Q: I own a small business and when I land a large project I often subcontract with other small companies whom I consider business partners, so I can provide a wider range of services. That’s why I was shocked and not happy to learn that one my business partners is trying to poach my office manager.
If my employee seeks to leave of their own accord, they are free to, and I would understand. But I think it violates business etiquette when a business partner seeks to poach your employee. Any thoughts?
A: I prefer to call this head-hunting. But you are correct. Accepted business etiquette dictates that you don’t poach from someone with whom you’re basically on the same team. It’s bad enough when a competitor starts wooing one of your employees, it’s worse when it’s someone you consider a partner.
It may not be obvious to some ethically-challenged people, but the business rationale for not poaching employees is to avoid losing a business relationship.
For instance, in your situation, whether your partner is successful in hiring your office manager or not, he has already damaged your relationship. You no longer trust him, you resent his lack of business etiquette and you likely won’t be working with him in the future. By taking a short-cut on this one hire, he shattered the good will and long-term business relationship that probably took years to build.
How prevent this in the future? Consider having a Poaching-Penalty Contract Clause – (try saying that three times.)
It consists of language in the contract between you and your business partner that prevents either of you from head-hunting away an employee unless you choose to pay a penalty. The party that loses the employee is compensated by the party that hired the employee. Sometimes it’s a flat fee 5-25k for example, or sometimes a percentage of the employee’s salary. This way the losing organization has money to cover the vacancy, recruit a new hire and re-train. Sometimes, just having the language in the contract can act as a poaching deterrent, and establish the understanding that it’s not okay.
Hope this helps.
©Copyright Eva Del Rio
Eva Del Rio is creator of HR Box™ – tools for small businesses and startups. Send questions to Eva@evadelrio.com
