Question

Your company is desperately looking for a system analyst. You know that your competitor invested heavily in training and has a highly competent system analyst, who indicated to you privately that she would switch if you pay her $10,000 more. Your boss thinks that this is a bargain and tells you: “Get her!” It surely would hurt the competitor. What issues does this raise?

Answer 1

There is a greater need of highly skilled and knowledgeable manpower in the organizations Finally the intellectual capital will be possessed by the employee only and this can be used this or her skills, experience, knowledge to have the better employment negotiation

If the company is offering the system analyst $10,000 which is more than the current salary then there is a likelihood that she would accept the proposal. the competing firm has invested a lot in the development of that employee. This will be the responsibility of the HR department of the other organization to retain the manpower and talented individuals in the organization. Apart from this, the organization has to implement succession planning is that enough talent is always present in the organization

The other issue is that the competitors can also increase the salary range and thus the cost of retaining and hiring the employees would increase and the chances of losing valuable intellectual capital will increase