Is it cool to hire from your competitors? This usually gets mixed responses. If you ask 100 Talent Acquisition Pros, half might say it’s a no-go due to agreements not to poach from each other – a common practice in the corporate world.

Infamous legal dramas, like the Silicon Valley case, highlight the downsides of these secret pacts. Between 2005 and 2009, tech giants allegedly avoided recruiting each other’s people, causing lower wages and less job mobility. The lawsuit claims this left workers in the dark about better-paying opportunities.

Surprisingly, openly declaring an agreement not to recruit from competitors is not just ethically weird – it’s illegal. Yes, you heard that right. While it’s tempting to dodge the hiring treadmill in a competitive market, there are smarter ways to deal with it.

One approach is to invest in better pay, engagement, and talent development. DUH! Smart companies know it’s crucial to pay at or above market rates to keep their team happy. Instead of reacting to high turnover with higher wages, these companies stay ahead by regularly adjusting compensation to retain top talent.

Choosing between paying upfront or dealing with turnover costs is a classic business challenge. Reactive companies end up paying more on the back end due to turnover and higher wages. On the flip side, proactive organizations invest upfront in talent development, keeping a competitive edge by promoting from within and having visionary leaders.

I would actually love to see legislation that makes it illegal if you’re a corporate recruiter and you don’t make cold calls to recruit! You saying you’re a ‘Recruiter’ but you don’t recruit! That’s the real criminal activity going on!