Hiring from direct competition.... a few points...

While there is nothing wrong in competing for talent, and 'poaching'from your direct competition, there are some dont's - and there are very relevant to WOW the prospective employee.....
1. Never start with 'your company is in dumps...'. The candidate is willing to look at you precisely because of that... Re-iterate as to how life can be better in your place, rather than speaking the load of negatives about competition.... Reflects badly on the quality of the HR function...!
2. Engage only in a relevant conversation, from the specific prospective employee point of view. Statements like 'xyzee from your place came at our terms etc' would only get you desparadoes' and not the real stars... Remember, you are not a savior, and you get them for a business goal too.
3. Listen to the prospective employee point of view, instead of mouthing platitudes on how your company got people cheap... What is the prospective employee retorts 'you pay peanuts, you get monkeys.. uh...'?!
4. Showcase as to why you are good, and not as to why the other company is bad. The employee comes from there, and has no need to hear their company details from you.
5. Clarify roles and responsibilities, instead of only sounding like buying 'human vegetables'. That is HR at its pits, and is a bad reflection of how you value people.
6. By taking names, of whom you got for what, you drive the prospective employee to more comparison which could harm your company interests... plus now those who have come in are 'your employees', and what you do, directly speaks volumes about your quality of hiring.
7. A simple "this is the best we can pay in your case" is good for everyone. Don't throw open a pandora's box by mentioning all irrelevant data.
8. Remember, you hire people for your company growth. If that is not the pivot, then you are harming careers, and also you company.
9. Good prospective employees are smart candidates... If you think otherwise, the cream will never fall for you verbal innuendo. And no book in HR advises innuendo as a prudent hiring practice.
10. Allow the prospective employee to speak, and for godsake, you listen. As they always say, two ears are to listen that much more, that speaking with one mouth. And if its a tele conversation, you have to listen that much more.

Remember, the prospective candidates, in these few conversations, see you as a brand ambassador. And HR is indeed the best brand ambassador for your organisation.

Lets' live up to our jobs...!