Jefferies Financial Group is seeking to collect a $4 million "breakup fee" from former hire Dean Decker to whom the company previously offered a nearly $10 million position. Per the offer agreement, if Decker backed out before starting the role -- which he did -- he would have to pay a "breakup fee." A federal appeals court in California is to rule on whether Jefferies acted legally or was holding Decker ransom, as his defense has alleged.

When Massachusetts issued a skills-based hiring policy this year, the CIO was ahead of the curve, having already implemented the practice for technology workers. But other organizations aren't so sure. "When we look at what a skills-based organization is, which is eliminating job [titles] and looking at the skills needed, it is really great," says Brittany Lutes, a research analyst at Info-Tech Research Group. "In practice, I think leaders are too afraid to take that risk; it's a change, and we're inundated with change, and this is one more change they're not willing to take on."

Employers that focus on only a few health and wellness options during open enrollment will save money, reduce confusion and see higher program participation, says Gravie Chief People Officer Amy Spartz, who suggests determining priorities by conducting employee surveys and listening sessions, reviewing claims data and working with a broker. "It takes time and resources to set up a new point solution provider and the overall cost of managing health insurance administration is extremely high, so working with a trusted broker and staying focused on key priorities will give your employees and company the best ROI," Spartz says.

An Elevate survey found 70% of US and Canadian HR leaders are ready to use AI for HR functions, with 40% focusing on the technology for talent acquisition and 36% for performance management. "As funding has dried up in many sectors, particularly tech, companies have had to change the way they operate to focus on profitability," states the report, which points out AI use is rising as HR faces budget constraints.

Too much positivity in business in the form of "Ursula Upbeat" type employees who engage in wishful thinking can make leaders miss emerging dangers, writes Adam Hanft, CEO of Hanft Ideas, who recommends balancing optimists with some "Debbie Downers." "We must widen our definition of diversity so those who are genetically wired to fight rose-colored cognition have a visible and honored place in the enterprise," Hanft asserts.

Breaking up is hard to do, as the song goes. According to our top story today, it’s especially hard for Jefferies Financial Group and its former hire Dean Decker. The two parties have been duking it out for seven years over a $4 million “breakup” free that Jefferies alleges Decker owes them. A California federal appeals court will soon rule on the matter. 

 

The outcome of this case could affect how other organizations, including hospitals and law enforcement agencies, recruit new hires. Employment lawyers say that aggressive clauses like this are increasingly common in finance.

 

This saga fascinated me. I get why Jefferies is fighting for the fee. I see how some candidates could leverage employment offers to try and get more money from their current employer. Plus, we know that “ghosting” is becoming increasingly common among new hires (shame on them). I can see how “breakup” fees could discourage these tactics.