PEOPLE
Rogue employees
Unfortunately, business owners are often
unaware of the problem until damage to the
company’s image, finances or workforce has
already occurred
The
enemy
within
Michael Ball, partner and group
head of the employment team
at Gateley, looks at how your
employees can sometimes be the
biggest threat to your security
R
ecruitment is an
essential function
of a stable business,
and a key marker of
growth. With the
right staff, an entrepreneur
can transform an ascent startup into a thriving enterprise.
However, right from the start,
employers should consider
how they’ll be affected if the
employment of key staff ends.
Employees with access to
sensitive information, such
as client lists or intellectual
property, can cause significant
damage if they join a
competitor or try to use the
data against a company in an
unethical way. To minimise the
impact of these so called ‘rogue
employees’, business owners
should be aware of the risks
and ensure that appropriate
safeguards are put in place at
the outset.
In a recent UK poll, 41% of
data security experts stated
that rogue employees posed
the greatest threat to their
organisations. These individuals
can range from disgruntled
ex-staff who want to damage
the company’s reputation, to
someone attempting to take
major clients with them to
a new employer. They can
also be employees wanting to
poach top talent, or intellectual
property, to support a directly
competing business venture of
their own.
Unfortunately, business
owners are often unaware of
the problem until damage to the
company’s image, finances or
workforce has already occurred,
and few have established the
essential legal safeguards in
advance to protect themselves.
While it’s often necessary to
allow key employees access
to confidential company
information as part of their
job, properly drafted restrictive
covenants – specific to the
individual’s contract and role
– can deter them from joining
competitors or limit their
ability to solicit customers after
they have left the business.
Many companies, especially
those that are just starting
to grow, are unfamiliar with
effective hiring practices and
rely on template contracts for
all employees, regardless of
their seniority or level of access
to sensitive information. Often
employers will use these same
contracts for years, without
updating them as the business
grows. By failing to ensure that
clauses remain relevant to their
business interests over time,
many companies are putting
themselves at unnecessary risk.
Whilst it may take more
effort initially, creating bespoke
employment contracts for each
staff member is one of the best
ways to help protect businesses
from rogue employees. The
stricter the limitations on an
individual’s knowledge level
and role, the more enforceable
the clause is, helping companies
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