“Acqui-Hiring”

Acqui Hiring Meaning

Acqui-hiring, also known as acquisition-based hiring, is a process that involves a company buying a startup purely for its human resources instead of its HR Technology, products, or services. The goal of the acquirer is to gain access to the startup’s talent pool by hiring their experienced and knowledgeable employees. This approach is usually quicker and more efficient than the traditional hiring process.

Acqui-hiring also provides the acquirer short-term access to the startup’s expertise and know-how. This provides employees with an attractive exit package and the chance to work with the bigger and well-established company, providing job security and attractive remuneration.

What is the acqui-hiring process?

The acqui-hiring process is a rather simple one. First, the acquirer provides a financial package to the startup’s owners in exchange for the employee contracts. The contracts include a job security clause with a set of clauses that ensure the performance of the employees remains at a high standard for a set period.

The processes that follow are as follows:

• Data gathering: Acquirers usually take a few weeks to gather data on the startup’s business and employees. This is done to assess the value of the startup’s employees and their potential in the business.
• Negotiation: After the data gathering process, the acquirer arrives at a figure to acquire the startup’s employees. This is usually based on the salaries of the startup’s employees, and the acquirer informs the startup of this figure.
• Review and sign: The acquirer and startup then review the details of the deal and sign the contracts in case of an agreement.
• Integration: The newly acquired employees are then integrated into the acquirer’s team and made to adapt to the new work environment.

FAQs

How long is the acqui-hiring process?

The acqui-hiring process usually takes 3-4 weeks and consists of data gathering, negotiations, reviewing and signing agreements, and integration.

What are the 5 stages of the hiring process?

The 5 stages of the acqui-hiring process are:

• Data Gathering
• Negotiations
• Reviewing and Signing of Agreements
• Integration
• Employee Evaluation