A company that retains its employees by limiting their ability to move to other companies, through unreasonably tight 'non-competes' or 'restraint of trade' contracts, does itself more damage. Most likely a worker will be unhappy, and thus work inefficiently. Furthermore, such employee will discourage anyone trying to work there. Word of mouth travels fast. If the employee ever finds a way of escaping, they will cause more damage on social media and the internet as a whole, through honest reviews of their experience.
Some companies go as far as using these agreements as a way to pay their employees less competitive salaries. By limiting the employee's chance of leaving to a better company within a financial viable geographical location, the employee has no choice but to stay within the employment of such a company that enforces such agreement. They realise that if they want to work for another company/organisation within their field, they would have to relocate.
Restraints of trade are fair and understandable in term of protecting company IP, but when they are used to trap employees and pay them less, they become a double edged sword which hurts both employee and employer. These employees who feel trapped become cancers which destroy the company from within.
Giving employees freedom in the workplace also frees their minds to come up with new ideas. Happy employees have no reason to leave a company. Sometimes they will be so loyal that they stay with a company even if another is promising them a little bit more in terms of pay, because they are happy and satisfied where they are. Strive for employee satisfaction.
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