<p><br></p><p>The reasoning behind non-<span style="color: rgb(255, 194, 102);">compete</span> <span style="background-color: rgb(136, 136, 136);">agreements</span> is simple: when an employee leaves a company, the contract prevents them from leaking the business’ confidential information to a competitor. This makes sense when non-competes are applied to only business executives, partners, or officials — people who are actually in possession of the trade secrets the agreements are meant to protect. But when the clauses extend to entry-level workers or employees of businesses that don’t trade secrets, things can get messy.</p><p>Non-competes are a hot issue right now due to the growth of digital communication, documentation, and higher competition among businesses. Clauses are especially prevalent in such fields as engineering and finance, according to <a href="http://www.washingtonpost.com/blogs/wonkblog/wp/2015/02/21/the-rise-of-the-non-compete-agreement-from-tech-workers-to-sandwich-makers/" rel="noopener noreferrer" target="_blank">a new working paper</a> by economists at the University of Illinois and University of Michigan, but are also appearing in less obvious fields like <a href="http://www.nytimes.com/2014/06/09/business/noncompete-clauses-increasingly-pop-up-in-array-of-jobs.html?_r=0" rel="noopener noreferrer" target="_blank">lawn care and hair styling</a>.</p><p>But as with other company-specific laws, such as <a href="/resources/employment-law/how-ban-the-box-legislation-is-changing-hiring-practices/" rel="noopener noreferrer" target="_blank">Ban the Box legislation</a>, it’s often difficult to establish where the line between being enforceable and being unreasonable is for non-compete agreements. State laws, time and geographic restrictions, employee rank, and industry type are all things that must be considered when determining whether or not a non-compete agreement is enforceable and/or necessary.</p><p>To help navigate the complicated world of non-compete agreements, below we define exactly what a non-compete agreement is, outline what they entail, provide examples of what is and is not (generally) enforceable, and link to a sample of a standard non-compete contract.</p><h4>What Is a Non-Compete Agreement and Why Are They Used?</h4><p>A non-compete agreement is a type of <a href="http://www.mbbp.com/resources/employment/noncomps.html" rel="noopener noreferrer" target="_blank">restrictive covenant</a>. Essentially, it is a promise by an employee to not work for competing businesses in a specific region for a specific time period following termination of employment.</p><p>Employers use non-compete contracts to keep confidential information — intellectual property, client lists, financial data — safe from competitors. They see the agreements as a way to mitigate the risk of hiring and entrusting private material to employees, consultants, or contractors.</p><p>The goal of non-competes is to provide an employer protection from unfair competition (competition involving the “misappropriation of good will” — a.k.a. stealing an employer’s relationship with customers, clients, or vendors and/or confidential business information) while not unreasonably prohibiting a former employee from earning a living.</p><h4>What Is Included In Non-Compete Agreements?</h4><p>Non-competes specify the geographic scope, duration, and type of activity an ex-employee is prohibited from engaging in. For example, a car salesman might have a 50-mile non-competition radius so as not to steal customers from his or her previous dealership. A TV news reporter, on the other hand, might be forbidden from working for other local television stations for a period of time following termination; time frames can range anywhere from a few months to two years.</p><h4>When Are Non-Compete Agreements Enforceable?</h4><p>Here’s where things get tricky. Whether or not a non-compete agreement is enforceable depends on <a href="http://www.mbbp.com/resources/employment/noncomps.html" rel="noopener noreferrer" target="_blank">whether or not it is reasonable</a>, and what is reasonable is determined by state courts on a case-by-case basis; <a href="http://www.beckreedriden.com/wp-content/uploads/2012/09/Noncompetes-50-State-Survey-Chart-20130814.pdf" rel="noopener noreferrer" target="_blank">every state has its own laws regarding non-compete clauses</a>.</p><p><br></p><p>Non-compete agreements are typically considered enforceable if they:</p><ul><li>Have reasonable time restrictions (generally less than one year)</li><li>Are limited to a certain geographic area (specific cities or counties, rather than entire states)</li><li>Are necessary to protect certain employer interests, including trade secrets, confidential business information, and the company’s relationship with customers, clients, and vendors (including market position and reputation)</li><li>Are "supported by consideration," meaning an employee receives a benefit (additional compensation, stock options, acceleration of benefits, etc.) in exchange for promising to not work for a competitor</li></ul><p>Non-compete agreements must also be industry specific in order to be enforceable. For example, a newspaper writer could be barred from working for the other local newspaper, but not writing novels, even though that uses many of the same skills.</p><p>Technically, a standard non-compete contract <a href="http://thedailyrecord.com/2014/09/26/should-your-company-use-non-compete-agreements/" rel="noopener noreferrer" target="_blank">is more likely to be upheld</a> if the time limitation is short, the geographic scope is small, the type of activity is narrow, and the employee is only prohibited from soliciting their former employer’s established customers.</p><h4>When Can Non-Compete Agreements Be Disputed?</h4><p>Non-compete agreements can be disputed and are unenforceable whenever they are too restrictive — which is often. Every state has its own laws about whether or not non-compete agreements are enforceable. Some, <a href="http://www.leginfo.ca.gov/cgi-bin/displaycode?section=bpc&amp;group=16001-17000&amp;file=16600-16607" rel="noopener noreferrer" target="_blank">like California</a>, have deemed them illegal except in the sale of a business or a shareholder’s stock or dissolution of a partnership. Others, <a href="http://www.lindquist.com/files/Publication/5ad45f6f-fa73-4842-983d-e9cbd88bf37e/Presentation/PublicationAttachment/840cb492-f058-4199-8c2a-ecdb8e9c6636/Employer%20Beware%20-%20Is%20Your%20Noncompete%20Agreement%20Enforceable.pdf" rel="noopener noreferrer" target="_blank">like Wisconsin, Nebraska, and Arkansas</a>, allow reasonable agreements but will invalidate contracts that are too broad.</p><p><a href="http://www.beckreedriden.com/wp-content/uploads/2012/09/Noncompetes-50-State-Survey-Chart-20130814.pdf" rel="noopener noreferrer" target="_blank">This chart</a> outlines each state’s laws and rules about whether, when, and to what extent a non-compete agreement is enforceable, and demonstrates the complications involved in determining enforceability. It includes information like:</p><ul><li>Whether non-compete agreements are permitted at all (in California, non-competes are illegal unless you are selling a business)</li><li>Specifications for what is and isn’t allowed (for example, in Arkansas, customer relationships are only protected where the employee was the sole contact)</li><li>Whether the state follows the <a href="http://www.natlawreview.com/article/how-50-states-differ-revising-non-competes-different-strokes-different-folks-or-red-" rel="noopener noreferrer" target="_blank">reformation rule, the blue pencil doctrine, or the red pencil doctrine</a></li><li>Whether non-compete agreements are enforceable against at-will employees whose <a href="http://www.criminalwatchdog.com/resources/employment-law/how-performance-management-protects-businesses-when-firing-employees/" rel="noopener noreferrer" target="_blank">employment was terminated without cause</a></li></ul><p>In general, courts will rule in favor of an employee in cases determining the reasonableness of a non-compete agreement. Some of the <a href="http://corporate.findlaw.com/business-operations/will-your-non-compete-agreement-withstand-a-court-challenge.html" rel="noopener noreferrer" target="_blank">factors judges look at when deciding on a ruling</a> for these cases include:</p><ul><li><strong>Geographical restrictions</strong> (state-wide won’t be enforced, but a local areal restriction might, if it is necessary to protect the employer)</li><li><strong>Time period restrictions</strong> (the longer it is, the more likely it will be deemed unfair)</li><li><strong>Type of industry, work, or specific company</strong> (businesses with direct competitors may indicate the company they don’t want employees going to)</li><li><strong>Circumstance</strong> (whether the employee was terminated or left voluntarily)</li><li><strong>Too broad</strong> (unnecessary restrictions, usually pertaining to geographic or time limits)</li><li><strong>Type of work/job position</strong> (if an employee doesn’t have access to confidential information or trade secrets, the non-competition clause may be deemed automatically unnecessary)</li></ul><p>For prospective employees, it’s always a good idea to read the fine print of a non-compete contract. When doing so, ask yourself if the clause is relevant to your job, if it is fair, and if it is reasonable to you considering your location, position, and job responsibilities. Here’s <a href="http://www.kkrlaw.com/articles/noncomp.htm" rel="noopener noreferrer" target="_blank">an example of a general non-compete contract</a>, and the stipulations you might encounter.</p><p>For employers, non-compete agreements should be used only to protect confidential information and only when absolutely necessary. If you do decide to require a non-compete, make the requirement known in a prospective employee’s offer letter. This inherently fulfills the consideration aspect of the agreement, with the benefit for the employee being the job. Asking employees to sign a non-compete later on in their tenure, or following a promotion, means <a href="http://www.mbbp.com/resources/employment/noncomps.html" rel="noopener noreferrer" target="_blank">a benefit must also be included</a> (raise, bonus, stock options, etc.), which adds additional complications to an already complicated process.</p><h4>So, are Non-Compete Agreements Actually Enforceable?</h4><p>Non-compete agreements are complicated and multifaceted deals. In some cases, such as in the sale of an entire business, they are necessary and practical. In most situations, however, they are unreasonable and unenforceable. Being aware of state laws and the specific requirements outlined in a non-compete agreement are the best ways to avoid messy legal disputes and maintain positive employee–employer relationships.</p>

Are Employee Non-Compete Agreements Enforceable?

<p><br></p><p>Communication is key to the success of all relationships, including the one between an employer and employee. To guarantee everyone is on the same page when it comes to a business’s rules, expectations, and other guidelines, it’s important to provide a thorough, clearly written employee handbook to everyone involved in the business. Even if it’s a two-man shop, having all the nitty-gritty details of the business in writing will lead to fewer headaches in the future.</p><h4>Why Employee Handbooks are Important</h4><p>Employee handbooks help newcomers understand the business. When done well, they provide answers to frequently asked questions; clearly outline company policies and expectations; explain the at-will nature of the employment; contain health, safety, and benefits plans; and explain the company’s disciplinary and termination policies.</p><p>That’s a lot to cover. To help you from feeling overwhelmed, we’ve broken up the process of writing an employee handbook into simple steps and included a general outline for what all handbooks should contain. We’ve also provided a few tips that will be helpful to keep in mind before, during, and after crafting your handbook. Just follow along, and soon you’ll be all ready to go!</p><p><em>(Note: Employment laws vary from state to state, so the following information and tips are written as general advice that applies to most situations. Always consult an employment attorney licensed to practice in your area in order to guarantee your handbook correctly covers all the necessary information.)</em></p><h4>How to Make an Employee Handbook</h4><p>The most basic function of an employee handbook is to communicate the rights and expectations of the employee and the rights and expectations of the employer. To do this, there are a handful of items every handbook must contain.</p><p>At minimum an employee handbook should contain the following eight items, according to <a href="https://www.nfib.com/documents/pdf/faststart/model-employee-handbook.pdf" rel="noopener noreferrer" target="_blank">the National Federation of Independent Business (NFIB) Legal Foundation</a>:</p><ol><li>An employment at-will disclaimer (meaning the employment relationship may be terminated with or without cause and with or without notice at any time by the employee or employer)</li><li>An <a href="http://www.ksdot.org/Assets/wwwksdotorg/bureaus/offChiefCoun/Documents/Sample EEO Policy Statement.pdf" rel="noopener noreferrer" target="_blank">equal employment opportunity policy statement</a></li><li>A policy prohibiting unlawful <a href="http://www.eeoc.gov/laws/types/" rel="noopener noreferrer" target="_blank">discrimination</a> and <a href="http://www.eeoc.gov/laws/types/harassment.cfm" rel="noopener noreferrer" target="_blank">harassment</a></li><li>A section that describes the policy for use of company property and privacy rules (computers, email, voicemail, etc.)</li><li>A section on employment classification and overtime rules</li><li>A policy on family and medical leave (if you have 50 or more employees)</li><li>A section on safety</li><li>A disciplinary guide</li></ol><p>Keep in mind, these are just the bare minimum. Many other elements — history and culture of the company, dress code, attendance policies, vacation, review procedures, benefits, etc. — should also be considered and, potentially, included. Adding more detail about more topics leaves less room for confusion and error (a.k.a. legal trouble) if an employee needs to be let go later.</p><p>Below we've created a sample employee handbook outline, which incorporates recommendations from the NFIB, you can use for your organization's handbook. Remember, this is only an outline: You can and should tailor your employee handbook to meet your company’s specific needs. There is no must-follow order and there is no must-include list of items (the legal requirements mentioned above being the only exception — definitely include those!). We just believe that the more information provided upfront, the better.</p><h4>The Ultimate Employee Handbook Sample Template</h4><ol><li>Welcome</li></ol><ul><li class="ql-indent-1">History, Goals, &amp; Core Values</li><li class="ql-indent-1">Purpose of Handbook</li><li class="ql-indent-1">At-Will Employment</li></ul><ol><li>Workplace Commitments</li></ol><ul><li class="ql-indent-1">Equal Opportunity Employment</li><li class="ql-indent-1">Non-Harassment / Non-Discrimination</li><li class="ql-indent-1">Drug Free / Alcohol Free</li><li class="ql-indent-1">Open Door Policy</li></ul><ol><li>Company Policy and Procedures</li></ol><ul><li class="ql-indent-1">Code of Professional Conduct</li><li class="ql-indent-1">Dress Code</li><li class="ql-indent-1">Payday</li><li class="ql-indent-1">Company Property</li><li class="ql-indent-1">Privacy</li><li class="ql-indent-1">Personnel Files</li></ul><ol><li><a href="http://www.dol.gov/elaws/esa/flsa/screen75.asp" rel="noopener noreferrer" target="_blank">Employment Classification</a></li></ol><ul><li class="ql-indent-1">Exempt, Non-Exempt, Part-Time, Full-Time, or Temporary Status</li></ul><ol><li>Attendance Policies</li></ol><ul><li class="ql-indent-1">General Attendance</li><li class="ql-indent-1">Tardiness</li><li class="ql-indent-1">Breaks</li></ul><ol><li>Leave Policies</li></ol><ul><li class="ql-indent-1">Vacation</li><li class="ql-indent-1">Sick Leave</li><li class="ql-indent-1"><a href="http://www.dol.gov/whd/fmla/" rel="noopener noreferrer" target="_blank">Family and Medical Leave Act&lt;</a>/li&gt;</li><li class="ql-indent-1">Holidays</li><li class="ql-indent-1"><a href="http://www.dol.gov/dol/topic/benefits-leave/juryduty.htm" rel="noopener noreferrer" target="_blank">Jury Duty</a></li><li class="ql-indent-1">Voting</li><li class="ql-indent-1"><a href="http://www.dol.gov/vets/programs/userra/userra_fs.htm" rel="noopener noreferrer" target="_blank">Military Leave</a></li><li class="ql-indent-1">Leave of Absence</li></ul><ol><li>Work Performance</li></ol><ul><li class="ql-indent-1">Expectations</li><li class="ql-indent-1">Reviews</li><li class="ql-indent-1">Insubordination</li></ul><ol><li>Discipline Policy</li></ol><ul><li class="ql-indent-1">Grounds for Disciplinary Action</li><li class="ql-indent-1">Procedures</li><li class="ql-indent-1">Termination</li></ul><ol><li>Employee Health and Safety</li></ol><ul><li class="ql-indent-1"><a href="/resources/employment-law/what-is-OSHA-and-other-workplace-safety-questions-answered/" rel="noopener noreferrer" target="_blank">Workplace Safety</a></li><li class="ql-indent-1">Workplace Security</li><li class="ql-indent-1">Emergency Procedures</li></ul><ol><li>Benefits</li></ol><ul><li class="ql-indent-1">Health Insurance</li><li class="ql-indent-1">Retirement Plans</li><li class="ql-indent-1">Worker’s Compensation</li><li class="ql-indent-1">Disability</li></ul><ol><li>Termination Policies</li></ol><ul><li class="ql-indent-1">Voluntary Termination</li><li class="ql-indent-1">Final Paycheck</li><li class="ql-indent-1">COBRA Continuation of Benefits</li><li class="ql-indent-1">Exit Interview</li></ul><ol><li>Acknowledgments of Receipt</li></ol><ul><li class="ql-indent-1">Employee Copy</li><li class="ql-indent-1">Employer Copy</li></ul><p>One good employee handbook example of is this one from Skidmore College. While specific to the college, the categories and information included provide guidelines any business can use.</p><h4>Tips to Keep in Mind</h4><p>Here are a few things to keep in mind when crafting your employee handbook.</p><ul><li><strong>Keep it simple.</strong> An employee handbook should be concise and provide necessary information without flowery writing. Remember the handbook is meant to aid employees in understanding company policies and expectations. Using obscure language could lead to misunderstandings and — in worst-case scenarios — legal issues later on.</li><li><strong>Have a disclaimer.</strong> The disclaimer is what defines the nature of a handbook and should clearly state that the document is not a contract of employment. The disclaimer is so important it should be included both at the beginning and end of the handbook for emphasis.</li><li><strong>Have a lawyer review it.</strong> Anything you say or don’t say in your handbook could lead to legal trouble. It’s better to seek legal help early rather than need legal help later.</li><li><strong>Remember the law.</strong> Make sure your handbook complies with state and federal laws. Again, a lawyer can help you with this.</li><li><strong>Stay up-to-date.</strong> Your handbook should reflect the world as-is: that is, it should include relevant information about technology, laws, and society. Keep such things as same-sex marriage laws, internet privacy issues, and other timely issues in mind when writing your handbook. Stay on top of these laws so that you can update your employee handbook as new legislation is passed. If you do end up making changes, make sure to notify all staff and provide them with the new version.</li><li><strong>Make sure all employees have a copy.</strong> This includes temporary, part-time, and contract employees, as well as interns. It’s also a good idea to have it posted on your company’s internal website. That way, updates can easily be made and it is always instantly accessible to employees.</li><li><strong>Consider Non-Disclosure Agreements (NDAs).</strong> NDAs aren’t legally required, but they can protect trade secrets. However, don't confuse them with non-competes, as these can be tricky to enforce and aren’t always necessary. If you do want to include non-compete agreements in your handbook, be sure to look into <a href="/resources/employment-law/are-non-compete-agreements-enforceable/" rel="noopener noreferrer" target="_blank">whether or not a non-compete agreement would truly benefit your business</a> before including one in your contracts.</li><li><strong>Clearly define compensation expectations.</strong> Explain the deductions that will be made for federal and state taxes, as well as voluntary deductions for benefit programs.</li></ul><p>By following the outline provided by NFIB and considering the above tips, you’ll be able to write a helpful, thorough, and legally sound employee handbook that keeps you and your employees on the same page.</p>

What Should Go In an Employee Handbook? Sample Template Included.



    
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    </div>
   

    <p>Every company seems to have its own ideas about measuring employee engagement. They also seem to disagree about what exactly employee engagement means. But one thing almost everyone does agree on is that the best way to measure employee engagement is by using employee engagement surveys. To find out why surveys are the best way to measure engagement within your workforce, as well as best practices for the surveys and sample questions, read on. </p>

    <h3 class="h3__alt">Defining Employee Engagement</h3>

    <p>Honing in on one comprehensive definition of employee engagement is a tricky task. It also might not be the best way to approach the subject. Just like every business is different, so, too, should every <a href="http://www.workforce.com/articles/employee-engagement-define-it-measure-it-and-put-it-to-work-in-your-organization" target="_blank">business’s definition of employee engagement</a>.</p>  

    <p>A business should define employee engagement based on its expectations for its employees. When asked to define employee engagement in APQC’s 2009 and 2010 collaborative benchmarking study, “<a href="https://www.apqc.org/knowledge-base/documents/rewarding-engaging-and-retaining-key-talent-best-practices-report" target="_blank">Rewarding, Engaging, and Retaining Key Talent</a>,” companies came up different responses. One said it means “commitment, work ethic, and loyalty.” Another defined it as “an individual sense of purpose and focused energy, evident to others in their display of personal initiative, effort and persistence, that is directed toward organizational goals.”</p>

    <p>Although differing in exact wording, these definitions—as well as most others—share a common backbone that boils down to <a href="http://www.forbes.com/sites/kevinkruse/2012/06/22/employee-engagement-what-and-why/" target="_blank">this</a>: Employee engagement is the emotional commitment an employee has to the organization and its goals. Emotional commitment refers to the employee caring about their work and their company; they view their job as more than just a way to pay the bills. They work hard because they believe in the work.</p>

   <h3 class="h3__alt">Why Employee Engagement Matters</h3>

    <p>An engaged employee is a happy—and <a href="http://www.engageforsuccess.org/wp-content/uploads/2012/09/file52215.pdf" target="_blank">productive</a>—employee. In 2006, <a href="http://www.gallup.com/businessjournal/27799/investors-take-note-engagement-boosts-earnings.aspx" target="_blank">Gallup</a> examined 23,910 businesses and compared how their financial success correlated with their employee engagement scores. They found that companies with engagement scores in the 
        top quartile averaged 12% higher customer advocacy, 18% higher productivity, and 12% higher profitability than companies with scores in the bottom quartile.</p>

    <p>In 2004, the <a href="http://www.ddiworld.com/DDI/media/monographs/employeeengagement_mg_ddi.pdf?ext=.pdf" target="_blank">Corporate Executive Board</a> in Washington, D.C. surveyed 50,000 employees in 59 organizations worldwide and found that employees with lower engagement are four times more likely to leave their jobs than those who are highly engaged. They also found that moving from low to high engagement can result in a 21% increase in performance.</p>

    <p>In response to Gallup’s results, Jim Harter, Gallup's chief scientist for workplace engagement and wellbeing, said, "These aggregated patterns show that engaged employees are more likely to stay with their organizations, are less likely to steal or experience accidents on the job, and are more likely to please customers and be highly productive. It all adds up to higher profitability, which over time, influences earnings per share."</p>

    <p>Proof of this is seen in the story of <a href="http://www.gallup.com/businessjournal/24874/a-caterpillar-dealer-unearths-employee-engagement.aspx#1" target="_blank">Fabick CAT</a>. In 2002, Fabick CAT, a company that sells, rents, and repairs Caterpillar construction equipment, began measuring employee engagement. At the time, it was only at 16%. They started making culture changes based on the results, “putting the right people in the right jobs” and investing in developing the talents and strengths of its managers.</p> 

    <p>They also paid Gallup $500,000 to conduct an analysis to determine how the new initiatives influenced performance outcomes. After working with Gallup and using the results gathered to implement more changes to engage employees, by 2006 employee engagement rates were at 48%. Not only that, but Fabick CAT’s profits increased by $3 million from 2005 to 2006, a “600% return on investment” that company owner Doug Fabick credits to the higher employee engagement.</p>

    <p>With such benefits at stake, every business should want to know where its employees fall on the engagement scale in order to have the best-performing workforce possible.</p>

    <h4 class="h4__alt">How to Measure Employee Engagement</h4> 
    <p>The most common and efficient way to measure employee engagement is through surveys. While you could have one-on-one, in-person conversations with employees in order to see how they’re feeling and ask them for feedback, this is a time-consuming and, often, uncomfortable approach. Putting people on the spot might make them feel too nervous to voice their real opinions, especially about management. </p>

    <p>Surveys, on the other hand, provide an anonymous, thorough platform through which employees can honestly express themselves. Not only that, but engagement surveys are an opportunity for management to <a href="http://www.explorance.com/5-key-reasons-to-conduct-employee-engagement-surveys-2/" target="_blank">establish two-way communication</a> with employees and involve them in the development process by giving them a direct voice to the management team. This involvement makes employees realize that they have a stake in the company and that their opinions are valued.</p>

    <p>Employee engagement surveys also benefit companies by providing clear sets of data to use for comparison purposes. By asking the right questions, businesses can compare results with industry-specific data to gain an understanding of their business ranks next to similar organizations. Not only that, but benchmarking also allows businesses to measure growth over the years by comparing data from one year to the next. </p>

    <h3 class="h3__alt">What to Ask in Employee Engagement Surveys</h3>

    To get the best possible results, it’s important to know what questions to ask. While there are no standard drivers of engagement, some commonly assessed factors are: 

    <ul>
        <li>Recognition and feedback</li>
        <li>Pay and benefits</li>
        <li>Respect and fairness</li>
        <li>Training and advancement opportunities</li>
        <li>Leadership</li>
        <li>Work environment</li>
        <li>Mission and purpose</li>
    </ul>

    <p>Here are <a href="http://www.custominsight.com/employee-engagement-survey/sample-survey-items.asp" target="_blank">the exact sample questions that companies like CustomInsight</a> consider for each of these categories (to be answered in a 0-5 scale, ranging from Strongly Disagree to Strongly Agree):</p>

    <ol>
        <li>Recognition and feedback<br>
        a.  At work, my opinions seem to count.<br>
        b.  My supervisor, or someone at work, seems to care about me as a person.<br>
        c.  In the last six months, someone at work has talked to me about my progress.<br>
        d.  I receive useful and constructive feedback from my manager.<br>
        e.  When I do a good job, I receive the praise and recognition I deserve.<br>
        f.  Employee performance evaluations are fair and appropriate.</li>

<li>Pay and benefits<br>
    a.  I am paid fairly for the work I do.
<br>b.  My salary is competitive with similar jobs I might find elsewhere.
<br>c.  My benefits are comparable to those offered by similar organizations.
<br>d.  I understand my benefit plan. 
<br>e.  I am satisfied with my benefit package.
<br>f.  I understand the guidelines for receiving bonuses and raises.</li>

<li>Respect and fairness<br>
a.  My manager always treats me with respect.<br>
b.  The organization’s policies or promotion and advancement are always fair.<br>
c.  Favoritism is not an issue in any way.<br>
d.  My coworkers always treat me with respect.<br>
e.  This organization respects its employees.<br>
f.  My manager values my talents and the contributions I make to the company.</li>

<li>Training and advancement opportunities<br>
a.  I have adequate opportunities for professional growth in this organization.<br>
b.  I receive the training I need to do my job well.<br>
c.  My manager is actively interested in my professional development and advancement.<br>
d.  My manager encourages and supports my development.<br>
e.  I am encouraged to learn from my mistakes.<br>
f.  My work is challenging, stimulating, and rewarding.</li>

<li>Leadership<br>
a.  I am very satisfied with my manager.<br>
b.  I respect the senior leaders of this organization.<br>
c.  Senior management leads by example.<br>
d.  Senior management communicates well with the rest of the organization.<br>
e.  Employee job satisfaction is a top priority of senior management.<br>
f.  Senior management is held accountable for achieving results.</li>

<li>Work environment<br>
a.  My workplace is safe.<br>
b.  I have the resources I need to do my job well.<br>
c.  My workplace is a physically comfortable place to work.<br>
d.  I am comfortable sharing my opinions at work.<br>
e.  My ideas and opinions count at work.<br>
f.  I can disagree with my manager without fear of getting in trouble.</li>

<li>Mission and purpose<br>
a.  I have a good understanding of the mission and the goals of this organization.<br>
b.  I understand how my work directly contributes to the overall success of the organization.<br>
c.  My job is important in accomplishing the mission of the organization.<br>
d.  My supervisor provides me regular information about the mission and the goals of this organization<br>
e.  Doing my job well gives me a sense of personal satisfaction.<br>
f.  I agree with the mission and goals of this organization.</li>

</ol>

    <h3 class="h3__alt">Next Steps</h3>

    <p>The myriad benefits of higher employee engagement and proof of success with employee engagement surveys are outstanding. Other ways to boost workplace morale and participation in addition to using employee engagement surveys include: putting <a href="/resources/employee-engagement/5-ways-to-motivate-employees/">these five proven ways to motivate employees</a> into practice, implementing <a href="/resources/workplace-culture/when-favoritism-in-the-workplace-is-a-good-thing/">healthy favoritism in the workplace</a>, and effectively <a href="/resources/leadership-and-management/managing-change-in-workplace">managing change in the workplace</a>.</p>





Measuring Employee Engagement with Employee Engagement Surveys



    
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    <p>Firing employees is never easy. As managers, we’re often painted as the bad guy, but it’s our responsibility to establish an efficient, happy, and talented workplace. We have to look out for the business and each individual employee, balancing the needs of both to bring about positive growth.</p>

    <p>Sure, the "sorry, we have to let you go" conversation can be emotionally-charged and difficult to initiate, but it can also lead to consequences if not handled properly. Thankfully, performance management can help spread the burden of responsibility when it comes to terminating employment, both legally and emotionally. It’s a way of ensuring employees are aware of their goals and duties, so that should they fail to meet them, appropriate steps can be taken to address the situation.</p>


    <h3 class="h3__alt">First, What is Performance Management?</h3>
    <p>Performance management is an organized, ongoing process that involves making sure employees continuously contribute toward business goals, and if they are not, provides a process for letting them know and helping them improve.</p>

    <a href="http://www.acas.org.uk/index.aspx?articleid=4668" target="_blank">According to management consultancy ACAS</a>, good performance management ensures that everyone knows:

    <ul>
        <li>What the business goals are</li>
        <li>How they can help the business achieve these goals</li>
        <li>The skills they need to do this</li>
        <li>The standards required of them</li>
        <li>How well they’re doing</li>
        <li>How they can improve</li>
        <li>When there are problems</li>
    </ul>

    <p>To be successful, performance management requires regular meetings between managers and team members so that they can discuss all of the above issues. This should happen both informally and formally, and detailed documentation should be made as both types of meetings occur.</p>

    <h3 class="h3__alt">What Risks Do Businesses Take when Firing Employees?</h3>
    <p>Firing employees should be a last resort and should only be necessary when other steps taken to resolve performance issues have failed. This is because businesses assume a number of risks when they make the decision to fire someone. These include:</p>

    <h4 class="h4__alt">Security risks</h4>
    <p>Firing employees can leave them feeling hurt and angry, and unfortunately this can lead to security breaches or retaliation. Terminated employees often have access to company resources (including digital ones) which could be abused and result in business interruption, sabotage, embarrassment, lost productivity, and other financial costs.</p>

    <p>Unfortunately, it’s also a sad fact that termination can result in injury and even death. In September 2012, a former employee of a Minneapolis signage company allegedly <a href="http://www.myfoxtwincities.com/story/19659885/minneapolis-office-shooting-chestnut-ave" target="_blank">shot and killed</a> five people at his workplace the day after he was fired, before taking his own life. </p>

    <p>A <a href="http://minnesota.cbslocal.com/2014/09/22/settlement-reached-in-accent-signage-shooting-suit/" target="_blank">lawsuit</a> was later brought against the employer by the family of one of the victims. It stated that the shooting was reasonably foreseeable based on the shooter’s former behavior, and was later settled out of court.</p> 

    <p>This highlights the need for proper pre-employment screenings, regular <a href="/criminal-background-check">criminal background checks</a>, and constant <a href="http://www.doli.state.mn.us/WSC/PDF/WorkplaceViolencePreventionGuide.pdf" target="_blank">monitoring for high-risk employees</a>, as it's our responsibility to provide a safe work environment that <a href="http://www.criminalwatchdog.com/resources/employment-law/what-is-OSHA-and-other-workplace-safety-questions-answered" target="_blank">abides by OSHA standards</a>.</p>

    <h4 class="h4__alt">Legal risks</h4>
    <p>A number of different factors determine whether or not employees have the right to pursue a lawsuit against their employer, including the type of contract they’ve signed, union membership regulations, and the length of their service.  </p>

    <p> For example, employees who feel they were dismissed unfairly can file <a href="http://www.dol.gov/dol/topic/termination/" target="_blank">wrongful termination</a> lawsuits. This often happens when employees aren’t given a reason for being fired, when they’ve been led to believe they’re good workers, or when their dismissal coincides with a complaint that they’ve made against an individual or the company.</p>

    <p>In addition to this, employees may also cite discrimination as the reason for their termination. Discrimination based on race, color, religion, sex, national origin, age, disability, or genetic information is illegal, and it’s also illegal to retaliate against a person because he or she complained about discrimination to the Equal Opportunities Employment Commission (<a href="http://www.eeoc.gov/laws/practices/index.cfm" target="_blank">EEOC</a>). It's <a href="/resources/employment-law/ways-employers-encourage-discrimination-in-the-workplace">surprisingly easy to unintentionally encourage or practice discrimination in the workplace</a>, so when firing employees we need to be able to prove that the decision had nothing to do with any of these factors.</p>


    <h3 class="h3__alt">So, How Does Performance Management Protect Our Businesses?</h3>

    <h4 class="h4__alt">It minimizes losses</h4>
    <p>When it comes down to it, we need to protect our business and our jobs. Performance management can help us do that. It gives us a clear process for making underperforming employees aware that they need to improve, and outlines the potential consequences if they don’t.</p>

    <p>What's more, this systematic approach can help us find employee inefficiencies faster. Why the haste? Apart from the direct effects that poor performers have on business objectives, holding onto disengaged, unfocused employees can result in a ripple of negativity across the organization. It’s demotivating for others to see other employees not pulling their weight and this can lead to low morale and reduced <a href="/resources/employee-engagement/">employee engagement</a> across the board. And poor morale and engagement can result in actual financial losses, since disengaged employees are estimated to cost the U.S. economy $450 billion to $550 billion annually, according to a <a href="http://www.gallup.com/poll/165269/worldwide-employees-engaged-work.aspx" target="_blank">survey</a> by Gallup. </p>

    <p>In a way, performance management is putting the ball in underperforming employees' court. By setting clear goals, giving them the right tools to achieve them, and offering performance reviews along the way, we’re giving them a fair chance to improve, while also ensuring that we won’t sustain further losses if any issues continue.</p>

    <h4 class="h4__alt">It provides fair warning, which reduces legal risk</h4>
    <p>When performance evaluations are a consistent part of an organization's processes, employees are made fully aware of their responsibilities and growth (or lack thereof) on a regular basis. It means we're giving employees plenty of chances to fix issues and to ask for help. </p>

    <p>Employee turnover costs money, as much as <a href="http://www.inc.com/suzanne-lucas/why-employee-turnover-is-so-costly.html" target="_blank">150%</a> of each lost employee’s annual salary to be exact. Remember, <a href="/resources/employee-engagement/5-ways-to-motivate-employees/">having a performance management strategy</a> not only saves us money from an operational standpoint, it also saves us from expensive legal fees due to wrongful termination or discrimination lawsuits filed against us. Thus, we want to make sure we only terminate someone after a series of straight-talking discussions, performance improvement plans, and documented actions. </p>

    <p>Effective performance management is also a way of putting a human face to the dismissal process, which is a softer way to reduce the risk of someone filing a lawsuit after termination. If our employees feel that we’ve done everything we can to help them succeed, by the time dismissal occurs it won’t come as a surprise. They should leave feeling as though they’ve been consulted throughout the process, not victimized. </p>

    <h4 class="h4__alt">It creates a trail of evidence</h4>
    <p>If employees are let go and they file a lawsuit, we want to make sure we can provide evidence that they were fired with just cause. Performance management is a way of preparing ourselves to do just that.</p>

    <p>Effective performance management involves keeping accurate and up-to-date personnel files on all employees. These serve as a historical timeline of their employment from hire through to termination, including evidence of all goals set, training undergone, and feedback given.</p>

    <p>These files are invaluable should a court case arise, and having them on-hand can save time and money when defending ourselves against a claim of unfair dismissal. So we need to make sure that our organizations have an employee performance review process that gathers documentation, such as through the help of employee evaluation software like <a href="https://www.small-improvements.com/" target="_blank">Small Improvements</a> and detailed "recap" emails sent to employees by managers after every one-on-one meeting.</p>

    <h3 class="h3__alt">Takeaway</h3>
    <p>Performance management is by no means a silver bullet; it takes a lot of work to maintain an effective, user-friendly, ongoing program, and it must be applied consistently across the board for it to be a success.</p>

    <p>However, when implemented properly, the benefits far outweigh the costs, both in developing a performance-driven culture and in protecting our business from legal disputes. As managers, we’re protectors of the workplace. Our employees are the key to our success and it’s down to us to do what's best for the majority of them.</p>

    <p>Are you having issues with under-performing employees? If their poor performance is due to lack of engagement, check out these <a href="/resources/employee-engagement/5-ways-to-motivate-employees/">five proven employee engagement ideas for motivating employees</a>.</p>



    <h3 class="h3__alt">Additional Resources You Might Find Interesting:</h3>
        <ul>
            <li><a href="/resources/leadership-and-management/">Management advice that will make you a better leader</a></li>
        </ul>




How Performance Management Can Protect Businesses When Firing an Employee

<p><strong>This is a test</strong></p><p><br></p><p>As we step into 2025, employment law continues to evolve, bringing new challenges and opportunities for businesses. For employers, staying compliant with these changes is not just a legal necessity but also a crucial aspect of maintaining a fair and safe workplace. At <a href="https://www.criminalwatchdog.com/" rel="noopener noreferrer" target="_blank" style="background-color: rgba(0, 0, 0, 0); color: rgb(231, 233, 234);">CriminalWatchDog</a>, we understand the complexities of employment screening and the importance of adhering to the latest regulations.</p><p>In this article, we present the "CriminalWatchDog 2025 Compliance Alert Checklist," designed to help HR professionals and employers navigate the key compliance areas for the year. From updates in data privacy to changes in background check regulations, this checklist will ensure that your hiring practices are both effective and legally sound.</p><h2><strong>Key Changes in 2025</strong></h2>

Key Changes in 2025

ADDITIONAL STORIES THAT MIGHT INTEREST YOU

Are Employee Non-Compete Agreements Enforceable?

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Measuring Employee Engagement with Employee Engagement Surveys

How Performance Management Can Protect Businesses When Firing an Employee