Hi seniors,
Nowadays, most engineering firms provide service level agreements for certain periods, typically 2-3 years. Although it is justified from the company's point of view due to training expenses, it can lead to the loss of top talent. I have observed that several students from NITs or other prestigious colleges prefer not to engage in such bond agreements. In larger firms where engineering talent is crucial, how can they ensure they do not miss out on the best candidates?
Your response would be highly appreciated.
Thank you.
From India, Madras
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4Nowadays, most engineering firms provide service level agreements for certain periods, typically 2-3 years. Although it is justified from the company's point of view due to training expenses, it can lead to the loss of top talent. I have observed that several students from NITs or other prestigious colleges prefer not to engage in such bond agreements. In larger firms where engineering talent is crucial, how can they ensure they do not miss out on the best candidates?
Your response would be highly appreciated.
Thank you.
From India, Madras
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Dear Professional,
First of all, any kind of bond holding original documents, making bindings on employees causes great loss to the organization in terms of its reputation. Secondly, these practices are unethical trade practices. Finally, employees are to be given the freedom to perform functions willingly and voluntarily so that the organization will prosper.
With warm regards.
From India, Bangalore
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First of all, any kind of bond holding original documents, making bindings on employees causes great loss to the organization in terms of its reputation. Secondly, these practices are unethical trade practices. Finally, employees are to be given the freedom to perform functions willingly and voluntarily so that the organization will prosper.
With warm regards.
From India, Bangalore
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Many organizations in the IT area hire on the basis of specific projects. So, if they have invested in employee training at a huge cost, they also need to ensure that the employee stays for the defined period. Everybody wants a guarantee for their investment; why not companies? Moreover, many employees jump ship even for a smaller hike. It is built into their DNA, but why should companies lose? One thing they can do is give an employee a loyalty bonus along with a defined hike after the completion of the bond period if they stay on for further say 6 months. This will motivate them for sure.
I don't think building a culture where employees will love to work for the company will work. It is because the young, newly working generation has high ambitions not always matching their talent. So, they tend to make decisions on whims which are not always best for their career growth. It becomes very important to curb their intentions. The same candidate happily signs the bond for PSUs and top IT firms, so why not for other firms? Do note that IT firms even charge you for training and even place you sit, which they reflect in your gross CTC even after the completion of the bond period. So, where is the objection to the usual practice?
From India, Bangalore
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I don't think building a culture where employees will love to work for the company will work. It is because the young, newly working generation has high ambitions not always matching their talent. So, they tend to make decisions on whims which are not always best for their career growth. It becomes very important to curb their intentions. The same candidate happily signs the bond for PSUs and top IT firms, so why not for other firms? Do note that IT firms even charge you for training and even place you sit, which they reflect in your gross CTC even after the completion of the bond period. So, where is the objection to the usual practice?
From India, Bangalore
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Thank you for your prompt reply to my post. As you rightly said, candidates choose a good company even if there is a service bond. I appreciate your idea of a loyalty bonus. Don't you think the time has come for companies to think beyond bond agreements? In this war for talent acquisition among competing companies, firms should introduce innovative ideas like motivational tools to retain employees instead of relying on bonds.
Warm Regards,
Shashi S. Jha
From India, Madras
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Warm Regards,
Shashi S. Jha
From India, Madras
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As I have said earlier, motivational tools do work but to a lesser degree for a trainee profile, as for them, 'M' is not for Motivation but money. You will see them comparing their joining salary with their batchmates, not trophies or certificates won for performance. Moreover, they have high ambitions and value themselves much more than they deserve. So, you can't sell a fridge to an Eskimo.
A bond should not be thought of as a constraint but as a preventive measure. Moreover, if another org is really interested, they can buy out his notice period/bond amount. So that the company gets compensated because, as we all know, cutting-edge tech does cost, and hiring trainers costs a lot more. So, if I'm imparting the best training, then shouldn't an HR guy ensure that the money is best utilized?
Today's young talent is waking up to jobs that provide much more than a lucrative salary, which was not there during my time. Sure, they will mature in a few years, and then these motivational tools will work. It can't be a give-give-give relationship, but a give-take relationship leading to a win-win situation.
From India, Bangalore
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A bond should not be thought of as a constraint but as a preventive measure. Moreover, if another org is really interested, they can buy out his notice period/bond amount. So that the company gets compensated because, as we all know, cutting-edge tech does cost, and hiring trainers costs a lot more. So, if I'm imparting the best training, then shouldn't an HR guy ensure that the money is best utilized?
Today's young talent is waking up to jobs that provide much more than a lucrative salary, which was not there during my time. Sure, they will mature in a few years, and then these motivational tools will work. It can't be a give-give-give relationship, but a give-take relationship leading to a win-win situation.
From India, Bangalore
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If the bond system is not providing you with the best talents, consider doing away with it. Instead, adopt the best HR practices so that employees do not feel the need to leave. Attracting and retaining talent is a significant HR challenge.
VARGHESE MATHEW
9961266966
From India, Thiruvananthapuram
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VARGHESE MATHEW
9961266966
From India, Thiruvananthapuram
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