I typically don’t read HBR material because over the years I found HBR to be too academic (not representative of reality) this is however an interesting blog post.
Reading between the lines you can infer a few practices that are not good for companies
in the long term:
- Trying to low ball potential employees. That works only until their skills are in such demand that they walk out. People may take a position out of necessity but it is the rare person who likes being taken advantage of.
- Extending the hiring process. That works only until their skills are in such demand that they find a position somewhere else before the company makes up its mind.
Many North American companies are relying on IP to survive and hopefully thrive. IP is created among other things through top employees and collaborators. Current hiring practices may well go against acquiring those top employees and collaborators.
What do you think? As always questions and comments are welcome.
Connect with me on LinkedIn. I am a LinkedIn Open Networker (LION); you can use “Friend” to add me to your network.



Pat, the issue is far greater with the ever growing trend to outsource to third world countries. I've been in the IT industry for many years now and am yet to be unconvinced that outsourcing has a positive ROI.
The points you highlight in your point are certainly also relevant in the OZ scene.
Posted by: Shim Marom | 2013.03.14 at 21:49
Shim,
You are right, outsourcing has questionable economics. For example the PM work load increases greatly and that can blow away expected "benefits" of outsourcing.
I know a couple of people that were working in the customer facing side of outsourcing outfits that gave up because of the wear and tear of traveling and weird hours. And those people were in WELL paying positions.
Losing the customer facing talent removes a major component of project success.
Posted by: Patrick Richard | 2013.03.15 at 08:09