Employee Referrals from Aesthetic Device Reps?
BEWARE CONFLICTS of INTEREST!
Aesthetics Device sales representatives are typically responsible for selling products or services to other businesses. Unfortunately, physicians and practice owners frequently turn to their device sale representative for employee referrals when they are looking to hire. In recent OnCall survey 60% of responding employers said their device rep was the first place they went when looking for new staff.
This or her practice, while all too common place, is fraught with conflicts of interest that can damage practices, device reps and their companies, and prospective employees. This article outlines the dangerous conflicts of interest and their effects your practice, the device rep and his or her company, and prospective candidates.
General Conflicts of Interest
Providing recruiting services as an Aesthetics Device sales representative can create a conflict of interest because the representative's primary goal is to sell their company’s products or services to the client. If the representative also takes on responsibility for recruiting new employees for the client, there may be a temptation to prioritize candidates
Laura Lawrence, The Beauty Agent
who are more likely to purchase more products or services from the representative's company, rather than those who are best suited for the job.
In addition, the representative's focus on selling products or services may take away from their ability to fully dedicate themselves to the recruiting process. This could lead to a less thorough search for potential candidates and could ultimately result in suboptimal hiring decisions for the client.
To avoid this conflict of interest, it is generally best for Aesthetics Device sales representatives to focus solely on selling their products or services to their clients and leave recruiting services to dedicated recruiting professionals or agencies.
Multi-Client Conflicts of Interest
Its also important to consider that recruiting staff from one prospective client for another existing or prospective client creates a conflict of interest for Aesthetics Device sales representatives. In this scenario, the representative may be perceived as having a bias towards certain clients, which could damage relationships with both clients involved.
Furthermore, if the representative recruits an employee from a prospective client for an existing client, the prospective client may feel that their trust has been violated, and they may no longer be interested in working with the representative's company.
Similarly, if the representative recruits an employee from an existing client for a prospective client, the existing client may feel that their needs and interests are not being respected and may consider ending their relationship with the representative's company.
Bad Hire Conflict
Moreover, when a device sales rep refers an employment candidate to one of their clients, the outcome can be unpredictable. If the referred candidate does not work out for the client, there are a few potential consequences that could occur:
1. The client may lose faith in the sales rep's ability to provide quality referrals. This could result in the client being less likely to take future referrals from the sales rep seriously or at all, which could damage the sales rep's relationship with the client.
2. The client may express disappointment or frustration to the sales rep, which could also damage their relationship. The sales rep may need to do some damage control by explaining why the candidate was referred and what steps they took to ensure they were a good fit for the position.
Given the high employee turnover rates in Aesthetics, device reps complain to us frequently that they have been compromised by making these kinds of referrals but feel trapped and obligated to help their client. Its important to recognise, that at the end of the day, a bad hire is extraordinarily expensive (typically double the annual compensation or more of that bad hire), and reps should avoid getting involved as much as possible
Avoiding Conflicts of Interest
To avoid these conflicts of interest, Aesthetics Device sales representatives should ensure that they have clear policies and procedures in place for recruiting employees from clients or prospective clients. Strong corporate policies can help reps by giving them cover when asked by their clients for this kind of help.
Reps should also prioritize transparency and open communication with all parties involved to maintain trust and minimize the risk of conflicts of interest. Additionally, it may be helpful for Aesthetics Device sales representatives to work closely with recruiting professionals or agencies to handle the recruitment process impartially and ethically.
How to Respond for Reps
“I’m sorry, I’d love to help but our company has a strict policy in place that prevents me from referring employment candidates. Imagine if I referred one of your staff to your competition…I think you can see why we’re not allowed to do that. But I can refer you to OnCall Recruiting, we operate completely independently, and they specialize exclusively in Medical Aesthetics.”
Sample Policy for Device Companies
Below is a sample policy that device companies might deploy to avoid harmful conflicts of interest that can arise when clients ask sales reps for employee referrals.
Employee Referral Policy for Aesthetics Device Sales Representatives
Purpose:
This policy outlines guidelines for Aesthetics Device sales representatives to avoid conflicts of interest when referring prospective employees to their clients.
Policy:
Aesthetics Device sales representatives are prohibited from referring prospective employees to their clients. This includes referring employees from their current or previous clients to new or prospective clients.
Rationale:
Referring prospective employees to clients can create a conflict of interest for Aesthetics Device sales representatives. It may be perceived as prioritizing the interests of the client over the best interests of the employee or other clients. This could damage relationships with clients and employees, as well as negatively impact the reputation of the company.
Guidelines:
Aesthetics Device sales representatives should not:
• Refer employees from their current or previous clients to new or prospective clients
• Use their position as a sales representative to influence employee referrals
• Accept compensation or incentives for referring employees to clients
Aesthetics Device sales representatives should:
• Inform clients that they are not able to refer employees to them
• Provide clients with information about dedicated recruiting professionals or agencies to handle the recruitment process
• Prioritize transparency and open communication with clients and employees to maintain trust and minimize the risk of conflicts of interest
Consequences:
Aesthetics Device sales representatives who violate this or her policy may face disciplinary action, up to and including termination of employment. This policy will be enforced in accordance with the company's code of conduct and applicable laws and regulations.
Conclusion:
This policy aims to ensure that Aesthetics Device sales representatives act ethically and impartially when referring prospective employees to clients. By avoiding conflicts of interest, we can maintain positive relationships with clients and employees, and uphold the reputation of our company.
OnCall Medical Aesthetics Recruiting
'Beautifully Staffed'
(866) 886-3335