Retention vs. Litigation

by Alice Snell | June 17, 2009 No comments

According to the Washington Posts 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 doesnt have to do with their products, intellectual property, or marketing practices”its their recruiting.

Its 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 its not legal for companies to have agreements that other companies wont try to take their best talent away, is it a huge leap to say that it shouldnt be legal for companies to prevent their employees from actively pursuing employment on the other side of the street?

Interestingly, on the flipside, theres the theory that you dont 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 companys 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 Competitors 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.

Alice Snell

Alice Snell

Former Vice President, Taleo Research

Alice Snell is former Vice President of Taleo Research. Ms. Snell has been tracking and analyzing the intersection between technology and talent management for more than a decade. A noted […]