Thought Leader Thursday: “No Poach” Recruiting Agreements Continue to Fall Across Corporate America…

by Kris Dunn
July 26, 2018
Thought Leader Thursday: “No Poach” Recruiting Agreements Continue to Fall Across Corporate America…

If you’ve been in the business world long enough, you’ve run into executives at both small and big companies making agreements to not recruit other company’s employees.  These agreements are a by-product of the good-ole-boy network and usually the result of one executive knowing another and agreeing to keep each other’s companies “off-limits” to recruiting efforts.

It’s called collusion, right?

Funny thing is, HR has never really had a voice in that.  Instead, we find out what the agreement is “ex-post facto” and if we’re really lucky, we get to ruin someone’s life by retracting an offer due to these informal agreements – after that employee has already resigned at their current company.

It’s always been stupid like that. The good news is that the legal system is rapidly taking these agreements off the table.  First, it was Silicon Valley and now seven fast-food chains — including Arby’s, Cinnabon and McDonald’s — have pledged to end so-called “no-poaching” rules that have prevented employees from moving from one franchise to another within the same restaurant chain: More from CNN:

“Washington state’s Attorney General Bob Ferguson said Thursday the agreement could end the practice at roughly 25,000 restaurants nationwide.

The move will mean fairer hiring practices for ‘tens of thousands of low-wage’ workers in the United States, Ferguson’s office said. His office also said it will take legal action against franchises that violate the agreement, and the companies could face civil penalties or fines.

The fast-food chains included in the agreement are Arby’s, Auntie Anne’s, Buffalo Wild Wings, Carl’s Jr., Cinnabon, Jimmy John’s, and McDonald’s (MCD).

‘No-poach’ rules bar workers at franchise-owned restaurants from being hired by a separate franchise within the same chain…

Read more on the HR Capitalist!

Kris Dunn

Kris is a Partner and CHRO at Kinetix. He’s also the founder of Fistful of Talent (2008) and The HR Capitalist (2007) – and has written over 70 feature columns at Workforce Management magazine. Prior to his investment at Kinetix, Kris served in HR leadership roles at DAXKO, Charter, and Cingular. In his spare time, KD hits the road as a speaker and gives the world what it needs – pop culture references linked to Human Capital street smarts.

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