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The FTC noncompete ban means companies need to totally rethink their people strategy: ‘You’ve got to convince employees to stay’

Workers discuss a difficult situation.
The FTC's ban of noncompete agreements will force HR to switch up their people strategy.
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The ona bet:Federal Trade Commission’s ban of noncompete agreements earlier this week was a shot heard by employers across the country. The , if it survives , will void the clause that prohibits an estimated ona bet:30 million working Americans from seeking employment among competitors. 

Legal and workplace ona bet:experts I spoke with say they’re expecting companies to unleash a tidal wave of other legal safeguards, including nondisclosure and nonsolicit agreements, in an attempt to make up for losing the noncompete clause. But they added that an overlooked factor in mitigating the risk of staff departures isn’t quite so legal minded: ona bet:revamping people strategy is essential to retaining employees. With less control over the flow of workers, management will have to think of new ways to convince their staff to stay🥃.

“Whether it’s with engineers or scientists, those people aren’t getting poached every single day. They got poached when they’ve either reached the end of the line at a company, have a pay dispute, are not treated well, or a larger equity opportunity comes up,” Peter Rahbar, an employment attorney and workplace expert, tells Fortune.

Jennifer Tosti-Kharas, a professor of organizational behavior at Babson College, says that listening to workers’ demands will be instrumental in moving forward. She adds that rather than just higher salaries, workers often want benefits like ona bet:flexible schedules, opportunities for ona bet:promotions, and a ona bet:positive work culture

“[Employees] are saying, ‘I really want more flexibility and autonomy,’” Tosti-Kharas says. “It could be things like continuing education and professional development. Because, increasingly, you’ve got to convince employees to stay.”

It’s too early to tell for sure, but the FTC noncompete ban may act as a catalyst for companies to focus more on ona bet:employee well-being. If workers have the resources and support from their bosses to flourish within an organization, they’re more likely to stay, and concerns of top talent ona bet:job hopping to rivals and sharing trade secret🍬s goes out the window▨. 

“The dream for companies who are facing a war for [talent], is that you have employees who are good enough to get hired anywhere, but they choose to stay at your company,” she says.

You can read more about how employers are responding to the FTC’s noncompete ban here

Emma Burleigh
emma.burleigh@royalpescaria88.site

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