Protecting trade secrets is an imperative for every company. This article discusses some of the things you may want to consider in drafting a confidentiality agreement to bind your employees.
Do You Need An Employee
Confidentiality Agreement?
Some things to think about when
considering whether or not to implement an employee confidentiality policy for
your business:
Do
some or all of your employees have direct access to sensitive or
proprietary information?
Is
the information that your employee is exposed to of interest to a
competitor?
Will
the information, if leaked or handled carelessly, negatively impact your
customers, clients, or company?
Regardless
of the type of information, will it be a potential hardship to the
organization if the information is used inappropriately?
If you can answer yes to even one of
these questions, then you should seriously consider creating a confidentiality
policy for your company.
The confidentiality policy should
summarize your company’s expectations and your employees’ responsibilities when
handling confidential or proprietary information. Some tips for creating
your policy:
Summarize
what constitutes as confidential or proprietary information for your
company. For most businesses, this may include financial, personal
or demographic information, as well as specific proprietary information.
Describe
the importance of how the information should be handled and be sure to
communicate to your employees your company’s criteria. For example,
if it is critical that personal or business files not be left in an easily
accessible area such as a desk or in public place, or, if employees are required
to log off of their computers before leaving their work areas make sure
that staff are clear about these specific requirements.
Highlight
the fact that the policy is a summary of information. Emphasize that
it is expected that employees check in with their supervisor, or the
appropriate administrator if there is any question about whether the
information that they are handling is confidential, or if the employee has
any questions about how the information should be safeguarded.
Have
employees sign your confidentiality agreement and place the signed
agreement in the employee’s personnel file.
Include
the confidentiality agreement in your orientation process. Have all
new employees review and sign the form during the period of time that the
employee is completing other new hire paperwork.
Make
sure that the employee confidentiality agreement is posted on your
internal website and in any company policy and procedure or employee
manuals.
Dianne Shaddock is the Founder of Easy Small Business HR.com, a website which provides “Quick and Simple Human Resources Strategies for Small Businesses, Non Profits, and Entrepreneurs. Go to EasySmallBusinessHR.com for more tips on how to hire and manage your staff more effectively.