WOULD YOU STAY IF YOU WERE FREE TO LEAVE?
Drive by Friday
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Drive by Friday –
There’s an interesting conversation happening in Australia right now about non-compete clauses.
The Federal Government has proposed legislation that would ban non-compete clauses for workers earning below $190,100, arguing that they can restrict people from moving to better-paying jobs and reduce productivity.
The stats show that around one in five Australian workers are subject to one.
But for me, the more interesting question isn't about the clause.
It's this:
If you were completely free to leave your employer tomorrow… would you stay?
Because a clause in a contract can stop someone from joining a competitor.
It can't make them happy
It can't make them feel valued
It can't make them want to stay
It can't fix a bad manager
It can't create career opportunities
And it certainly can't replace a competitive salary
For years, we've talked about retention strategies.
Employee engagement surveys
Wellbeing programs
Career pathways
Flexible working
Team lunches
Recognition programs
All important. But one of the simplest retention strategies is also one of the most overlooked: Give people a reason to stay.
Pay them fairly
Give them good leadership
Let them grow
Listen to them
Trust them
Give them interesting work
And when they tell you something isn't working, don't wait until their resignation lands on your desk to take it seriously. Because here's the uncomfortable bit. If the only thing stopping someone from working for your competitor is a clause in their employment contract…
You haven't retained them
You've restrained them
And those are two very different things.
Of course, businesses have legitimate interests to protect - confidential information, intellectual property, customers, and commercial relationships matter. The proposed reforms recognise that distinction and are also considering other forms of restraint and protections for legitimate business interests. But perhaps this conversation gives employers an opportunity to ask themselves a different question.
Not: “How do we stop our people leaving?”
But: “Why would our best people choose to stay?”
If your answer is good enough … you might not need the clause.
Have a great weekend.
Give them a reason to stay
Simpli-U - working with you to attract and retain
LET'S KEEP THE CONVERSATION GOING
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Because the right conversation can lead to the right move.
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Lorraine Singer
Director & Consultant – Simpli-U
Recruitment Solutions for the Novated Leasing, Salary Packaging & Automotive sectors
Australia-wide | Solutions all about ‘U’