View Full Version : Question about hiring practices

04-18-2006, 01:47 PM
New to the forum...thanks in advance for the help.

Is it illegal to solicit employees of another business for a new business that is being started? For example, if I am starting a new power generation company called Power Inc. Would it be illegal for me or my employees to contact employees from Southern Company about the benefits of working for Power Inc?


04-20-2006, 09:15 AM
I guess to some degree it may depend on where you are located, and the legislation in play locally, if any.

However, generally, I would be surprised if there was a problem. Surely all you would be doing is advertising a position in a free market? I would be careful though in terms presentation: be sure to advertise your spot, rather than induce others to break their contracts.

Although unlikely, there may be regulation in play in a particular sector (I am thinking here for example of association rules in football which limit the poaching of players). This is rare, however.

04-24-2006, 07:57 AM
What you are proposing is head hunting - a normal commercial activity in the uK and probably world wide.

The problem comes if you recruit too many staff from one co. they may then retaliate in unexpected ways and undermine your business and or customers.

01-21-2014, 12:18 PM
Lots of people receive job offers, especially if they are good what they do. Other companies certainly expect this and usually do what they can to keep their employees if they are important to the company. I don't see anything wrong with it, obviously you can't call everyone who works at said company and offer them a job. You will need to employee some other people, which I am sure there are many out there looking for a job. I would narrow it down to a few people you want from different companies and contact them, their bosses don't own them!!

01-24-2014, 07:56 AM
No, this is usually not illegal but it is often seen as unethical. Having said that, it's pretty common for both startups and established players to poach employees - even entire teams - from their competitors. That's business, you could say!

If you intend to approach your competitors' staff it might be best to engage a headhunter with experience in your sector, who should have a good handle on the personality, abilities and experience of each of the potential candidates you should be considering. A good headhunter should have the inside scoop on all the trends and gossip in the industry, and will also be able to approach people and sound them out about the possibility of moving without disclosing who his client is. If the candidate is interested in taking discussions further, then he can arrange an interview and reveal who is hiring.

01-24-2014, 11:53 PM
I agree with BusinessMan it will depend on where you live, but you shouldn't have a problem. I would be discreet, however. You don't want to get retaliation from a bigger company.

01-25-2014, 08:58 AM
I don't think you have anything to worry about. Like others have said, however, I suggest that you tread carefully. Instead of talking trash about the other company, just focus on the benefits of working for you.

01-25-2014, 12:50 PM
I don't see anything wrong with it, in most places this is completely fine. It's just healthy competition!
But yes, be polite towards the other company, this alone will steer you clear of trouble.

01-26-2014, 08:40 AM
It is completely legal. Some bigger companies agreed not to solicit workers at the other business but most of the time it happens anyway. Every business wants to have the best workers so if another company already has the expert in your field, there is no problem in trying to persuade them to join your company.

01-26-2014, 08:53 AM
It is not illegal, it is Unethical. Soliciting and hiring offers to employees of other corporations by drawing them using money and other means is an ethical issue. It is legal though unethical. You won't actually get sued with this kind of act although the rival company can sue you if they find any special law prohibiting you from taking their employees and depending on the prevailing laws on your state or country. The only thing here is the ethical and moral issue involved and is up to you whether you are capable of doing such things or if you have a moral conduct which is unfathomable and do not intend to do those things.

01-29-2014, 01:55 AM
If you have been hired by that certain company as an external consultant or auditor or if you consider that company to be your client, then poaching or "stealing" or "pirating" their employees to work at another firm would be unethical.

However, I assume that you don't have any relationship with the other company at all. So trying to contact some of their employees in order to get them to work for you is perfectly fine. There's no law that states that it is illegal.

01-31-2014, 01:08 PM
Well, most companies do that and there is no particular rule against that. However, as long as you still remain concerned about the welfare of the candidates, more than just being able to recruit from the competition, then nothing is wrong with this practice.

02-02-2014, 12:37 AM
I don't think this is illegal but outsiders would call it poor business practice. At any rate, do what you think is best for your company.