Should employees be recruited from rival companies?
This recruitment method is relatively expensive, and can carry high legal risks. In times of crisis, recruiting collaborators from direct competitors is one of the most powerful temptations employers face.
When companies want to recruit people for a more important position from the outside, they need to recruit people with real talent or experience. And the most effective human resource service they can think of is getting people with experience from another company, even a competitor's. Companies that still compete with each other often cannot directly invite so they resort to intermediary services.
It can be an individual or a company that specializes in direct contact and uses the art of persuasion to entice candidates to match the requirements of the organization.
It can be an individual or a company that specializes in direct contact and uses the art of persuasion to entice candidates to match the requirements of the organization. The end result is that the company is able to directly interview the necessary people and select the required positions, but without the reputation of being unfairly competitive.
For business owners, this is a guarantee of getting an effective employee quickly. It is very interesting to hunt for employees for key positions, especially for executives or sales or with small and medium sized companies in specialized market segments.
Be careful not to unbalance the pay scale, nor create tension in the existing team
If the initial agreements are reached (new position, new challenge, change in the company, quality of life...), you must pay for the other intermediary service. Selected employees take certain risks and they want a substantial financial compensation. Be careful not to unbalance the pay scale, nor create tension within the existing team.
Influencing an employee to quit can be seen as a direct attack on some rival companies. The battle for capable employees creates conflicts among competing companies. An aspect worth considering, especially when relationships with your competitors have so far remained calm.
Stop within the legal framework
This method has some legal risks. In practice, it is difficult to prove whether it is against the law to covertly recruit a rival employee as no one can tell if the candidate is prepared to quit before being contacted. However, it is illegal to recruit personnel from a rival company if the company wants to get inside information of a competitor from its employees.
It is illegal to recruit personnel from a rival company if the company wants to get inside information of a competitor from its employees.
You should minimize the risks through recruitment agencies, in case of problems, the impact on the company is not too great. The final limitation of this approach is the non-compete clause. To be able to attract talent from competitors, the company is forced to offer high remuneration, salary and bonus policies. Sometimes leads to bias in work.
In the beginning, make sure that the terms of the contract of the employee you are influencing to leave are legal and that the allowances are commensurate with the qualifications that the candidate spends. Then, based on the results they do, raise the salary or commission depending on the results.
Trade secrets are always a top concern
Trade secrets are always a top concern, in the process of competing for talent for the organization, it is easy for companies to make wrong decisions. Therefore, be careful with the decisions you make. Whether the information is provided by the employee, its use or not is at your discretion.
Hunting for talent from rival companies is dangerous, but its benefits are high. Therefore, the choice of whether to use this recruitment method or not, depends a lot on the management strategy of your company.
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