Highlights
- The labor market has become more challenging for employers following COVID-19, and the need for well-trained, experienced employees far exceeds the supply.
- In addition to undermining investments in training and professional development, rampant departures are threatening the ability of employers to maintain confidential and proprietary information – including trade secrets.
- The legal landscape also is affecting the labor market, with enforcement of traditional non-compete agreements by employers becoming more difficult in recent years.
The current labor market is fraught with challenges for employers. In the wake of the COVID-19 market disruptions, the demand for employees, especially for experienced or highly trained employees, far exceeds the supply. Employee retention is a problem facing employers in all industries, from healthcare and life sciences to technology, manufacturing and hospitality. Rampant departures are undermining investments in training and professional development and threatening employers' ability to maintain confidential and proprietary information, including trade secrets.
In addition to these tough labor market conditions, the legal landscape affecting employers' abilities to retain employees has undergone significant changes. First, the enforcement of traditional non-compete agreements by employers has become more difficult over the past several years. As detailed further below, many states have outlawed or severely curtailed the use...
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