How Do I Prevent Employees from Leaving and Starting Their Own Business?

Losing skilled employees to competition is a common challenge in the plumbing industry. You train them, invest in them, and just when they gain enough experience, they decide to start their own plumbing business—sometimes even taking your clients with them.

While you can’t stop someone from chasing their dreams, you can create a workplace where employees choose to stay. Here’s how.

01Why Do Plumbers Leave to Start Their Own Business?

Before preventing employee turnover, it’s important to understand why plumbers leave in the first place. Here are some common reasons:

• They want to make more money – Many employees believe they’ll earn more as business owners.
• Lack of career growth – If they don’t see a future in your company, they may look elsewhere. Frustration with management – Poor work culture, unfair pay, or lack of appreciation can push them to leave.
• They want independence – Some employees prefer to be their own boss and work on their own terms.
• They see an opportunity – If they’ve built good client relationships, they might think they can steal clients and start fresh.

02How to Keep Employees From Leaving & Competing With You

1. Pay Competitive Wages & Offer Incentives

Many plumbers leave because they believe they can earn more on their own. If you offer:

• Fair hourly rates or salaries.
• Bonuses for high performance
• Overtime pay & benefits
• Profit-sharing options

…then employees may see less reason to leave.

Example
Instead of paying only hourly wages, consider a bonus system where employees get a cut of the profits when projects go well. This keeps them invested in the company’s success.

2. Provide a Clear Career Path

If an employee feels like they’re “just another plumber” with no chance of growth, they’ll consider leaving. Instead, offer:

• Pathways to leadership roles (e.g., Foreman, Supervisor)
• Opportunities to specialise in high-paying skills like gas fitting or civil plumbing.
• Business mentorship – Teach them how to manage teams, handle pricing, and deal with clients.

Key Tip
If an employee knows they can move up in your company without the risk of starting their own business, they’re more likely to stay.

3. Create a Positive & Supportive Work Culture

Plumbers don’t just leave for money—they also leave due to stressful, toxic, or unappreciative workplaces.

• Treat employees with respect and fairness.
• Give credit for their work and acknowledge achievements.
• Ensure they feel like part of a team rather than just a worker.
• Reduce micromanagement and allow some level of autonomy.

Example
A simple “thank you” message or an occasional team lunch can go a long way in making employees feel valued.

4. Offer Business-Like Perks Without the Stress of Running a Business

Many plumbers underestimate the stress of running a business until they actually do it. If you make their job feel as rewarding as running their own business, they may stay.

• Company vehicles – Many plumbers leave to buy their own van. If you provide one, they won’t need to.
• Flexible work schedules – Give them some control over hours to avoid burnout.
• Paid training & certifications – Investing in their skills shows long-term commitment.
• Expense allowances – Cover fuel, tools, and equipment so they don’t have to.

Key Tip
Some plumbers start a business because they want more freedom. If you offer flexibility and perks, they may see no need to take the risk.

5. Use Non-Compete Agreements Wisely

If you’re worried about employees taking clients and competing against you, consider a non-compete or non-solicitation agreement.

• A non-compete agreement prevents an employee from starting a competing business within a certain time and distance.
• A non-solicitation agreement prevents an employee from stealing your clients if they leave.

Example
If a plumber quits, they can’t start a competing business within 30km of your service area for 1 year.

Legal Note Non-compete agreements must be reasonable. Overly strict restrictions may not hold up in court. Always consult a lawyer before implementing them.

6. Build Stronger Client Relationships

If your customers are loyal to your company, they won’t follow an employee who leaves.

• Keep client communication direct between you and the customer.
• Offer company-branded service guarantees that only your business can provide.
• Stay in regular contact with clients so they associate your business name with reliability.

Key Tip
If an employee leaves, personally call your major clients to assure them of continued service.

03What If an Employee Still Leaves?

Despite your best efforts, some employees will still leave. Here’s how to protect your business:

• Stay professional – If they leave on good terms, they may refer work to you later.
• Monitor your contracts – If they signed a non-solicitation agreement, ensure they follow it.
• Keep your reputation strong – New clients will still choose a well-established company over a startup plumber.
• Learn from their departure – If employees keep leaving, identify common reasons and adjust accordingly.

Example
If multiple plumbers leave because they feel overworked, it may be time to balance workloads or hire more staff.

04Final Thoughts

You can’t stop every plumber from wanting to start their own business, but you can make it less tempting for them to leave.

• Pay well and offer incentives.
• Create opportunities for career growth.
• Foster a positive work culture.
• Provide perks that make business ownership less appealing.
• Use fair agreements to protect your client base.

Need accurate estimates to price your jobs profitably and keep your business thriving? SNZ Plumbing Estimating can help—get in touch today!

Disclaimer: We are not legal experts and this is not a legal advice & should not be taken as one. This is an opinion which could be right or wrong.

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05Related reading

• How Do I Keep My Team Motivated and Productive?
• Should I Hire More Plumbers or Stay Solo?
• How Do I Train Apprentices Without Losing Money?
• Should I Subcontract Plumbing Work or Keep Everything In-House?

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