My team member has a competing side business
What you need to know:
- Before you have a discussion with him, speak with HR and establish whether employee contracts have a clause that defines conflict of interest; intellectual property.
I have heard that my best performing team member has a small side business. Recently, I noticed he was doing work that was not on our work schedule. My gut tells me something is not right. I have no actual proof of the side business. How do I manage the situation without causing him to leave? Patrick
Dear Patrick,
I think you’re right to be concerned about what you’ve discovered. While you cannot confirm the side business you do need to be aware of the risks. He currently works with your clients, where he has an opportunity to build a relationship with them which places him in a position of gaining their trust and confidence.
While your clients are bound by their contractual terms and conditions that prevent them from “giving” their business to him; it does not stop them from introducing him to new clients who would have ordinarily been introduced them to the business. This automatically results in the business missing out on having new clients and of course losing out on increased sales.
Another risk area is to consider, whether the organisations intellectual property is being used to develop his own “side business content” and presented as his own. The use of company resources is not acceptable, it’s a cost to the business without generating income. Before you have a discussion with him, speak with HR and establish whether employee contracts have a clause that defines conflict of interest; intellectual property; staff owing or working with other businesses that are direct competitors to the organisation; or the use of company resources for non-company related work.
Establish the details of the client and their work. If you find there is no work order in place, then raise the matter again and address the issue. Although he’s your best performing team member, you need to think about the risks mentioned above, the likely hood that they can occur and the impact on the business and the rest of the team.
Caroline Mboijana
Managing Director
The Leadership Team (U)
[email protected]
