Pirating an executive from a sister firm

I’m planning to hire a junior executive within our conglomerate. My idea is to promote him as a manager or one rank higher from his original post. What do you think of this plan? — Gray Tower.

Promoting someone from within, whether the person comes from the same organization or within the group of companies is an excellent idea. In today’s so-called “war for talent,” some companies have gone from head-hunting to hijacking. The battlefield has expanded to include not just competitors, but even companies under the same corporate umbrella.

It’s like raiding your cousin’s refrigerator for the last slice of cake. Technically, it’s family property — but still bad manners. So, the burning question is: Is it advisable to pirate an executive from a sister company?

Recruiting talent from within your conglomerate can be a smart move — but only if handled with transparency and tact. Otherwise, you could create animosity to make your next conglomerate convention feel like a family reunion gone wrong.

But first, better to ask your boss for approval and support. If he agrees, then go ahead talk to the boss of your candidate. Or maybe, your boss can do it for you.

RISKS
Indeed, it’s tempting to pirate someone within the group of companies. They’re already familiar with the corporate culture, its policies, systems, buzzwords, and acronyms. Training time? Practically zero. Risk of cultural mismatch? Minimal. But convenience doesn’t always mean correctness. Here’s why:

One, legal and contractual obligations. Some organizations have agreements that include non-piracy clauses, even among affiliates. That’s why you must secure the permission of one’s boss.

Even without it, the executive’s employment contract might include a non-compete or conflict-of-interest provision.

Two, breach of trust. In business, trust is the invisible glue that holds everything together. Pirating talent from an affiliate without transparency can feel like betrayal. If you break that trust, you may not be able to recover your partnership with people.

And your affiliate may perceive your move as an act of war rather than collaboration.

Three, reputational damage. The corporate world has sharp ears and long memories. Once you earn a bad reputation as a “pirate,” other leaders may become cautious around you. They’ll lock their best people in metaphorical vaults.

When you need cross-functional support in future projects, expect a cold shoulder and longer e-mail response times, if ever they take the time to reply.

SMARTER ROUTE
Instead of outright poaching, consider collaborative talent-sharing arrangements. If you truly believe that executive talent from an affiliate can make a significant impact, there are cleaner, smarter, and win-win solutions to go about it.

Here are the things you can do simultaneously:

One, limited secondment. It could be four to six months — even longer. This is beneficial to both sides. The “pirated” executive gains new challenges, exposure, and skills, while his original employer retains the relationship.

Two, mentoring project. This means assigning the executive to create a training program for the young guns of the “pirate” organization. To entice the executive, offer a monthly allowance while continuing his current pay and benefits from his employer.

Three, exchange program. Initiate an internal job program that allows employees within the conglomerate to undergo a corporate Rigodon de Honor, a formal rotational exchange among affiliates. This is for faster career mobility for those with high potential.

HONOR
Good leaders don’t just win the war for talent — they win it honorably. Leadership isn’t about collecting the best people by any means. It’s about building a system that attract talent naturally from everywhere.

If your culture is strong, people will come to you without being lured with a golden handshake. But if your only way to fill key roles is to “pirate” from affiliates, it may be time to check your ship’s condition. Maybe it’s not a talent shortage. It could be that you’re not doing enough to train your people so they become promotable.

After all, piracy, even when successful, rarely earns applause. Collaboration and transparency in creating a dynamic management development program gives you stronger, more sustainable organizations.

In the modern talent marketplace, companies are learning that the real competitive advantage isn’t in stealing good people — it’s in developing them. If you need a rare talent, then create one. Mentor a rising star. Cultivate your own people. It’s better to be known as a talent builder than a talent pirate.

Consult Rey Elbo for free insights on people management. Send your question or story to elbonomics@gmail.com or DM him on Facebook, LinkedIn, X or https://reyelbo.com.