Apple and Google Had Informal Agreement Not to Poach Each Others' Employees

[MacRumors]

TechCrunch reports that Apple and Google had an unofficial policy not to poach each others' employees during Google CEO Eric Schmidt's tenure on Apple's Board of Directors. The policy only covered contact initiated by the two companies in "head-hunting" capacities, and not unsolicited applications from employees.

This news follows a report by The Washington Post in early June that the Justice Department was looking into this very issue. That report cited sources close to the investigation stating that the government was looking for possible antitrust violations among several tech companies, including Google and Apple, with regard to their hiring policies. But that report didn’t say whether or not it was actually taking place. According to our sources, it is.

It is unclear whether the policy remains in effect with the departure of Schmidt from Apple's Board, although one of TechCrunch's sources claims that the agreement may now be off.

A source has also provided TechCrunch with an edited copy of an e-mail from a Google representative to a prospective employee who was apparently at Apple at the time contact was initiated. Based on the e-mail, it appears that contact was initiated by Google, and the representative acknowledges that the prospective employee's application will have to be canceled because Google had an "agreement with Apple that [they] will not cold call their staff.”

Article Link: Apple and Google Had Informal Agreement Not to Poach Each Others' Employees

 

[andrewsd]

this is interesting thing. I would think it would be off now that he is no longer at apple as well. And to the guy they solicited i hear palm likes to hire x apple employees.

 

[Rot'nApple]

Let the drain pool of former Apple begin...

But instead of iPhone talent going to Palm, it'll be OS X talent going to Google's new Web OS.

Apple better up the salaries and give niftier job titles to those whose contracts are soon to expire, otherwise, Google with it's millions will swoop them up!

 

[gocardsfan1]

Apple needs to watch out...

With this agreement most likely coming to an end, and with Palm already after Apple's ex employees, Apple needs to watch out because if Google follows Palm's route, it can only get worse. And that means more secrets will come out, and competition will increase between the companies. Not that competition is a bad thing, though.

 

[the vj]

I have no problem with companies making agreements with their employees as long the employess are aware of them.

I mean, what if I work at apple but my north is google?

 

[mobi]

...just merge already, too much flirting between A & G.

 

[killerrobot]

Doesn't everyone working on any Apple project have to sign a non-compete clause as part of their contract?

 

[SFStateStudent]

Really, merge already and quit the foreplay.....

 

[Peace]

Sounds to me like the government should investigate Google. Not Apple.

 

[PlaceofDis]

definitely can see some legal issues for Apple and Google with this. stupid stupid move.

 

[amoda]

definitely can see some legal issues for Apple and Google with this. stupid stupid move.

Excuse my ignorance, by why isn't this allowed? It only stops Google from cold calling Apple employees and vice versa. If an Apple employee goes to Google looking for a job, or vice versa, all bets are off.

 

[pdjudd]

definitely can see some legal issues for Apple and Google with this. stupid stupid move.

How? The article makes it clear that employees from either company could apply for work at the respected competitor. This was just an informal agreement not to poach. Those are two very different things.

 

[macintoshtoffy]

the agreement simply ensured that if an employee wished to leave that it was not the result of poaching - that does not mean that employees couldn't move

 

[Trekkie]

I really don't think this is unique. If you look at regions where large corporations are close together it's in their best interest to not commonly poach between them because of the integration of most tech industries.

Here in Raleigh, or more specifically Research Triangle Park, you have Cisco, NetApp, and IBM all together. IBM sells Cisco and NetApp things, and Cisco and Netapp have to work with IBM. You can bet there are informal agreements not to eat their own young by moving developers around or sales engineer types.

Personally when I worked for IBM you could apply at Cisco and NetApp and not even get a response. Rumor mill said that the agreement is informal, but strongly enforced.

I'm sure there are others like it in other regions. You only will inflate the salary of the employees poached, clearly this is bad for business.

 

[satelshawn]

Big Brother Overload

Really, where the heck is this any of the governments business? A friendly agreement to not poach each others talent is not something that the government should give to cents about compared to the real corruption going on on Wall Street.

These clowns need to get their priorities straight!

 

[tgildred]

mmmm... poached employees.

 

[happydude]

...just merge already, too much flirting between A & G.

that would be a pretty amazing scenario. i wonder what the world would look like if those two forces joined hand in hand . . .

 

[QCassidy352]

that would be a pretty amazing scenario. i wonder what the world would look like if those two forces joined hand in hand . . .

It would be cool on one level, but I don't think it would ultimately be a good thing. Their corporate philosophies are pretty different (witness the difference between iphone OS and android). To the extent they are compatible it's mostly because they're both innovative, industry-moving companies, but I actually think they play that role better separately.

For those saying apple had better watch out or lose its employees... what makes you think the talent drain would be in that direction? Both companies are flush with cash, popular, and seen as innovators. Seems equally likely employees would move in either direction.

 

[wonderbread57]

For those saying apple had better watch out or lose its employees... what makes you think the talent drain would be in that direction? Both companies are flush with cash, popular, and seen as innovators. Seems equally likely employees would move in either direction.

Google has a history of stealing away top talent from Microsoft. Apple doesn't have a reputation of poaching which makes it seem like the agreement was more to keep Google away.

 

[Centris610]

Really, where the heck is this any of the governments business? A friendly agreement to not poach each others talent is not something that the government should give to cents about compared to the real corruption going on on Wall Street.

These clowns need to get their priorities straight!

I think a part of the reason is that this type of agreement among companies could keep the salary level down or at least influence it in some degree, which is not so good for their employees.

 

[PlaceofDis]

Excuse my ignorance, by why isn't this allowed? It only stops Google from cold calling Apple employees and vice versa. If an Apple employee goes to Google looking for a job, or vice versa, all bets are off.

How? The article makes it clear that employees from either company could apply for work at the respected competitor. This was just an informal agreement not to poach. Those are two very different things.

while its true that employees could initiate things themselves, this also restricts a fair marketplace for the employees which could be problematic imo.

Google has a history of stealing away top talent from Microsoft. Apple doesn't have a reputation of poaching which makes it seem like the agreement was more to keep Google away.

what about Papermaster from IBM?

 

[MadCow42]

Not that surprising...

Such agreements are pretty standard for companies working together. Essentially, any time that cooperation between companies where employees work side-by-side where they wouldn't in a normal competitive atmosphere, it puts your employees at risk of being stolen.

I.e. - the google people on the project might work with someone they'd never otherwise meet, but are impressed by. So they offer him a job. It undermines the project, the cooperation, and the company.

They can't ban employees from APPLYING for a job with the other company, but they can put a stop to solicitation. No big deal... standard practice, ASSUMING that the two companies are working together on projects. If they're not, then it's anti-employee, and should be stopped.

MadCow.

 

[LethalWolfe]

Doesn't everyone working on any Apple project have to sign a non-compete clause as part of their contract?

Non-competes are rarely binding and the only ones that have a chance to hold up in court are very narrowly tailored in duration and scope.


Lethal

 

[Scooterman1]

It's more like 'Spy vs Spy' these days.

 

[Mattie Num Nums]

Google has a history of stealing away top talent from Microsoft. Apple doesn't have a reputation of poaching which makes it seem like the agreement was more to keep Google away.

WRONG WRONG WRONG!!!!

Apple notoriously poached members from Gap, Pottery Barn, and other retailers for their senior retail management position. Just because you don't read it on the news doesn't mean its not happening.