Saturday, July 30, 2005

Health Benefits Top Draw For New Graduates

Take note - health benefits are top on the list of enticements that new college grads are seeking according to recent MBA Gina Passarella. Passarella, who lives in a Philadelphia suburb, says that she and her friends are willing to work for salaries in the $25,000 - $30,000 range if they include comprehensive medical plans. They also plan to live at home with parents for several years before striking out on their own.

It occurs to me that if this is a new trend, this creates both a dilemma and an opportunity for companies. On the one hand, the cost of health insurance is unbearable for most businesses. Higher premiums have forced companies to go the opposite route and cut back on employer paid health plans. On the other hand, fully paid health plans may be one of the best recruiting tools we have right now. Could there be a way for clever companies to beef up their health packages and pay for it with reduced costs from more effective recruiting programs?

Read Gina Passarella's commentary here.

Wednesday, July 20, 2005

Microsoft and Google Battle Over Employee Agreement

An employment related lawsuit is brewing between Microsoft and Google regarding the breaching of an employee non-compete agreement.

Microsoft is suing both employee Kai-Fu Lee and new employer Google for "intentionally assisting" Lee in violating the non-compete clause of his employment agreement. The clause requires Lee to refrain from working for a competitor for 1 year.

Lee gave his notice to Microsoft while he was on sabbatical. He was immediately warned by Microsoft's legal department of its intent to sue.

It will be interesting to see how this plays out. Employers are relying more and more on non-compete agreements but how well do they hold up?

And what about if you are on the hiring end of an employee who has signed a non-compete agreement? Will Hiring Managers and HR Directors find themselves in the courtroom if they do not screen for this up front?

More available here: link