About 25 years ago, I enforced noncompete clauses for multiple companies and states. Many executives thought of these contract clauses as a way to retain talent.
Really? Are you not telling a new employee, "We are great! Come work for us, but If you ever leave, you will never work in your profession again."?
I always made two points with these executives.
First, suppose someone does not want to work for you, but you force them to do so. Ancient history tells us that these arrangements never end well.
Second, what is legal and enforceable varies tremendously depending on the state or city. You can try to get money or have an ex-employee fired from their new job, and, at first, you might succeed. However, judges and juries do not like it when you take away a person's means of making a living. Who are you to punish them so severely?
Now the Federal Trade Commission plans to ban noncompete clauses. They are getting a lot of pushback on the rulemaking, and some question if the courts will support an administrative rule without specific congressional approval.
The bottom line is noncompete agreements can be valuable but not for retention. If you are protecting trade secrets and customer lists, you may have a valid reason, but these clauses should be specific and rare.
This week, the Wall Street Journal published an article with some great alternatives to noncompete clauses. It would be wise to read if you are focused on retention or looking to prevent disclosure.
Understanding the aptitudes and desires of your employees helps you with both of these issues. You can use assessment to identify job fit and preferred styles.
Managers can use aptitude and style assessments to know these new workers better than they know themselves. Aptitude results are compared to multiple jobs to discover opportunities. The reporting helps managers discuss the best-fit work for new employees and guide them. It shows you care.
This action alone will lower turnover. Employees who don't particularly fit the work they are doing now will remain engaged if they believe they have a future in your organization. If you ignore potential, you are dismissing their future. It shows you don't care.
Use the best tools to thrive. You can discover who has the aptitude and attitude for a specific job and maintain a strong culture by keeping everyone connected. We can help you develop the skills, leaders, and teams you need to succeed.
Our assessments and surveys are world-class and statistically sound. Contact us, share your concerns, and see how we can help you. No charge, no obligation.