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The end of noncompetes? Many workers stand to benefit from a ban against noncompetes, particularly low-wage workers like employees of the sandwich chain Jimmy John’s, who were banned from working at a competitor selling “submarine, hero-type, deli-style, pita, and/or wrapped or rolled sandwiches” within two miles of a Jimmy John’s for a period of two years. But Thomas Hubbard, a professor of strategy at Kellogg, notes that while noncompetes can get in the way of efficient matches between people and jobs, a ban could also have the unintended effect of hindering knowledge-sharing and productivity. Consider the example of a chef who, reluctant to share recipes with an underling, insisted on doing all the work themselves. If the chef did share their recipes, what’s to prevent the worker from taking that knowledge to a new restaurant? Noncompetes address that problem by banning the observable, detectable action of going to work at a similar firm. “You can observe and detect whether I’m working somewhere and where I’m working, but you can’t observe what I’m doing with my knowledge,” says Hubbard. This has made noncompetes a very desirable tool for companies where the so-called “secret sauce” involves particularly sensitive information or distinctive practices. And in the absence of noncompetes, companies may be far less willing to share knowledge with their workers. This will come at a cost to the companies, of course. But it could also come at a cost to workers, limiting their on-the-job training. “Banning them will tend to make workers less productive,” Hubbard says, “because people aren’t going to tell them much, which would ultimately hurt their earning potential.” Read more about the rule from Hubbard and Kellogg clinical professor R. Mark McCareins in Kellogg Insight.

In a landmark shift for the workforce, the abolishing of non-compete agreements is reshaping the employment landscape across industries, including the #foodandbeverage sector. For years, non-competes have been a tool for companies to safeguard proprietary information and maintain competitive edges. However, these agreements have also stifled employee mobility, often trapping talented professionals in roles they have outgrown or are no longer passionate about. Read more in our blog this week as we explore the potential impacts and benefits of this pivotal movement, and understand how you can adapt to thrive in a non-compete-free world. Be sure to Follow Kinsa Group for more #foodindustry #career and #hiringtips! 

Consider the example of a chef who, reluctant to share recipes with an underling, insisted on doing all the work themselves. If the chef did share their recipes, what’s to prevent the worker from taking that knowledge to a new restaurant? Noncompetes address that problem by banning the observable, detectable action of going to work at a similar firm. This has made noncompetes a very desirable tool for companies where the so-called “secret sauce” involves particularly sensitive information or distinctive practices. And in the absence of noncompetes, companies may be far less willing to share knowledge with their workers. This will come at a cost to the companies, of course. But it could also come at a cost to workers, limiting their on-the-job training. “Banning them will tend to make workers less productive,” Hubbard says, “because people aren’t going to tell them much, which would ultimately hurt their earning potential.”

Recently, a food delivery giant posted on social media urging customers not to place orders during afternoon due to extreme heat. At first glance, this might seem like a considerate move to protect its delivery staff from harsh conditions. However, this gesture falls short of genuine care for its employees. If the company truly prioritized its employees' well-being, it would have suspended delivery services during the hottest hours of the day. Instead, the company chose to make a social media appeal, fully aware that those in need of food will continue to order regardless. This move appears more like a marketing strategy designed to enhance the company's image rather than a genuine effort to protect its workforce. Moreover, it could have offered higher incentives to its delivery personnel working in such challenging conditions. But again, it opted for a public relations exercise over substantive action. This pattern of behavior highlights a significant issue: the company's commitment to employee welfare seems to exist only on social media. True care for employees goes beyond performative acts on social platforms. It involves taking concrete steps to ensure their safety and well-being. Until companies back their words with real actions, their claims of being a caring company will remain just that—claims.

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Let’s talk about non-competes.   There are a lot of rumors around non-competes, ranging from “They are illegal” to “They are unenforceable” to “You can’t legally take the new job.”   Fortunately, or unfortunately, all of the above may be true.   Boston Beer Company was featured this weekend in a doozy of an article about their non-competes. Boston Beer is notorious for keeping a tight lid on their business (a bit like The Royal Family). So this article caught my eye – it shares a lot of anecdotes that have successfully been swept under the rug.   Here are a few facts around non-competes:   Only 5 states have fully banned non-competes: California, Colorado, Oklahoma, North Dakota, and Minnesota.   This means that 45 states can legally ask you to sign one. Yes, they are still a thing.   MA (my home state) passed legislation in 2018 that states if the former employer chooses to uphold the non-compete, they must pay departing workers half their salary for one year.   Read that again, MA employees! Massachusetts also fully banned non-competes for doctors, nurses, psychologists, social workers, broadcast industry workers, and lawyers.   I’ve heard people shrug off non-competes saying they are unenforceable. And that is often true. However, for many of us, the notion of being faced with a lawsuit is terrifying. So while companies have lawyers to fight these battles, most of us do not have the same personal resources.   My take: No one gets to determine your career, but you.   But it will depend on who you are and how adverse to risk you are. If you lie awake at night easily, violating a non-compete may lead to many sleepless nights.   Some additional negotiation options may include offering to sign an NDA (Non-Disclosure Agreement) and a Non-Solicitation Agreement. These would prohibit employees from sharing confidential information, and soliciting clients and staff away from their previous employer. But they do not limit an individual’s career or opportunities for where they can work.    Take a read about Boston Beer Company – it is a fascinating education.   https://lnkd.in/ea_MXmEd

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Have you heard of Yield10? It is an Insperity Community Hero addressing the challenge of food security using a plant called Camelina. Yield10's partnership with Insperity has enabled it to enhance HR management and employee benefits. Yield10's recognition as an Insperity Community Hero underscores its commitment to doing good and valuing its employees, aligning with Insperity's ethos of supporting commendable businesses and fostering human connections. #InsperityCommunityHeroes #FoodSecurity #WorldHunger #HRThatMakesADifference https://lnkd.in/g4fJfyJ3