Your employees can be a tremendous asset. Without your staff, you may not be able to reach as many clients trying to work on your own.
Employees can also be an incredible risk. Although many employees might be well-intentioned and unaware of the consequences, a member of your team could share information that could challenge your position in the marketplace.
Here’s what you should know about nondisclosure agreements (NDAs) and when you should have employees sign one.
Protect trade secrets
There are aspects of your business that your employees need to know to support your company and your customers. Your employees also need to know that they must not share that information outside your business.
The more trade secrets an employee handles, the more critical it is for them to sign an NDA. Keep in mind, if you need current employees to sign an NDA, you may need to include additional consideration for the new agreement.
Training is essential
In some cases, employees may not understand the importance of the information they might share with a competitor. Employees need to understand what information is exclusive to your business and how to handle a situation where someone asks them to share private information.
If you have different levels of knowledge for your employees, you should consider a “need to know” policy. If this is the case, you should train employees on what level of knowledge is appropriate for their position and how they can handle other employees looking for information they do not need.
When you have clear expectations for your employees on maintaining your trade secrets, you have a better chance of preserving the information that gives your company its competitive edge.