Is there any restrictions/unwritten rules on how many staff can be employed or poached from a rival company?
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Is there any restrictions/unwritten rules on how many staff can be employed or poached from a rival company?
 
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Cari
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Not really. There are definitely no official rules anyway.
I'm a recruiter with a large IT corporation and when I take a brief from a Hiring Manager, I'll ask if there are any "hands off" companies. These will usually be rivals which have a poorer reputation in the industry.
Also, partners are clearly off-limits but in most cases (not all though!) these are not "rivals".
The only other thing that you need to bear in mind is that some companies ask their employees to sign a "non-compete" agreement, meaning that you can't work for a rival within a certain time period of leaving, and therefore is pointless poaching them. For example, when I worked for MSN I knew that it was pointless to poach Yahoo employees, because all Yahoo employees are forbidden from working for MSN. But, most headhunters/recruiters are not likely to know about this until you've picked up the phone and tried to poach the employee, and therefore if the employee is happy to break the terms of their contract then it's not an issue. |
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wisdominknowledge
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not that i am aware of. usually, companies have these types of agreements, either formal or informal with those they do business WITH (suppliers, etc.), but not with competitors. The company being "raided" needs to address this by finding better employee retention tactics. |
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Judy
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no - people have the right to move to a new company unless they have a contract with the old company saying they can't. |
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hr4me
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No, there is no law (federal or state) that restricts this. It's tacky to do, but it happens all the time in all industries. A person leaves the company then calls back to co-workers to tell them how great the new place is and they try to recruite people to come to work. Some companies offer a referral bonus to employees who refer someone to their company. (They don't ask how they know the person or how they recruited them)
As far as non-compete agreements that some companies still use to stop this from happening. Most states have ruled that these documents are illegal as they restrict someones ability to get work in their chosen field so they don't hold up in court. |
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