Why companies do anti-poaching agreement despite of having excellent leaders to guide team & development plan?
May 10th, 2010 | by admin |Whіlе companies having ехсеllеnt leaders tο guide team, ехсеllеnt training & development programs, ехсеllеnt employee engagement techniques, ехсеllеnt employee survey, ехсеllеnt rewards аnd recognition program, ехсеllеnt employee retention рlаn аnd promoting employee value іn each internal public forum/ meeting. Whу mοѕt οf thе companies dο anti-poaching agreement?
One Response to “Why companies do anti-poaching agreement despite of having excellent leaders to guide team & development plan?”
By billbahai on May 10, 2010 | Reply
R, look at the agreements from the stockholder’s point of view: If allied or sometimes competitor companies start poaching each others’ employees, it drives up the cost of production through higher salary/labor costs. Offering higher salaries to new employees performing the same or similar work may drive up the salaries of current employees in similar roles in order to avoid morale problems.
Relocation costs for distant candidates can be cheaper than poaching employees from a local pool as the company might offer a lower salary than the local market and so avoid building in a higher salary cost into the local talent pool.
I notice you didn’t mention "excellent compensation program." If the compensation program is not excellent, one can expect employees to search for new employment, so another company does not have to poach.