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Over-recruiting California

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  • Over-recruiting California

    I have an ex employee who is now working down the street for another company, not a competitor, totally different industry.

    This ex employee has since recruited away two employees from us and has made offers to two more. When he left the company, we had 42 employees... so 4 employees is almost 10% of our workforce.

    He has a clause in his employment paperwork with us that he will not recruit within the first 9 months of leaving the company - he did not, the recruitment happened in the 10th month

    Is there a law which I can site in order to encourage him to stop? Do you have any other recommendations for me?


  • #2
    You have admitted that he fulfilled the part of his agreement that he would not poach employees for 9 months. What more do you want? If there was such as law to prevent this, the 9-month clause would not have been necessary.

    He is obviously offering these employees something that they feel they are not getting from your company. That could be better pay, better working conditions, more promotion opportunities, friends, etc. The only way to stop your employees from leaving is to make your company more desirable to work for than his.

    Can you find out why they are leaving?


    • #3
      I agree that they are leaving because they find the new company/job more attractive... for a variety of reasons. I am working on the retention issues you brought up as well.

      I just did not know if there was a limit as to how many people he could actively pursue without being considered malicious?



      • #4
        Back when IT people were Gods, if a company fired or harrassed our boss, the boss could find another position and take the entire department with them, leaving the old company high and dry. <sigh> Those were the days. </sigh>
        I am not an attorney, and don't play one on TV. Any information given is a description only and should be verified by your attorney.


        • #5
          Uh, that would be all of them...

          Originally posted by KJ in CA View Post

          I just did not know if there was a limit as to how many people he could actively pursue without being considered malicious?

          Whether YOU consider it "malicious" or not is irrelevant, in the absence of a contract. You had a contract. Your former employee fulfilled his end of the bargain. He may now recruit as many of your company's employees as he wishes, just as you may recruit as many of his company's employees as YOU wish.

          It's competition for labor, and if my MS in Econ is worth anything, competition is part of the free market system. I've been reminded, from time to time, that it really isn't worth anything, without the BA to go with the M.
          Last edited by Texas709; 08-18-2010, 02:15 PM. Reason: sp


          • #6
            Personal experience here. Back in the '80's, our controller left for a CFO position. Within 4 months, he had recruited 6 employees, me included, at the new company. For every one of us, it was a promotion and got me management experience I could use to further my career.

            Just sayin'.
            I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.


            • #7
              Guess it will continue to happen until you find the reason they are leaving and fix it. It may not just be money,at a former employer our turnover was a result of a bad supervisor and his "clique".
              Find the problem(s), and maybe employees will want to stay and not seek greener pastures.


              • #8
                Originally posted by KJ in CA View Post
                Is there a law which I can site in order to encourage him to stop?
                The bottom line is there is no *law* you can quote to stop him. He is doing
                nothing illegal.

                You need to change things at your place of employment to make it a more
                attractive place to work.
                Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

                Live in peace with animals. Animals bring love to our hearts and warmth to our souls.


                • #9
                  I would like to echo what Angel said. I recently transferred out of a position with an abusive GM. Half of the support staff who reported up through this GM have left in the last six months. Of the people who left, most either took equivalent or lesser positions elsewhere - it was not about money or promotions. Our company and other companies in our area are hiring again, there are lots of opportunities opening up as people shift around. For the last 18 months, all we heard was "Suck it up, what else are you going to do? Where else are you going to go?" I guess he has his answer!


                  • #10
                    This is common in investment banking. The entire team typically leaves together.

                    If the trend continues, your company should consider some cross-training so that if you lose more employees, you can have the key areas covered.

                    Your former employee honored his agreement with respect to the timing.

                    Not much you can do other than look internally and determine what the company may be doing or not doing which has your employees looking for the exit and a new opportunity.


                    • #11
                      Here is another example where the way the company treated the employees resulted in losing many employees.

                      I was recruited to work for a company who had a major acquisition based in Chicago. I live in the suburbs and to get to Chicago from where I was took a very long commute. The company recruited employees almost exclusively in the suburbs, and almost all were currently working in Chicago.

                      Company said during recruitment, they would be in Chicago for 3 months, then would move to the suburbs. People left good jobs in Chicago, to have the opportunity to work much closer to home in the suburbs.

                      Company changed their mind, and at the 3 month mark, announced they were not moving, they were staying in Chicago.

                      Within one month, the company had the following resignations and probably a few more, can't say for sure because I was gone by then.

                      Payroll Manager
                      Benefits Manager
                      3 Accountants
                      HRIS Manager
                      IT Manager

                      People leave for a reason, but when people are leaving in bunches, the company needs to determine why, and quickly before you lose more.


                      • #12
                        Employees who are happy or at least satisfied with their current position and employer rarely leave. It usually isn't about money; it's about how they are treated. This falls directly on line management. It can be a bad supervisor who doesn't understand how to deal with employees; it can be a bad owner or CEO whose faulty policies permeate the entire organization, etc. Whatever it is, it needs to be fixed in the line management organization -- but, if it is a bad owner, it is probably not fixable.
                        Please post questions on the forum rather than sending me a private message or email. That way others who have similar issues have access to the discussion.