Is it still true though that FTX Foundation Inc has not filed for bankruptcy? If that's true, returning any funds from FTX Foundation through this mechanism seems premature. But well, I'm no lawyer.
OP here. Thanks for all of the engagement with this post and for the varying opinions. People have brought up some important points on the benefits of headhunting (increased information, better outcomes for employees, overall better job matches, etc), and I agree with a lot of what is said. After taking these into account and mulling what has been said, here's where I stand (subject to change):
Good points- I take back my earlier "Clearly..." statement, and agree it needs to also include utility gains for the worker in the calculation.
Just to clarify, I wouldn't be advocating that orgs don't hire from peer orgs. Of course, post jobs, make them widely known, take and consider applications from all place. But I think it's different to spend money on dedicated staff to directly target and aggressively recruit staff from friendly orgs within your ecosystem.
Oh that's very interesting! I had no idea, seems relevant. Also not a lawyer, but I think that this would just apply to agreements not to hire others' employees, as opposed to an agreement not to aggressively recruit.
Thanks for the comment- I see where you are coming from. As noted in a previous reply, I think a lot has to do with how much the headhunter informs vs convinces. There are a lot of parallels with advertising. Do we think that advertising performs a positive social function? Well, it could if it simply provides information about a new product and allows consumers to make more informed choices. But also the advertiser has incentives to increase sales, so why would we trust them to be truthful and have everyone's best interests at heart? Headhunters/recruiters have incentives to fill roles, so I don't think we should assume that they are playing a neutral, information-providing role.
Thanks for the comment- I understand where you are coming from, and see how this could go either ways. But I think I'd tend to disagree. I'm always happy for people to be aware of other opportunities and consider them, but I think there's a difference when there are paid professionals targeting specific people to switch jobs. These professions tend to not just inform, but also convince. So in the situation of a job switch, you end up with a situation where the recruiting organization gains, the recruited organization loses, and actual job-seeker perhaps gains but this isn't totally clear, depends on the amount that their decision was motivated by information vs convincing. And there's a deadweight loss from the salary of the headhunter. Therefore, I think that the net effect of a headhunter could be positive or negative. Certainly it seems like they would have a higher impact if they recruited people from low-impact orgs to move to high-impact orgs.
Hi Joel, thanks for this write-up and for the work you're doing on this. For some context, I'm the Chief Economist at IDinsight and worked on the GW-funded study you mentioned.
A few comments:
I think you've identified a problem in the funding space, and I've had numerous conversations with others about this. A couple of comments: