Re: Finder's fee

Subject: Re: Finder's fee
From: "Jan Stanley" <janstanley -at- earthlink -dot- net>
To: "TECHWR-L" <techwr-l -at- lists -dot- raycomm -dot- com>
Date: Fri, 9 Jun 2000 10:10:29 -0400

Kevin objected to the thought of a finder splitting the fee with
the new employee she or he referred for a job.

>Humph! So, the new recruit gets a new job --
>either coming from recent unemployment, or
>jumping to a better situation --

Yes...

>and likely gets a signing bonus (or moving
>expenses paid).

Not necessarily, according to the responses I've been getting to
my signing bonus question.

>The finder employee (who went out of his
>way to help the company and to help newbie
>improve his/her circumstances) gets CHARGED
>a percentage??!?

In some cases I've seen, it might be said that the referring
employee has gone out of her or his way to get the referral
bonus. Surely I'm not the only one who knows folks who get in
touch with practically everyone they know in an attempt to lure
them to a new company.

And I wouldn't characterize the bonus-splits I've seen as
"charges"; typically they're more a courtesy between friends or
colleagues.

>No doubt, the employer isn't involved in such a transaction,
>so the money is taxed -- IN FULL -- as it enters the finder's
>bank account, but not at all when half goes into the recruit's
>account?

In the cases I'm familiar with, yes, the money is taxed once,
when the referring employee gets it, and the new employee gets an
after-tax amount. Hard to see how Uncle Sam is really missing
out there.

>Is the finder offered half of the recruit's signing
>bonus or stock options? Didn't think so.

Again, it looks like signing bonuses aren't all that common;
certainly not as common as referral fees. And stock options --
or vacation days or other benefits, for that matter -- aren't
structured in a way that an informal transfer could take place.

>You wanna come work for my company, do it because it's a
>good company and the opportunity is excellent. Or do it
>because we're just average, but your current situation sucks.
>Those are your motivations and your profit from the move...
>If you last six months, it's because you and the company fit
>each other. You aren't hanging on in misery just because
>you expect $1000 (or less... taxes, remember?) from me,
>are you?

Let's face it: Some people look for good companies and good
opportunities, or for a better situation; others look for money,
money, money. Again, am I the only one who knows a few people
who have switched jobs three times in a year not because they
don't like the work or the environment or the company, but
because they want more cash? But just because a few people
operate that way doesn't mean we all do, and it certainly doesn't
mean that two friends sharing a bonus are mercenaries and don't
care about the welfare of the company or about having good
jobs -- and doing a good job -- themselves.

>What a rip-off.

Hard to see how a mutually beneficial occurrence, a gift, or a
courtesy between friends is a rip-off.

Jan
janstanley -at- earthlink -dot- net








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