and sack her. That's how it's usually done.

[Indiana]

After doing a little reading on the subject, it turns out that even if you don't have an NDA, state laws generally protect you from 'misappropriation' of information. However it seems that this is generally only done retrospectively, so you would have to wait till your employee left and then prove that she has stolen information from you and that you have suffered a loss as a result. Depending on lawyer's costs, it might be cheaper to take the hit to your business.

More info here.

The Uniform Trade Secrets Act State By State

Also, if you currently don't have an NDA, and try to introduce one, you may have to offer your employee additional compensation, which is probably the last thing you feel like doing right now.

[ssandra]

Just as an FYI;

Most HR people I know and knew would be in pretty close contact with other HR people from the same field.
And even if they weren't friends, they would let the other people know what was going on, if an employee would try to share confident information in such an obvious way (and would never hire said employee, because what is to stop them from doing the same?).

So..... Maybe you can ask Marinik what to do... she is an HR Director with lots of experience, she might have some guidance for you.

For now, I'd speak to the direct supervisor of this person, having him off any sensitive projects and quietly "encourage" them to quit sooner rather than later.