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An employee (a "skip") on my team asked if they could borrow $20 until pay day, I didn't think anything of it at the time and just gave them the money as I knew he was going through some financial hardship.  The individual, one of my manager's direct reports, then asked their manager if they could borrow another $20... my instinct tells me to recommend not doing so, but I cannot determine whether my instincts are founded or cannot put my finger on why this seems like a conflict of interest for my manager.  This individual is also about to be put on final notice and could potentially be terminated shortly--does this add even more reason for not loaning the money, besides the fact that they may not get paid back?  Or, should I/they just have the heart and loan them the money on good faith?  Any guidance anyone has (and more importantly why), is appreciated.  Thank you.

jhbchina's picture

If this employee is on the way out, I'd be watching for other behavior that could lead to serious trouble. I am sorry to write this, however if this person having serious financial problems, I'd let the money slide and be asking deeper questions in O3's to see if he is on the verge of snapping.

Under the current conditions anything could happen, so be careful and alert.

JHB "00"

jhack's picture

First, assume the money was a gift, not a loan.  Let it go.  

Second, don't do it again.  Employees asking the boss (or boss's boss) for a "loan" have probably exhausted friends and family already, and there is a deeper problem.  Many companies have HR reps that can direct an employee to financial counseling.  

Finally, focus on the "end stage" coaching aspect of the situation.  The $20 is not your biggest problem.  Have you listened to:  http://www.manager-tools.com/2006/02/how-to-fire-someone-well-almost 

John Hack

dhaidle's picture

Loaning the $20 to the direct (or skip) may easily be encouraging the wrong behavior.  It sounds like it was not just for lunch because they left their wallet at home due to their repeated behavior (making the same requests of others).  Did the money go to food, gas, shelter?  Or, to a drink at the local pub?

If the person needs lunch, go buy them some lunch, but I would not necessarily recommend cash.  For the average person, asking for a loan is a very humbling situation.  If there is no reason to believe there is manipulation involved, which for only $20 seems unlikely, providing some non-monetary assistance seems reasonable.

An EAP recommendation is solid as well, but depending on their situation, they may easily ignore such a recommendation.  

Derek

dhaidle's picture

One other thought - if the person is disrupting work and making people feel uncomfortable by regularly asking people for "loans," then the effectiveness of your team is at risk.  As a manager, you then have a responsibility to address the behavior that is making your team less effective.  You can still be compassionate, but you are paid to be effective. 

Derek

AManagerTool's picture

Time for a drug test?

jhack's picture

Be very cautious about picking and choosing who to drug test, and when.  Your company should have policies about testing, and if it doesn't you are at risk if you decide to do it because someone has asked to borrow money.  

Judge them on their performance, and if the performance doesn't meet standards, then it's time for coaching, followed by late stage coaching.   

John Hack

kevin_cross's picture

I would not loan money to a direct or skip. It's not appropriate. If you want to give a gift to help someone out, that's ok, but don't loan money to directs or skips.

I don't think the question of to loan money or not should have anything to do with the directs performance, I would not loan money to a direct or skip.