Acqui-Hiring is a generic combination of two words acquisition and hiring referring to the process of acquisition or purchase of a company to acquire its employees. This simply means instead of traditional hiring methods, an organization hires the staff of an existing company. This gives a good opportunity to acquire the talents in the company while having ownership of their products.
Around the 2010s the acqui-hiring became popular among the funded startup businesses. Skilled engineers working in the startups were the target of bigger organizations. They were the prime attraction for large companies. Facebook was among the top acqui-hiring companies which bought talents from other companies for their business. This proved a great profit for them. Generally, the acqui-hiring primarily motives for the expert employees and later shows interest in the company’s products or services. This is because the hiring party intends these employees to work for their existing projects.
Even though acqui-hiring displays a range of risks to the company, it is still popular among commercial giants. This brings a positive yet serious sense of confusion among the new recruitment teams. But it is not a big surprise to have such questions with no experience. Let’s have a look at the benefits of acqui-hiring.
Save time money and effort
Hunting for excellent talents one by one is a long time-consuming task. Conducting interviews with a long list of candidates seems the most tiring job. Also, the right talent is not found in one place. It demands constant traveling in search of the better good. If so much effort is required to hire just a few employees, imagine the recruitment teams to hire an entire batch of employees each year. Conducting a good survey and recognizing the talent harboring companies is definitely less time-consuming. A lot of money, effort, and time of the organization is saved in this way. An entire batch of employees can be hired at once. Also, a good survey will ensure the company of the hired employees being efficient enough.
A second chance to the employees
For recession hit startups acqui-hire comes as a savior. The employees despite being efficient and talented are exposed to the risk of lay off. After the acquisition, these employees tend to show more involvement in their work than the fresh Hires. This proves profitable for the hiring organization. So acqui-hiring benefits the employees, the purchased company, and the hiring organization.
Brings deserving talents into the company
The primary motive of the entire process of acqui-hiring is to bring excellent talent to the organization. And with the right processes, it is possible to reach out to deserving talents. It allows the organization to work with the excellent employees of another organization and blending their work culture into its own. These employees with phenomenal talent bring exceptional progress within the organization.
The new customer base is integrated
With the purchase of a company, its customers also are available for the hiring organization. They can use this customer base for their own products. This is very beneficial as it saves the revenue spent on attracting a significant customer base. And most importantly this customer base requires no extra effort to retain as they are already in terms with the existing company. So it gives an effortless customer base to the organization.
Despite so much success, if acqui-hiring is not followed properly it may be an absolute failure. It is required to follow a strict method to arrive at the desired results. So below is the proper method to start the process. First, the survey of the companies needs to be done stringently. Any failure in this process might call for a greater loss in the future. Second, legal advice is sought regarding the purchase. Then the right stakeholders decide finally on the purchase. Third, an assessment must be done on the liabilities to be incurred and taxes to be settled. A new compensation for the employees must be decided upon. And finally, with the approval of all stakeholders and creditors, the purchase is made.
During the transition period, the new employees face a significant change in feelings amongst themselves. They either need to relocate to a new city or are going to work under a new boss. They go through a change in peers, office environment, and cultures. Most times these employees who work under fewer rules bound office face difficulties in adapting to the methods of larger organizations. HRs need to take care of these turbulent feelings of these employees. The success of this process will form the base of handling of the entire transition.
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