To make sure your business is protected when employees leave and join the competition, read this week's #HR blog from HR Dept.
How to handle employees leaving for the competition
How to handle employees leaving to set up in competition
One employee leaving the business to set up in competition may be considered a misfortune. Several leaving at the same time, to paraphrase Oscar Wilde, looks like carelessness. Our political leaders are facing just this dilemma as the Independent Group of MPs is formed. But what would happen to you if three of your team suddenly resigned to set up against you?
They have all your prices, details of customer relationships and the rest of your staff are watching to see what you are going to do.
The good news for employers is that there are ways to reduce the risks involved. Preparation is key for a smooth transition. Read on for some crucial points for consideration.
Check notice periods. We imagine you won’t be too keen to have them wandering around the office for that period. This is why it is important to have a Garden Leave clause in their contract. This means that they continue to be an employee but stay at home and are not allowed to work elsewhere.
Your employees no doubt have access to passwords, data and sensitive information in order to carry out their day-to-day work. So you should block access immediately.
A well-drafted contract outlines terms of employment for an employee and protects your business interests during, and for a reasonable time following, their employment. However, they are extremely difficult to defend unless the restrictions are reasonable and appropriate. So, protecting your customers, prospect list and staff that they have worked with is paramount.
Communication and PR
You will want to make sure that their exit doesn’t disrupt the rest of your workforce or your customers. Agree a statement to go out to customers. At this point, it is a good idea to involve a PR agency in case the press pick up on it. Hold a staff meeting and put as positive a spin as you can on the events. Remaining staff will naturally feel concerned so reassure them that it is business as usual.
You will need replacements as soon as possible, so contact us here at The HR Dept Cambridge & North Herts to help. Our new approach to recruitment is designed for companies like you. And our fees won’t break the bank.
Local businesses throughout Cambridgeshire, run by people like you, outsource their HR because it is easier and more cost effective. We tell you what you can do, not what you can’t. We are here to give you practical and sensible help to sort out problems whenever you need us. When you are thinking about how to grow for the future, we can help you put together the ‘people plans’ to enable you to be even more profitable tomorrow.