Core employee wants to leave the company as he was pursuing the COO position, but they said he wasn't qualified. Now, other employees want to leave as well: 'I even offered him another raise, but he told me his decision is firm and non-negotiable.'

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  • 01
    I'm the CEO of an industrial company with 80 employees in the DACH region. We are part of a holding group that owns three other similar-sized companies. Recently, our Chief of Operations retired.Following instructions from the holding board and owner, I had to hire an external replacement. (an acquaintance of a executive at one of the other companies). Here's where the crisis begins:
  • 02
    Three coworkers working together on their computers. Representation.
  • 03
    I have an Operations Manager who has been with us for 7 years. He worked his way up from the bottom and has spent time in almost every department. Although he never explicitly said anything, he wanted the COO position. However, the holding company didn't want him for the role, and personally, I feel he lacks the formal academic qualifications required for an executive suite level.
  • 04
    Right after the new COO started, this Operations Manager handed in his resignation (he has a 6 month notice period/lockup). At first, I was worried about losing clients. He used to be in sales, and to this day, many clients still call asking specifically for him because "he knows what they need better than anyone else." **The reality of who he is:** To be fair, he isn't perfect. Depending on the day, he might
  • 05
    spend hours checking his stock investments on his phone, taking endless coffee breaks,smoking outside or flirting with cleaning ladies that double his age. We never said anything because the reality is that when he actually sits down to work for an hour, he gets done what would take half the department 6 hours to finish. Whenever employees have an emergency even maintenance staff, which has nothing to do with his role they call him. I even
  • 06
    know it's not the first time he's randomly shown up at the plant on a Sunday just because something wasn't working right. He's the ultimate team player: the guy who walks into the office singing, never seems to have a bad day, and is always joking around. Clients remember his name, and the entire staff loves him. **Why the situation is escalating fast:**
  • 07
    Now, 3 other ppl from operations have told me they are leaving too. One girl might have personal feelings for him, but the other two explicitly said they don't want to deal with the absolute workload nightmare that will follow once he steps out the door. Even two apprentices told me "this company is going to be a boring place without x" **What I've tried so far:** He is already paid about 20%
  • 08
    above the regional market for his position. I even offered him another raise, but he told me his decision is firm and non- negotiable.I don't know what to do to retain him, or how to stop the domino effect of people quitting. Can one key person really bring down an 80 employee company? Its just a temporary drama?What would you do?
  • 09
    A workplace full of employees and computers.
  • 10
    Top-Swordfish3512 Yup. When my team lead left, we looked around and said "I don't want to deal with what he dealt with" the company lost it's entire dev department in the same week.
  • 11
    bruhbelacc If I were him, I'd leave, too. Top performers are ambitious people and reading your story, I don't see why he wasn't promoted. I don't think his leaving is why all others are doing the same - maybe the change of the manager is also something they dislike. By the way, he's paid 20% more than the market rate, but someone your customers ask for by name and everyone likes should be a partner.
  • 12
    KonkeyDongPrime What struck me about the OP: You didn't promote someone who has clearly outgrown his current role. You brought someone's buddy in instead. Honestly this is the best roasting session I've seen for ages. Top work.
  • 13
    LargePrompt5840 I feel he lacks the formal academic qualifications required for an executive suite level.... You are losing the guy who has the x factor leadership dreams about over academic qualifications? Remind Me! One Year
  • 14
    CaptainBignuts Can the company go down due to one person leaving? Sure, I guess. But what's probably more likely is that the company takes a hit as key people leave and certain clients bail out. How much of a hit remains to be seen. What we do know is that the board/owner will be looking for a scapegoat for any future potential losses and unfortunately your title puts a big bullseye target on you.
  • 15
    If I were in your shoes I'd be working hard to make sure this COO replacement gets up to speed ASAP so the blowback doesn't fall on you.
  • 16
    BigEvilAi Enjoy the aquiantence with more academic qualifications and update your resume too. It is for a reason empires fell due to different types of corruption. Your example OP is the perfect domino effect of nepotism. Humans love to repeat every basic mistake they can, it's our nature. Precise your scope and let the whole thing collapse.
  • 17
    ConnectGoal8510 Yeah I've personally seen it as well. It was two people and the org was about 800 employees. In our case it was a director and one of her direct reports (me actually). The company lost over 60% of their clients in the first year as contracts came up for renewal. It's been 8 years and they are a 200 person organization with a fraction of the reach they had before.
  • 18
    Worriedrph Am I reading this right? A absolutely key person puts in their resignation and you didn't even offer him more money, you simply pointed out he is already paid 20% above market rate? Germans are hilarious.

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