Seriously Who Cares about Non-Competes?

Last week, I wrote a post called “WHO CARES ABOUT NON-COMPETES” which outlined ways to enforce employment restrictions on key employees. While this approach may have worked in the past, the modern approach is to incentivize employees to want to work for a company.

The first step is to identify which employees are key to your business. Employees with unique skills or pivotal roles tend to be the most important. Next, evaluate which employees are likely to leave vs. stay. By cross-referencing your most important employees with those most likely to leave, you can find the employees needing the most incentives.

Here are some techniques to incentivize your key employees:

1. Lifestyle - Employees today love work-life balance and culture. Make sure you give them gifts, social gatherings, and group education. Budget a meaningful percentage of your payroll for this. Happy employees are less likely to leave!

2. Pay them more and based on Performance - High performers want to be paid like it. Better yet, when you pay a high performer in the top 90%, it makes it hard for them to leave.

3. Benefits - Fund your employees' retirement, take care of their health insurance. Employees that last a long time want meaningful perks.

4. Golden Handcuff - Pay bonuses to your employees for tenure. Next time you give your employee a raise, consider putting a sum aside in a Golden Handcuff. After three years, you will have a bonus pool of $30k that pays a $10k bonus every year. Should that employee leave, you keep $30k to help you find their replacement. Win-win, they get big bonuses, and you get the stability of not having to pay the acquisition cost of new employees.

At the end of the day, it's better to reward your employees to boost morale, increase retention, and help your business grow. Everyone likes to be controlled with a pot of gold rather than a restriction. WHO CARES ABOUT NON-COMPETES, when there are simply better options.

Last weeks post: https://lnkd.in/e5DtCrkZ