When it comes to hiring new talent, you often are looking for the guy or gal who has not only the smarts but the experience required to thrive in the position. With that being said, it’s only natural that someone with the right kind of experience could be a former – or gasp, current – employee of a direct competitor to your company.
Now, while it might seem straightforward and even a smart choice to hire from such a source, there are certain aspects – such as non-compete agreements – that need to be considered before you extend that offer (or heck, even begin the interview process!)
HR Morning News recently spoke with Adam Robinson of Hireology, a firm that helps companies analyze the behaviors of top-performing employees during the hiring process, to identify the top three do’s and don’ts of hiring from one of your corporate competitors.
Do: Offer a Salary Increase
People who are doing well in a role and are happy with their company are not going to risk leaving and becoming dissatisfied with their new position unless you dangle a pretty big carrot. Robinson notes that the easiest incentive you can provide is a salary increase because it shows the candidate that you are truly interested and believe they are worth the investment. If a salary bump isn’t feasible for your business, Robinson says you can steal a move from early stage companies and perhaps offer equity in your company if business prospects are huge.
Don’t: Ignore a Non-Compete Agreement
Non-compete agreements, by nature, are issued to prevent employees from competing against their original employer in the event they leave. While some companies choose to disregard these agreements, Robinson notes that it is imperative that you have a lawyer look over a candidate’s non-compete prior to issuing an offer letter or else risk repercussions including lawsuits against both the candidate and your company.
Do: Invest in Training New Employees
Hiring a successful candidate from a competitor does not necessarily mean they will thrive at your business. Just like any other new employee, this employee will need time to ramp up and to go through training in order to perform optimally.