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Employee Poaching: Why It Can Be Predatory

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  • Jin‐Hyuk Kim

Abstract

There is a growing concern over predatory hiring practices that are aimed at eliminating competitors. Using a duopoly model in which firm's profits depend on the quality of the worker–employer match, this paper studies the conditions under which predatory equilibrium exists. I find that predatory hiring can occur when the match between the worker and the new employer is relatively poor, and the old employer has a shallow pool of replacement candidates. Post‐employment lawsuits do not affect the range of predatory equilibrium if the parties take into account expected damages payment. Copyright © 2013 John Wiley & Sons, Ltd.

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  • Jin‐Hyuk Kim, 2014. "Employee Poaching: Why It Can Be Predatory," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 35(5), pages 309-317, July.
    • Handle: RePEc:wly:mgtdec:v:35:y:2014:i:5:p:309-317
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    Cited by:

    1. Luca Picariello, 2019. "Promotions and Training: Do Competitive Firms Set the Bar too High?," CSEF Working Papers 552, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    2. Martin Ganco & Cameron D. Miller & Puay Khoon Toh, 2020. "From litigation to innovation: Firms' ability to litigate and technological diversification through human capital," Strategic Management Journal, Wiley Blackwell, vol. 41(13), pages 2436-2473, December.
    3. Klasa, Sandy & Ortiz-Molina, Hernán & Serfling, Matthew & Srinivasan, Shweta, 2018. "Protection of trade secrets and capital structure decisions," Journal of Financial Economics, Elsevier, vol. 128(2), pages 266-286.
    4. Assanskiy, Artur & Shaposhnikov, Daniil & Tylkin, Igor & Vasiliev, Gleb, 2022. "Prove them wrong: Do professional athletes perform better when facing their former clubs?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 98(C).
    5. Amankwah-Amoah, Joseph, 2020. "Talent Management and Global Competition for Top Talent: A Co-Opetition-Based Perspective," MPRA Paper 101113, University Library of Munich, Germany.
    6. Simon Dato & Andreas Grunewald & Matthias Kräkel, 2021. "Worker visibility and firms' retention policies," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 30(1), pages 168-202, February.

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    More about this item

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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