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Topic : Hiring Practices
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Created by : Gargi Sinha, Senior Consultant, Hewitt Associates  | 06 05 2009 06:16:43 +0000
Industry : Human Resources (HR) ConsultingFunctional Area : Performance(Corporate Finance)
Activity:  670 views;  last activity : 07 06 2010 20:18:09 +0000

I have came across this news which I think is somewhat unique.

The U.S. Department of Justice (DOJ) is investigating whether the hiring practices of Google, Yahoo, Microsoft and some other technology companies may have violated anti-trust regulations.

The focus of the investigation is not clear, but appears that Justice department is probing whether there is an explicit agreement between the companies that they wouldn’t hire employees from their rivals.

The reported move by the DOJ reflects plans for a more aggressive approach to antitrust enforcement by the administration of U.S. President Barack Obama.

Now if there is such an agreement between these top-notch companies to not hire each other's employees..is it right on company's part and for the employees who will have limited boundaries and will not get a chance to work in other big companies.

Eagerly waiting to have a healthy discussion on this issue from all you guys.

 
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I agree with Ambar that an investigation is indeed justified in such a case. This is similar to cartelization among oil producing nations. Definitely competition is being stifled. Besides this, employees careers options become extremely limited for no fault of theirs.This seems specially ironical for a country like the US which boasts of everything being "market driven".


By Dr. Siddharth Varma, Professor, International Management Institute  06 05 2009 09:20:39 +0000
 
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 This practice is inadvertently being adopted everywhere in the world.  It is not deemed to be unconstitutional, impropriety, unethical or unconventional.  But what is astounding  is the existence of this practice amongst most prominent internet service providers. This invariably causes a career regression in the employee and even his mental  faculties are likely to be disturbed.  In adverse circumstances, this weapon can be used not to retain best talents alone but to detain the employee/s for past deed of non co-operation, misdemeanor or insubordination.

In one of my encounter with the Managing Director of a company, I learnt that he was distressed with a serious matter which was highly objectionable,unethical and not in taste with prudent industrialists.  His General Manager was made to resign, lured and coaxed to join with appreciable increase in his emoluments and  higher responsibilities by his competitor. He was so furious that he recommended that he should plan to eliminate his competitor by nefarious means.

In another case, a candidate who has been asked to leave due to economic recession, was disappointed because the reason itself was false.  He had difference of opinion with his boss and asked to leave immediately,  after serving the company for nearly 12 years.  Added to that when he had been looking out for a job in another company, the HR was made to reject his application hy higher ups because of the intervening by boss of the company he left.  Imagine the distress of this candidate and the agony he has to undergo especially during recession.

From the above examples one is not really able to conclude, whether retention with the consent of a cartel of employers who dominate over employee's career options should rule or on the other hand the employees should have freedom to move over, should be ideal.

In my opinion since we are into a scenario where strike, lockouts, groupism, rampage, assaults have all become issues of the past.  We are into a better atmosphere with a better understanding with employees.  Employees are the largest asset the company can be proud of.  Retention of the employee on duress should not be encouraged as this circumvents his goal and ambition.  In an era of a team's performance, with 5S,TPM, Lean and 6-sigma under stringent implementation, one has no choice but the retain the best talents.  Not by coercion but by co-operation and mutual trust.  An employee must be liberated with intentions to steer in his path for better accomplishments.  For those who have indentified  employees with the prowess and killer instincts, their options would be to retain such talents by going into a dialogue and  substantiating with better recognition of their services.


By V G Sundar Kumar, Consultant, Sri Balaji Maintenance Services & Freelance Recruiter.  | 06 05 2009 18:49:54 +0000
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u r very right amber..trade secrets  and other confidential ,s may  be restricted by n no of other ways ...but its not good for employees..as its  not  good....not to hire the person coz of his or her previous  job and company...


By varsha , Head/VP/GM-Quality, frac  | 06 05 2009 16:47:12 +0000
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Thanks all for participating in the debate, actually its right for Inspecting these things, as i have seen where many Indian companies are doing such things, and being an HR i feel really bad for the employees, as they will be robbed from opportunities by good companies, and yes Ambar is right here and if rival companies are not taking them, then they are having a less pool of quality employees that are out there, and this will not help both the employees and the organization, so there should be some justice done to the employees here, and make amendments where employees intrests are protected.


By Gargi Sinha, Senior Consultant, Hewitt Associates  | 06 05 2009 14:11:51 +0000
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I agree.  Retaining employees should become a priority.


By SR Sham Sunder, CEO/MD/Director Technoaid  | 06 05 2009 10:25:37 +0000
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First of all I want to know opinions from you guys then I will give my views.Let's have a healthy discussion around this space.


By Gargi Sinha, Senior Consultant, Hewitt Associates  | 06 05 2009 08:50:28 +0000
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When Sathyam scandal broke out, Infosys and Wipro announced that they will not poach on Sathyam employees. This has a positive ethical angle attached to it.  If the agreement between microsoft and google is to deprive opportunities to employees, it is bad.  Is there any other justification for the agreement?  Please contribute your opinions


By SR Sham Sunder, CEO/MD/Director Technoaid  | 06 05 2009 09:35:21 +0000
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I strongly disagree with it. Even i am a Consultant and this trend is common where poaching of employes is not allowed to us. And just due to it, we have limited resources to trace out the candidates for clients.  


By Rahul Verma, Division Head  | 06 05 2009 09:01:58 +0000
 
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