A few weeks ago, the FTC banned non-compete agreements. The rule applies to existing noncompete clauses in contracts and will become unenforceable for most workers 120 days after its publication in the Federal Register. You could almost hear a collective celebration from radio personalities everywhere, and this ruling will significantly impact the radio industry. The battle is not over yet, and there will undoubtedly be legal wrangling. But, at least for personalities, it is time to delete the non-compete.
Delete The Non-Compete
From an owner’s perspective, the intent behind a non-compete clause is easy to understand. Companies and managers resist investing in building a personality brand for air talent, only to have to compete with that entity when the contract expires.
Chuck Knight (Chuck Knight Media) wrote a thoughtful opinion piece that explains the logic from both the talent and company perspectives. While acknowledging how an employer could be harmed by an employee “crossing the street,” he compares radio talent to athletes under contract with professional sports teams:
Professional sports teams invest millions in scouting and drafting players. Millions on training facilities, strength and conditioning, dietary specialists, coaches specific to every player’s position, safety equipment and updated uniform designs, just to name a few. How about the team’s top secret strategic playbook? If there is a business that could be truly harmed by a talent crossing the street after this kind of real investment, professional sports would be it. Yet if a player becomes a free agent or is released, the NFL, NBA, MLB and NHL don’t have non-competes. The player is free to sign with another team tomorrow.
Everyone in our industry has been harmed (or knows someone who has) by a non-compete clause. I moved my family across the country for a great programming job (or so I thought) with two boys under five. Shortly after, the station was sold, and the new management team terminated my agreement with a year left on the contract. They said they didn’t “need me” but wouldn’t allow me to work in the market unless I turned down separation compensation. That was a difficult decision. I could have forced them to pay out the contract, but I would not have been able to work in the city we had moved to. Yet, there was no sure thing I’d find a gig in the market.
This is not unusual. Too many people and families are affected by unfair contract clauses and non-compete agreements that are a condition of employment. Enforcing the clause is illegal in many jurisdictions unless the company pays the employee. However, companies have often worked around that obligation. As Knight writes:
Unfortunately, many companies don’t even pay them (a contract) out. Federal and State laws need to change and radio companies big and small need to do the right thing. It’s time to delete the non-compete from contracts.
Investment? What Investment?
I’m sympathetic to a company’s interest in talent and advocate investing in personalities as the key to your future. But if you pay them well, treat them right, and provide the tools to thrive and grow, stations shouldn’t worry about a personality crossing the street. They will want to stay where they feel valued, supported, and fulfilled.
Most personalities look elsewhere when they feel held back or creatively stifled. It doesn’t take much support to keep them happy. Employment agreements should be constructed to protect the company’s investment while fairly supporting the talent who invest in helping build your brand.
In other words, it’s time for management to stop worrying about what they can get away with and worry more about how they can help talent thrive.
Here are four ways to start:
Promotion: Promote them on and off-air. Make them famous and reward them accordingly. I’ve never seen a great station without strong personalities. On the other hand, wildly successful personalities fail quickly on a bad station. It’s a partnership, not a tug-of-war.
Acknowledgement: Respect what it takes to create 3-5 hours of entertainment daily. It’s a grind, especially when they’re also expected to crank out videos and blog posts and manage social media. Many managers demand more from personalities than ever before. Showing gratitude goes a long way.
Resources: Provide tools to save time and make their workflow more efficient. Radio Content Pro is a great start that will solve many of those problems. Many personalities are frustrated by a lack of resources. It’s not difficult (or expensive) to help them out.
Training: Give them coaching and feedback to help them grow. You may not be able to afford to send them to conferences like Morning Show Boot Camp, but at least give them the days off without forcing them to take vacation time to expand their skills (which benefits your station).
Conclusion
Talent is your #1 resource, and while management has a different objective, the relationship should not be confrontational. Non-competes are not a barrier if they’re presented properly and fairly.
Knight puts a great exclamation point on the discussion:
The non-compete is today’s form of indentured servitude as most companies don’t even pay out non-competes. Non-competes need to be abolished. Federal and State laws need to change.
I agree, Chuck. It may not be time to delete the non-compete, but protection should work for both parties.
[xyz-ips snippet=”further-reading”]
