A non-compete agreement, when it has been properly drafted with the help of an employment lawyer, can bring you some benefits by ensuring your employees will not be allowed to work for your competitors.
Here are 8 reasons why you should consider a non-compete agreement.
1. It will prevent your employees from leaving and working for a competitor
Most of the time, business owners go see an employment lawyer for a non-compete agreement that will make it illegal for their employees, when they leave, to go work for a competitor with all the valuable experience they have gained while working for them.
2. Your employees will not be allowed to compete with you
You wouldn’t want your employees to leave, just so they can go open a business that will become a direct competitor. A non-compete agreement can state that your employees don’t have the right to do this in a certain area, for a certain period of time.
3. It will help you protect your investment
You are probably investing a lot of time and money in the training of each of your new employees. A non-compete agreement will help you make sure your employees won’t resign right after their training is complete, to put their new skills at the service of a competitor.
4. You need to protect your relationships with your customers
When one of your employees leave, you don’t want them to leave with the customer relationships they have built for you over the years. An employment lawyer will hear your concerns and will help you protect those relationships with the right agreement.
5. Your customers need to know their information will stay confidential
Your non-compete agreement will also help making sure that if an employee resigns, they won’t leave with the contact information of your customers. Your customers will be relieved to know their information will be kept confidential no matter what happens.
6. It can help protect your trade secrets
You certainly want your trade secrets to remain trade secrets. The information you don’t want your employees or previous employees to share with anyone outside of your business is another thing that can be protected with a properly drafted non-compete agreement.
7. It will protect the value of your business if you want to sell it
You probably have no plans of selling your business in the near future. But what if you want to sell it eventually? The fact that your employees have signed non-compete agreements will protect and enhance the value of your business in the eyes of potential buyers.
8. It will make your expectations clear
You could simply tell your employees that you expect them not to compete with you if ever they resign, or that you’re counting on them to not reveal confidential information. However, asking them to read and sign a non-compete agreement will make your expectations a lot more clear for everyone.