In other EU countries like Italy and the Netherlands, no such provisions exist. Workers’ rights have historically been governed by each EU member state, but spurred on by the FTC’s motion, the European Parliament could decide to run its own consultation into anti-competitiveness within labor markets.
Limiting movement within the sector
Though the impetus may be vastly different, one thing these consultations seem to agree on is innovation being hampered when we limit competition.
Ingenuity is the lifeblood of our industry. It’s what powers the flywheel that attracts the brands who want to work with us and, in turn, the audiences who enthusiastically respond to creative outputs.
Claiming IP rights when using a non-compete can be stifling to human ideas. It limits movement within the sector, deprives knowledge workers of economic opportunities and kills entrepreneurial ambitions. The laws protecting trade secrets and proprietary data will forever safeguard the company’s interests.
In the absence of challenger brands, it’s consumers who lose out. This has been proven time and time again when disruptor brands or new agencies enter the market delivering something new and exciting.
Reasons to ditch the non-compete
A 2022 study published by the UK Advisory, Conciliation and Arbitration Service estimates that 19 percent of employees in the UK are likely to face redundancy over the next 12 months. As of April 2023, year-to-date job cuts in the U.S. have soared to 270,416, an increase of 396% from the same period in 2022.
We are amidst one of the toughest employment climates of our lifetime. As regulations start to change, employers must reconsider their position on what this could mean for them moving forward.
Losing out on talent
Employees—especially those with tenure—are now much better informed when it comes to understanding the restrictions that come with a non-compete. All the investment made in getting the candidate to the final stage could amount to nothing once a non-compete is presented.
Brand positioning is affected
The marketing ecosystem is intimately acquainted with one another. We’re all using the same platforms, technologies and partners to get the job done. Individuals regularly crisscross companies, jumping from agency to agency, to client-side and back again. If you think in the context of optics, it would be wise to ensure employees have a satisfactory experience with the company from beginning to end.
Cause and effect
There’s a beginning, middle and end to the cycle of employment. You court candidates to get them through the door. Once they join, you assign interesting projects, encourage them to achieve great things and hope they stick along for the ride. If the relationship ends by no fault of the employee, you still have a duty of care to safeguard the individual.