Losing Employees to the Competition

A few weeks ago, we took an in-depth look at non-compete agreements. But what happens when an employee chooses to join a competitor? How can you protect your company assets?

There are a number of steps you can take to lessen a breach of agreement and risk having your confidential corporate information fall into the wrong hands.

1. Speed up the employee’s exit. The longer the employee sticks around, the more access he or she will have to private company records. Companies are typically not required to fulfill an employee’s leave notice to the full extent.
2. Further restrict access to company information. Make sure to quickly wrap up loose ends surrounding e-mail and computer access, cell phones/voicemail, and any other security codes or access to company databases.
3. Conduct an exit interview. It will be to your best advantage to gain as much information as possible regarding the new role with your competitor, as well as gathering any employee feedback to help you improve your newly open position.
4. Put it in writing. Keep clear documentation on any company expectations as well as concise notes on the exit interview. Forward a copy to the employee and keep one on file with company records.
5. Play detective. Take a little time to investigate resources formerly available to the employee and ensure vital information was not tampered with or removed from data sources. Do your homework to make sure the employee did not violate any aspect of his or her non-compete agreement by taking company contacts out the door with them.
6. Follow up with customers/clients. Now is not the time to let service to your customers falter. Contact each one in a timely manner to reassure them that they have not been overlooked. Introducing them to their new account representative quickly will ensure that your strong ties continue. Also, make sure that your former employee is not soliciting their business.
   

It is up to you to ensure the protection of company assets as well as a smooth transition of business during this critical time. Read more helpful information from Ryan Buchanan and John McDonald from Helms Mulliss & Wicker, PLLC.

Posted by Shelly Paul, Career Management Coordinator, The H.S. Group