Job Knowledge an Asset to be Protected
Job knowledge acquired by employees in the course of performing job duties represents an asset of significant value to the employee and the employer alike. The employee who learns new information, technology, or gains a greater understanding of the job and it's "big picture" affect can make a positive contribution to the employer's bottom line. For this employee, the knowledge and skills relating to one's trade or occupation acquired over years of experience can translate to salary increases and job promotions.
Likewise, the job knowledge acquired by the employee represents a valuable asset for the employer which should be protected. Often, some employers consider this issue only after a valued or experienced employee has left the organization. The loss of a valued employee can create a void in the organization as others try to fill in and perform tasks that were efficiently handled by the experienced worker.
During the course of employment, an employee is expected to display an appropriate level of loyalty to the employer by exercising reasonable precautions to protect confidential information and trade secrets. Examples of information to be held in confidence may include customer lists, costs or pricing formulas, trade secrets or product formulas, or other work methods or procedures that are unique to the particular employer. Such reasonable precaution would preclude disclosure of business information to competitors and prevent individuals from engaging in activities in competition with one's employer while working for such employer.
Once the employment relationship has ended, it is reasonable to expect the employee to seek employment in the field where he/she has experience. However, some firms seek to protect the intellectual asset through use of an employment agreement that limits the former employee from certain activities.
Employment agreements may be used to protect patents, copyrights, or formulas, by specifying employer ownership for specified intellectual assets. Employment agreements also can define requirements for non-disclosure during and after employment, or prohibit employment with competitive entities, or stipulate limits to efforts to solicit customers or employees.
For example, it is fairly common for research or design entities to require engineering personnel to sign patent agreements stipulating that designs and patents are the property of the employer. Sales employees are frequently asked to sign a non-solicitation agreement prohibiting solicitation of current customers in the event of job change.
Sometimes, these agreements prohibit the individual from accepting employment with a competitor. Generally, the non-compete agreements contain a time limit and a geographical definition which recognize that the employee must have a reasonable opportunity to make a living.
Employers who are hiring design or engineering personnel, sales personnel or top managers would be wise to determine the presence of any employment agreement that may limit a potential candidate's effectiveness on a new job. Failure to determine the applicability of an employment agreement could result in legal action by the former employer seeking to limit or prevent a former employee or a new employer or from unjustly benefiting from competitive information.
The definition of a confidentiality policy can help to inform employees of responsibilities to protect employer information. For further protection, employment agreements signed by the employee may be considered. These actions will help protect the employer's intellectual assets.
About the author: William S. Hubbartt is a human resources and privacy consultant St. Charles, IL. www.Hubbartt.com. He is the author of 8 books on management and privacy issues.
