If you want to be a unicorn, make sure your employment ducks are in a row!
Small and start-up businesses, particularly in the technology sector, can grow and become successful very quickly and the industry can be extremely fluid. When starting out, these businesses do not always have the time or resource to focus on getting their employment models right from the start or making sure that their ideas, information and value in the business is protected in the long-term.
We are invariably seeing that technology businesses which have grown quickly are later having to deal with issues that could have been avoided by engaging their people the right way from the start. For example, the contracts of employment for the founders or key employees do not contain any enforceable post-termination restrictive covenants, notice periods to terminate employment are too short, IP is not always properly assigned to the company and the status of the workforce may have been wrongly categorised, leading to future disputes, increased costs and even litigation.
Whilst these thoughts may be far from the minds of the founders of a new and exciting technology business, it is important for the business to consider the ‘what ifs’ early on. What if one of the founders wants to leave and develop a competing product? What if a key employee, who has had access to ideas and business plans, wants to join a competitor? What if a departing employee tries to claim they own the IP created during their employment? What if a departing employee tries to poach other employees? What if a contractor tries to claim they are a worker or an employee?
With that in mind, we have created Tech Insights, an online platform specifically designed for small and start-up technology businesses to access key information and resources to help build their teams the right way from the start.
We know that people are a key asset for technology businesses and in order to attract and retain talent, protect ideas and information and avoid future disputes, it is crucial for these businesses to engage people in the right way. If you want your small or start-up business to become the next unicorn, make sure you have your employment ducks in a row and build your teams the right way, from the start.
We are invariably seeing that technology businesses which have grown quickly are later having to deal with issues that could have been avoided by engaging their people the right way from the start. For example, the contracts of employment for the founders or key employees do not contain any enforceable post-termination restrictive covenants, notice periods to terminate employment are too short, IP is not always properly assigned to the company and the status of the workforce may have been wrongly categorised, leading to future disputes, increased costs and even litigation.
Whilst these thoughts may be far from the minds of the founders of a new and exciting technology business, it is important for the business to consider the ‘what ifs’ early on. What if one of the founders wants to leave and develop a competing product? What if a key employee, who has had access to ideas and business plans, wants to join a competitor? What if a departing employee tries to claim they own the IP created during their employment? What if a departing employee tries to poach other employees? What if a contractor tries to claim they are a worker or an employee?
With that in mind, we have created Tech Insights, an online platform specifically designed for small and start-up technology businesses to access key information and resources to help build their teams the right way from the start.
We know that people are a key asset for technology businesses and in order to attract and retain talent, protect ideas and information and avoid future disputes, it is crucial for these businesses to engage people in the right way. If you want your small or start-up business to become the next unicorn, make sure you have your employment ducks in a row and build your teams the right way, from the start.
