ServiceNow hires top talent from rival Salesforce
CALIFORNIA, UNITED STATES — ServiceNow Inc. has rapidly expanded its workforce in enterprise software by aggressively hiring from its larger rival, Salesforce Inc.
According to an analysis by Live Data Technologies for Bloomberg News, ServiceNow has hired more employees from Salesforce than any other company over the past year.
The movement of employees to ServiceNow also reflects broader industry trends. Like many tech companies, Salesforce announced substantial layoffs in early 2023, cutting 6,700 employees. In contrast, ServiceNow CEO Bill McDermott has promised to avoid widespread job cuts, increasing its headcount by approximately 2,300 over the past year.
“We’re grateful that more than 1 million people applied to ServiceNow last year and that we have the culture and success to attract a world-class team,” stated Sarah Tilley, senior vice president of talent at ServiceNow.
Salesforce alumni in key roles at ServiceNow
More than 240 former Salesforce employees joined ServiceNow over the last 12 months, with over 820 making the switch in the past five years. ServiceNow’s recruitment strategy is not limited to rank-and-file employees; it has also attracted senior leadership from Salesforce.
Among the prominent Salesforce alumni now at ServiceNow are:
- Colin Fleming, Salesforce’s former marketing chief who brokered celebrity deals with Matthew McConaughey and the Einstein estate, is now ServiceNow’s CMO.
- Amy Regan Morehouse, creator of Salesforce’s Trailhead training program, joined last year to build a similar ecosystem at ServiceNow.
- Debbie Brewer, the executive who ran Salesforce’s annual Dreamforce conference, started at ServiceNow in 2022.
- Former Salesforce co-CEO Keith Block has partnered with ServiceNow through his venture firm Smith Point Capital.
“We’re a very aspirational company that a lot of people want to pull talent from,” said Bill Patterson, executive vice president of corporate strategy at San Francisco-based Salesforce, in an interview.
“If other people make moves to come into our domain, it’s quite flattering honestly that they want to aspire to be more like us.”
Meanwhile, Salesforce hired the most employees through referrals, with 41.64% of job offers going to referred candidates.
“Referrals are a primary source of hire for salesforce.com,” comments Kate Israels, the firm’s Director of Talent Experience & Recruiting Programs.
“In fact, employee referrals are 10 times more likely to be hired than other sources.”
According to the study by Switch On Business, Salesforce “encourages employees to refer fresh talent with competitions, recruitment happy hours and awards (like tickets for San Francisco Giants events), bestowing cash bonuses of $2,000 on successful referrers.”
ServiceNow embraces ‘boomerang hires’ for talent retention
In an era of fleeting job loyalty among younger workers, tech giant ServiceNow recognizes the trend of boomerang hires — or staff members who leave the company then join at a later date — to stay competitive.
Simon Cox, ServiceNow’s Chief Transformation Officer, highlights the significance of adapting to a workforce predominantly comprising Gen Z and millennial employees eager for varied experiences.
“Gen Z and millennials are curious, they want different experiences, they’re not going to have a job for life at the bank,” Cox told finance conference MoneyLive Summit.
“So let them go. Keep in touch with them, see how they do, and eventually, you can welcome them back.”
This approach is already being implemented by firms like Deloitte, which boasts an alumni network exceeding 20,000, offering various benefits to encourage re-engagement.
While reintegrating boomerang employees comes with costs, they bring back valuable experience and familiarity with the company culture. Harvard Business Review suggests such employees often return to higher positions with an average of 25% pay increases, reinforcing the strategy’s potential benefits.
