[trees]

I'm getting ready to hire one or, possibly two sales people for this season. I have one pretty decent prospect right now, but this young man has told me that his ultimate goal is to do his own thing someday. Now... saying that and doing it are two different things for sure. But, if I'm going to spend effort grooming a good sales force, the last thing I want is to have them bolt and take my customers and employees with them.

I guess what I'm getting at is, do you ever use non-compete agreements with new hires?

[Dale Wiley]

In sales, you better be ready to come up with a very good and solid compensation plan if you intend to ask them to sign a non compete. A non compete asks them to work for you and no one else in that area in that line of work.

In one of my former lives, I was a salesperson / field service for a Toro distributor. Second year in this thing, they decided to make us pay 1/2 the sales expenses from our commissions and sign non competes. But they did not want to set any level of guaranteed salary, nor would they specify what level of support we could expect ,if any from the company.

To ask a salesperson to sign a non compete and piegon hole them in your company, you are going to have to step up big time and make it worth their while. You are basicaly asking them to bind themselves to your business, and if they left, to have to change lines of work. Most courts would find that unreasonable and probably modify or nullify any non compete. There is a fine line between non compete and restrain of trade in employer and employee relationships.

Being in sales for 10 years, and finding it very competitive, very demeaning in my case, and flat out very unprofitable
($ 12.00 per hour plus travel), a non compete is going to have to be backed by consideration (money) on your part.

Careful research is in order here.

[HardDaysKnight]

Can you get a more precise answer than that. Fabulous
reply Dale. I would see a red flag go up if a salesman
that interviewed for me or anyone in any type of work
would mention that they aspire to be your competition.
NO way would I employ him other than a 100% commission
basis.

[trees]

Can you get a more precise answer than that. Fabulous reply Dale.

I agree. Thanks so much for your input.

I guess what I'm talking about isn't exactly a non-compete. I recently interviewed with one of the Big Boys in town and as part of their job offer, they included a modified non-compete stating that all customers are proprietary to X Landscape Co. and that upon leaving their employ, I would not contact any of their employees or customers for a 6 month period.

My main problem with hiring sales people is salary. The salary I am authorized to offer is fairly low (in my mind, anyway), so I'm going to have to take some chances on developing some green candidates.

The way this would work is any job over, oh, say $5000 as determined through pre-qualifying would be mine. The sales staff (I guess more technically, sales support staff) would take the lead on smaller jobs.

This is not exactly the ideal, but it's what I'm faced with at the moment. I guess I'm trying to minimize the risk taking with my sales staff.

Thanks again for the reply, guys. You're the best...

[rbriggs]

Be very, very cautious of hiring someone who you know will leave your business one day and become potential competition. Especially, when they will have access to all of your client lists, pricing structure, and other inside secrets.
Our company, as a national franchise, requires our staff to sign a non-compete agreement on day one. This is made clear during the interview phase, so there are no surprises.
This is done, because they are provided with intimate details of the business, including the training program, locations of resources, pricing structure, as well as other items that could be classified as "trade secrets."

[bcx400]

Trees- What you are talking about here is a non-solicitation agreement. That, along with a non-compete agreement, is usually enforcible by a court for one year after termination of employment (sometimes, but rarely, two years). As a business owner, you should NOT feel guilty about asking potential employees to sign either of these agreements. After all, it is your business, and the potential employee has the option of looking elsewhere for employment.

[trees]

bcx -- That's exactly it! Thanks...

I forgot the exact term for that document. I'll be looking into that soon.