Facebook’s Rivals: Thanks for the Talent!

Multiple sources in the Silicon Valley tech industry are saying that it has become increasingly easy for rival companies to lure talented executive employees away from Facebook (NASDAQ:FB) since the social networking company went public.

A vicious cycle seems to have developed, where low morale has lead to several high-level departures, which in turn have lead to even lower morale. As a result, Facebook is left struggling to attract and retain top talent.

Catalysts are critical to discovering winning stocks. Check out our newest CHEAT SHEET stock picks now.

So what is at the root of this problem?

Those who know the industry have a few theories. One board member of a large tech company believes it’s all about the money, saying, “There are a whole set of companies, starting with Square, that are hot [and] that people believe are going to be better places to earn money.”

Another potential explanation is that Facebook simply hired too many people – and at too quickly a clip – before its IPO. This created organizational hiccups that were easy to mask while the company was still private and its market valuations were soaring.  But after going public and seeing the price of its shares plummet, Facebook is now forced to deal with staffing flaws that are rearing their ugly heads. And correcting these problems is made more difficult by Facebook’s reluctance to offer employees greater stock compensation while it tries desperately to demonstrate it can be a highly profitable company.

Don’t Miss: Here’s a Peek at Facebook’s New Secret Marketing Tool.