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December 18, 2017

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Clearing The Fog - Part Three

Part Three of Three

The principals, laws and ethics behind contingency recruiting firm “non-solicitation” policies with their clients

In Part One we discussed one of the greatest source of conflict between company hiring managers and search firms: Internal candidate poaching or what is better referred to as “employee solicitation”.

In Part Two we addressed some of the more frequently asked questions company hiring managers have raised (both to us at IRES, Inc. as well as search firms using the services of www.searchwizardy.com who have made such issues aware to us).

Now we provide Tips for helping address the issues.

Tips For Company Hiring Managers

  1. Don’t assume. If you want some specific or extended form of “Non-Compete” or “Non-Solicitation” stipulated simply ASK FOR IT when negotiating your fee agreement. Expect to pay a little more … but it may be worth it if this is of concern to you.

  2. During periods of inactivity – Consider offering your search firm a “stipend” or small “retainer” during periods of extended inactivity. This will help the continuance of the working relationship and avoid expiration clauses from taking hold.

  3. If it’s not spelled out in the contract – then what applies falls within trade association guidelines assuming your search firm is sufficiently vested in their profession to be a member of such an association (many are not).

  4. Ask the search firm if they hold any national association membership. This provides added professionalism and adherence to ethics and standards.

Bottom Line: When you want extended service from your appliance chain store or from your new car dealer you generally have to pay for it. If you expect and desire an extended “warranty” in the form of a non-compete that goes beyond the standard industry guideline of one year – you must also be prepared to negotiate accordingly.

LINKS TO RESOURCES

Searchwizardry.com: www.searchwizardry.com

- Jeffrey Boxer, Esq’s. article on case law, recruiter’s fiduciary duties and actual dispute outcomes.

National Association of Personnel Services: www.recruitinglife.com

- Link to the Official NAPS (National Association of Personnel Services) Code of Ethics - This also covers “Non-Compete” period issues: The American Lawyer article by Jeffrey S. Boxer

Read Part One

Read Part Two

- Frank G. Risalvato, Certified Personnel Consultant

Frank is a veteran staffing and recruiting consultant and has been in the search profession since 1987. His net twenty year recruiting record has resulted in his managing well over hundreds of millions of dollars of hires with billions in revenues generated for client companies. He writes for many industry publications and speaks at conferences. His recruiter training services, books and kits are found on www.searchwizardry.com Call (973) 300-1010 for more information on his recruiting or training services. Email: fris@iresinc.com

Copyright 2007 © by Frank G. Risalvato