06/17/09

Permanent Link - Retention vs. Litigation 12:39:37 pm by Alice Snell

Retention vs. Litigation

According to the Washington Post’s story Federal Antitrust Probe Targets Tech Giants, Sources Say, several large technology companies—Google, Apple, Genentech, Yahoo—are being investigated for antitrust behavior. The focus of the investigation doesn’t have to do with their products, intellectual property, or marketing practices—it’s their recruiting.

It’s alleged that they have agreements to not hire away top talent from each other, which could be perceived as a restraint of trade. Could this have big implications on non-compete agreements? If it’s not legal for companies to have agreements that other companies won’t try to take their best talent away, is it a huge leap to say that it shouldn’t be legal for companies to prevent their employees from actively pursuing employment on the other side of the street?

Interestingly, on the flipside, there’s the theory that you don’t want to hire talent away from your competitors. An MIT Sloan Management Review article, How to Minimize the Risks of Hiring Outside Stars, cautions: The more star workers’ performance depends on the people around them and on their familiarity with their company’s processes and culture, the less likely they are to perform at the same level on a new stage, at least at first.

Hiring salespeople from the competition always seems like a no-brainer, but there are many pitfalls with this hiring strategy, is outlined in Beware of Hiring Your Competitor’s Salespeople.

Corporate culture issues can also negate the benefits of poaching top performers, according to Are You Hiring a Rock Star or a Turnover Statistic? and Knowledge @ Wharton's article Hiring from Outside the Company: How New People Can Bring Unexpected Problems.

Perhaps, instead of holding your employees under litigious lock and key, allow your employees to thrive at what they do best, and provide career expansion opportunities to retain the top talent you have.

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Taleo Blog - Talent Management Solutions

Taleo's Talent Management Solutions Blog is about developments in Talent Management - from its definition and practices - to the latest research in the field.

Alice Snell
Vice President, Taleo Research

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