Employee poaching – when other companies seek out top talent and “poach” them from their current employer – is more rampant than ever. Companies want top talent to put them at a competitive advantage – even if that talent is working elsewhere, and employees want the best benefits and culture they can find – even if it’s at a different organization.
Employee poaching is a common hiring practice, but it’s highly controversial. Critics say it’s a sneaky and unethical way to steal away top talent – but it’s also a common, valuable way for organizations to create an optimal workforce that fills talent gaps.
But how can you go about poaching in a way that’s ethical and keeps your company safe from legal repercussions? Here’s a detailed guide on ethical employee poaching.
What is employee poaching and why does it happen?
Organizations that engage in employee poaching will seek out and induce employees to leave their current organization and come join theirs. But not all poaching is the same. There’s direct employee poaching – which is the active recruitment of an employee at a competitor’s company, and indirect – which is poaching from a company that isn’t a direct competitor but in the same industry or niche.
Why does employee poaching happen? For employees, factors like better compensation and benefits, culture fit, or development opportunities can convince them to leave their organization.
Organizations may poach employees because of:
- Talent gaps: Organizations that want top talent to help fill gaps and keep a competitive edge against others in their industry.
- Skill gaps: Technological advancements like AI mean organizations need specific talent to capitalize on these technologies
- Cost-effective recruiting: Finding experienced employees from other companies can be more cost-effective than training new hires from scratch, especially when looking for specific or niche skills, such as AI.
Is employee poaching ethical?
Employee poaching Poaching is generally legal. However, some critical missteps can land you in legal trouble, like requesting sensitive company information. However, just because it’s legal doesn’t mean everyone considers employee poaching acceptable. For some, employee poaching can be seen as unethical and impolite.
Although each poaching situation is different, there are a few key considerations that organizations should keep in mind to help determine if poaching is crossing any ethical boundaries:
- Contractual obligations: Are there any non-compete clauses or no-poach agreements with the employee’s current employer?
- Industry standards: Is poaching common or widely accepted in your industry or niche? For example, the technology, healthcare, and finance sectors see more employee poaching than others.
- Employee autonomy: Are you treating the employee with fairness and kindness? Are you respecting their decisions if they express they aren’t interested?
- Intention: intentions behind employee poaching - is it to find and attract the best talent? Will the organization hold up on its promises once the poached employee is in the company?
How to poach employees ethically
If you decide that employee poaching is the right choice for your organization’s needs, doing it ethically should be top of mind throughout the process. Ethical employee poaching has many benefits that go beyond legal protection.
Mitigating potential risks in the poaching process will protect the company’s brand and reputation. In turn, the organization can be seen as more attractive to potential new talent and align them with company culture and values well before their first day.
Here are the essential steps of an ethical and effective employee poaching process:
- Identify: First, you must identify the talent they want to attract. Although this will look different for every organization, ensuring that you have an idea of who you’re looking for (and why) is crucial. After identifying what skills and competencies you want potential employees to have, organizations can use that research to build out an employee persona and ensure that they’re targeting the right types of talent.
- Research: Once you know what you’re looking for, you can research potential talent through avenues like LinkedIn to help ensure they have all the qualifications that have been identified. This can also help gain a deeper understanding of employee needs to pinpoint incentives that could get employees to switch companies. Look for gaps in the employee’s current role – whether it’s in the culture, growth, or leadership – that your organization can fill.
- Approach: When you know enough about the employee and what they need, it’s time to approach them and make the offer. The offer should speak to specific needs and include incentives like sign-on bonuses, higher designation, or relocation benefits to entice the employee.
- Negotiation and Transition: If the employee is interested, the terms of employment can be negotiated. Before the offer is made, ensure that there are no legal issues that might arise and consult legal experts when necessary. Then an offer can be made and employees can be onboarded into the organization.
To stay ethical and polite throughout this process, here are some best practices to follow:
- Build a relationship with the employee instead of just presenting an offer. A genuine connection – rather than just a sales pitch – can help build trust and show the employee that they’re valued.
- Ensure that vulnerable employees aren’t being targeted and consider the implications of poaching the employee from their current employer.
- Respect the employee’s decision, even if it’s not the answer you want to hear. Going overboard with “selling” the position or being unprofessional can damage your reputation and be disrespectful to the employee and their current employer.
- Create a value proposition about your organization and what makes it a desirable place to work and ensure that it’s tailored to what the employee is missing in their current role, like more growth opportunities or a stronger company culture.