The big picture: New research indicates noncompete agreements fail to protect trade secrets more effectively than nondisclosure agreements, instead driving up employee turnover and wage expenses.

Why it matters: This study provides empirical backing for recent regulatory actions against noncompetes, challenging long-held employer justifications for their use.

Between the lines:

• Noncompetes correlate with a 36-52% increase in worker mobility when removed.
• They are linked to a 12-17% boost in total employee wages.
• Transparency about noncompetes deters prospective hires and increases turnover.

Staffing & HR impact: Staffing firms and HR leaders should re-evaluate reliance on noncompetes, as they may inflate recruitment costs and hinder talent attraction without providing intended security. Compliance strategies must align with evolving legal landscapes and research findings.

The bottom line: Noncompetes are a net negative for businesses, failing to protect data while increasing operational costs and employee churn.