What’s more important to a business, trust and ethics, or beating the competition? While the former might sound like the obvious choice, the recent (and very public) scandal between Deel and Rippling shows us just how far some companies will go to get one up on a rival, seemingly at any cost. The controversy – which looks likely to become one of the largest corporate espionage cases of this century – acts as a stark reminder not only on the legal implications of such a misdemeanor but, arguably more importantly, the impact of corporate governance and ethical operations in our overwhelmingly trust-led industry.
What caused the controversy?
In recent years, a notable rivalry has formed between the two global HR firms, both of which benefited significantly from the rise in remote work as a result of the 2020 pandemic. But more recently – and seriously – Rippling has accused Deel of stealing confidential information through the use of a spy, giving Deel “an unfair and illegal advantage” for holding onto or stealing customers from Rippling.
Rippling further alleges that Deel’s spy filtered information about sales, marketing, and recruiting to top executives at Deel, and that they searched the word “Deel” in Rippling’s systems 23 times a day, on average, over a four-month period.
No winners in this legal battle
Deel has denied all allegations and a spokesperson said the company was looking “forward to asserting our counterclaims.” But, really, there are no winners in this situation, no matter the eventual outcome. In an industry so intrinsically linked to trust and integrity, both ethical breaches and general mud slinging can be detrimental to a brand.
Already, many HR thought leaders and potential clients and investors have voiced their concerns over the squabble, with many feeling as though these two industry giants should be above such a messy, public spat. Whether or not the allegations are true, it’s unsurprising that both current and potential clients of the companies are now uncertain of whether they want to continue entrusting their sensitive company data to Deel or Rippling.
Committing to integrity and getting the basics right
Having competitors is part of business. At Remotify, we have plenty! But under no circumstances should competition make you relinquish your stance on ethics, legality, and company values. As we’ve seen from the Deel-Rippling scandal, not only does it risk expensive legal proceedings, but it does your brand untold damage, which is lose-lose for everyone in the end.
Not losing sight of who you are and what you’ve promised, even when faced with strong competition in a race to the top, should be the number one priority of any business. At Remotify, we’ve encountered real customers from both that have fallen off, not because of the scandal itself, but because of the plethora of service issues such as payroll problems, unresolved employee issues or social contributions, and complaints about records. As a fellow Employer of Record service, we’re of course keen to offer these customers a better, more ethical service, but the point still stands: lose focus, lose customers.
Any business worth their salt should be focused on nailing both product and service, scaling well-designed experiences, and doing good by stakeholders, clients, employees, shareholders, and the society. At Remotify, we hold both our values and our service in very high esteem. We’re an on-the-ground partner that shields you from HR headaches, rather than creating them. This is why so many of our customers have switched to us from larger legacy partners, because we keep our customers supported and thriving, all while committed to doing good.
If you’d like to learn more about how Remotify can act as a trusted, ethical Employer of Record service for your company, book a call with a member of our friendly team today. We’ve helped countless companies seamlessly transition to remote work…without the drama.
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