STAFF POACHING AND ITS EFFECT ON ORGANISATIONAL PERFORMANCE

(A CASE STUDY OF NIGERIA G.S.M COMPANIES)

BY

Adelere, Michael Adekunle B.Sc, AAT, ASM

Global Initiative Center for Scientific Research and Development, Bodija, Ibadan,
Nigeria, West-Africa
miccodsta@yahoo.com; miccodsta@gmail.com;
234-8132683364

Abstract
This paper examined the effect of staff poaching and its effect on organisational performance
with reference to Nigeria G.S.M companies as the case study. It examined why companies
engage in staff poaching, definition of poaching and its effect which includes the advantages
and disadvantages to the Nigeria G.S.M Industry. Primary data was required for this project
work and controlled through questionnaire. Stratified Sampling technique and descriptive
research design was used to collect data from the staff of MTN, Globalcom and Airtel as the
three major Companies in Nigeria G.S.M industry who are the sample population. One
Hundred (100) copies of the questionnaire were distributed and all was retrieved; Regression
analysis was used to analyse the data collected from the respondents and the findings of the
regression showed that two hypothesis were tested. The findings show that initiating a noncompete (bonding) agreement would not help employees to explore other companies,
provision of good job security can commit an employee to non-compete agreement and
employing a job hopper is a disadvantage to organisation continued existence/ survival and
development. It is recommended that Management can monitor employee internet usage,
track their social media and record their phone calls while at work, Employer have to give
them (employees) more of what they want if you want them to stay and All non-compete
agreement records should be well kept.
Keywords: Staff, Employer, Poaching, Competition, Job Hopper, Agreement and
Management

Introduction
Businesses lose employees all the time, but if another firm has ever targeted or hired
your employees then you have suffered from employee poaching or employee raiding.
Employee poaching is a fact of life for small business owners, particularly in high growth,
specialized, and technology industries. In fact you can even do a quick search online and find
blogs that will even coach businesses on how to poach employees. Non Poaching Agreement
is all about using agreement for much purpose or with many formats according to our needs
and by this we indicate that at least two companies have agreed that none will prey upon
another business employees or clients. These may also be called non solicitation agreements,
notes the Practical Law Company, which may be made amid concerns about competition
between companies. Such agreements place significant post employment restrictions on what
type of work an employee can perform and where the employee can perform that work. These
agreements provide a bright line test (either the employee is competing or he's not), little, if
any, investigation need be undertaken before a company can ask a court to enforce the
agreement, no compete agreements are considered the best available tool for a company to
protect its legitimate business interests (primarily, the protection of trade secrets, confidential
business information and

goodwill). Even so, because of the impact that these

agreements can have on an employee's ability to find gainful employment, many courts are
loath to enforce. This is more true now, when employees are being laid off at record levels
and are lucky enough to find any job

much less one at a company that does not compete

with their prior employer. This circumstance has left some companies scratching their heads
about how to protect themselves from employees who have left to join direct competitors.
Traditionally, no hire agreements fell into two broad categories: first, an agreement by which
a company agrees with another company not to hire the other company's employees;
secondly, an agreement by which an employee agrees not to hire his former coworkers after
he changes jobs. These agreements arise in the context of some ongoing relationship

either

some type of joint venture, consulting agreement or other business arrangements between the
companies or an employment relationship.
It is an agreement by two unrelated companies to not poach each other's employees.
While this can be viewed as a bit of an end run around non-compete agreements, the impact
of a no poach agreement is far less detrimental to the employee. Specifically, unlike a noncompete agreement, which prohibits an employee from working for any competitor; no hire
agreements to the extent that they are not part of a larger scheme among multiple companies

merely bar employees from only one potential employer. That is not always the case,
however, and the problem with no poach agreements is potentially manifold. First, the
agreements are likely to be held to the same standards as non-compete agreements.
Specifically, a court is unlikely to enforce the agreement where it is not reasonable and
necessary to protect both companies' legitimate business interests. Second, particularly where
the companies are dominant in their market, they could run afoul of antitrust laws (the laws
that make it unlawful for some companies to engage in concerted anticompetitive activities).
Accordingly, they must be carefully considered if there is a chance that the companies will be
viewed as having violated these laws. Third, the agreement has the potential to be quite
pernicious insofar as it may be entirely unknown to the employee. Accordingly, employees of
both companies may be under restrictions of which they were unaware and to which they
never agreed. So, what is a company to do? While a company may be able to get away with a
secret no poach agreement, history shows that that is unlikely to last

and a company can

face significant unanticipated negative ramifications from participating in such undisclosed

agreements. Thus, to minimize these risks and the perceived unfairness of these agreements,
and thereby maximize the likelihood that the agreements will be enforced, the first step is to
make the agreements known, have employees acknowledge that they are aware of the
agreements, and require that the employees agree to be bound by the agreement. Such
agreements still may not fly in California, but they will have a better chance of enforcement
in other states. Second, use the agreement as a supplement

not an alternative

to other

restrictive covenants (non-compete agreements, non solicitation agreements, traditional no

hire agreements, nondisclosure agreements and the like). Simply put, while a court might be
disinclined to enforce one of the agreements, it may be more inclined to enforce another.
Accordingly, using all that applies provides backstops to a court's refusal to enforce the more
restrictive of the agreements. In that vein, the benefit of this approach is that the argument
can be made that the no poach agreement is very narrowly tailored to protect both companies
against the unfair competition in only one respect: each other. When these two companies are
direct competitors, such an argument is likely to carry some weight with a court. Hope to get
your views, suggestion and this information will be beneficial for other peoples.
2.1

Nature of Staff Poaching

Alison Doyle (2012) defined staff poaching as what takes place when a company hires an
employee from a competing company. Employee poaching often happens in the IT industry
because of high demand technical skills.

Hiring an employee from a rival firm can mean bringing on someone who already knows
your industry, your business, and can bring valuable new knowledge and even clients to you.
'Companies are so focused on getting someone from the competition,' says Mike Sweeney,
Principal of MAS Recruiting in Cherry Hill, NJ. 'As soon as they see the resume, their eyes
light up.' Still, as enticing as it is, hiring from the competition requires caution and a certain
degree of finesse, especially for a small business owner. The process is loaded with pitfalls:
you don't want to get a reputation as a poacher, start a tit for tat talent war with a competitor
or, worst of all, get sued for breaching a non-compete agreement. So, before wading in to
dangerous waters, here are some things to consider when you're tempted to look to the
competition for your next employee of the month.
2.2

Rules of Hiring

Hiring a search firm to find candidates can help keep at an arm's length from the potentially
distasteful business of poaching. A good search firm uses a polished, subtle approach. They'll
talk with potential candidates about 'an opportunity' in vague terms, until they can gauge
interest. If your budget bars hiring a search firm, it's best to copy the approach, says Brenda
Snyder, chief operations officer at The Human Resource Group, a boutique search firm in
Denver. She suggests using your professional network to spread the word that you're hiring,
and approaching the candidate you're interested in on neutral ground, like a Chamber of
Commerce meeting or conference. If you're too aggressive, Snyder warns, you risk scaring
away potential partners and suppliers.
i. Look Before You Leap
One of the most important things to think through is whether the candidate you're
eyeing is really worth the trouble. You don't want to get stuck with someone else's
headache, says Martin Kartin, principal of boutique search firm Martin Kartin and
Company in New York. 'You want to make sure you're recruiting talent, as opposed to
recruiting a resume,' Kartin says. 'The biggest mistake small companies make is to
look at the resume in terms of what the person says he has done, and what company
the person has been with, and they automatically say Oh, that's great. ''Even if they
have the right job with the company, it doesn't mean that they are a qualified
candidate,' he warns. To avoid the problem, do thorough reference checks, and really
study the candidate's background, to get a sense of what's driving them, suggests
Chris Von Der Ahe, a senior client partner at Korn/Ferry International in Los Angeles.

You also need to assess whether the person will be a good fit at your firm, 'Just
because they work for a competitor, doesn't mean they'll fit into the culture. 'Culture
differences can include large firm vs. small firm differences, and can also be as simple
as geography. If the candidate you want is across the country, for example, and he or
she has no ties to your area, it may be difficult for them to get acclimated. For this
reason, it's often a smart move to take seriously the local people who come to you
with their resumes, eager to join your firm, even if they don't have the exact
experience you're looking for, says Mike Sweeney of MAS Recruiting.

ii. Watch for Legal Troubles

If it turns out that the candidate you've been eyeing at a competitor is as good as you
hoped, and you want to begin talking with them more seriously about joining your
firm, a critical step is to find out whether they have a non-compete agreement with
their current employer. If they do, and they jump ship to join your firm, depending on
the state in which you're based, you may be in for a great deal of trouble, including a
lawsuit in some cases. Some states take non-compete agreements very seriously. An
employment lawyer can advise you on how best to proceed. Keep in mind that talking
with a candidate who is bound by a non-compete agreement is definitely a matter of
weighing the risks and rewards, according to Mike Travis, principal of Travis and
Company, in Newton Center, Massachusetts. 'It's very easy to run afoul of a noncompete, and it's very expensive to fix your mistake,' he says.

iii. Sell Your Story

If, after all the reference checking, soul searching, and risk reward analysis, the
candidate from a rival firm still looks as good as you imagined, don't forget that you
need to sell them on what you and your company have to offer. After all, why should
they leave their job and join you? You need to make your opportunity sound more
attractive than what they've already got. And remember, it's not just about money.
Most people are motivated by things they weren't offered at their previous job:
recognition, opportunity, and more innovation and excitement. So, inspire that person

to leave their job not just with a generous offer, but with everything they will be able
to do and achieve at your company. Recruiters know the drill. 'We can't lure people
from point A to point B without a compelling story,' says Snyder of Human Resource
Group. 'Typically it's not money. It's always about the opportunity, the industry, or
about the leadership.'
iv. Watch Your Back
Finally, recognize that your competitors might be playing the same game you are.
When spending the requisite time analyzing your staff and looking for gaps, don't
forget that you need to treat your best employees very well, so that when they receive
a call from a recruiter, or are approached by a rival CEO, the only answer they'll feel
obliged to give is a firm. Know who your stars are, and make sure they are well taken
care of, and well paid.
Benefits of Staff Poaching
i.

Staff Poaching Can Develop The Industry

Competitors that steal another employer's staff should know that the employee stolen may
leave one day too. Will a stronger economy lead to more poaching?
Growing companies need people. When the economy is strong and unemployment is low,
recruiters will use poaching or lateral hiring more frequently to find the talent they need.
When the economy is down, you have less hiring overall and more people looking for work,
so recruiters are better able to find talent without having to poach. Growing companies need
people. When the economy is strong and unemployment is low, recruiters will use poaching
or lateral hiring more frequently to find the talent they need. When the economy is down, you
have less hiring overall and more people looking for work, so recruiters are better able to find
talent without having to poach.

ii.

It Can Associate Companies within The Industry

When companies make legal arrangements to cooperate with one another, anti-poaching
agreements are often part of the legal relationship. If two organizations are engaged in a joint
venture, for example, it's appropriate to carve out specific groups of people who are off-limits
for recruitment. But in looser arrangements, like consortia or strategic alliances, antipoaching agreements may be unethical and even illegal if they limit competition.

iii.

Poaching Can Let Managers Keep Its Workers Onboard.

Be competitive with pay and benefits and in the whole employment proposition. There's great
value in benchmarking your own employment brand against product, market and geographic
competitors to better understand your competitive situation for talent. Employees leave
because of their jobs and their bosses. If you don't want your employees to take recruiters'
calls, make sure their managers are effective. Provide supervisory training, leadership
training and turnover training for managers. Some HR professionals conduct stay interviews
instead of exit interviews. This helps them understand employee expectations, what's working
and what's not working. Employees will respond positively to that. Poaching would lead to
proper management of staff.

iv.

Staff Poaching Can Develop The Economy

It's going to be more frequent when a person's job performance is more public and more
easily observed like the I.C.T (Information Communication Technology). Waiters are more
apt to be hired away than accountants. Academics who publish papers, private-sector
scientists who get their names on patentsthese candidates are easily identified because their
performance is public. Managers who lose employees through lateral hiring want to blame
the hiring organizations, but the real issue comes down to the relationships they had with
their employees. Sometimes it's a signal that they may need to adjust their work and
economic arrangements. From a free market perspective, poaching can help society put assets
to their very best use.

v.

Poaching Can Cross The Line Into Legal Economy.

Some practices that are sometimes associated with lateral hiring can cross the line. Anytime
theft or deception is involvedthink stolen company directories, deception to get employee
names, hiring someone solely to harm a companythat's illegal and unethical. Legal issues
can arise if employees break contracts binding them to their organizations, or if they share
trade secrets with their new employers.

Ethics of Staff Poaching

One of the issues currently being discussed by our member organisations is the ethics of
Poaching staff. With the rapid increase in government funding to deliver expanded services,

many of our member organisations are desperately looking to fill positions. The problem we
all face is the lack of enough qualified and skilled people not just from within our own ranks
but also from outside. We recognise that in reality we are all competing for a small pool of
people and will end up drawing people away from other member organisations. As member
organisations network and cooperate in the delivery of services, certain people from other
organisations may be identified as potentially good fits to needs within our own organisation.
Is it ethical to approach them directly and lure them away? Is it becoming necessary to get
into questionable recruitment practices well known in the corporate world to fill positions?
One of the major things that distinguish non-profit community organisations from the
business world is that we dont consider ourselves in competition where it is OK to succeed
at the expense of our competitors (i.e. other organisations in the same business) even if our
behavior is ethical. We have a sense of camaraderie and want to do things differently. Some
important ideas may help our thoughts and discussion about this. The people who work for us
are ends, not means Simon Longstaff (2008) from the St James Ethics Centre reminds us that
the people who work for us should be considered as ends and not means. They are not
disposable inputs to production. They are not expenses or liabilities.

It is possible to have a situation where the organisation benefits and the staff member benefits
at the same time. Longstaff even goes to the point of suggesting that we rename Human
Resources as Human Relations. Seen in this light, the personal development of each member
of our staff is something we should understand and encourage. However, if they see that their
personal situation will be better served by working in another organisati on then perhaps this
should be understood as well. By then it is usually too late to do anything to stop them
leaving. It is important in retaining staff to always be acting to ensure people can develop to
their satisfaction within our own organisation, not waiting until they want to leave to make a
better offer. On this point it is also important not to confuse inertia with satisfaction. Just
because someone still works for us does not mean they are happy or not looking to leave if
the right job came along. Perhaps we have come to see it a matter of awkward competition
among organisations in the sector as to who can pay the most and who has the best working
conditions. Although traditionally relying on lower paying SACS awards, organisations have
also been relying on the goodwill and passion of those who want to work in the sector.
Eventually goodwill and passion may not be enough and pay and conditions and
opportunities for personal development are some of the important signals you send of how

you value your staff and the contribution they can make to achieve your organisational goals.

Our recruitment practices must be ethical and fair but the end result does not have to be fair
to everybody. First we need to define what we mean by fair. Fairness is something that is
interpreted very differently depending where we stand but it relies on an assumption that
from a particular point of view everyone has been treated equally and gets an equal or just
share of the result. A fair recruitment process will be an ethical process and vice versa (for
example following EEO principles) but the outcome will not be fair (or equal) to every
stakeholder. Although your recruitment may be fair to the person who comes to work for you
and your own organisation, those who miss out on the job they wanted, the organisation that
loses the staff member and perhaps even the client so well previously served by that staff
member may consider that they have suffered a loss they did not deserve. For them the result
might not be fair even if they agree that the selection process was fair and ethical. The way
that you recruit however may be ethical or unethical. It is not unethical to want to go the extra
mile in recruiting the best person to apply for a position within your organisation, but your
organisational practices in recruitment should be the same as all your other organisational
practices, and consistent in how you treat all your stakeholders - staff, service users,
suppliers, board members, funding bodies etc. They are the values of our organisation.
Honesty and integrity are perhaps two that come to mind. This does not mean that it is
unethical to be discrete or have a need to keep things from being out in the open. It is
perfectly ethical to advertise a job vacancy, consider applicants and fill the position. In
principle, it is ethical for people to leave one job in one organisation and go to another
organisation. As long as there was no attempt to deceive anyone, it might also be considered
ethical to point out to a desired candidate your vacancy and your offer. The ethical
consideration might only be in how you approach the desired candidate and whether your
methods involve deception but is hard to find deception in communicating directly with
someone to let them know about a job while being truthful and open.

The fairness debate is actually separate from the ethics debate. Getting the best person
available for the job at the time means even if the process is fair, there will still be winners
and losers it is part of operating in a society of free labour and human rights. People make
choices to work for an organisation or leave a job based on certain personal considerations
and organisations make choices to hire people (or even terminate people) based on their own

organisational needs and considerations. This process involves inconvenience and costs in
differing amounts to various stakeholders.

How to prevent employees from being poached.

When a rival tries to pinch your talent, they do so because it will give them an edge in terms
of skills, experience and contacts; and it will cause your performance to dip while you recruit
and induct a new employee. If you have good staff, other people will be interested in
employing them and, legally, there is nothing you can realistically do about it. You can,
however, try to persuade your employee to stay and take measures to limit the effect of
poaching on your business.

Identify the problem

If the first you know is your employee handing in their notice, it may be too late to keep
them. Even so, you should try to find out why they are moving on; people rarely leave a job
they enjoy, so the departure of a top employee could signal problems in your business. Invite
them for an informal chat and probe their reasons for wanting to leave - whether they are
related to the working environment, rewards and opportunities or personalities within the
business. You might find their obstacle to staying with you is easy to remove; but you might
also discover that you have a serious problem, such as bullying or bad management, which
could drive other staff out, too. If so, you should find a remedy, fast.

Financial offers

Your employee is likely to have been offered more money by your competitor. Assuming you
pay the market rate, you should only match the offer if they really are worth it, or if losing
them to this particular rival will cost too much. Offering a higher salary alone will not
address the underlying reason for your employee's unhappiness, and will only delay their
departure. It could also provoke pay demands from other staff. The way to keep your
employee is to address their grievance. If you cannot persuade your employee to stay, try to
remain on good terms - you may do business with them in the future. Make sure they don't
take any intellectual property or confidential information with them, however, particularly
customer details. If they are a sales person, put them on gardening leave immediately so they
cannot lure your best customers away.

Prevention

Companies operating in small markets will often make 'non-solicitation' deals with rivals not
to poach each other's staff. Such goodwill agreements carry no legal weight, but can limit
poaching. Some firms insert 'restrictive covenants' into employment contracts which state that
an employee cannot leave to work for a rival. But these clauses will only stand up in court if
you can prove that the restriction is integral to the survival of your business. You can,
however, specify that staff cannot remove commercially sensitive information. But the best
protection against poaching is to make yourself a more attractive employer than your
competitors. This may mean creating staff-development plans, introducing performance
incentives and fostering a vibrant workplace culture - after all, if your employees enjoy being
with you, why would they work for a rival.

Advantages of Staff Poaching

i.

It helps you acquire competitive intelligence about other firms.

ii.

New hires can help you identify other potential candidates to poach from their
firm.

iii.

The new ideas that applicants and new hires bring in stimulate the thinking of others.

iv.

New hires ask why we do things that way so we are often forced to re-think the
way we do things.

v.

It keeps our employees on the edge because they know they must compete against
outsiders for jobs.

vi.

Outside hires dont have political alliances already set up. This can help them
implement new ideas without the baggage of past political battles.

vii.

It allows other firms to train and weed out the turkeys so we can hire the cream of
the crop. As a result it can lower training cost.

viii.

In a stagnant culture, outsiders might help shake things up and help us evolve
our culture.

ix.

Re-hiring boomerangs (former employees) may aid in retention efforts as they tell
other employees that the grass is not greener on the outside.

x.

In a fast-growing company (or small firms) you might have no choice but the higher
externally because there isnt enough talent to go around inside the firm.

Disadvantages of Staff Poaching:

i.

Outside hires can weaken the corporate culture by bringing in counter culture people.

ii.

The turnover rate for external hires is almost always higher than internal promotions
because the candidates must both adjust to a new environment and they come to us as
relative unknowns.

iii.

External hires often have a longer adjustment period and orientation costs are higher.

iv.

Customers may feel slighted if they dont get one of the Firms current employees.

v.

In a tight job the (potentially) higher starting salaries of outside hires may cause internal
equity issues and eventually increase all salaries.

vi.

Learning internet recruiting and setting up web pages may be prohibitively expensive or
time consuming.

vii.

The world of external recruiting changes so rapidly and is so competitive that we might
end up with lesser talent unless we can afford a strong recruiting function.

viii.

The likelihood of lawsuits resulting from illegal practices by hard to control managers is
high.

ix.

External hires have already demonstrated their lack of loyalty by leaving their firm. They
may have the same lack of loyalty at our firm, resulting and high turnover rate.

x.

In a cyclical economy, large-scale external hiring might just mean future layoffs.

Non Poaching Agreement

Non poaching agreement also known as no-compete agreement is a written contact between
an employer and an employee and its purpose is stop employee for a specific period of time,
after resigning or getting terminated, from involving in any sort of employment or business
that

brings

direct

competition

to

his

previous

organization.

Importance of Non-Poaching Agreement

The non-poaching or no-compete agreement holds considerable importance as it helps both
parties to maintain a smooth work relationship for a pre-defined duration. It is quite
beneficial particularly for the employer to stop his ex-employee for a defined period of time
from involving in any business or joining any other competitor that may bring direct
competition to his previous organization. So, non-poaching contract works mainly in the
favor of employer who feels himself on safe grounds with the fact that his terminated
employees will not become his competitors for a specific period of time.

Main Points of Non-Poaching Contract

An employer should include the following points while drafting a non-poaching agreement
to stop his ex-employees for a specific period of time from involving in any sort of work that
brings direct competition against the previous organization.

Personal details of employer and employee

Business nature

Employees duties and responsibilities

Restriction or limitations

No-compete or non-poaching clause

Duration of non-poaching agreement

Validity of the agreement

Methods or procedure to resolve conflict

Jurisdiction or the law of country

Injunction relief

Termination of agreement

Ways to Prevent Employees from Being Poached

Avoid a "hear no evil, see no evil" mentality
While there are a number of reasons your employees might be receptive to other job offers,
one of the biggest is one that's easy to brush aside: some of your employees may have a less
than ideal level of job satisfaction. When this is the case, there's a good chance you know it
because the signs, although subtle in and of themselves, usually become noticeable over time.
Unfortunately, it's often easier to ignore the elephant in the room than to confront it head on
which can be a fatal mistake as unhappy employees are prime poaching targets.
Be careful about what you promise
How you sell new hires on your company can significantly influence whether they become
vulnerable to poachers. For instance, if you insinuate that the stock options you're granting
will lead to riches in the near future; you had better hope that you're right. If your promises
don't materialize as you suggested they would, your disillusioned employees will be far more
likely to consider other employment opportunities.

Reward bad behavior at your own peril

In today's talent wars, it's tempting to fight tooth and nail to keep employees from leaving. In
some cases, when faced with an employee who has received a job offer from another firm,
companies will respond with an even better offer of their own. While this is tempting
approach (if you can afford it), and it may even be sensible with some key employees, it can
set a bad precedent that encourages other employees to seek out offers of their own with the
assumption that they can use them to negotiate higher compensation.
Treat employee relationships like marriage
Ask anyone married for many years and chances are they'll tell you: finding The One and
getting married is relatively easy compared to keeping a marriage going strong. The same is
true for employer employee relationships, many of which fail because both parties become
complacent and take the other for granted. Don't allow that to happen: make the effort to
remind your employees that you care and the chances they'll seek love from a new company
will decrease dramatically.
Do not hire job hoppers
In many digital industries, career employees are hard to come by and that's okay. But when
hiring, it's wise to cast a suspicious eye on prospects that have jumped from job to job. If a
potential hire's MO has been to stay with a company no more than a year or two, there's no
reason to expect that pattern will stop with you.

How to Protect Company from Employees Poaching

When it comes to defending against employee raiding, an ounce of prevention is worth a
pound of cure. There are a variety of things you can do today to improve your business's
readiness to defend its competitive position in such a situation.
i.

Implement or Update Your Non-competes: If you have not had your employees
sign non-competes, you should consider doing so immediately. Even if you have had
your employees sign non-competes, you may want to have the non-compete

agreement reviewed to determine its enforceability. You may learn that your
agreement is outdated or that it is so broad and overreaching that a court may refuse to
enforce it. Having your employees sign new or updated non-compete agreements can
have a variety of benefits. It should give your business a powerful weapon in the
event an employee leaves and begins competing against you unfairly. Also, having
your employees sign new or updated non-competes can have a significant deterrent
effect. An employee who has just signed a non-compete may think twice about taking
a customer list.
ii.

Improve Record Keeping: You should keep all non-compete agreements in an easily
accessible place. An employee's personnel file is as good a place as any. It is also a
good idea to have multiple copies of each employee's non-compete agreement and
keep them in different places. In some extreme cases, employees have pulled their
personnel

files

and

destroyed

the

copy

of

their

contract.

You should also do a quick review of your files to confirm that you in fact have a
signed non-compete agreement from each employee. It is not uncommon for
employees to slip through the cracks. For example, some employees say they want to
review the agreement and then fail to return a signed copy. There is nothing worse
than finding out after an employee has left that he never returned a signed copy of his
non-compete agreement.
iii.

Tighten Security: One factor that courts look at in evaluating whether to enforce a
restriction on an ex employee's use of customer information is the steps that the
employer has taken to protect the confidentiality of its customer

information. You

should therefore consider implementing certain measures to tighten the security of

your customer information. You may want to require that customer information be
kept

under

lock

and

key

when

not

being

used.

Confidential information should be labeled as such. You may want to permit

employees to have access to customer information only on an "as needed" basis. Any
such measures should include a device (such as a password) to restrict access to any
customer information maintained on your computer system.
How to Avoid Employee Poaching
Bloomberg business week and the Wall Street Journal (2012) ran prominent articles about the
reawakening in manufacturing and the enormous challenge companies are having recruiting
and retaining skilled workers. But this issue extends beyond the workforce to management; as

such there is a growing trend toward "poaching" key executives away from one company to
take over at a rival's business. It may be that they've heard good things from shared vendors,
observed and admired demonstrated performances at tradeshows and other industry events or
been within earshot when a business owner was singing the praises of his top shelf crew
regardless of how these so called poachers have come to realize the skill set of another
company's key employees, be forewarned that competitors can and will attempt to lure them
away. The imperative is to prevent outside temptation and that starts with having "the
conversation" with these key people regarding their future within the company, particularly if
they have been identified as potential successors to the business. In the absence of this all
important one on one, the probable departure of valued employees increases...often to
competitors promising substantial profit sharing plans and other incentives. But if they know
where the company is headed and where they stand within those long range plans, the chance
of their staying is greatly increased. It's essential to identify one to three people with
successor potential and create long term incentive plans for them; these complete
compensation packages should include both financial incentives and personalized benefits,
for while money certainly does talk, most executive level employees would likely agree that a
hefty paycheck alone does not define job satisfaction.
Chosen potential successors have already demonstrated their engagement and commitment to
the organisation, but they will become even more invested within their roles if they have a
clear understanding about how they, as key employees, will be rewarded based on how well
the company performs. As such, a properly designed incentive plan

one that motivates the

management team to increase the value of the company in a measurable way is essential.
Successful plans share four basic elements.
i.

First, the plan must be specific and leave nothing to interpretation. As such, key
employees know, in advance and in writing, what precise standards need to be met to
receive the incentive.

ii.

Second, the incentive must be substantial; otherwise key employees may not be in it
for the long haul. However, this substantial amount should be awarded only upon the
attainment of the performance standards set by the business owner.

iii.

Third, the plan should tie the key management team to the business; in this way
regardless of who owns the company, these individuals have an incentive to remain.

Payments of these incentive plan awards to the key employees are not immediate.
There should always be some type of vesting schedule associated with any incentive
plan award. Normally, a continual or "rolling vesting" schedule is used; this approach
requires each year's award to vest on a separate schedule. Employing this type of
schedule will tie the key employees to the business longer as they are never fully
vested in the most recent awards.
iv.

Fourth, the key employees should receive the incentive award based on performance
standards that when attained increases the value of the business; this element is
critical to a properly designed incentive plan.

It is essential that employers consult with a legal and tax advisor when establishing any
incentive program. While monetary incentive is unquestionably the largest component to a
comprehensive long term incentive plan, consideration must also be made to key employees'
unique needs. Therefore, don't overlook other more creative add ons to a complete
compensation package. Could be a key employee wants to devote a few days each year to a
volunteer effort; perhaps someone desires the flexibility to work from a home office one or
two days a week. Others may consider continuing education benefits or reimbursement for
costs associated with advanced professional certifications a big plus. Also, acknowledge that
needs change. What may have been an important benefit to someone when they first joined
the company might now be replaced by a more urgent need. By offering a complete
compensation package that addresses the specific needs of those employees critical to the
company's future, the odds are greater that they will say "thanks, but no thanks" to poachers.
How to Stop Poaching and Keep Your Employees
HR professionals and recruiters wont give a second thought to approaching your staff on the
web or even calling them at your office to lure them to new positions. In fact, these are now
among their top tactics for recruiting. Unfortunately this is a problem which is only going to
get worse with more startups being launched every day and as the economy improves and
more companies get hungry to hire. Having the top talent is increasingly being seen as one of
the most critical factors for staying ahead of the competition and your enemies want yours.
Top corporations have huge budgets to offer signing bonuses and 60% of them do. Thats in
addition to some corporate giants literally splurging billions to buy out firms just to grab their
talent.

i.

You can monitor employee internet usage, track their social media and record their
phone calls but that isnt going to keep them.

ii.

You have to give them more of what they want if you want them to stay.

Its not just that your staff is being seduced away. A big part of the problem today is that they
are actively looking for new opportunities too. A recent report shows the number one problem
is lack of employee engagement. You cant always fork over more money than the
competition and fortunately that often isnt even the biggest factor. Unfortunately, gift
baskets, game tickets and employee of the month plaques wont always cut it either. They
do want to be engaged and interested in their work, feel appreciated and that their effort and
opinion counts as well as being confident your organisation is invested in their future. Lets
understand where we lose these talents. Generally, its the competitors who hire rampantly.
The restrictive practices such as Non-disclosure and Non-compete agreement may save
necessary information and losing the talent to the client. However, different other channels
including the vendor, distribution, entrepreneurial ventures and transitioning to other vertical
still exists. Apart from the HR programs including the employee engagement, retention
strategies, compensation and better growth plans, certain arrangements can be designed
which may work for a time period.
i.

No poach agreement: Initiate a no poach agreement with the other companies who
have the same business and often from the same client. Hence may require the same
skill sets to deliver the job.

ii.

Hiring strategies: It begins with setting the funnel where the best talent can be hired
and developed. At the time of hiring, its important to make sure that the employer not
just takes the job, but chooses the employer as well. One of the hiring strategies
implemented by a company hiring on single number was, allowing the talent who
clears all the rounds to see the job for a day. The short listed talent would be put as a
buddy to an employee who is already delivering the job. This helps the talent to
decide whether they wish to take the offer or not. This strategy can help the firm to
demystify the job for the employee, resulting in higher retention. This may not be
possible for bigger revamp including double or triple digit growth.

iii.

Red flag potential poach: The business model will have few core jobs to be
delivered. These jobs may or may not be easily trainable. They will require the talent
to stay unaffected by the attrition. Identify these business units which may stand the
poaching threat. Form a talent pool to offer a buffer in the times of need. Apart from
this, redesign the hiring plans. Even though the competitors are likely to catch up with
this policy, it still would create a cushion for a while.

iv.

Better pipeline: Maintain a talent pipeline to the roles which stand the poaching
threat. Design a career path to promote a talent within the organisation. This will
remain a motivational factor for the lesser skilled employees. This would bring in a
ceiling to the talent as they might not fit into the basic requirement of the competitors.
A new career path can be designed to promote the employees who are graduates, with
good communication skills and other capabilities required to deliver the job. It would
further optimize their productivity in that role.

v.

Pre Wire the Recruitment Companies: Keep a close watch on the recruitment
vendors to the company. The recruitment firm may share the talent database of a
former client to a new one. Though it is against the legal guidelines nevertheless, it
poses a threat.

vi.

Job Application Check: The best way to keep a check on the employees who have
started looking for a job is to view the updated resumes in the job portals. This can be
taken as early warning sign. Furthermore, a blind add and cold calling randomly can
be arranged to keep a watch on the employees who is looking out for a job.

vii.

Talent Pool Management: Consistently identify newer talent pools and maintain a
sound training department. Training programs must be designed to shorten the phase
of bringing an employee on board and training them. The billability would get
managed when there is a reduction of the gap between the date of joining and the
productivity ready stage.

viii.

Loyalty Program Leader: Identify leaders from the employees to run the employee
loyalty program. A shared responsibility between the business leader and HR can be
mapped, announcing different employees as leader of the month for the employee

loyalty program. Even if the employees leave the organisation a loyalty program
would help forming alumnis and make them potential hires in future.
ix.

Realistic Employee Life Cycle: Its important to realize that every employee joins
with an expiry date for the job in mind. Its important to identify that. Very few would
be capable of developing themselves and promoted to the next level. The rest would
remain a part of the employee turn over. Once this division is realized, poaching
would not affect as long as the backfill is on.

Ways to Stop Your Competitors from Poaching Employees

i.

Businesses lose employees all the time, but if another firm has ever targeted or hired
your employees then you have suffered from employee poaching or employee
raiding.

ii.

Employee poaching is a fact of life for small business owners, particularly in high
growth, specialized, and technology industries. In fact you can even do a quick search
online and find blogs that will even coach businesses on how to poach employees.

iii.

This explores the legal options for preventing and addressing the poaching of
employees by competitors, as well as other potentially more fruitful management
techniques.

iv.

Non-compete clauses or agreements are a contract between your employees and you
in which your employee agrees not to go work for your competition, solicit business
from current clients, or compete with your business for a certain period of time after
leaving your company. The trouble with non-compete agreements is that they rarely
hold up in court. Furthermore, the litigation involved can get costly for a small
business owner. Another problem with non-competes is that they make it harder to
attract the right talent in the first place. After all who wants to compromise their future
career path in a chosen industry by getting trapped into a non-compete agreement
with their employer? If you still feel you need the protection of a non-compete, check
your state laws to see whether they typically support employers or employees in noncompete. Then consider rolling them out only to managers or key employees. You
should also make your non-compete policy clear include it in your employee

handbook and even on the careers page of your website so that your competition can
see it too.
v.

Always seek the professional advice of a lawyer before establishing and enforcing a
non-compete agreement.

vi.

Non-competes aside, there are many other ways to more effectively prevent employee
poaching. All companies have valued employees those they cant afford to lose
because of their skill, experience and commitment to their work. One way you can
help them resist the temptation to stray is to show that you are invested in their future.
Give them management time, discuss their professional goals, and share your vision
for the continued growth of your business and their role in it. Long term incentive
plans tied to the overall success of the business, not just individual performance, can
also send a clear message to your employees that they have a recognized and valuable
role

vii.

to

play

in

your

business

as

whole.

Apart from money and other temptations, one of the big motivations for changing jobs
is to get away from the boss. This is a tough one to acknowledge, especially in todays
job market. It can be hard to imagine that your employees might want to leave you
because they cant tolerate your management style.

viii.

But the fact remains, your employees are critical to your success. This means, as an
employer you need to earn the loyalty of your employees no matter how thankful you
think they should be that they have a job and by being a good leader. With strong
leadership, your business and its employees will become more agile and resilient to
change. Without it, employees quickly become disgruntled, lose interest, and quietly
plan their exit. These resources provide a variety of tips and tools to help you become
a better boss.

Things to Know and Do When Hiring Your Competitors Employees.

i.

Beware of team.: When a manager, officer or employee of another company speaks

on behalf of other employees of that company, i.e., my team, my group, my
office, he/she may be breaching a fiduciary or other duty to their current employer.
An officer breaches a fiduciary duty to his current employer if he solicits his current
employers employees to go to work for a competitor. In most cases, these duties end
when the employment ends. Barring the most unusual circumstances, an employee

does not breach any duty to his employer in discussing his or her own future plans for
employment.
ii.

Determine whether employees to be are at will or have a contract with their existing
employer: Make sure you understand any limitations on the employees ability to
work for a competitor. Enforceable restrictions can include a contract for a specified
term. A company that interferes with another companys employment contracts with
its employees can be exposed to civil liability. Sellers of good will or an equity
interest in a company may also be prohibited from working for competitors.

iii.

Make employment offers in writing: The offer should include a statement that the
employee bring nothing with them from any former employer and that everything
they need to perform their job will be provided by the new employer. Require the
employee to represent and warrant that he or she is free to accept the employment
with your company and that he/she has not taken anything from his/her former
employer.

iv.

Employees who wish to follow: Recruit for open positions from multiple sources.
Avoid targeting only employees of a competitor. Advertise positions, get
applications and resumes, interview and conduct salary negotiations directly with
individual applicants. Document all of these steps.

v.

Announce the news: Law permits former employees of a company to announce that
they are no longer with their former company and are with a new place of business. In
some circumstances, however, an employee may be prohibited from soliciting
customers of his former employer. Announcements of employee acquisitions should
bear this legal distinction in mind and should be reviewed by legal counsel prior to
making such arrangements.

Summary
In this paper, staff poaching was considered as hiring an employee from a rival firm can mean
bringing on someone who already knows your industry, your business, and can bring valuable
new knowledge and even clients to you. From this study, there is evidence that employees of

Nigeria G.S.M Companies (Glo, MTN and Airtel) agreed to the fact that staff poaching has
helped to increase performance and competition of Nigeria G.S.M Industry over the years.
Questions administered to the workers were relevant to staff poaching and how it has affected
and contributed to Nigeria G.S.M industry.
Secondly, it was found out that the staff poaching has contributed to the development and
success of Nigeria G.S.M Industry.
Conclusion
Based on the research findings, staff poaching is a tool for associating companies within the
same industry through non-compete agreement. Staff poaching is an easy way of external
recruitment. Having explained the impact of staff poaching in Nigeria G.S.M companies, it
was well envisaged that staff poaching in the industry helps to improve or increase employees
performance and it prepares them to compete with other competitors. However, Staff
poaching has been identified with the following advantages;
i.

It helps you acquire competitive intelligence about other firms.

ii.

New hires can help you identify other potential candidates to poach from their firm.

iii.

The new ideas that applicants and new hires bring in stimulate the thinking of others.

iv.

New hires ask why we do things that way so we are often forced to re-think the
way we do things.

v.

It keeps our employees on the edge because they know they must compete against
outsiders for jobs.

vi.

Outside hires dont have political alliances already set up. This can help them
implement new ideas without the baggage of past political battles.

vii.

Already trained external hires may give us instant talent for new products, programs,
and skills.

viii.

Hiring already trained people is cheaper than developing and promoting internal
talent though the effect varies depending on the cost of a new hire.

ix.

It allows other firms to train and weed out the turkeys so we can hire the cream of the
crop. As a result it can lower training cost.

x.

In a stagnant culture, outsiders might help shake things up and help us evolve our
culture.

Recommendations
Based on the above important points on the advantages of staff poaching in Nigeria G.S.M
industry, it is necessary for any organization to follow the steps below so as to prevent their
staffs from being poached;
1. Management can monitor employee internet usage, track their social media and record
their phone calls while at work.
2. Employer have to give them (employees) more of what they want if you want them to
stay.
3. Avoid a hear no evil see no evil mentality.
4. Employer should treat employee relationships like marriage.
5. Avoid hiring a job hopper.
6. All non-compete agreement records should be well kept.

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