Epic and the Non-Compete

My google alert for the QA class action lawsuit notified me of something interesting this week. Apparently, some of the local consulting companies were poaching from Epic. Thanks to some shady practices which have all been mentioned in the comments on this blog, Epic got Vonlay (which is in the process of being bought by Huron Consulting Group in Chicago) to agree to a two year non-compete for ex-Epic employees. Read the article here.

There are several noteworthy items. I've italicized quotes from the Isthmus article.

1. The Healthcare IT world knows that Epic underpays and overworks its employees. As soon as the ex-employee goes to consulting, they start to make double the pay with fewer hours. "You can make $180,000 to $200,000 a year," says a consulting executive, compared to the $100,000 that same employee might have made back at Epic. "And for us, it's 40 hours billable, maybe 50 total including travel."
2. Non-competes are bad for job-seekers, bad for companies looking for qualified staff, and bad for communities. There is, in fact, compelling evidence that broad no-compete clauses suppress economic activity and damage wage levels, according to the Ewing Marion Kauffman Foundation, which promotes entrepreneurialism. It reports that "job creation and economic growth will be hindered" by the clauses, and workers subject to strict noncompete terms suffer "lower compensation in their next job, skill atrophy and a degradation of professional networks."
3. Epic is shady. Epic had successfully intervened at the 11th hour to insist that Huron not hire Epic employees within two years of them leaving the company. 
4. Epic operates with questionable legality. [Speculation] circles around Epic fearing it might be treading on federal antitrust laws and being accused of anti-competitive business practices.
5.  Epic doesn't want what's best for its customers or what's best for its employees. Epic only wants what's best for EpicJudy. Epic enforces its no-hire clause through "conspiring" with its customers, which include all of the hospitals and major physician practices, and through the third-party consulting companies.  Epic... effectively dictates job terms and other matters to the consulting companies, whose business is augmenting staff and fine-tuning software for Epic clients once their system is up and running. If those consulting firms fail to toe the Epic line, the company can deny them access to the technical documentation for a health system's Epic software. And that means the consultants can't do their job.
   Clients, on the other hand, are rewarded for agreeing to honor Epic's noncompete clause in their own hiring -- in the form of receiving substantial "preferred customer" discounts to their yearly maintenance fees.
   In the end, this means a hospital can't turn around and hire the young Epic whiz kid who just spent two years installing its Epic software. Nor can that Epic wiz kid quit her job and walk across the street to work for an Epic consultant who might have a contract with that hospital
6. If there were enough backlash, Epic might back down further on the non-compete. Huron and Vonlay officials did not respond to queries, but Epic spokesman Brian Spranger confirmed that Huron had agreed to a two-year noncompete term. And then the shocker: "This is being reverted to a one-year term." Spranger offered no explanation in his email for the reversal. "We'd rather not comment on the policy as a whole." 

This was one of the more interesting articles I've read about Epic in a long time. Perception is reality, according to the pre-staff meeting powerpoint slides. I wonder how Judy feels about her company being perceived as a shady, strangleholding, antitrust-worthy corporate giant.

Epic's Principles, Part 9

Epic's 13 principles
1. Do not go public.
2. Do not be acquired.
3. Expectations = reality.
4. Keep commitments.
5. Be frugal.
6. Have standards. Don't do deals.
7. Create innovative and helpful products.
8. Have fun with customers.
9. Follow processes. Find root causes. Fix processes.
10. Don't take on debt for operations, no matter how good the deal.
11. Focus on competency. Do not tolerate mediocrity. 
12. Teach philosophy and culture.
13. If you disagree, dissent. Once decided, support.

If Epic actually meant "philosophy and culture" as it's understood by most people, then it's an abject failure. But if they meant "Drink the kool-aid until you drown in it," then they're doing pretty well. Paraphrased as "Teach Epic's philosophy and culture," then the principle makes perfect sense.

Epic has a particular philosophy and culture which many businesses don't adhere to, so the business philosophies that new Epic employees just spent 4-6 years studying in college don't always apply. Epic has to instruct these new employees in the specific way that Epic runs. Sometimes Judy provides this instruction bluntly in the monthly staff meetings, at other times the employee just picks it up by diffusion.

One of Epic's unique business philosophies is that "it's better to hire someone with no relevant experience and train them from the ground up than to hire a seasoned software developer and have them unlearn everything so they can do Epic development." As flawed as I think that belief is, it is fully in tune with Epic's philosophy, and it is definitely taught.

I'm drawing blanks on other examples of Epic's philosophy. Add your own in the comments.

As for Epic's culture, they don't teach this as explicitly. In theory, it's laid back (e.g., no dress code) and  flexible (work hours). In practice, there is a distinct dress code that successful Epic employees follow--nice blue jeans and at minimum, a nice-looking "casual" shirt. Holey sweat pants and Packers jerseys might work once in a while if worn ironically, but if you show up every day looking like that, you're not going to work there long. The flexible hours (as I've written before) amount to "Come in as early as you'd like before 9 am, and stay as late as you need to after 5 pm." You either learn the culture and drink the kool-aid, or you leave the company.

Epic does teach its philosophy, but it doesn't teach its culture. You're expected to learn and follow both.

Send Me Your Resumes

Since the initial objective of this website was to provide resources for weathering the non-compete year, I've decided to start sharing job opportunities that I've come across. This one is from Parker Healthcare IT, a company that I used to work for (and would definitely work for again).

Healthcare IT Business Development Position

Parker Healthcare IT has been placing technologists in the healthcare space since 2005.  We have a stellar reputation and a value proposition that will create immediate credibility.  Our company was recognized as one of the best workplaces in the state of Washington in 2013.

We think there is a best employee out there waiting for a company like ours to show their true talents.  Come work in a class A building in the Denny Triangle area of Seattle.  Experience all that Seattle has to offer; a spectacular haven for outdoor activities, world renowned restaurants, professional football and baseball, a robust cultural scene and some of the smartest people in the nation.   

We are looking for a professional to join our very successful and established team as a business development manager.   Your role is to identify new business opportunities while managing the delivery of our services.  If you are an overachiever and can prove it then you will want to consider our position.  We are looking for experience in technology sales and/or a healthcare IT background.  Travel is minimal and our compensation package is above market.

What they need is someone to help find new clients and maintain those client relationships.

Parker's staff is personable, accommodating, and growing. They once hosted me at their corporate headquarters in downtown Seattle (it was a dinner shindig), and Seattle looked like a much more interesting place to live than Madison, Wisconsin.

This position would not use technical support skills as much as require excellent customer service experience. If this sounds like something you're interested in, either leave a comment with an email address where I can reach you; point me to your resume on LinkedIn, Dice, or Monster; or respond directly to Parker as per the instructions in this link. As always, I won't post any comments with PII unless you specifically want me to. If you email Parker directly, mention this blog so I can get some referral credit.