{"id":1844,"date":"2014-12-16T07:45:33","date_gmt":"2014-12-15T23:45:33","guid":{"rendered":"http:\/\/www.futurethink.com.sg\/?p=1844"},"modified":"2016-02-10T05:57:14","modified_gmt":"2016-02-10T05:57:14","slug":"a-bold-and-brilliant-hr-strategy-or-a-really-stupid-one","status":"publish","type":"post","link":"https:\/\/www.futurethink.com.sg\/devsite\/a-bold-and-brilliant-hr-strategy-or-a-really-stupid-one\/","title":{"rendered":"A Bold and Brilliant HR Strategy or a really Risky (Silly?) one?"},"content":{"rendered":"<div id=\"dslc-theme-content\"><div id=\"dslc-theme-content-inner\"><div style=\"padding-bottom:20px; padding-top:10px;\" class=\"hupso-share-buttons\"><!-- Hupso Share Buttons - http:\/\/www.hupso.com\/share\/ --><a class=\"hupso_counters\" href=\"http:\/\/www.hupso.com\/share\/\"><img decoding=\"async\" src=\"https:\/\/static.hupso.com\/share\/buttons\/share-small.png\" style=\"border:0px; padding-top:2px; float:left;\" alt=\"Share Button\"\/><\/a><script type=\"text\/javascript\">var hupso_services_c=new Array(\"twitter\",\"facebook_like\",\"facebook_send\",\"google\",\"pinterest\",\"email\",\"print\",\"linkedin\");var hupso_counters_lang = \"en_US\";var hupso_image_folder_url = \"\";var hupso_url_c=\"\";var hupso_title_c=\"A Bold and Brilliant HR Strategy or a really Risky (Silly?) one?\";<\/script><script type=\"text\/javascript\" src=\"https:\/\/static.hupso.com\/share\/js\/counters.js\"><\/script><!-- Hupso Share Buttons --><\/div><p><a href=\"https:\/\/www.futurethink.com.sg\/wp-content\/uploads\/2014\/12\/Bad-strategy.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-medium wp-image-1893\" src=\"https:\/\/www.futurethink.com.sg\/wp-content\/uploads\/2014\/12\/Bad-strategy-300x228.jpg\" alt=\"Bad strategy\" width=\"300\" height=\"228\" \/><\/a><\/p>\n<p>Have you heard of the &#8220;Hire to Hurt&#8221; recruiting strategy?<\/p>\n<p>I recently came across an article talking about taking bold steps executing talent recruiting strategies. The core strategy of that article was to boldly hire all the key staff away from your competitor so much so that it begins to hurt your competitor and drive them into the ground.<\/p>\n<p>The author calls this the \u201cboldest recruiting strategy of them all???.<\/p>\n<p>In his article, the author cited a few examples of how companies have employed this strategy, and one of the examples he cited was this Wall Street investment bank who hired away a key investment banker from their direct competitor.<\/p>\n<p>The compensation package they gave this investment banker was worth $5 million. The executive who hired away the investment banker was asked how this would benefit their firm and the executive declared that he didn\u2019t know how it would help their firm but what he knew is that their competitor will not be making the $50 million the previous year.<\/p>\n<p>Sounds like a great strategy, doesn\u2019t it?<\/p>\n<p>But is it?<\/p>\n<p>Before you start jumping with joy and asking your HR departments to begin adopting this strategy, let\u2019s just take a step back and dig a little deeper by asking the following questions:<\/p>\n<h3>1. Who really wins?<\/h3>\n<p>So you hire away your competitor\u2019s star performer who has been making $50 million for them.<\/p>\n<p>Here\u2019s the crucial question:<br \/>\n<br \/>\nIf the Star Performer can be bought with $5 million, what makes you so sure he or she can\u2019t be bought out by another of your competitor for $8 million?<\/p>\n<p>Here\u2019s another question for you to ponder:<br \/>\n<br \/>\nWhat makes you so sure your competitor won\u2019t offer to hire that Star Performer back from you?<\/p>\n<p>So at the end of the day, who really wins?<\/p>\n<p>It\u2019s not going to be your competitor, and it sure is not going to be you either.<\/p>\n<p>The ultimate winner of this whole silly episode is the Star Performer who stands to pocket all of the salaries you and your competitors throw at him.<\/p>\n<h3>2. What makes you so sure that your competitor won\u2019t recover?<\/h3>\n<p>So you think you\u2019ve blown a hole so huge in your competitor they won\u2019t recover? What makes you so sure they won\u2019t?<\/p>\n<p>And here\u2019s the key question for you to ponder:<br \/>\n<br \/>\nWhat makes you so sure that your competitor won\u2019t make MORE than the $50 million they \u201clost??? when they do recover?<\/p>\n<p>Never underestimate the resilience of organisations. As the saying goes, \u201cno one is indispensable???.<\/p>\n<h3>3. You only have one competitor?<\/h3>\n<p>This strategy might just work for you if you had only one competitor in the entire market. But how many companies have only one competitor in the market?<\/p>\n<p>The larger your competitor\u2019s organisation, the more difficult it is to hurt them using such a strategy.<\/p>\n<p>The more extensive their network is around the globe, the more difficult it is to blow a hole in them that will drive them into the ground.<\/p>\n<p>All you have to do is look around you. How many companies have only one competitor in their industry or in their market?<\/p>\n<p>How many competitors does your organisation have?<\/p>\n<h3>4. How sure are you the <a href=\"https:\/\/www.futurethink.com.sg\/why-you-should-not-hire-the-best-candidates\/\" title=\"Why You Should Not Hire the Best Candidates\" target=\"_blank\">Star Performer<\/a> you poached from your competitor will be able to perform in your organisation?<\/h3>\n<p>I\u2019ve written about this before but it is worth repeating here.<\/p>\n<p>Look at the research done by Dr. Boris Groysberg of Harvard University. His extensive 7 year study of <a href=\"https:\/\/www.futurethink.com.sg\/why-you-should-not-hire-the-best-candidates\/\" title=\"Why You Should Not Hire the Best Candidates\" target=\"_blank\">Star Performers<\/a> on Wall Street (Yes, Wall Street!) shows indisputable evidence that Star Performers generally don\u2019t perform after moving over to the new organisation.<\/p>\n<p>These Star Performers typically bring with them only a miserable 30% of their original capabilities from where they came. And the reason for this anomaly is because most of the other 70% are not portable \u2013 such as culture, systems, processes, support, people, management and leadership.<\/p>\n<p>In other words, these Star Performers are star performers because of the environment they work within.<\/p>\n<p>Unless your organisation is very similar and almost identical in terms of structure, support, systems, processes and culture. Otherwise, all you are doing is poaching a dud.<\/p>\n<p>So here\u2019s my closing question:<br \/>\n<br \/>\nIf such a strategy was really that effective, then why aren\u2019t many (or any) big companies out there jumping on the bandwagon today?<\/p>\n<p>And oh, one other example the author cited was Uber.<\/p>\n<p>However the bad press Uber has been getting recently isn&#8217;t doing any justice to their bold hiring strategy.<\/p>\n<p>What do you think?<\/p>\n<p>&nbsp;<\/p>\n<p>Share this article with your friends and colleagues!<\/p>\n<p>&nbsp;<\/p>\n<hr \/>\n<p>Learn how to hire the right people every time, avoid the mistakes most interviewers make, maximise employee engagement levels, lead and manage your employees to peak performance, minimise attrition rate, and so much more\u2026<\/p>\n<p><b>PLUS:<\/b> Receive a free sample chapter on <b>How to Craft Effective Interview Questions<\/b> from my yet-to-be-released book <b>How to Hire the Right People Every Time: The Executive&#8217;s Guide to Getting It Right<\/b><\/p>\n<p>Get your weekly tips now. Join us <b><u><a href=\"http:\/\/eepurl.com\/NHjHn\" target=\"_blank\">here<\/a><\/b><\/u>.<\/p>\n<hr \/>\n<div style=\"padding-bottom:20px; padding-top:10px;\" class=\"hupso-share-buttons\"><!-- Hupso Share Buttons - http:\/\/www.hupso.com\/share\/ --><a class=\"hupso_counters\" href=\"http:\/\/www.hupso.com\/share\/\"><img decoding=\"async\" src=\"https:\/\/static.hupso.com\/share\/buttons\/share-small.png\" style=\"border:0px; padding-top:2px; float:left;\" alt=\"Share Button\"\/><\/a><script type=\"text\/javascript\">var hupso_services_c=new Array(\"twitter\",\"facebook_like\",\"facebook_send\",\"google\",\"pinterest\",\"email\",\"print\",\"linkedin\");var hupso_counters_lang = \"en_US\";var hupso_image_folder_url = \"\";var hupso_url_c=\"\";var hupso_title_c=\"A Bold and Brilliant HR Strategy or a really Risky (Silly?) one?\";<\/script><script type=\"text\/javascript\" src=\"https:\/\/static.hupso.com\/share\/js\/counters.js\"><\/script><!-- Hupso Share Buttons --><\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>Have you heard of the &#8220;Hire to Hurt&#8221; recruiting strategy? I recently came across an article talking about taking bold steps executing talent recruiting strategies. The core strategy of that article was to boldly hire all the key staff away from your competitor so much so that it begins to hurt your competitor and drive them [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,5,9],"tags":[],"yst_prominent_words":[],"class_list":["post-1844","post","type-post","status-publish","format-standard","hentry","category-blogs","category-leadership-management","category-strategy","pmpro-has-access"],"_links":{"self":[{"href":"https:\/\/www.futurethink.com.sg\/devsite\/wp-json\/wp\/v2\/posts\/1844","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.futurethink.com.sg\/devsite\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.futurethink.com.sg\/devsite\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.futurethink.com.sg\/devsite\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.futurethink.com.sg\/devsite\/wp-json\/wp\/v2\/comments?post=1844"}],"version-history":[{"count":2,"href":"https:\/\/www.futurethink.com.sg\/devsite\/wp-json\/wp\/v2\/posts\/1844\/revisions"}],"predecessor-version":[{"id":3436,"href":"https:\/\/www.futurethink.com.sg\/devsite\/wp-json\/wp\/v2\/posts\/1844\/revisions\/3436"}],"wp:attachment":[{"href":"https:\/\/www.futurethink.com.sg\/devsite\/wp-json\/wp\/v2\/media?parent=1844"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.futurethink.com.sg\/devsite\/wp-json\/wp\/v2\/categories?post=1844"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.futurethink.com.sg\/devsite\/wp-json\/wp\/v2\/tags?post=1844"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.futurethink.com.sg\/devsite\/wp-json\/wp\/v2\/yst_prominent_words?post=1844"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}