Do you say NO TO PIRACY? In the business industry, products and services are not the only targets of piracy. Companies that have smart and talented people as part of their teams are normally poached or raided by recruiters from other companies. HR managers have to deal with replacing talents and tight labor markets due to globalization of businesses, demographic trends and poor practices in leadership developments. Hence, the war for talents intensifies making it harder to keep good people within the firm. No-Poaching Agreements The practice of poaching employees allows recruiters to hire employees in an aggressive manner from their competition company. HR teams target those who have more specialized skills which became notorious in 2010 when two famous US companies such as Google and Apple have agreed to disengage in No-Poaching Agreements. Source: http://www.tribuneindia.com Employers who lost their talents to competitors incurred additional expenses in recruitment, retraining, and sign-on bonuses. One of the most common ways where a company can suppress poaching are by signing in with a Non-Compete Agreement where an employee agrees not to work for competitors within a certain time after their resignation. Another way of ensuring the loyalty of an employee is through compensations tied to performance and future successes. The last is to engage an employee by undergoing sponsored programs and developed annual initiatives that can increase an employee's morale and engagement.
Philippine Competition Act: Signing Off Effectively August 8, 2017, it was marked as the end of the transitory period for Republic Act 10667, otherwise known as Philippine Competition Act (PCA). This law aims to penalize companies that are caught engaging in anticompetitive conduct with criminal liability that is punishable by imprisonment and large fines. This Republic Act also aims to have a competitive marketplace that ensures a free and open competition to help consumers with lower prices of goods and services along with better and innovative products. Price-fixing, bid-rigging, market allocations and cartels are some of its covered practice, but the practice of hiring employees between competing employers is still analyzed if it's covered by this anti-competitive implication. Since poaching employees is one of the major headaches that HR managers deal with in the IT BPO industry, ITBPAP drafted an industry anti-poaching guidelines for a Voluntary Code of Good Practices for IT BPO industry. This code promises not to engage in poaching of talents between and among themselves. It promotes cooperation, exemplifying good recruitment practices, talent development, job enrichment, training, planning, compensation, career path, and employee welfare. No-Poaching Agreement is a Violation? Some may see the No-Poaching Agreement as a violation to section 14(b) of the PCA which prohibits an agreement between competitors to set, limit, or control a market. But, companies are motivated by competition and to acquire the talents, they offer the best terms of employment so it will be unfair to employees if they are hampered by a set of standards. In the US, a jurisdiction treated some of these agreements by declaring wage fixing as illegal. But in the Philippines, PCS is still a new piece of legislation while the anti-trust law of US is already practiced for more than a century. So, learning from the masters will come in handy to promote competition.
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October 2017
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