The Impact Of No-Poaching Agreements On Job Mobility

Gourav Kumar Sharma, GST Practioner, Infinity Services (Co-Founder), An Accounts Outsourcing Firm, Indore (M.P)

ABSTRACT

No-poaching agreements, commonly used by businesses to prevent the recruitment of each other's employees, have attracted significant attention in recent years due to their potential impact on job mobility and labor market dynamics. This abstract provides a concise overview of the key findings and implications related to the impact of no-poaching agreements on job mobility. No-poaching agreements can hinder job mobility by limiting employees' ability to explore career opportunities with competing firms. These agreements often result in reduced competition for talent and can lead to lower wage growth and fewer job choices for workers. Research indicates that such agreements can decrease wage growth for affected employees, as they are denied the benefits of competitive job offers that may lead to higher compensation. Furthermore, these agreements have been scrutinized for their potential to stifle innovation and productivity. By limiting the movement of talent between companies, employees may miss out on opportunities for skill development and exposure to different work environments, which can have long-term effects on their career growth and the overall competitiveness of industries.

Keywords: No-poaching agreements, Job mobility, Talent retention