Edwin Miraflor - Tuesday, April 20, 2010

This subject was a recent headline on the WSJ.  We are just sharing this headline and do not take a particular opinion on the matter.  

According to a recent report, the Justice Department is stepping up its investigation into hiring practices at some of America's biggest companies, including Google Inc., Intel Corp., International Business Machines Corp., Apple Inc. and IAC/InterActiveCorp.

The inquiry is focused on whether companies, particularly in the technology sector, have agreed not to recruit each others' employees in ways that violate antitrust law. Specifically, the probe is looking into whether the companies' hiring practices are costing skilled computer engineers and other workers opportunities to change jobs for higher pay or better benefits.

After a probe that began more than a year ago, Justice Department investigators have concluded that such agreements do raise significant competitive concerns.

But the leadership of the antitrust division hasn't yet decided whether—or how—to challenge the hiring practices. About a dozen companies are meeting with top antitrust officials at the Justice Department this week and next, some to defend their practices, others to provide information.

Antitrust experts say the Justice Department could argue that an agreement between competitors that holds down labor costs is as much a violation of antitrust laws as an agreement to fix prices.

Such agreements are "very close to the line," said Melissa Maxman, an antitrust lawyer at the law firm Cozen O'Connor. "They're not agreeing on price, but they're kind of agreeing on costs." Skilled computer scientists with some management responsibilities, for instance, often make base salaries of $180,000 to $210,000. Compensation for the most sought-after workers typically soars far above that and includes bundles of stock options and bonuses.

The Justice Department hasn't confirmed the existence of the investigation, and a spokeswoman declined to comment Friday. But several companies said they have received requests for information on the way they hire employees.

"IBM is one of many companies that have been contacted by government officials in a broad-ranging inquiry of technology and nontechnology companies regarding hiring practices," said company spokesman Edward Barbini. "We are collaborating with the government's inquiry."

Some companies are defending their recruiting practices. "Since investigations of this nature are confidential, we will not comment on what the Department of Justice may or may not be doing," said Intel spokesman Chuck Mulloy. "However," he said, "we believe our hiring practices are lawful and don't harm competition."

Google declined to comment. Apple and IAC didn't immediately respond to requests for comment.

Behind the scenes, technology companies are making the case that agreements among companies are not anticompetitive and don't affect employees' salaries or the availability of jobs. They say such agreements are commonplace, used by companies to maintain good relationships with business partners.

Some tech companies also say the agreements under investigation only stop them from cold calling each other's employees, not from hiring them.

The technology industry makes the case that it would be harder to enter into collaborative ventures with other companies if they fear losing valuable employees.

But Justice Department lawyers could respond that such agreements distort the labor market, theoretically harming the economy by cutting incentives for other people to enter such fields.

"In the long run, this is going to distort and depress the incentives for people to actually develop the talents and skills that are useful in this market," said Salil Mehra, a Temple University law professor who formerly worked in the Justice Department's antitrust division.

Policing the labor markets hasn't been a central focus of antitrust enforcers in recent years. But the Justice Department did act against what it saw as efforts to manipulate the labor market. It brought a civil case against a group of hospitals in Utah in 1994, alleging that they had illegally conspired to hold down nurses' wages by exchanging information about their pay.

A year later, it took action against the American Bar Association for allegedly using its accreditation process to force universities to raise law-school salaries. Both cases were settled.

The current investigation is the latest by antitrust enforcers to take aim at the often close-knit relations between tech companies, particularly in Silicon Valley.

The Federal Trade Commission's ongoing investigation into interlocking boards of tech companies forced Google's CEO, Eric Schmidt, to resign from the board of Apple.

Another casualty of the FTC probe was Genentech CEO Arthur Levinson, who stepped down from Google's board. He had been doing double duty as a director for Apple and Google until the FTC started asking questions.

More recently, the decision by legendary venture-capital investor John Doerr to resign from Amazon.com's board was influenced by the FTC investigation, according to a person familiar with the matter. Mr. Doerr—who recently declined to comment — is also on the board of Google.
Zina Brown - Monday, February 01, 2010
As we are all facing challenges of a tough economy many of us are feeling over worked, underpaid, and short staffed. Maybe you have already put your resume out (only) to be disappointed by little or no feedback. Working and living in a down economy is never fun. It's easy to get depressed and have negative feelings when you're tired from working long hours at decreased pay with limited resources and a reduced budget. You are not alone. Every time I turn on the television or read the newspaper there is talk of war, mortgage crisis, and layoffs. The conversations are heavy, often plagued with a story of a friend or loved one being laid off or having a hard time finding work. It's easy to be drawn into the negativity these days.

The good news is you are employed! Remember, the situation could be much worse. More than ever, forcing oneself into a positive state of mind with an optimistic view versus a pessimistic one is the key to surviving and appreciating how fortunate you are and how much worse things could be.

Some survival tips:

Stay focused on the positive!

Be thankful for your position, for your paycheck, the benefits, and the people. Embrace this work experience and it will provide you with the skills and experience you need to move on to a new more lucrative opportunity.

Dress it up; when you're feeling down put on something that you love, wear your hair differently, re-decorate your office or cubicle. If you do something to stimulate conversation, and personal interaction, you will start feeling more positive and increase your motivation and energy level.

Keep both feet planted, and don't check out of your current position. Long term, it could really affect how your colleagues view you and their perception if anyone were to inquire to them about your performance.

Set a goal; use this time to learn a new skill and take on a special project that will make you stand out.

Keep looking for new opportunities, but don't let it interfere with your current work responsibility. The key to a successful job search is timing and who you know. Don't be afraid to keep networking, but don't obsess over it.

Network: Rubbing elbows with folks within your industry will keep you on the radar and indirectly help in your job search. Your current employer may also benefit from the information you acquire, relationships, and participation. Plus, it gets you out of the office.

Understanding your frustrations is the first step to becoming in control of those things that contribute to your frustrations. Simply learning and determining what you can and cannot control can be very freeing.

If none of these tips help, the final key is to remember that you will not be stuck in this job forever.

Zina Brown - Monday, November 09, 2009

There is a big misconception that a high unemployment rate provides a collection of available, skilled, elite technical professionals. Although the unemployment rate is higher than usual, recruiting and attracting top talent is still quite a challenge in this market. Companies increasingly require workers who bring expertise from different areas along with the intangible communication and leadership type skills. Despite massive layoffs, companies still struggle to find top technical talent.

As the market breeds insecurity, the talented individuals most companies would like to attract remain gainfully employed, and they are not driven to make changes to uncertain opportunities unless highly incentivized.

There is a false impression in the market place that a tight job market allows room to negotiate down on salary. In most circumstances the greatest talents are not actively looking for new opportunities, and they have no desire or motivation to make a career change that involves a decrease in vacation, benefits, stock, and pay. Most will remain with their existing employer in what is perceived as a secure environment, and utilize offers to leverage counter offers versus stepping in with an unknown entity. Unfortunatley when a candidates does take a pay cut, we often see them depart their new employer for higher compensation fairly quickly when the market turns around.

To attract and retain top talent, the elite must be courted. The process must move quickly, to avoid interruptions, counter offers, or other unknown derailments. Neither candidates nor employers want to walk through the entire interview process or navigate busy schedules when there is no ability to come to terms in final stages. Salary requirements must be defined up front and in advance, and agreed upon prior to any activity. A clear expectation for both candidates and potential employers is the only way to proceed so that everyone is on the same page.