4 ms·

I'm in sales so I'm customer facing. I'm just saying that you are basically asking your employee to not work for the duration of the non compete clause. I don

I'm in sales so I'm customer facing. I'm just saying that you are basically asking your employee to not work for the duration of the non compete clause. I don't see how that's acceptable for people unless they are earning so much that it's a reasonable compromise they make in order to get that job. My company pays me fairly, they've been really good to me. But not enough to where I can not work for six months if I ever choose to leave.

tptacek 16y ago
That's interesting, because it seems to me that sales (RM/AM) work is one of the few places where there's a bona fide need for (appropriately narrowed) noncompetes. How can it possibly be reasonable for a company to invest millions in lead gen and awareness campaigns, double (or even triple) you up with sales support (SE's, PM's, postsales), sponsor conferences, and fund expense accounts, only to have you walk the resulting client list to a direct competitor when you get in a fight over what your yearly number should be? I don't know you personally, so this obviously has nothing to do with you, but it was my perception that most sales staff worked under noncompete. We're hiring sales right now, so maybe I'll find out otherwise.
- sportsTAKES 16y ago
  You have some good points. But there is another side to consider... In my case, in large part I was hired specifically for the customer contacts that I brought with me. So for my company to tell me that I could not work for a competing company in my industry, specifically not selling to those same customers, seemed totally unreasonable to me. I decided to hold my ground on this one (at the risk of maybe not getting the job) but in the end, my company agreed to pass on the non-compete. Two years later, I'm really glad they did, I hope they're happy too. If you're hiring sales people now, chances are you'll want people with some experience and or contacts in your industry. That's one of the primary reason to hire certain sales people. (Also, I am not opposed to companies that require confidentiality from their employees (e.g., IP). There is probably some reasonable legalese that you can write into an employee's contract in that regard.) Your company's situation might be entirely different but that is my experience. Happy hunting on the hiring.
  - rbranson 16y ago
    You hit the nail on the head. It's ridiculous for them to expect you to hit the ground running with the network you've established while working for former employers, but then be unable to carry your network with you onto new employers. It's absurd, hypocritical, and reeks of bad attitude. It would be like asking for software developers with 4 years of experience, and then turning around and expecting them to unlearn the skills and connections they picked up during their time at your company, just because they're working for a competitor.
- skybrian 16y ago
  On the other hand, how often would a customer care whether a salesperson switched jobs? Is it really the case that the only thing keeping a customer in a business relationship is that they like the salesperson? If the product and the rest of the relationship is still solid, I'd hope they'd be stickier than that.
Nate75Sanders 16y ago
One way this sometimes happens is that the company has to pay you while you're not working. I know of a guy who worked at Capital One (credit card company) who left and Capital One had to pay his salary to him for one year while he agreed not to work for any of their competition -- if he wanted to he could have drawn his salary while sitting on his ass at home doing nothing. He took his salary and also worked a job in a different industry.
- sportsTAKES 16y ago
  I've also heard of similar arrangements where companies pay a certain percentage of the salary (if not the entire salary) for the duration the non-compete. I don't think it's very common, especially lately. I've never received that type of offer. I will say that depending on the circumstances, that type of offer could be a very reasonable solution. When I think back to my current job situation that I already discussed in this thread, in theory I might have accepted that type of offer. Although I really don't see how it would benefit my current company today. We're still a small company and run things pretty lean. That type of expense for them would be pretty prohibitive. They are better off just letting me do my job, help grow their business and when the day comes that I walk away, they will most definitely be able to find a solid replacement who will take the business to the next level.

tptacek 16y ago

That's interesting, because it seems to me that sales (RM/AM) work is one of the few places where there's a bona fide need for (appropriately narrowed) noncompetes. How can it possibly be reasonable for a company to invest millions in lead gen and awareness campaigns, double (or even triple) you up with sales support (SE's, PM's, postsales), sponsor conferences, and fund expense accounts, only to have you walk the resulting client list to a direct competitor when you get in a fight over what your yearly number should be? I don't know you personally, so this obviously has nothing to do with you, but it was my perception that most sales staff worked under noncompete. We're hiring sales right now, so maybe I'll find out otherwise.

sportsTAKES 16y ago
You have some good points. But there is another side to consider... In my case, in large part I was hired specifically for the customer contacts that I brought with me. So for my company to tell me that I could not work for a competing company in my industry, specifically not selling to those same customers, seemed totally unreasonable to me. I decided to hold my ground on this one (at the risk of maybe not getting the job) but in the end, my company agreed to pass on the non-compete. Two years later, I'm really glad they did, I hope they're happy too. If you're hiring sales people now, chances are you'll want people with some experience and or contacts in your industry. That's one of the primary reason to hire certain sales people. (Also, I am not opposed to companies that require confidentiality from their employees (e.g., IP). There is probably some reasonable legalese that you can write into an employee's contract in that regard.) Your company's situation might be entirely different but that is my experience. Happy hunting on the hiring.
- rbranson 16y ago
  You hit the nail on the head. It's ridiculous for them to expect you to hit the ground running with the network you've established while working for former employers, but then be unable to carry your network with you onto new employers. It's absurd, hypocritical, and reeks of bad attitude. It would be like asking for software developers with 4 years of experience, and then turning around and expecting them to unlearn the skills and connections they picked up during their time at your company, just because they're working for a competitor.
skybrian 16y ago
On the other hand, how often would a customer care whether a salesperson switched jobs? Is it really the case that the only thing keeping a customer in a business relationship is that they like the salesperson? If the product and the rest of the relationship is still solid, I'd hope they'd be stickier than that.

Nate75Sanders 16y ago

One way this sometimes happens is that the company has to pay you while you're not working. I know of a guy who worked at Capital One (credit card company) who left and Capital One had to pay his salary to him for one year while he agreed not to work for any of their competition -- if he wanted to he could have drawn his salary while sitting on his ass at home doing nothing. He took his salary and also worked a job in a different industry.

sportsTAKES 16y ago
I've also heard of similar arrangements where companies pay a certain percentage of the salary (if not the entire salary) for the duration the non-compete. I don't think it's very common, especially lately. I've never received that type of offer. I will say that depending on the circumstances, that type of offer could be a very reasonable solution. When I think back to my current job situation that I already discussed in this thread, in theory I might have accepted that type of offer. Although I really don't see how it would benefit my current company today. We're still a small company and run things pretty lean. That type of expense for them would be pretty prohibitive. They are better off just letting me do my job, help grow their business and when the day comes that I walk away, they will most definitely be able to find a solid replacement who will take the business to the next level.