Acqui-hiring
Acqui-hiring or Acq-hiring (a portmanteau of "acquisition" and "hiring") or talent acquisition, is the process of acquiring a company to recruit its employees, without necessarily showing an interest in its current products and services—or their continued operation.[1][2] "Some technology blogs call it being 'acqhired.' The companies doing the buying say it is a talent acquisition, and it typically comes with a price per head," the New York Times reported in a page-one story describing the phenomenon on May 17, 2011.[3] The process of a talent acquisition also provides a relatively favorable exit strategy for employees with the prestige of being bought by a larger company, combined with the typical process of hiring.[4]
In September 2010, linguist Ben Zimmer, in an article appearing on Visual Thesaurus, traced the derivation of the phrase to a blog post in May, 2005.[5]
Acqui-hiring has become increasingly common in VC-backed startup companies, especially within the competitive technology sector; as of March 2013, Facebook was the largest performer of talent acquisitions, with 12 over the last five fiscal quarters. Twitter, Yahoo!, and Google rank alongside Facebook as similarly major users of talent acquisitions.[6]
Acqui-hiring is facilitated by acqui-sourcing - the process of identifying companies that agree to be acquired.
Why companies practice Acqui-hiring
There are various reasons why companies engage in acqui-hiring. These include helping to reduce the risk of litigation,[7] reduce money expenditure when hiring a large group of employees,[8] or hide the failures of start-up companies from the public.[9]
Is Acqui-hiring right for your firm?
While Acqui-hiring is a great modern that companies seem to be shifting to, one needs to consider whether their company is fit for the process. some of the factors that need to be put into consideration such as, the company should ensure that there is need tor a huge number of personnel before engaging in Aqui-hiring.[10] There should also be an easy access to the pool of customers for the company that intends to engage in Acqui-hiring and finally when a comparatively large company intends to beat smaller companies to acquisition of employees.[11]
See also
References
- ^ Sullivan, John (10 December 2012). "Acqui-hiring: A Powerful Recruiting Strategy That You've Never Heard of". ERE.net. Retrieved 20 April 2013.
- ^ Yarow, Jay (10 August 2012). "Why So Many Startups Are Being Acqui-Hired". Business Insider. Retrieved 20 April 2013.
- ^ Helft, Miguel (17 May 2011). "For Buyers of Web Start-Ups, Quest to Corral Young Talent". New York Times, page 1. Retrieved 27 May 2013.
- ^ "The Vanity of the "Acqhire": Why Do a Deal That Makes No Sense?". All Things D. Retrieved 23 May 2013.
- ^ Zimmer, Ben (29 September 2010). "Buzzword Watch: "Acq-hire"". Visual Thesaurus. Retrieved 27 May 2013.
- ^ "Facebook leads growing acqui-hire craze". Upstart Business Journal. Retrieved 23 May 2013.
- ^ Coyle, John F.; Polsky, Gregg D. (November 2013). "ACQUI-HIRING". Duke Law Journal. 63 (2): 301-317.
- ^ Coyle, John F.; Polsky, Gregg D. (November 2013). "ACQUI-HIRING". Duke Law Journal. 63 (2): 301-317.
- ^ Bensona, David; Ziedonis, Rosemarie H. (December 2010). "Corporate venture capital and the returns to acquiring portfolio companies" (PDF). Journal of Financial Economics. 98 (3): 478-499. doi:10.1016/j.jfineco.2010.07.003. Retrieved 30 September 2018.
- ^ Chatterji, Aaron; Patro, Arun (29 Oct 2014). "Dynamic Capabilities and Managing Human Capital". Academy of Management Perspectives. 28 (4). Retrieved 6 October 2018.
- ^ Chatterji, Aaron; Patro, Arun (29 Oct 2014). "Dynamic Capabilities and Managing Human Capital". Academy of Management Perspectives. 28 (4). Retrieved 6 October 2018.
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