A non-competitive agreement is an agreement between an employer and an employee that restricts the employee’s ability to compete with the employer in a certain area for a certain period of time after employment has been terminated or ended. You can seek the help of Charlotte non-competition lawyers if you have a non-compete or non-solicitation agreement that needs to be drafted or reviewed.
Non-compete agreements provide a great deal of protection to your company and can often save you from the nightmare of discovering your employees are working for one of your competitors. In this post, we’re going to talk about some of the benefits these agreements offer and how they work in practicality.
- Protect trade secrets and proprietary information
A trade secret is an information that one company has that the other company would find valuable and difficult to obtain. If this information was disclosed to a competing organization, it could cause a negative financial impact on the original employer. Non-compete agreements can provide employers with a means of protecting critical information by preventing employees from disclosing it to third parties.
- May inspire more innovations from employees who sign them
Employees who feel confident that their company is looking out for their best interests will often work harder and more efficiently. Having no fear of competition is liberating to many people, especially in creative businesses like entertainment and art. Non-compete agreements give employees a feeling of security about the future and inspire them to take bigger leaps with their ideas.
- Match employers with employees looking for long-term positions
Non-competes give employers another opportunity to find employees that are talented and hardworking, but perfect for longer terms, as well. These agreements provide employers with the option to engage in a long-term relationship if the employee in question is willing and able to sign one. This is because the potential employee has already expressed a desire to work with the company in a long-term capacity and shows loyalty by agreeing to sign the non-compete.
- Reduce employee turnover
Non-compete agreements give employers the ability to seek out employees with the same talent and enthusiasm that their own employees possess, which saves employers time and money. And by removing an employee’s ability to leave the job for a competing organization, employers can create a culture of loyalty and engagement that is vital to their success. Non-compete agreements are designed to aid in this aspect and are often successful at doing just that.