Saying Adieus, nicely
Employees do leave. As long it is not massive, it can be healthy and allows new talents to join the team. In Silicon Valley, if somebody is leaving to start a new company, he (usually it is a "he") is viewed in positive lights. Even when a person is heading to a competitor, beyond the standard safe-guard for legal and business protection, people usually remain in good terms. The reason being that Silicon Valley is a small and dynamic place. So, in a few more years, you could be working for the same side again.
As a matter of a fact, alums from various organizations, for example Netscape, form an informal but influence ecosystem in Silicon Valley. Having worked in the same company, there is a higher level of shared experiences, expectations, and networks. These all make working together at a different company subsequently easier.
Protecting your IP
An implication that people do not often considered with the at-will law is what to do with IP (intellectual property). If you have patents, it affords greater protection when somebody leaves. But, not everything is patentable, i.e. trade secrets, and not all patents can be easily protected.
In my experience, IP is a bigger deal in hardware because it is easier to prove infringement. Software usually competes on dimensions that are more execution related such as distribution, feature set, and bueinss model. In other words, know and protect your IP. But, also know that IP has its limitations.
Incidentally, in conversations with Silicon Valley employment attorneys, everyone was flummoxed by the law suit between HP and Oracle over Mark Hurd, who left HP as CEO and soon after joined Oracle in the late 2010. It simply does not seem to be a good use of HP's legal resources.
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