Confidentiality and Noncompete Agreements
The benefits of hiring external candidates were first discussed in Week 5 of this course. In this Assignment, you build upon this knowledge by exploring the benefits and challenges of using external recruitment methods to identify senior-level successors. In general, organizations seek qualified external candidates who may have knowledge about the inner workings of competing organizations. Though this idea is beneficial in theory, many organizations have their executives, high-level managers, and highly knowledgeable employees sign confidentiality agreements to prohibit this type of cross-company sharing. Specifically, these agreements prevent proprietary information about organizational culture and trade secrets from becoming compromised.
There are a variety of strategies that can be incorporated into confidentiality agreements, such as time lapse clauses and noncompete clauses. In this Assignment, you explore these strategies and consider how they can be applied to the organization in your writing.
To begin this Assignment, review the article titled "Safeguarding Corporate Secrets," found in this week's Learning Resources, to analyze how confidentiality agreements contribute to the succession planning process. In addition, conduct your own scholarly research to find examples of confidentiality agreements commonly used in today's organizations. Lastly, review this week's scenario to apply the pertinent information to your writing.
Scenario
Today, you received an e-mail from the board of directors asking you about the details that surround the recruitment of an upper-level employee from one of your competitors. Specifically, they would like to know how a confidentiality agreement can help or hinder acquiring a talented individual from another organization. In addition, they would like you to present them with a confidentiality agreement currently used in today's organizations, as well as your suggestions on how to adapt this agreement to fit the nondisclosure needs of your organization (Caterpillar, Inc.).
To complete this Assignment, respond to the following in a 6- to 7 page paper:
•Analyze confidentiality agreements.
- Select an online confidentiality/noncompete agreement. Include the website citation to access this confidentiality agreement, or copy/paste the agreement into your paper with APA citation. (Note: Copying/pasting the template will not contribute to the page count.)
- Describe the nondisclosure parameters of this agreement, as well as the need to include these items in an agreement.
- Identify how these parameters could help safeguard your organization (Caterpillar, Inc.) from the intentional and/or unintentional dissemination of trade secrets by senior executives.
- Identify how these parameters could hinder an organization's (Caterpillar, Inc.'s) acquisition of a senior executive from a competitor.
- Provide at least one benefit and at least one negative consequence of having a highly knowledgeable employee or senior executive sign a confidentiality agreement.
- Provide at least one benefit and at least one negative consequence to acquiring a highly knowledgeable employee, or senior executive who has a confidentiality agreement in place from a previous or current employer.
•Analyze how confidentiality agreements contribute to the succession planning process.
- Identify essential components that should be included in your chosen organization's (Caterpillar, Inc.) confidentiality/noncompete agreement.
- What trade secrets, company culture best practices, or organizational procedures should be stated in your confidentiality agreements to protect your organization (Caterpillar, Inc.)?
- Describe two to three items that you would include in a confidentiality/noncompete agreement for a highly knowledgeable employee or senior executive that you might not include in a lower-level employee's agreement.