We have many employees on personal services agreements. Most of the contracts are for 2-3 years with a company out at the end of each contractual year. Our employees under contract are scattered throughout the country, including CA, AZ, OK where there are no non competes which complicates the contractual "stickiness". We have had many employees decide to leave employment prior to the contract end date. We are finding this happening more frequently and we find it difficult to retain them.

I am wondering if someone would have a best practice, that is as "employee friendly" as possible yet will incentivize employees to remain in their contract through the end date. Or is there a best practice to penalize, again in the most civilized manner possible, if they don't remain to the end of the contract? Any and all ideas are welcomed!