As you build your business, you put a lot of time and dedication into creating a model that will support your customers and bring success to the company. These assets set your business apart from your competitors.
Your relationship with your employees is one built on trust and positive intentions. However, when your employees find a new opportunity or your competitors offer compensation for your secrets, your trade secrets and other proprietary information could be at risk.
These are some reasons you should consider having your employees sign a non-disclosure agreement.
Protecting your business
Non-disclosure agreements (NDAs) help you protect the information that makes your business successful. An NDA can cover essential information, such as:
- Trade secrets
- Customer lists
- Proprietary processing information
- Business practices
Initially, you may trust your employees not to give away company information. However, a non-disclosure agreement can remind your employees that some information is confidential. NDAs can also outline what will happen if an employee violates their NDA.
In a world where non-compete agreements are starting to go by the wayside, non-disclosure agreements are another way to add value to your business. While non-compete agreements are generally still enforceable in Texas, many states are doing away with them.
Even if you are not considering selling now, NDAs demonstrate to others in the industry that your company’s information is secure.
Add the NDA to employee training
Often there is a lot of paperwork when new employees start the onboarding process. While they may remember signing a non-disclosure agreement, they may not remember the consequences or when it applies.
When you include a brief training each year, you can remind employees what information is part of the NDA and how the NDA supports your business.