Dear Swati K,
Retention of the employees, whether the company is small or big, is always a challenge. However, Delhi high court has ruled that obtaining a non-compete agreement is illegal. You may
click here to refer to a past thread I had posted a few years ago.
However, the problem that you are facing is being faced by almost all the micro and small enterprises. With great difficulty, they employ someone, and after a while a big fish from the same industry gulps them. Occasionally, the owners of micro and small enterprises rue over having reduced their company to a training centre for the big companies.
So what is the solution? The solution is to drive the business in spite of this inherent challenge. Nevertheless, you can make the service condition attractive by:
a) Creating a healthy interpersonal environment in the company.
b) Creating a culture of empowerment.
c) Measure the performance scientifically and reward for the performance.
d) The employer must demonstrate strong technical competence. The employees should feel privileged for getting a chance to work under such a person.
Thanks,
Dinesh Divekar