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Why I Believe Non-competes are a Bad Idea

February 20, 2006 · by Tammy Adler

It’s not that I misunderstand non-competes, I just have a different opinion on their usefulness, or more appropriately uselessness.

In Information Technology, we’ve been taught for years that the only constant is change. Yet many companies still adopt the archaic idea of non-competes. Are non-competes really just a “warm and fuzzy” for corporate officers? Are they a mechanism for making it harder for team members to leave, go to the competition or to clients? Do they hold up when challenged in the State of Wisconsin? Or do they just create unnecessary animosity and anxiety among business owners and team members?

My idea of a non-compete is to set up an environment in which team members may motivate themselves. An environment where each of us works together for all of our betterment. An environment where we treat everyone the way we want to be treated. Imagine actually getting back to that golden rule.

Don’t get me wrong, I would regret losing a great team member. However, I’d rather value them while they’re working with me, than prevent them from leaving. If they decide to leave anyway, I’ll definitely let them know how much they’ll be missed. Then, I’ll gracefully facilitate their exit. What a novel idea.

Maybe we’ll bump into each other again a year or years down the road, and we’ll want to work together again. Maybe the team member who leaves becomes a manager for a company we want to or are already working with. Why burn bridges? Why cut off our noses to spite our faces? Why act so threatened? Why take things so personally. This is business, not a life threatening disease. We’re not their master, their owner, and certainly not their guardian or parent.

At the end of the day, each of us has the responsibility to take care of ourselves. I want to facilitate that type of environment. Sound like a good idea? I think so.

I can’t help thinking if we build cultures and company’s where team members thrive, and we adopt some of the golden rules many seem to have forgotten, we’ll all be much happier, and less threatened. After all, why do we take it all so personally?

At QWANtify, we do not believe in non-competes. Period.

Filed in: Company Insight Comments (3)

Comments

#1 - Name Withheld said on Feb 21, 2006:
Amen Tammy!!  Now if only more companies would operate this way.
#2 - Flipper said on Feb 24, 2006:
I couldnt agree more, especially the line.."We’re not their master, their owner..."...in my experience, there is a weird sort of master/slave relationship in most consulting firms, which becomes even more pronounced when a consultant dares to be "uppity" and speak her mind.

The only reason consultants walk is if they can get a better deal somewhere else.....if you are so worried about your resources walking out the door, then give them a deal that cant be matched.....QUIT BEING SO DAMNED GREEDY.
#3 - Justin Bell said on Apr 8, 2006:
Right on Tammy.  I agree with Flipper too.  At the company I work for they pay employees as little as possible, then when they want to leave they get hit with the non-compete, or if the company REALLY wants them they will offer a raise.  This has worked for 50 years, but thanks to people like you it’s not cutting it.  After they offer the raise people are even more upset that they were worth so much more than they were paid, and end up leaving anyway.

I guess it just really takes a private company with an owner like yourself to change the tide.
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