Poaching is such a widely accepted business practice that more than 70% of hiring professionals admit to having done so. While poaching is not illegal, there can be legal ramifications. This may be the case if an employee is lured away to a competitor even though they signed a noncompete agreement that prohibits them from having contact with the competition after leaving the company. Often, a company will have an employee sign a noncompete clause as part of their employee contract to prohibit being employed by a competitor for a specified period of time. The bottom line is that employees leave a company of their own accord by accepting the proverbial offer they cannot refuse.
Given the pervasiveness of poaching, human resources professionals need to be proactive in addressing the issue to retain employees. One way to do this is to make sure employees are happy in their working environment. Here are steps HR managers can take to ensure that poachers are deterred from thinning the company herd:
- Include a noncompete clause. A very direct way to ensure an employee does not find employment with a competitor is to have them sign a noncompete clause in their initial employee contract. The clause usually stipulates that the employee cannot go to work for a competitor for a specified amount of time after departing your company. Some companies will go so far as to put their ex-employees on “garden leave” for a few months, which means they are being paid not to work. This protects the company from having an ex-employee who has time-sensitive information with them when they leave.
- Boost engagement. Companies are most vulnerable to poaching during times of change such as layoffs, restructuring or office moves. It’s understandable for employees to consider jumping ship during these uncertain times. Your job is to be as transparent as possible in communicating with employees to reduce their anxiety and stop them from heading for the exit door.
- Get feedback. You need to understand your employees’ needs and concerns. One quick way to do this is to send scheduled pulse surveys to them. Pulse surveys are usually 1-10 questions intended to gather real-time information on employee satisfaction, engagement or more company-specific topics. These surveys tend to boost employee morale because employees believe they are being heard and what they have to say matters.
- Review compensation. Employees want to feel valued by their employers, and being fairly compensated is an important way to show it. If your benefits or salary structure is not up to industry standards, your employees could be vulnerable to being lured away to a more lucrative situation. In addition to required health benefits, you could offer bonuses, unlimited paid time off, retirement options or even free gym memberships.
- Create a career path. You are in the best position to know the strengths and talents of your current employees, particularly those you want to retain. Have a conversation with those stellar employees to better understand their career goals and how you can help them get there. Institute a career development program that includes mentoring and training aimed at promotions and higher salaries.
Poaching is a fact of business life, but there are steps companies can take to protect themselves from being vulnerable. The key is to make sure your most valuable employees feel valued, are engaged and see a clear career path ahead of them. Of course, if you are thinking of implementing any policies to prevent poaching, talk to an expert to make sure you are not violating any labor laws.