Final answer:
It is not always worthwhile for a company to poach a top performer due to the potential risks and costs involved. Firms may prefer a monopoly situation with little competition rather than engaging in aggressive talent acquisition.
Step-by-step explanation:
The statement that it is always worthwhile for a company to poach a top performer from its competitors is false. While bringing in a top performer might offer temporary competitive advantages, long-term success depends on broader strategic considerations. Companies must balance the benefits against potential downsides like high costs, possible cultural mismatches, and the risk of retaliation from competitors. Furthermore, the overarching desire for a monopoly situation, as opposed to a market full of tough competitors, may not align with the aggressive pursuit of poaching top talent since monopolies benefit from reduced competition.
Considering whether a firm would benefit more from a competitive environment or from being a sole provider with little or no competition can influence hiring strategies. These decisions should reflect not just the desire for high profits but also a company's long-term objectives and the competitive nature of the industry. Promoting internal talent might sometimes be a more beneficial strategy than poaching, both for cost reasons and to maintain a stable company culture.