Employee Moonlighting as an Agent: How Should HR Handle This Dilemma?

Dear Seniors,

We have an employee working in the organization as a full-time Executive on the company's payroll. However, at the same time, he is acting as an agent, sending the company's employees to other organizations and earning commissions. This situation causes the HR department to face the problem of recruiting new employees frequently.

What action should the company take regarding him?

Thank you,
Ravish

Double employment is generally prohibited, particularly when it is indirectly used by a regular employee against the interest of the company. There should not be any hesitation to deal with him sternly. Therefore, try to collect concrete evidence behind his back and put up a note to the CEO. At times, some influential employees use their connections for successful surreptitious extra engagements, like the one you mentioned. So, be careful in your approach to the issue.

Regards

I really appreciate your response. My point is that the company employee is sending manpower out of the company and earning a commission from the employee's salary.

Example of Misconduct

For example, Mr. A is the HOD working in Company Name "XYZ." Now, the HR department is recruiting the best manpower according to his requirements for his department. However, after a few months, i.e., quarterly, his subordinates leave the job, and this keeps happening repeatedly. Now, the HR department has discovered that Mr. A is sending the manpower of XYZ company to other companies and earning huge commissions every month. How can we catch such individuals red-handed, and what legal actions can we, as a company, take against him? This is so that other departments will not repeat the same behavior.

I hope it's clear now. Please help.

Awaiting your reply.

Thank you.

Regards,
Ravish

I have understood your point very well. As the head of a particular department, the individual has the privilege to determine the number and additional qualifications of prospective personnel deemed "saleable." They can also submit indents to HR as required for their department. It is important to maintain a secret log with the approval of the HRD Head, documenting the periodicity of manpower indents, the number of candidates needed, any specified additional qualifications, the individual's involvement in the recruitment process, their approach to certain candidates, the cost of training programs suggested by them, the turnover rate, reasons for leaving, companies departing employees join, and the nature of fresh appointments offered to new hires. Analyze these details critically to identify any patterns of deliberate exits.

Without reliable insider information, suspicions of "manpower hijacking" would not arise. To address this issue, reduce the individual's involvement in fresh appointments. For example, establish a committee of senior department executives, including the HOD, to determine manpower needs. Implement longer bond periods, reimbursement of training costs with interest, and extended notice periods for premature resignations. If your CEO is impartial, report the individual's clandestine activities and their negative impact on the organization at an opportune time.

That's all I can suggest!