40. Protecting Your Team from Competitor Poaching
Retention strategies to keep your best employees from leaving.
Imagine this - Your best-performing team member resigns unexpectedly. They’ve been approached by a competitor with a better salary, career progression, or more appealing benefits. Soon after, another key employee leaves—and before you know it, your company is facing a wave of talent loss.
Competitive poaching is a significant risk for SMEs, where -
Losing key employees can delay projects and disrupt operations.
Replacing skilled workers is costly and time-consuming.
Industry knowledge and client relationships could be leveraged by competitors.
HR psychology tells us that employees rarely leave just for money—they leave because they feel undervalued, unchallenged, or disconnected from leadership.
The challenge? How do you stop competitors from poaching your best employees and ensure that your company remains the most attractive place to work?
The Solution – A Three-Part Approach - Prevent, Retain, and Protect
Effectively responding to poaching requires building a workplace where employees want to stay, reinforcing company loyalty, and legally safeguarding business interests.
1. Prevent Poaching by Creating an Irresistible Workplace
The best way to stop employees from leaving for competitors is to ensure they don’t want to leave in the first place.
A. Build a Strong Employee Value Proposition (EVP)
Employees are less likely to leave if they feel engaged, valued, and see a future within the company.
Offer competitive salaries—but also emphasise non-monetary benefits.
Provide clear career growth opportunities.
Foster a positive, inclusive workplace culture.
Recognise and reward employee contributions.
HR Psychology Insight - Employees are more likely to stay with companies that actively invest in their professional and personal growth.
B. Strengthen Leadership-Employee Relationships
Competitors can offer higher salaries, but they can’t easily replace strong workplace relationships.
Ensure managers provide regular, meaningful feedback.
Conduct frequent stay interviews—don’t wait for exit interviews.
Encourage open discussions about career goals and job satisfaction.
HR Best Practice - Employees with strong leadership connections are 50% less likely to leave, even when offered a higher salary elsewhere.
C. Foster a Culture of Innovation and Engagement
Employees who feel challenged and excited about their work are less likely to be tempted by competitors.
Encourage autonomy and creative problem-solving.
Assign high-impact projects to employees looking for career progression.
Provide continuous learning opportunities.
Red Flag - If employees feel stagnant or disengaged, they become prime targets for poaching.
2. Retain Employees by Offering More Than Just Money
Competitors often use higher salaries as bait, but most employees leave because they don’t feel valued.
A. Match Competitor Offers Where Possible (But Offer More Than Just Salary)
If an employee receives a competitive offer -
Assess if they are a high-impact employee worth retaining.
Offer counter-incentives that go beyond salary—such as flexible work, career development, or stock options.
Have an honest conversation about their long-term career within the company.
HR Psychology Insight - Employees often accept counteroffers if they feel leadership genuinely values their contributions.
B. Develop Internal Career Progression Plans
Top talent often leaves because they see better career growth elsewhere.
Make internal promotions a priority.
Create structured mentorship programs.
Encourage employees to take on new challenges within the company.
HR Best Practice - Employees with a clear growth path inside the company are significantly less likely to leave.
C. Provide Personalised Perks That Competitors Can’t Match
Competitors can offer more money, but you can offer unique perks that make employees feel valued.
Tailor benefits to individual employee needs—such as additional parental leave, wellness stipends, or personalised development plans.
Create an environment where employees feel personally connected to the business mission.
Red Flag - If employees see competitors offering more flexibility and benefits, they may question their loyalty to your company.
3. Protect Your Business from Competitor Poaching
While you can’t legally stop employees from leaving, there are steps to minimise the risk of losing critical knowledge to competitors.
A. Use Non-Compete and Non-Solicitation Agreements
Legal agreements can prevent employees from taking clients, trade secrets, or joining direct competitors immediately after leaving.
Non-compete agreements restrict employees from working for a competitor for a set time after leaving.
Non-solicitation agreements prevent employees from taking customers or former colleagues with them.
HR Best Practice - Ensure these agreements are legally enforceable in your region and clearly communicated upon hiring.
B. Protect Intellectual Property and Sensitive Information
Competitors may poach employees to access trade secrets, client lists, or proprietary knowledge.
Limit access to sensitive company data to only necessary employees.
Have employees sign confidentiality agreements upon hiring.
Conduct exit interviews and remind employees of legal obligations.
HR Psychology Insight - Employees who feel well-treated and respected during offboarding are less likely to share company secrets with competitors.
C. Monitor Competitor Recruitment Efforts
Be proactive—if a competitor is actively headhunting your employees -
Gather intel on their hiring strategies to understand what they’re offering.
Adjust retention strategies accordingly—if a competitor offers remote work, consider adding flexible options.
Keep an eye on industry trends—if poaching increases, it may indicate broader market shifts.
Red Flag - If multiple employees leave for the same competitor, it’s a sign that your company may need to reevaluate its retention strategies.
Reflective Scenario – What Would You Do?
You discover that a competitor is aggressively targeting your top employees, offering higher salaries and career advancement opportunities. One of your best team members has already accepted an offer, and others are considering leaving.
Using the strategies above, you might -
Conduct stay interviews with remaining key employees to understand concerns.
Review salary structures and consider targeted retention bonuses.
Offer clear career progression plans to show employees a future within your company.
Enhance company culture, leadership engagement, and workplace benefits.
Ensure key employees are covered by non-compete and non-solicitation agreements.
By proactively addressing employee concerns, strengthening retention strategies, and legally protecting business assets, you can reduce the impact of competitor poaching and build long-term loyalty.
Golden Nugget - "Great employees don’t just leave for better salaries—they leave for better opportunities, better leadership, and a workplace that values them."
By investing in employee engagement, offering career growth, and strategically protecting your business, SME leaders can retain top talent and safeguard their company from competitor poaching.