Non-Compete Worries? 6 Ways Engagement is the Cure
Are you worried about how the new non-compete laws will affect your organization? Perhaps you could lose top talent? Or maybe you won’t be able to find the best talent? Or will you struggle to keep or find any employees?
Don’t worry. The cure to non-compete worries is this: employee engagement.
“Organizations should not be relying on non-competes to ensure talent stability anyway,” says Jennifer Dulski, CEO and Founder of Rising Team. “Rather, they should have a culture in place that makes people want to stay. This starts from the top, and requires businesses to put tools and processes in place that help their team members feel empowered, connected and appreciated.”
Non-Compete Worries Arise
The back story: The Federal Trade Commission (FTC) finalized a rule that broadly banned most non-compete agreements. The FTC said non-compete agreements violate part of the Federal Trade Commission Act, which generally bans “unfair or deceptive acts or practices” — and non-competes are an “unfair method of competition.”
This probably won’t be the final word on non-competes. Several organizations have already raised legal challenges to the rule.
But, for now, they’re banned … but that shouldn’t stop you from keeping your high performers with high-potential employees.
“In fact, in a survey conducted by the U.S. Government Accountability Office, most employers responded that they ‘rarely or never’ enforced a non-compete, even when they were legal,” says Laura Gassner Otting, a #1 Mindset Coach and author of Wonderhell and Limitless. “That said, organizations have the chance to not just survive with the status quo, but to thrive in a new world where the focus is mainly on the factors engaging employees in their work.”
With the barrier lowered for employees to jump jobs, HR pros — and their front-line managers — want to do more to ensure employees don’t jump that fence.
“Companies should focus on fostering high-trust, high-performance cultures that are people-first and team-focused. You not only want your people to stay, but also to be engaged while they’re working with you,” says Dulski.
The key: Build engagement like never before. Here are six ways.
1. Know Why People Leave
The first step in preventing people from leaving: Know why they leave if they aren’t held back by a non-compete.
Gassner Otting found “eight motivating factors will tempt anyone at any time to consider taking a call from a recruiter:”
- Am I inspired by the leadership?
- What is the mission of the organization?
- How prestigious will it look on my resumé?
- Where is it located?
- What skills will I gather?
- How broad is the challenge?
- How deep is the impact? and,
- How much money will I earn?
“While the order of these factors was different for everyone, rarely did we find that money was the top factor for anyone,” says Gassner Otting.
So, to retain your employees, you want to help them find inspiration in their leader, plus meaning in their work and the company mission. You might not be able to change the location, but you can improve how things look on their resumé with positive stories about your company’s impact. Finally, your compensation and benefits need to remain competitive in your market and industry.
2. Leverage Natural Talents
“The best managers find ways to harness the natural talents of individual team members and honor their unique working preferences,” says Dulski.
You might create forums to get to know employees and their self-identified talents better. But also look for clues into talents they don’t consider think of as “talents.” For instance, someone’s interest in music might lead to getting involved in scoring your social media content. Or an employee who volunteers at a food bank might be motivated by the prospect to create volunteering opportunities on-site.
Another key here: Find out how employees want to be recognized and rewarded for their efforts so you can personalize those.
3. Build Strong Relationships
Good leaders will keep more employees than bad leaders. But it doesn’t come magically. They have to put in an effort to have strong relationships to avoid employee dissatisfaction, disengagement, disappointment and departure.
“Where things get interesting, however, is that even workers who responded to our surveys and noted that they serve a good leader, feel significantly higher levels of unhappiness if they feel like they have a weak or neutral relationship with that leader,” says Gassner Otting.
So managers need time (and sometimes training) to build rapport with employees as a basis for stronger relationships.
4. Amplify Gratitude Practices
It can’t be said enough: Employees who feel valued and recognized remain loyal.
“This doesn’t mean saying ‘thank you’ once in a while after a big project wraps,” says Dulski. “It means that leaders should recognize both big wins and small steps, and people who go above and beyond.”
Managers want to praise the unique value of each team member to create a deeper sense of purpose and belonging.
“Doing this not only fuels individual job satisfaction, but also inspires team members and leads toward increased shared success,” says Dulski.
5. Improve Team Resilience
A new ruling on non-competes is just one of 1,000 changes in business each day. Change is inevitable — and employees will likely stay engaged, productive and loyal through it when they’re prepared to handle the unexpected.
First, let employees know change will happen in your company, industry and market — and you’ll support them through it all.
“Then you can help teach the team resilience-boosting strategies like reframing perspective and asking for support,” sayd Dulski. “This will help everyone feel valued and ensure people can get through turbulent times without losing trust or engagement.”
6. Prioritize Development
Employees will stay when they know their company cares about their professional and personal development. Plus, when you invest in your people, you create a better culture, build a stronger workforce and realize bigger business results.
“Offering opportunities for people to build authentic connections with their co-workers, to learn and upskill, and to get a true understanding of others’ working styles to most effectively collaborate is critical,” says Dulski.
So when it comes to upskilling or reskilling, include social elements and opportunities, too.
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