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HR DEPARTMENT: Noncompete agreements: Yes or no?

from Inc.

Noncompete agreements tend to be counterproductive. Do you want employees who would like to leave, but don't because of a noncompete? Do you want employees who are immediately de-motivated because they feel their human capital is not their own? Which would you rather work for: The company that puts tremendous effort into placing legal and contractual stakes in the ground, or the company that puts tremendous effort into trying to be the employer of choice? When you demand noncompetes you create self-selection and a market for lemons: the people who unthinkingly sign a noncompete may feel they don't have the skills to get another job or take off on their own. Every employer wants employees who are self-motivated, who have confidence, and who have aspirations. Why put up artificial barriers that make it harder to attract great employees? People want to develop their careers; maybe work for a company for a few years then become entrepreneurs. more


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