Swimming with the sharks

Nothing brings out the worst in human behaviour than when the threat of a global recession really starts to hit home.

With the above in mind it should come as no surprise to hear I received a rather disturbing call from Anna* - a Sydney-based fashion retailer - last week.

Anna, whose family runs five small fashion boutiques throughout the city, rang me to vent about what she slammed as the "scumbag tactics" employed by a well-known multinational retail chain attempting to poach her staff.

This chain had sent one of its employees - its regional manager no less - into one of Anna's stores where he duly wedged himself between the nicely merchandised women's dresses and began spruiking his employer in a way clearly intended to convince Anna's staff to follow him out the door.

Seemingly unconcerned that Anna's loyal employees would report his unscrupulous actions back to their boss, the outspoken company rep spent several minutes extolling the various employee inducements available at his employer's business. He then handed over his business card, asked them to give him a call and without so much as a backwards glance strutted out the door.

Quite rightly the episode left Anna, ironically a former recruitment consultant herself, fuming. Sadly, while acknowledging she was astounded at his boldness, she too was unsurprised. "It's an unwritten rule, you don't do that sort of thing but no, I wasn't surprised that he had done it. I was initially ropeable. I just thought 'come on mate, we're all doing it tough'," she told yours truly.

Anna said while her company had great staff, it had come at a considerable personal investment both in time - with hours spent on advertising, CV trawling, interviewing etc - and in money. A cost the larger chain was apparently unwilling, or unable, to bear.

One retail recruitment company spoken to suggested that with many fashion businesses already operating on the sniff of an oily rag, episodes such as the one outlined above will become more prevalent.

This particular recruiter let's call him Steve*, said the global credit crunch was forcing some retailers to forego traditional recruitment procedures in favour of ambush recruiting. Poaching had always been a big problem in retailing, Steve said, but traditionally this was in the higher echelons of management, rather than at store level.

While Steve was quick to point out his company had a strict policy on raiding the ranks of other companies - with any staff member caught in the act facing instant dismissal - this was not the case for some companies many of whom had few such business ethics.

Unfortunately it seems fashion businesses such as Anna's can do little about the problem as legally it seems there is little retailers can do to protect themselves. According to advice provided by Frontline Retail some firms insert covenants into employment contracts that state that an employee cannot leave to work for a rival, or solicit business from former customers, and so on.

However, it appears clauses such as these may be considered a restraint of trade and will only stand up in court if you can prove the restriction is integral to the operation and health of your business.

And in all honesty, in between finding locations, negotiating leases, insurances and staff salaries, sourcing stock, accepting deliveries, and just generally trying to keep your head above water in the first place, who in the hell has time to ensure such contracts are even administered in the first place?

* Names have been changed to protect identities.

By Tracey Porter