While real estate businesses may be wary of the proposed ban on non-compete  clauses, Laing+Simmons Head of People & Growth Jacqui Barnes says by focusing on what  agencies can control, including working with the data available, they can nullify any such  concerns. 

The proposed ban, which will impact those earning up to the high-income threshold of $175,000 per annum, will mean agents who move between businesses will no longer be restricted from working in  the same patch as they did with their former employer. 

Non-compete clauses have often been at the centre of breakdowns in relationships between agents  and owners, and in many cases it’s the subject of data that becomes the battleground, according to  Ms Barnes. 

“It’s a real estate business reality that agents may choose to move on, partnerships may dissolve and  in a high-pressure environment, relationships can sour. The way the business responds is key,” Ms  Barnes says. 

“Fights over who has the right to data often emerge and on this point, the law is clear. The proposed  ban on non-compete clauses will not change the fact that the business maintains ownership of the  data collected by its agents. 

“There is data but there are also relationships. These are based on personal connections with  customers and when built right, on a foundation of trust, honesty and delivering on promises, they can  last a lifetime. 

“Obviously, in building and maintaining these relationships, data is collected, and this is where  business owners can be tempted to respond emotionally, and even legally, and not constructively. 

“It’s an all-too-common scenario. Owners seek legal recompense for a perceived loss when an agent  moves on, claiming data is the reason, but in reality it’s often the customer relationships they’re  concerned about. 

“This is where they have the opportunity to focus on working the data they have. Illegal actions by  agents should always be treated as such, but too often business owners prioritise investing in the fight  over data, instead of investing in the data itself. 

“In this scenario, the lawyers are the biggest – and perhaps only - winners. 

“Business owners who lose a quality agent should invest in leveraging the data that agent has  collected while part of the team. Numbers in the system are also customers, either existing or  potential, who business owners might be wise to engage with. Or, ideally, re-engage with.  

“They should be working the phones, setting up meetings, offering appraisals, and leveraging the  available marketing tools. In other words, working the data.  

“It’s an investment which might ultimately prove more rewarding and less costly while delivering better  long-term outcomes. It might also be less lucrative for the lawyers,” Ms Barnes says.