"Concern for the revenue needs of the business have to be weighed against the risks posed by any recruitment decision to employees in the future" Santrupt Misra, Director (Corporate Human Resources) A.V. Birla Group

I would hire Shardul Swamy. The matter to decide is in what capacity I would do so. I would not hire him as a fulltime employee as head of US Operations, as suggested by the search firm. As a decision maker, I have to take into account the available facts and choose between available options to resolve my dilemma. The facts are that Swamy is under controversy-whether for genuine reasons or not cannot be ascertained.

My decision dilemma is that I have to be concerned about the revenue needs of the business on one hand, and the future risks posed by any recruitment decision to employees on the other, in addition to the legal and financial liability that such risks may carry and the potential damage to the image of the company as an employer and as a corporate citizen. I may also want to be fair to Swamy, but that is not one of the primary goals of my role (that is, my role does not exist to ensure that potential employees' cases are fairly dealt with).

Now, if I need to hire an outstanding Head of Operations for the US market, I will look at several candidates and benchmark them with Swamy. I may not get a perfect alternative to Swamy (in any case Swamy's case itself is not entirely perfect), but even a close approximation will do. Given the talent availability in the IT space, I should be able to find alternatives. If my search firm is pushing Swamy as the prime or only candidate, I would be wary of my choice of search firm.

Under no circumstance would I like to risk our employees, our reputation and take on other attendant risks because Swamy has been a stellar performer in the past. Given the volatility in the IT market, impacted by many national and international factors, Swamy's future performance cannot be guaranteed. The risks need to be evaluated against the absence of guaranteed performance. However, since the company appears to be in desperate need for revenue in the short term, I would examine engaging Swamy as a freelance business development agent for the company who has minimum contact with my employees. He can be remunerated on a commission basis (linked to procuring orders) and I'll draw up a water tight agreement with clear intimation to all prospective clients about the nature of our relationship and the limitations on liabilities.

I may observe Swamy in such capacity for some time (say for a period of 1-2 years). Thereafter, depending on his conduct during this period, I may consider him for permanent employment.

"If Naytrix is values driven, it should not hire Shardul Swamy. Even the promise of gaining $100 million in new business should make no difference" Jayaram Easwaran, Vice President (Human Resources) Hughes Software Systems

In attempting to answer the question 'should Naytrix hire Shardul Swamy?' one can draw some parallels with Ayn Rand's celebrated play Night of January the 16th. In this courtroom drama, the secretary and mistress of a wealthy businessman is accused of his murder, while trying to make it look like suicide. After every stage performance of the play, jury members drawn from the audience are asked to decide whether the accused is guilty or not. Interestingly, the juries' verdicts often reflected the personal value systems of its own members.

Similarly, Naytrix's own value systems and culture will largely influence its response to this question. Organisational longevity is measured not in mere years, but in sustained performance delivered over decades. To get there, organisations need to create cultures driven by a set of non-negotiable core values.

If Naytrix has similar aspirations, then it would know that building such a culture is predicated on its ability to live by its values, irrespective of the present moment's business circumstances.

The company may convince itself that in hiring Shardul Swamy there is no legal breach. After all, he was not convicted by any court and he is innocent until proven guilty. But let's not forget that there are some larger issues at stake here. And these may have a grave bearing on Naytrix's ability to forge the desired organisational culture.

Culture, in its basic definition, is really the demonstrated behaviour by all employees and specially that of its senior members and leaders. What differentiates great cultures from ordinary ones is the degree to which such behaviour is aligned with the organisation's values. And the higher the position one occupies in a company, less the leeway for interpretation errors. They, like Caesar's wife, must be above suspicion.

Most it companies today have a very large percentage of young people who take great pride in belonging to values-driven organisations. One reason for this is that youth, across every generation, has always been idealistic. They want to see their companies constantly walk the talk, and any behaviour to the contrary can easily disillusion them. Naytrix and other companies in the IT space need to be doubly conscious of this aspect.

If Naytrix is values-driven, then it should not hire Shardul Swamy. Even the promise of gaining $100 million in new business should make no difference. 'Star project bagging' performers really bring with them their networking and selling capabilities. In today's age and times, business is won and retained on the strength of organisational capabilities and track records. Naytrix needs to be cognisant of this, and work towards building these rather than seek magic elsewhere.

"Naytrix would be wrong to reject Swamy solely on grounds that someone had filed a charge of sexual harassment that had never gone to trial" Anand Sudarshan, Chief Executive Officer, Netkraft

Naytrix's dilemma, on the face of it, is an all-too familiar one: what's the cost of the opportunity to potentially acquire $100 million of business? It appears from The Case Of The Risky Recruit that the senior management team of Naytrix, going by the statements made by the managing director, HR president and market development president, is viewing this primarily as a practical business issue rather than a moral one.

It is evident that Naytrix would be patently incorrect to reject Swamy's candidature solely on the fact that someone had filed a charge of sexual harassment that had never gone to trial. It is indeed true that the decision of Swamy's former employer preferring an out-of-court settlement does not in any way indicate Swamy's guilt. In addition, Naytrix according to the HR president Ravi Sood has a rigorous 'multiple check recruitment process'', which should be good enough to filter the candidature in or out. Ravi Sood also clearly states that he is obliged to give Shardul a fair chance to convince Naytrix of the value he can add to the company. Of course, while the market development president Rangaswamy is absolutely sure about the amount of business Shardul can bring in, he will not guarantee that it would actually happen. It is the track record of Swamy that suggests that the man has established his capability in no uncertain terms.

Shardul is going to be of business-generation value to Naytrix. Of this, there is no doubt; he has also not violated any of the principles of recruitment that Naytrix has set for itself. Given all this, I would recommend that Naytrix go ahead with the recruitment process. Should the excitement that Rangachary & Sunderam have at this point on Swamy's value be sustained through the rigours of the recruitment process, Naytrix should ensure they pay particular attention to checking credentials and references; check them far more rigorously than would be done for normal candidatures. And after all that screening, if Swamy still fits the bill in their assessment, hire him.

However, it is still not quite as simple and algorithmic as that. Given the fact that the allegations against Swamy seem to have been quite public, Naytrix has the responsibility to set the context straight at the time of inducting Swamy into the company. There is more than likely a high probability that his prospective colleagues have strong views about the publicised case. Perceptions, particularly on such a sensitive subject, have a way of impacting people deeply and manifesting themselves unexpectedly (and negatively) in people's professional behaviour. It would be crucial for Naytrix to ensure that Swamy has the respect and position and track record he deserves with his peers and colleagues-indispensable for Naytrix to actually convert the potential of $100 million business and more into reality.

Senior professionals always have a deep impact on the organisational ethos; which in turn relies on the core values of the company. The case, note, does not give us adequate information on the corporate values of Naytrix. However, if in concept and character, Naytrix as an organisation is conservative and has a value system that insists that its business leaders ought to have absolutely no blemishes of the real or perceived kind, then whatever be the attraction of additional business that would come in, Naytrix cannot progress with the recruitment process.

It is in conforming to core values and professionalism that the long-term success of a company is founded on. This is the call that Sunderam as the head of Naytrix has to make. It is his responsibility.