Employee Poaching

Meaning & Definition

Employee Poaching is hiring an individual who works for another employer. Poaching can involve providing a higher salary, greater benefits, or additional opportunities than are available with their present employer to attract experienced employees to leave to join another company. Even though poaching is a common practice in competitive environments, the practice must be done very carefully(since doing so may lead to a lawsuit or violate employee agreements).

Important features of Employee Poaching

• Assists organisations in hiring experienced, talented people quickly. 
• Reduces onboarding times because new hires have the skills needed to be productive upon hire. 
• Creates a more competitive job market and standards for compensation. 
• Encourages organisations to develop strategies to improve their ability to retain employees. 
• Facilitates strategic hiring for positions requiring niche or leadership talent.

Legal & Regulatory Considerations 

There is no law that governs employee poaching, but employers should act in accordance with any applicable employment contract, notice period, confidentiality agreement, and non-compete clause (if legally enforceable).  

If an employer improperly breaches an employment contract or improperly uses confidential information, there may be legal action against them under the appropriate contract law.