Fallout: The Financial Crisis

Companies poach their rivals’ best

Stacey Vanek Smith Oct 28, 2008
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Fallout: The Financial Crisis

Companies poach their rivals’ best

Stacey Vanek Smith Oct 28, 2008
Hand extended as a welcome sign iStockphoto
HTML EMBED:
COPY

TEXT OF STORY

Kai Ryssdal:
Even not counting layoffs in Detroit, hundreds of thousands of people have lost their jobs this year.
And more pink slips are probably coming.
That’s lousy news for a lot of us and for the economy too.
But it’s actually good news for some employers.
Because companies with a little extra cash are finding this an excellent time to recruit new talent. Marketplace’s Stacy-Vanek Smith reports.


Stacy-Vanek Smith:
It’s poaching season for companies with cash. Neil Sims is a Managing Director for Boyden Global Executive Search. He says most businesses are holding off hiring but for companies that can afford it, top talent is ripe for the picking

Neil Sims: That always happens in a softer economic cycle. Companies with the opportunity to hire better people, stronger people, more experienced people will do that because these people become available when they would otherwise not be.

Big opportunities are being created for the little guys, says John Challenger, CEO of global outplacement firm, Challenger Grey and Christmas. He says consulting firms, retailers, tech companies and smaller financial firms are snapping up workers. Many are coming from Wall Street, which is expected to shed 45,000 jobs next year.

John Challenger: Small or medium sized companies, or very successful companies that are riding out the storm, are taking advantage of this time to bring in top talent.

And there may not be much companies can do to keep their best people from being picked off. Wall Street, for instance, handed out more than $30 billion in bonuses last year–but the bailout package has put pressure on financial firms to rein in executive compensation. And Executive Search expert Neil Sims says bonuses are key.

Sims: Programs that augment an individual’s salary based on their performance have become a very, very important part of compensation packages for executives today.

JPMorgan is suing a New York recruitment agency for trying to lure its executives away.

I’m Stacey-Vanek Smith for Marketplace.

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