“I have an incredible offer, but they want me to sign an aggressive non-compete agreement, what should I do?” “I was just let go and now the company wants to prohibit me from getting a job anywhere else, is this legal?” With a great deal of movement in today’s executive labor market, we are getting many questions, about non-compete agreements.

Non-compete agreements (NCAs) can bewilder even experienced executives. Sometimes eager new hires sign NCAs along with an offer letter without any thought, only to be forgotten until a great opportunity elsewhere comes along later. There are so many variations and issues around NCAs, and laws differ from jurisdiction to jurisdiction (countries and states). I‘ll try to cover some of the basics here, but it is always best to consult an employment lawyer if you are confronted with an agreement that makes you uncomfortable or that may limit your career options.

Generally, a non-compete agreement or clause is a contract entered into between two parties (usually an employer and an employee or a buyer and a seller) that restricts one party from doing business with or going to work for the competition. According to US law, since an NCA is a contract, some kind of “consideration” must be provided in exchange for the promise not to compete. That consideration might be a bonus paid at the time the agreement is signed or a payment (sometimes in the form of a severance payment) at the time the agreement goes into effect.

Sometimes companies require employees to sign an NCA as part of the initial employment agreement – the consideration therefore is employment. In other instances, due to increased threats by competitors or to a change in leadership of the company, NCAs are presented after an employee has been at the company awhile. Another tactic is for companies to request a promise to not compete when an employee is leaving their employ.

We have seen recent graduates through top level executives encounter NCAs, and more frequently with business development or sales professionals. Logicallly, non-compete requirements vary with a person’s access to sensitive data and exposure to clients. Companies invoking NCAs typically limit competition by geography, by scope/industry/market and by duration. If you are asked to sign an NCA, ensure that it covers a very specifically defined limitations. If the contract is too broad or vague it can lead to an unfair situation if /when invoked. It is true that the more general an NCA is, the harder it is to enforce, but to dispute a contract can be a costly legal battle that you probably won’t want to endure.

Like any contract, an NCA also requires “agreement” to be legally binding. I recently worked with an alumnus who, as part of a reduction in forces, was being let go from a small division of a very large diversified company. He was asked, as a condition of receiving a generous severance package, to sign an NCA that would preclude him from doing business with any competitor of the larger organization. As offered, the agreement would prohibit him from working with any food, beverage or related CPG company, where our graduate had built his reputation for his entire post-MBA career. Clearly, the terms of the agreement were unduly restrictive and would severely limited his career options. He negotiated the terms of the agreement and ended up signing a more reasonable contract – one that ensured that he would not be in a position to use trade secrets against his former employer, yet allowed him to seek employment with companies outside the small segment that the division with which he worked for the last two years was competing.

It may feel awkward to question the terms of a non-compete agreement when you are just joining a company, but it is smart to review the agreement carefully. Ensure that the agreement provides for adequate severance pay in the case of separation – suggest payment for the same duration of the non-compete. If you are asked to sign an agreement after you are already employed, don’t take it lightly. Even if you can’t imagine ever working for a competitor, know it could happen. Be sure the terms of the agreement won’t leave you unable to get a job or preclude you from later accepting the “dream job” you’ve been coveting for years. Don’t be afraid to find an attorney specializing in the corporate laws in the state where the company is based, to get well informed advice.

If you have signed an NCA and you are laid off, ask to be released from the agreement and if they agree, get the release in writing. If you are considering an opportunity with another employer it is important to let the potential employer know that you are under an NCA. Carefully choose the timing of this disclosure. Typically, I would advise that you give a company the chance to absorb your value proposition and become sufficiently interested in bringing you on their team before you bring up the possible hassle of getting you onboard. The new company’s legal department might be helpful in evaluating the limitation of the NCA in reference to the new opportunity. Of course, in a small industry where a company knows they are “stealing” away talent from their competitor, it might be the first thing you talk about with them. A good rule of thumb is to be upfront an honest and apply the “assume it will be published on the front page of the newspaper.”

If you are dealing with a non-compete situation (and you are an alumnus of a Darden degree program) and would like to talk it through with a career advisor from the Armstrong Center for Alumni Career Services, please contact us to schedule an appointment. We also have a website that includes resources for those negotiating a job offer, starting a new job, resigning and being terminated.

Job searching can be frustrating, particularly in the summer when meetings and decisions tend to be postponed by vacationing decision makers. But many job seekers I have worked with have defied the odds and succeeded in the last couple of months, because they followed what I will call the “six P’s of job search:” Be Phocused, Prepared, Persistent, Personal, Patient and Positive. Let me share this advice I originally gave to some job seeking MBA grads at the end of the summer of 2010, three months after they graduated. The “P’s” pretty much apply to anyone who has been searching for a while:

Phocused: At this point in your search you may think you need to widen your net, but in most cases it would be better for you to stay (or get) more focused. If you concentrate on specific segments you can portray yourself as an A+ candidate and rise above the crowd. You can accentuate your strengths in a targeted, relevant manner that will make you the BEST candidate for fewer jobs. After all, no one is looking for a “pretty good” candidate for many jobs! Being focused also helps others understand better how they can best help you. Being focused includes knowing what segments you are targeting so that you can name companies that are of interest to you.

Prepared: You would not go to an interview unprepared, right? Well, preparation for networking meetings with people you know is even more important. You are most likely to land your job through a referral from someone who is acquainted with you and is willing to vouch for you to a hiring manager. So, every time you meet with someone, it is imperative that you prep for that meeting by knowing how that person might be able to help you (and how you might help them), what business sectors on your target list that person might have connections to, questions about business aspects of some of the companies (other than “are they hiring!” or “do they have any openings”) and even descriptions of jobs in which you are interested.

Persistent: “I e-mailed him, and he didn’t respond so I guess I should move on.” This is a common sentiment I’ve heard from young job seekers, but you need to realize that you are dealing with very busy people and sometimes polite persistence will make the difference. Take, for example, one person who was rejected after a long stream of interviews with a company. He thanked the contacts he had made there and started to convert them into networking connections. When the chosen candidate turned the company down, guess who became the replacement? That’s right, the guy who persevered!

Personal: Personal introductions and referrals are priceless. One client landed his “dream job” after having a professor who knew him well make the introduction to a hiring manager (who happened to be a family member.) The professor’s introduction trumped any kind of screening process. When hiring, managers want to draw on the actual experiences of others. You need to energize people who know you to make introductions in a personal way.

Patient: Don’t give up and don’t expect people to be able to respond within five minutes or even a day. Networking is relationship building and that does not happen overnight. If you work at building relationships, the payoff usually occurs in the second or third contact with that person. Also, particularly in the summer, hiring processes tend to stretch out because decision makers and/or recruiters take vacation. Be patient and continue to stay in touch.

Positive: A positive attitude can be more important than your credentials. No one wants to work with someone who will bring them down. If you are sending negative vibes others will be turned off. While job searching can be frustrating, always look for the silver lining in every situation. Others will feel the positive energy and want to help out.

If a job candidate follows the job search process (see my recent webinar) and incorporates these “Six P’s,” opportunities will arise. I would welcome the opportunity to help you with your job search and career management challenges. Contact me to set up a free consultation.

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I was in the Bay Area last week for a conference with an alliance of peers who provide career services to working professional MBA’s (Alumni and Executive or PT students) at top business schools around the world. The annual meeting is always an energizing and rejuvenating experience as we take a deep dive into MBA careers in specific industries or markets, engage with experts and share knowledge with each other. Since we were in San Francisco this year, we concentrated on Technology and Startups hearing from Venture Capitalists, Entrepreneur coaches and experts while visiting Google and Plug & Play during the week. I confirmed many of my tips, had some new insights and learned a ton. Here I’ll share some of my thoughts:

1. If you want to enter a new space, reaching out to people who are already in that space is invaluable. You won’t only learn about the environment, specific companies and roles, but if you will also develop relationships with people who will be in a place to help you connect with others in the space and grow your network.

2. It is imperative to know the language (and recognize the dialects) of the space where you want to play. Doing research online, is a great start before talking with people who might be to indoctrinate you or be a “translator” or sorts. The intricacies and nomenclature of the tech space can be unique – some words and titles mean different thing than they do in other environments. For instance Project managers, Product managers and Program managers have specific (and sometimes different) meanings from company to company in Silicon Valley. [A good overview of some of those meanings was provided in Subha Shetty’s guest blog here last year.]

3. To get involved in the startup space in the Bay Area one really needs to be physically present in the area. The startup ecosystem available in the San Francisco and Silicon Valley is quite robust and runs the gambit from programmers, to fellow risk-takers, to lawyers specializing in technology and/or startups, to marketers, to the all-important investors. Seeing this mature environment I recognize what is beginning to flower in Charlottesville with the iLab and burgeoning startup ecosystem in Charlottesville. In addition, we are fortunate that Darden has relationships with both Plug and Play in Sunnyvale, CA and 1776 in Washington DC.

4. No matter how much experience you have in your field there is always a lot to learn from fresh eyes and new blood. I have been coaching mid-career business executives in job transition and career management for 14 years. I love sharing knowledge with people new to the profession because I learn so much from them in return. During this conference I had a great conversation with someone about reverse-mentoring … a 60 year old business leader interested in learning about digital marketing who found a 26 year old fledgling MBA to share her wisdom with him.

5. Failure is valued and should be embraced as a positive. Mark Coopersmith and John Danner authors of The Other F Word proclaim that “failure is the sibling of success” and showed that smart leaders find a way to reframe success by pivoting (as in the failed burbn’s evolution to the successful Instagram) or riveting (as in the case of the makers of WD-40 – finally finding the hugely successful formula on the 40^th try!)

6. Presentation style can be as important as the content in making an impression. Stanford’s Dave Evans presented a design thinking approach to career decision making, in which you “build your way forward” through defining, ideating, prototyping, testing and finally implementing solutions. The content was intriguing, but his funny, engaging and entertaining approach to presenting had us on the edge of our seats as if we were watching an Improv show!

7. Passion counts, one way or the other. Saeed Amidi, CEO and Founder of Plug and Play, cited obvious and authentic passion as one of the most important things he looks for in choosing which new business founders to support. On the other hand, Dave Evans is a self-proclaimed “non-passion guy” proclaiming that passion is usually “the outcome rather than the input.” I believe both men are right about passion – it can be instrumental to success, but it often develops during the building process even if it wasn’t there when the foundation was poured.

8. Product Management is the hottest, sought after experience in technology sector executive talent recruitment arena, according to both top name executive recruiters and venture capital partners. Companies look for technical skills and education in addition to business skills when filling product manager roles. If a person doesn’t have an engineering or programming background, another path to product management is to prove oneself in another role and get promoted or transferred within the same company.

9. Being an ACTIVE member of a professional organization is so much more beneficial than being a passive observer. I took over as executive director of MBA CSWP last year and in so doing have gained valuable leadership experience and widened my network with stronger ties to industry, to academia and to resources. The extra work pales in comparison to the benefits of this volunteer assignment. If pursued and approached with energy and passion, relevant volunteer projects and roles can be as career enriching as the stuff you get paid to do!

Flying back to Charlottesville, I reflected on the value of stepping away from my regular routine to learn and interact with experts in a focused area to enrich my abilities as a career advisor. I am excited to get back to working with alumni!