Everyone is a beginner once. And we all have to start somewhere.
Let’s say you hire a beginner to work for you. You take this person under your wing and teach him everything you know. After awhile, though, he decides he’s ready to leave and open his own business. You’re hurt but supportive. That is, until you discover he’s taken a few of your clients with him.
In my case, I’ve never worked for anyone else in the event design business, so I’ve never been in a position to take clients from a former boss. And, technically, there’s no law against it. But it’s definitely a gray area. How do you know when you’ve crossed the line? In your opinion, what’s okay, and what’s stealing? I think this is something a lot of us struggle with — both as employers and as employees.
Dear Readers, have you ever lost clients to an ex-employee? Did you do anything about it? Have you ever taken clients from a former boss? What happened?
PREVIOUS
George Bernard Shaw once said: “You see things and say, ‘Why?’ But I dream things that never were and say, ‘Why not?’” That quote embodies how Preston Bailey approaches every event.
Lara Goldman
February 1, 2012
As any business grows, this is a risk you take. I do think, however, if someone ‘steals’ a client, the client was ready to be ‘stolen’.
What strikes me though, is that this is more about the next level of integrity of the former employee. While it might seem on the surface that it’s a theft, it could just be that the relationship was quite close, and the client was comfortable with that person. if this is the case, then it is COMPLETELY appropriate for the former employee to do a “mia culpa” and throw you a referral fee, if nothing else.
never burn bridges, and i always try to assume people will do the right thing in business. Businesses have an energy, and therefore a conscience. It’s important to do the right thing….not just for the client, but also for the former employer who has ‘raised you up”
Patricia Villa
February 1, 2012
It has happened to me several times. I train young people who decide to retire after they learn everything, and it took several clients. I consider it an act of lack of professional ethics and disloyalty. It is demotivante see a company making the effort, and others take advantage of the situation.
Melanie
February 1, 2012
I think is a total lack of integrity and respect to the former boss. If like Lara says that if the client was fond to the former employee, then it would be great if things got said in the open. arrangements can be easily done. Talk to your former boss and stay in the company while taking care of that specific client even if it’s only free lance.and of course talk to the client and tell them your reasons not to keep on working with the wedding. it’s code of ethics and it’s a stab on the back if you don’t talk it clearly. I think that if the client really wants to work with former employee they will terminate the contract and pay the penalty fee if he wants to change planner. that is legal if they are not happy with former planer. that is just my point of view. truth always set you free and that way you stay in a good relationship with both, former boss and client.
It’s just a matter also of respect and acting the way you would like to be treated.If someone taught me about the job, I should be grateful no matter what, and for that, be respectful to the former boss.
Also, for me I start working upon signed contract so “stealing a client” from me would implicate also the loss of the down payment and a cancellation fee. no one can forbid a client to terminate contract or to choose another planner if they are n to happy with me. neither obligate someone to stay working with you.
as Lara says, I do always like to assume that people would do the right thing, but unfortunately there are people who don’t. also, might be cause for their point of view is not doing something wrong… until it happens to them! (karma does remember!)
Lara McCulloch-Carter
February 1, 2012
Every business should have a nonsolicitation clause as a part of their contract. I’m not from the wedding industry, but this is standard in most other industries. This type of clause is used to ensure the employee agrees not to pursue or contact any clients or customers for a set period of time after they leave or are dismissed from a business.
Side note: One of the biggest issues I’ve seen is when a nonsolicitation is ambiguous – not only does this create confusion over the details of the agreement for the employee and employer but it leaves loopholes.
I have been in the situation a few times where I’ve decided to move on from a business and a client has contacted me directly in hopes that they can continue to work with me. These situations are a little less clear and I’m no lawyer, but a nonsolicitation should help to protect businesses in these scenarios as well.
Naushin
February 1, 2012
WHAT WOULD YOU LIKE TO SAY?
Naushin
February 1, 2012
Oops, sorry, that sent without the message. I just wanted to say I agree with Lara. I also agree with Melanie re: having a clause preventing this.
lina Dakkak
February 1, 2012
one of my former employees, called my client and offered him 50% less than any price i give, i just couldn t keep silent about it and i took a harsh action,
Angela
February 2, 2012
At the moment it has not really happened to me but i do know a lot of my other colleagues in the industry it has happened to and it is quite upsetting. I have only been lucky to have an ex staff who usually would call me to confirm it is okay in the event a client thinks our prices are too high and then wishes to work with her . And on those occasions i have been okay with it, but really not sure if i will always be that lucky.
Tanya Malott
February 2, 2012
I don’t own my clients. They are not “mine”. I serve them. If they feel someone else serves them better, then that is their choice.
I am extremely loyal to my clients…to their privacy above all. I find that loyalty is returned, in spades. They are welcome to leave any time, and I am grateful to them when they don’t, and instead they return year after year. This is the definition of my ‘ideal client’ My average client has been with me for 7 years.
Last week, not one, but TWO brides from the early 1990′s contacted me about new work. That left me speechless.
Richard
February 8, 2012
I suppose one could turn this question on its head and ask about the integrity of the former employer. Preston, if a former employer lays off a long time employee, wishes the employee well in every respect as he goes off to another, smaller but similar, company and then, less than six months later, sues said former employee for breach of a flimsy non compete agreement signed 12 years earlier (and ultimately summarily drops the lawsuit after a year long expensive back and forth where only the lawyers made any money), what is this former employee, who solicited not a single client prior to nor during the course of the lawsuit, to think and do in the face of such treatment? Did the former employer cross the line when he tried to drive his former employee out of the special events industry?