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“Non-Disclosure/Confidentiality Agreements – Don’t Hire Anyone Without Signing One”

Written by: Glenn Ebersole

Article Overview: Are you worried that your employees or outside contract workers have access to confidential information about your business that could do potential harm to your business if employees or contracted workers use it for their own gain or disclose it to your competitors? If you are not worried or concerned in the business world we live in today, then I suggest you become concerned now, not later! Technology and business information have continued to expand exponentially in today’s business environment. Employees and contract workers are more likely to be exposed to a significant amount of proprietary information and therein lays a potential threat to your business.

“Non-Disclosure/Confidentiality Agreements – Don’t Hire Anyone Without Signing One”

“Non-Disclosure/Confidentiality Agreements – Don’t Hire Anyone Without Signing One”
By: J. Glenn Ebersole, Jr., Founder & Chief Executive of J. G. Ebersole Associates and The Renaissance Group ™

Are you worried that your employees or outside contract workers have access to confidential information about your business that could do potential harm to your business if employees or contracted workers use it for their own gain or disclose it to your competitors?

If you are not worried or concerned in the business world we live in today, then I suggest you become concerned now, not later! Technology and business information have continued to expand exponentially in today’s business environment. Employees and contract workers are more likely to be exposed to a significant amount of proprietary information and therein lays a potential threat to your business. It would be very naïve and not very “business savvy” to believe you can automatically trust an employee or contract worker with trade secrets, innovative ideas, and other confidential information. The threat or risk is higher today because of digital cameras; cell phones with built-in cameras and flash drives used to snap a picture or download documents.

Due to the erosion of business and personal ethics over the last several years, I have observed several examples of the consequences of employees sharing confidential information with competitors, employees stealing business ideas and using them for personal gain; and taking proprietary information and starting a new business. My belief is that much of the above could have been prevented and/or at least made less likely to happen if everyone had signed a non-disclosure agreement in each case.

What can be done to protect you and your company from experiencing these negative and harmful actions? I would recommend one tactic be to require non-disclosure agreements be signed as part of your hiring process. The reasons for the signing of an agreement should be explained to employees at hiring and at staff meetings. These agreements are designed to legally protect proprietary information, such as a new product design or a marketing strategy, from a competitor or friend of a competitor who could steal it and then realize the benefits. Please understand that the non-disclosure agreements don’t ensure your business will always have the competitive advantage, but you will have a lead-time advantage on your competition. The agreements cannot protect someone from stealing your secrets, but it will aid your legal counsel in representing you.

Please remember this. You and your business have proprietary information. You have invested time, financial resources and creativity into the development of new ideas, products, processes, systems, etc. and you deserve to be the first to benefit. My business suggestion to you is to contact legal counsel and seek legal advice to develop the non-disclosure and confidentiality agreement(s) that will work best to protect you and your business. And after the agreement(s) are developed and approved, have everyone in your business read and sign the agreement(s). To paraphrase that old American Express Commercial –
“Your Non-Disclosure/Confidentiality Agreement – Don’t Leave The Office Without It !”

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