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Told if I want the job - stop doing consulting on the side 4

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Antelope

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Aug 6, 2003
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I was recently told that I might be offered a position, but they had to clear something up first. On my resume, I list my side consulting company as part of my experience. They told me I would have to sign a form saying I would not do consulting on the side if I worked for this company.


I do consulting on the side to further my career and gain more experience in my field, but from a monetary standpoint, it is only bringing me in $2000-3000 extra per year cause I only do it for 2-3 businesses and a couple of home users.

What are your thoughts on companies telling you do to this and would it bother any of you?
 
You need to decide if the side business is worth more to you than working for them. Obviously, you don't do it for the money (although an extra $3000 each year is nice!), so perhaps you do it for other reasons.

Something I would consider asking them is if they would make it part of your employment contract that they send you to two industry shows or training classes each year. They would pay the first $3000, and you'd pay anything over that. Include a clause that if they don't send you (scheduling difficulties, etc), they have to pay the equivalent money. Explain how you use the side consulting business to further your education, and if you can't do that, you consider this to be the nearest best thing.

Chip H.


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With respect to thoughts on companies doing this, there are several issues, not the least of which is what the propspective employer's business is.

The company may, depending on what they do, and who your clients are, have competative issues or conflict of interest issues.

They may also be concerned about you being drawn away, even if a phone call now and then, from your primary job during normal business hours, or the use of their equipment for outside purposes. They could be concerned about burnout, in that you may be working too much. They may be concerned that between a full time job and moonlighting that you don't spend enough time with your family or get enough rest, or have a life outside of work. They may have been burned by a moonlighter in the past.

There could be several issues at play.

Good Luck
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ChipH that was a great response. It may or not help Antelope, but now I know what to do if it ever happens to me.

~Thadeus
 
Yes ChipH - I think that is a great idea on how to approach this issue. Thanks again for everyone's input.
 
I'd use this as negotiaing leverage. If you want me to stop consulting, fine, but its gonna cost you.

Also, it they are not concerned about competitive or conflict of interest issues, the entire concept of restricting your outside activities may be patently illegal from a restraint of trade standpoint, and IMHO is definately unethical.

Software Sales, Training, Implementation and Support for Exact Macola, eSynergy, and Crystal Reports
askdon@srhconsulting.com
 
When I go tmy current position, I had to disclose all outside activities for possible conflict of interest and sign a form stating this job would always take precedence. That's pretty common.

If you consulting is not competitive in a business sense to your new possible employer, you should be able to continue as long as the new employer always comes first.


Jeff
I am who I am and that's all that I am... (If I'm not supposed to be me, why do I look like me?)
 
Personally, I wouldn't take the job. However, I consult full-time and view it as too lucrative a role to ever turn down - so it is unfair to use my anecdotal situation.

The advice offered above is good. Are you a potential competitor? Are they concerned about your focus? Can you barter to take on a larger role or have more access to a variety of technologies (learning what you want to learn on their dime and time).

Even if your goal is to develop a small business on the side, developing a full book of business can be done pretty quickly 12-15 weeks for an individual - so losing the 3 clients you have (after helping them find a replacement) is not very critical.

Matthew Moran
 
Many companies would be worried about your side business for two reasons:

1. Overworking. They feel it would consume time you could be using for them. For example, phone calls at work, working late with your clients, etc.

2. Security. They feel that you may be spreading your new companie's technology and product to unknown clients of yours.

This kind of dilemma can get thorny, no matter how you try to rationalize it with your new employer. They will feel that since they'll be paying your pension and other benefits, they should not share you with others.

There are many other employees who may be far more risky for your employers (staying up late watching TV, partying until wee hours, etc.), but your employer will always despise sharing you with others more. It's like getting married and letting your spouse keep their old beaus.

That's why I think trying to keep your outside consultancy while taking a full time position is an unhealthy accommodation. It is best to avoid getting into a situation such as this one.

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I think that what you do outside of your job is your business.

I once had to sign a non-compete clause like this one. I discussed it with my old internship supervisor, and he told me that the courts really don't like these documents. They don't like papers that restrict your freedoms.

I personally have an issue with any institution that tries to restrict your personal development. Back in the day, it was a different story. You could expect to land a good job and be with that company until retirement. Now, with all the downsizing and restructuring that has occurred, employers can no longer expect the loyalty that they once received, because they have neglected to give it out.

My dad always told me that you can't expect to get rich off of your job, you always have to have things going on the side.

My view doesn't seem to be popular, but that's how I feel and that's how I live my life. And yes, I do like my job, and I have a relatively good job, secure, and I do consulting on the side. I disclose it though, partly b/c my boss won't stop me from doing it. But it has already paid off for him. Because I took the time to learn something new and market it on the side, I was able to take that knowledge and apply it at work.



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I suppose that may also be extended to that you could not sell off your old computer hardware at a swap meet? Be careful! If there is no potential direct conflict of interest, they have NO RIGHT to say what you do in your spare time! However if they offer consultingservices, your business represents a potential competitor, and thus a potential conflict of interest!
 
There is also the issue that you may, even inadvertanly, disclose confidential and business sensitive information to one of you clients. For example, just chatting to a customer and saying something innocent like...
"Oh at my company , we get a special discount of xxx because we sell to xyz, thats why it wil cost you a little more to buy"
Not only may that be a sackable offence, but it may constitute corporate sabotage and may be illegal, a very grey area.

Stu..

Only the truly stupid believe they know everything.
Stu.. 2004
 
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