Certain fields require specially skilled employees who are hard to fin

Question

Certain fields require specially skilled employees who are hard to find. Some companies in such fields make such employees sign a contract that makes the employee promise not to go work for a competing firm for a set period after leaving his or her current employer. Many courts though have declared this contract non-binding as it affects the employability of an individual. Yet paradoxicality, for people who signed such agreements when working for competing firms, many firms are unwilling to consider hiring them during the period covered by the agreement.

Which one of the following if true, most helps to resolve the paradox?

A. Most companies that require their employees to sign such agreements are aware that these documents are not legally binding

B. In some industries for example, the broadcast media, companies' main source of new employees tends to be people who are already employed by competing firms

C. Many companies will not risk having to become involved in lawsuits, even suits that they expect to have a favorable outcome.

D. Many companies consider their employees established relationships with clients and other people outside the company to be valuable company assets

E. Many people who have signed such agreements are unwilling to renege on a promise by going to work for a competing firm

gloomybison · Answer

A. Most companies that require their employees to sign such agreements are aware that these documents are not legally binding
We don't know whether employers are aware of such laws. They may very well be aware or not. This doesn't explain why competitors refrain from hiring them

B. In some industries for example, the broadcast media, companies' main source of new employees tends to be people who are already employed by competing firms
This doesn't explain anything at all

C. Many companies will not risk having to become involved in lawsuits, even suits that they expect to have a favorable outcome.
 correct  competitors don't want to be involved in any lawsuits so no matter what they stay away from hiring for a period of time

D. Many companies consider their employees established relationships with clients and other people outside the company to be valuable company assets
This doesn't explain anything at all

E. Many people who have signed such agreements are unwilling to renege on a promise by going to work for a competing firm
This is a trap. We are given that companies refrain from hiring. It doesn't matter whether people want to change their jobs. In the end they can still be approached by such firms wanting to hire

VerbalBot · Answer

Automated notice from GMAT Club VerbalBot: 

A member just gave Kudos to this thread, showing it’s still useful. I’ve bumped it to the top so more people can benefit. Feel free to add your own questions or solutions.

 This post was generated automatically.

Certain fields require specially skilled employees who are hard to fin

Prep Toolkit

Top 5 GMAT Debrief Videos

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards

GMAT Critical Reasoning (CR) Questions

Certain fields require specially skilled employees who are hard to fin

Prep Toolkit

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards