Vantage | Talent wars and decoding ethics of corporate poaching

As late December unfolds, a bitter battle is brewing in the world of software, revolving around a critical element – talent. At the centre of this conflict is Cognizant, a prominent US-based software giant that appointed Ravi Kumar as its new CEO earlier in the year. However, Kumar’s aggressive recruitment strategy, involving the hiring of around 20 vice presidents and four senior vice presidents, has sparked controversy and legal actions from rival companies Wipro and Infosys.

Wipro and Infosys have taken legal action against departing executives accusing Cognizant of engaging in poaching – the act of hiring employees from competitors. Poaching is a common practice in the corporate world, where rival companies vie for the best talent to gain a competitive edge. However, the ethical implications of poaching have long been a point of contention. Understanding poaching Poaching, in a corporate context, is the act of recruiting employees from competing companies. It’s a strategy employed by organisations to strengthen their workforce by acquiring skilled professionals from rivals. Though legal, it is often deemed unethical and immoral by companies who believe in traditional notions of loyalty. The term “poaching” carries dual meanings – the corporate practice and the illegal hunting or catching of animals. While the former is legal, it remains a subject of ethical debate within the business community. Companies argue against poaching, citing loyalty and moral concerns, but the underlying issue lies in the traditional mindset that values company loyalty over individual career growth. Despite the frowning upon poaching, studies show that approximately 30 per cent of job changes can be attributed to this practice. Companies must recognise that employees, like market forces, respond to demand and supply dynamics. The price of an individual’s work is determined by their skills and experience and if a competitor is willing to pay a higher price, employees may choose to make a move. Data supports employee choices Surveys conducted in the United States reveal that 32 per cent of job changes occur for better pay and 23 per cent for more opportunities. These numbers highlight the importance of financial incentives and career growth in employee decision-making. If a competitor offers better prospects, it becomes challenging for the current employer to retain talent without matching these offerings. Corporate leaders must adopt a more hands-on approach, engaging with employees to understand their needs and expectations. Instead of resorting to legal actions, companies should focus on talent retention by addressing the concerns that prompt employees to consider external opportunities. In the digital age, where talent is readily visible and accessible, companies need to adapt their approach. Living in fear of poaching is counterproductive. Instead, organisations should concentrate on nurturing talent and creating an environment that fosters professional growth. In this evolving job market, both companies and employees should embrace change and navigate the landscape collaboratively, recognising the value each brings to the table. Views expressed in the above piece are personal and solely that of the author. They do not necessarily reflect Firstpost’s views. Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook , Twitter and Instagram .