Employee Turnover And Retention Briefings Abstract: 70
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Talent raiding is the practice of targeting and hiring key employees or superstars from your competitor. The benefits are two fold: it brings top talent to your organization, and it can deal a significant blow to your competitor. How significant a blow depends on how critical the employee was to the raided company. The damage can be significant as the company deals with the cost of recruiting, hiring, and training a replacement, as well as the lost productivity and lowered coworker morale in the interim. Another danger is loss of trade secrets to your competitor.
In high profile cases, the raided company retaliates with law suits. The courts have generally ruled that raiding is not illegal unless it is done specifically to put a competitor out of business.
Steps to minimize falling prey to raiders:
Employee happiness - pay attention to pay, but also fairness, recognition and work flexibility.
Identify key employees and execute non disclosure agreements.
Safeguard secrets - limit access to critical and secret information to those that need it.
Exit Interviews - find out why your stars are leaving.
One silver lining in talent raiding is that studies have shown star performers seldom perform as well in their new company as they did in their original company.