In the Trenches at the Talent Wars: Competitive Interaction for Scarse Human Resources

A number of indicators suggest that the social norms that once deterred labor market competitors

from hiring or “poaching” each others’ employees are breaking down. This study explores the

competitive interaction that results when one firm attempts to hire employees from a competing

firm (known as “talent raiding”). Results suggest that attributes of the raiding firm, the targeted

firm, and targeted human capital will affect how a targeted firm responds to a talent raid. The

study suggests a number of tactics raiding firms can use to avoid retaliation and suggests tactics

targeted firms can use to repel would-be talent raiders

“Competition to the businessman is whatever

he has to do to get business away from

his rivals and whatever they do to take sales

away from him” (Dean, 1954, p. 8).

The key resource for firms competing in the

new economy is no longer land, capital, or hard

assets but the human capital necessary to

adapt organizations to global competition and

maximize the benefits associated with the current

technological boom. The connection between

human capital and financial success is

not a secret held by a few firms but an understanding

shared by top management teams

across all sectors of the economy. Although

the American economy is much weaker than

it was five years ago, the unemployment rate