Competition possesses without any doubt reached in order to a new cut-throat levels these types of a short time. Technological giants have got recently been engulfed in the war to bag the numero uno position. No stone is left unturned to gain top notch stand by companies. Acquisitions are being made by bigger companies excessively to expand and move ahead in the tech race. But the competition is no more a healthy one and the corporate sector is going the unethical way to gain an upperhand.
The lack of highly skilled people has created an undying urge to trample moralistic behavior. The recent employment probing issue is one such example. Companies signed illegal bond among themselves agreeing to not poach each other's engineers and other highly skilled workers. This not only restricts the growth of an employee but also squashes speedy development and healthy competition. Moreover, wages get affected drastically. The firms had entered into agreements not to directly solicit each other's employees, thereby eliminating a significant form of competition to attract high tech employees. The employees working at high positions get bound to their respective companies even if their self-interest lies otherwise in such a case.
Top tech companies recently signed an agreement stating that they will not comply with the silent mutual understanding of not employing each other’s officials. Google, Apple, Adobe Systems, Intel, Intuit and Disney's Pixar reached a settlement with the Justice Department that bars the companies from agreeing to not recruit each other's top employees.
A series of agreements were signed which ensured amicable relations between companies. Apple had deals with Google, Adobe and Pixar while Google had separate deals with Intel and Intuit -- agreeing not to cold call each others' workers. This agreement has both pros and cons. Violation of antitrust laws is one issue of concern. But highly skilled workers shall be held in privilege by their respective companies. Moreover, the agreement is also an indicator to the fact that deals were formed and actively managed by senior executives of these companies. Hence a regulation was necessary to manage transparent working in the largest tech companies of the world.
A few companies still feel that they are not doing anything wrong by entering into a silent deal of not entering the job poaching game. But the Department of Justice iterated the need to maintain healthy competition and give access to free-will of employees. It also stated that such agreements breach antitrust laws since agreeing not to hire away top talent could choke competition for workers with high caliber and hold down wages. The Justice Department is also looking at Google's plan to create a massive online library. And it is assessing Google's buy of travel software company ITA Software to determine if the deal violates antitrust law as recently reported. The globe is being corroded by the airy flights of quick money thereby losing up on principles.
The tech biggies did eventually sign an agreement with the Dept. of Justice stating to cut the cold calls regime. It is to be seen if the agreement is truly followed by the tech giants or not.