Solicitation of employees: Overview, definition, and example
What is solicitation of employees?
Solicitation of employees refers to the act of actively seeking to hire or recruit employees from another company, often with the intention of enticing them to leave their current employer to join a new organization. This practice can happen through direct contact, job offers, or other efforts to convince employees to leave their current positions. Solicitation can happen in many contexts, such as during recruitment campaigns, mergers, acquisitions, or competitive hiring practices.
For example, if a competitor company offers a job to one of your employees to convince them to switch jobs, this would be considered solicitation of employees.
Why is solicitation of employees important?
Solicitation of employees is important because it can have a significant impact on a business's operations and workforce stability. While attracting top talent is a legitimate business strategy, aggressive solicitation can lead to talent shortages, increased turnover, and loss of valuable knowledge and skills. In some cases, it can also lead to legal disputes, particularly if the solicitation violates non-compete agreements or confidentiality clauses.
For SMBs, understanding and managing the risks and benefits of employee solicitation is essential for maintaining a stable and productive workforce while also attracting top talent when needed.
Understanding solicitation of employees through an example
Imagine your small business has an employee who has been with the company for several years and is highly valued. A competing company offers that employee a higher salary, better benefits, and other incentives to convince them to leave. This act of recruiting your employee away from your business is considered solicitation. If this employee leaves, it could impact your business’s productivity and lead to increased costs related to hiring and training a replacement.
In another example, if your business has a non-compete clause in an employee's contract, and a competitor actively solicits the employee to join their organization in violation of the agreement, this could lead to legal action.
An example of solicitation of employees in action
Here’s how solicitation of employees might be referenced in a business contract or policy:
“The company agrees not to directly solicit the employees of its competitors during the term of this agreement. Any attempt to recruit employees from another company, whether through direct contact or advertisements, shall be subject to review and potential legal action.”
Conclusion
Solicitation of employees involves actively seeking to recruit employees from another company, often with the intention of enticing them to leave their current job for a new position. For SMBs, it’s important to balance the need to attract top talent with the potential risks of losing valuable employees or facing legal challenges. Understanding the implications of employee solicitation helps businesses manage their workforce effectively and avoid unnecessary disruptions.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.