Poaching Clients

Hi
I'm looking to seek basic advice on poaching clients from my previous employer, hopefully someone out there will be able to shed some light on the topic. I've searched online but can't really see much.
This is my situation.
I've just left my employer to set up my own practise as a partnership. I worked for my previous employer for 4 years and over that time have developed excellent relationships with a number of clients, the majority of whom weren't happy with the service my employer provided.
My question is what is my position regarding poaching these clients? I haven't signed a contract so have never agreed I wouldn't poach them. What are the legal rules for this? Any advice would be greatly received.
I'm looking to seek basic advice on poaching clients from my previous employer, hopefully someone out there will be able to shed some light on the topic. I've searched online but can't really see much.
This is my situation.
I've just left my employer to set up my own practise as a partnership. I worked for my previous employer for 4 years and over that time have developed excellent relationships with a number of clients, the majority of whom weren't happy with the service my employer provided.
My question is what is my position regarding poaching these clients? I haven't signed a contract so have never agreed I wouldn't poach them. What are the legal rules for this? Any advice would be greatly received.
0
Comments
Morally and ethically it is highly unprofessional.
Why burn bridges with a former employer?
I saw a similar thread on Aweb about this recently (here).
Thanks again
Clients are not tied to an accountant - they can come to you if they want but to actively poach them would be wrong.
If you can give the service that your clients want - word of mouth will bring more to you without stooping so low.
I think it seems as though you have allready made up your mind judging from your posts. Maybe approaching the AAT for ethical advice may be one option?
The clients saying they are unhappy and actually meaning it and doing something about it are two different things.
I would not be writing to them to 'poach' but I certainly would not hide from them my intentions of setting up on my own, and would be prepared to accept those who approached me.
Burg
http://content.talentmarket.monster.com/contractor/freeagentguide/startingout/takingwithyou/
I particularly like the way the writer starts by saying retain good terms with your former colleagues and employer, yet go ahead and canvas all their clients as soon as you are out the door! And don't leave it too late!!
Different industries have different ethical standards but it is a shame that our industry does not seem to be able to instil the benefits of maintaining high professional standards in our students.
Perhaps it conflicts too much with our capitalist economy.
Now, back to the commune..
I posted the link as we're an industry very susceptible to consultants leaving their employers to go it alone and it's exactly how my own company was started. Paranoia is everywhere. Everyone has key loggers on their machines, calls are monitored, your bosses can see your screen from theirs at any time, they receive copies of your e-mails etc.
I posted the link as much for the "don't bad mouth your former employers" and the legal implications of actively pursuing clients of your former company. The soft-canvassing while you're still an employee is simply giving them your number and telling them why you're leaving, they can fill in the rest if you have a good working relationship. What the OP is doing here is actively pursuing clients which will surely land him in court. We spend tens of thousands each year on fees legally handcuffing former employees from stealing our client lists but of course, we cannot control what's in their head.
I would also add that having been in a similar situation to yours, three of my old clients asked my old employer if they could stay with me on a self employed basis. I then had to decide whether I wanted to go down this route as I was mainly moving to another job but not in practice.
What I'm trying to say is that if they want to come with you, tell them you're setting up on your own but that they must ask your employer's permission first - well, not permission but you know what I mean hopefully. Secondly, as a client I would not go with a member of staff of my accountants unless I was 100% happy that they could deal with my needs. A practice has many things that a one man band won't, despite how badly run the practice seems to be.
If your clients 'ask' your employer then it's still their choice to move or not but it irons out any ethical issues. It's then up to your employer to negotiate a fee for you to 'buy' the client from them.
People don't just get given practices in the main, so it's up to you to build yours up if that needs to happen, you can't just swan in and steal a client base; that's very wrong IMO.
To which end, make sure they have your mobile number/ email address, or prominently advertise your new services using your own name, i.e. make sure they can easily find you when they come looking.
Best of luck
As a thought; why not get in first and offer your previous employer a commission for taking the client? This would certainly look favourable should you be taken to court!
Regards
Dean
Also bear in mind that `word of mouth` goes both ways, your previous employer could certainly make things difficult for you, better to gain clients in an appropriate way than get a bad name for under handed taticts !
That's not really even an if but an absolute, though proving it could be hard. If you copy or take client lists from an employer - which are classed as their company property - then you're as guilty of theft as if you'd stolen a desk and chair. The keyloggers and virtual screens on our company machines are primarily there to prevent the copying of client lists by disgruntled employees in a 'we know what you're doing' capacity.
I answered by first stating this would not be illegal however this would be a moral issue.
Firstly would you like to start off your practise in this way knowing that this could happen to you and how would you feel if you where put in the exact same postion. How long would you keep your client? if they are able to be poached by you they could also be by others.
Having worked in practise myself for 4 years a lot of worked is passed to us from other accountants that a, dont have the time or b, dont have the knowlege - if you have a good relationship with your prevoius employer the same could happen i wouldn't burn bridges it could be a really good resourse in the future.
You say you have a good relationship with the clients well also they may not want to leave there current accountant but they may recomend others to give you a go (soal traders smaller accounts) if they hear of the underhanded way you set up your first client list they may see you as untrustworthy - that would be even worse as this profession is like a doctor built on trust.
Sorry can woffle on ethics its an interesting subject
We do try as a rule not to deal with reps like this on the basis that if they have to poach like this then they probebly dont have anything special to offer us.
The other thing that happens is we receive letters from their previous employer saying "XYZ left our employment on xx/xx/xxxx but we understand is still trying to pass themselves off as an employee - please be careful to ensure you dont deal with them but call us on" which gives the whiff of desperation on the part of the leaver and ensures we treat them with caution.
of course if you have evidence that you are simply mailshotting every company in the area/trading estate/local relevent industry and have rung the sales team's and enquired as to the name of the decision maker for the relevent dept of each business and mailed accordingly then you aint poaching your advertising.....but if your sevice is as good as you state then they should recognise your name.
"What I'm trying to say is that if they want to come with you, tell them you're setting up on your own but that they must ask your employer's permission first - well, not permission but you know what I mean hopefully"
When I left my employer I wasn't going to work at all but one of my clients was really upset that I was leaving and asked me if I'd still come in twice a month and do their books. I asked them to ask my employer first as I knew he'd be cross - and boy was he ever! He accused me of all sorts. Wouldn't let me explain what was happening, that I had no intention of setting up on my own and poaching all my other clients, that this really was a one off and they had asked me and I thought it only correct that they should ask him first. It wouldn't have mattered which way round I'd done things it would have been wrong!