To have 3 months notice period for an employee in any company is it Good or Bad?
Off late I had come across a few employers & HR’s who are deliberately not choosing buy-back option with regards to the notice period and are asking employees to serve 3 months mandatory notice. Same companies do not pay 3 months’ salary when it comes to termination or in case employees who are released due to no project.
How ethical are the company policy?
“Personally I do not recommend such companies/policies; people in such companies feel they are locked up by the company, in case of their career growth. Employees will stay less engaged at work. Negative vibes spread in such work culture as employers are forcefully retaining employees who does not want to continue with the company.”
I would like to have Your opinion, as this will help me in better understanding.
From India, Madras
59Off late I had come across a few employers & HR’s who are deliberately not choosing buy-back option with regards to the notice period and are asking employees to serve 3 months mandatory notice. Same companies do not pay 3 months’ salary when it comes to termination or in case employees who are released due to no project.
How ethical are the company policy?
“Personally I do not recommend such companies/policies; people in such companies feel they are locked up by the company, in case of their career growth. Employees will stay less engaged at work. Negative vibes spread in such work culture as employers are forcefully retaining employees who does not want to continue with the company.”
I would like to have Your opinion, as this will help me in better understanding.
From India, Madras
Hello Getsie Jesse,
Three Month Notice period
A three month Notice period has its advantages and disadvantages.
If you have to change the job, the new company needs its own processing time.
Afterwards you also need time to wind up, particularly if it is in a different place.
The existing company needs time to find a replacement.
LESS THAN THREE MONTH NOTICE PERIOD
However if you get a good offer with a short notice period, say a month,
then a three month notice period may not be to your advantage.
In another scenario if the existing management decides to terminate the
services of an individual, he will find it very difficult to find another job immediately.
Companies have their own difficulties of finding a replacement.
Hence they opt to go for full three months working period.
WHAT BIG CORPORATES DO
They view it altogether differently.
If a person has decided to go, then they feel the person may not
deliver with the same efficiency as he had done in the past.
So they sometime release a person sooner than the notice period.
However this cannot be taken as a rule.
Many possibilites exist and on a case to case basis decision is taken.
V.Raghunathan
From India
Three Month Notice period
A three month Notice period has its advantages and disadvantages.
If you have to change the job, the new company needs its own processing time.
Afterwards you also need time to wind up, particularly if it is in a different place.
The existing company needs time to find a replacement.
LESS THAN THREE MONTH NOTICE PERIOD
However if you get a good offer with a short notice period, say a month,
then a three month notice period may not be to your advantage.
In another scenario if the existing management decides to terminate the
services of an individual, he will find it very difficult to find another job immediately.
Companies have their own difficulties of finding a replacement.
Hence they opt to go for full three months working period.
WHAT BIG CORPORATES DO
They view it altogether differently.
If a person has decided to go, then they feel the person may not
deliver with the same efficiency as he had done in the past.
So they sometime release a person sooner than the notice period.
However this cannot be taken as a rule.
Many possibilites exist and on a case to case basis decision is taken.
V.Raghunathan
From India
Hello Getsie Jesse,
This topic was discussed recently in a different context--pl see this thread:
https://www.citehr.com/467582-can-we...ml#post2078787
@ V.Raghunathan--I think you are mixing-up between the '3 month Notice Period' And the 'Notice Period' aspects. What Getsie Jesse is referring to is the fact 'whether the Notice period should be 3 months'--NOT whether the Notice Period should be there at all.
Rgds,
TS
From India, Hyderabad
This topic was discussed recently in a different context--pl see this thread:
https://www.citehr.com/467582-can-we...ml#post2078787
@ V.Raghunathan--I think you are mixing-up between the '3 month Notice Period' And the 'Notice Period' aspects. What Getsie Jesse is referring to is the fact 'whether the Notice period should be 3 months'--NOT whether the Notice Period should be there at all.
Rgds,
TS
From India, Hyderabad
I find three months is too long a notice period. Many a time’s companies think having 3 months notice actually gets their work done. For some very critical position it’s good to have such an option, But there is no guaranty that productivity will be as much as it was before resignation submission. Now that this employee has got an offer he talks about this to his coworkers and also about some advantages that he will have in the new company. This is actually induces negative emotions within the team.
If you can’t find resource in 30days for a replacement it’s the HR department’s duty and the company’s duty to introspect why they are unable to do a replacement with their existing recruitment team. The HR team and the company will get the actual reason and they will have to work on the root of the issue and get it settled. If not your attrition at the end of the day will stay high and you recruiters will constantly have a job to do only replacements and HR will have more and more documentation, induction and settling of new employees to work but the core essence of the HR work will always be missed and it will be a bunch of employee of all departments who have high level of negative charges on them and this will be cycle of blame game and a never ending process, productivity lost and profit actually will start taking a nose dive.
I actually would like to understand what the HR with 90 days notice has got to say.
Thank you V.Raghunathan and TS is right am more focused on the impact of 90days notice i.e. 3 month notice period. And would like both of you to give me your input on the above and what are your ethical thoughts that HR’s will have to do.
From India, Madras
If you can’t find resource in 30days for a replacement it’s the HR department’s duty and the company’s duty to introspect why they are unable to do a replacement with their existing recruitment team. The HR team and the company will get the actual reason and they will have to work on the root of the issue and get it settled. If not your attrition at the end of the day will stay high and you recruiters will constantly have a job to do only replacements and HR will have more and more documentation, induction and settling of new employees to work but the core essence of the HR work will always be missed and it will be a bunch of employee of all departments who have high level of negative charges on them and this will be cycle of blame game and a never ending process, productivity lost and profit actually will start taking a nose dive.
I actually would like to understand what the HR with 90 days notice has got to say.
Thank you V.Raghunathan and TS is right am more focused on the impact of 90days notice i.e. 3 month notice period. And would like both of you to give me your input on the above and what are your ethical thoughts that HR’s will have to do.
From India, Madras
Hello Getsie Jesse,
Firstly, I am a bit confused about your profession--are you NOT into HR and/or Recruitment? Your line "......and you recruiters will constantly have a job to do only replacements and........" creates the doubt.
Looking @ the core issue you raised, this looks more like the government mindset years back [pre-1991] when the whole government mechanism worked on the notion [ill-conceived, but thought by successive ones to be the right way then] that to increase revenue, the only way was to raise the taxes & have things under their Governmental control [thru Licences--then called the Licence Raj].
Until a couple of years back, the Notice Period across sectors was 1 month [with exceptions]--and things were still working fine, minus the additional headaches.
As far as I can see, the basic motive of this enhanced NP seems to be driven by the premise that this will discourage employees to think of resigning & other companies have a rethink about hiring employees of this company [whichever it is], due to the long gestation between Offer & Joining--essentially to handle attrition.
I am not sure of how successful this strategy has been to the companies having this revised policy--only some independent Survey would bring out the reality/Truth.
But I think the companies failed to visualize the downside(s) of such a step.
There's another collateral action that I noticed. To ensure the employee remains busy during the NP, some companies LOAD him/her with additional jobs--not-so-critical ones--after completing the KT activities. Quite often, such assignments were way off the core strengths of the employee--sort of just keeping the guy busy. Sometimes I wonder what the Company gains by such actions--except spending on the employee's salary & the disadvantage of getting a low-end job done by a high-end salaried person to do it [meaning spending, for eg, 10K where spending 3K would have sufficed].
The focus seems to have shifted from the Cost-benefit per employee [vis-a-vis the Company costs] to ensure none [ideally] leave the company, irrespective of the costs involved.
From another angle, the focus shifted from RETENTION to CONTROLLING attrition--Retention obviously involves a lot of pro-active work by the company while Controlling involves just passing a New Policy--easier & convenient for sure.
Rgds,
TS
From India, Hyderabad
Firstly, I am a bit confused about your profession--are you NOT into HR and/or Recruitment? Your line "......and you recruiters will constantly have a job to do only replacements and........" creates the doubt.
Looking @ the core issue you raised, this looks more like the government mindset years back [pre-1991] when the whole government mechanism worked on the notion [ill-conceived, but thought by successive ones to be the right way then] that to increase revenue, the only way was to raise the taxes & have things under their Governmental control [thru Licences--then called the Licence Raj].
Until a couple of years back, the Notice Period across sectors was 1 month [with exceptions]--and things were still working fine, minus the additional headaches.
As far as I can see, the basic motive of this enhanced NP seems to be driven by the premise that this will discourage employees to think of resigning & other companies have a rethink about hiring employees of this company [whichever it is], due to the long gestation between Offer & Joining--essentially to handle attrition.
I am not sure of how successful this strategy has been to the companies having this revised policy--only some independent Survey would bring out the reality/Truth.
But I think the companies failed to visualize the downside(s) of such a step.
There's another collateral action that I noticed. To ensure the employee remains busy during the NP, some companies LOAD him/her with additional jobs--not-so-critical ones--after completing the KT activities. Quite often, such assignments were way off the core strengths of the employee--sort of just keeping the guy busy. Sometimes I wonder what the Company gains by such actions--except spending on the employee's salary & the disadvantage of getting a low-end job done by a high-end salaried person to do it [meaning spending, for eg, 10K where spending 3K would have sufficed].
The focus seems to have shifted from the Cost-benefit per employee [vis-a-vis the Company costs] to ensure none [ideally] leave the company, irrespective of the costs involved.
From another angle, the focus shifted from RETENTION to CONTROLLING attrition--Retention obviously involves a lot of pro-active work by the company while Controlling involves just passing a New Policy--easier & convenient for sure.
Rgds,
TS
From India, Hyderabad
Getsle Jesse,
As a H.R.person I think Employer can keep Three months Notice to the Manager
& above Grades.and for all other Grades One month Notice.
JAYANT NISAL
Corporate Manager-H.R./I.R.-(as a consultant)
From India, Pune
As a H.R.person I think Employer can keep Three months Notice to the Manager
& above Grades.and for all other Grades One month Notice.
JAYANT NISAL
Corporate Manager-H.R./I.R.-(as a consultant)
From India, Pune
Hi TS,
Thank you for your time and response, off late I have been seeing a lot of unethical practice in HR system and even HR justifies them. I believe in win win situation, only then truly people win.
I am very much part of the HR system, I am clear about my thoughts but I found this practice (3 months notice) has been drastically increasing in the last 2 years , some Manager& HR personal are taking undue advantage of this notice period. I have started seeing more employees becoming victim. As a result of seeing such companies and their practices I had marked the statement which you have listed in the first line of your conversation.
However for the rest of your content we both are thinking the same and I agree with you.
From India, Madras
Thank you for your time and response, off late I have been seeing a lot of unethical practice in HR system and even HR justifies them. I believe in win win situation, only then truly people win.
I am very much part of the HR system, I am clear about my thoughts but I found this practice (3 months notice) has been drastically increasing in the last 2 years , some Manager& HR personal are taking undue advantage of this notice period. I have started seeing more employees becoming victim. As a result of seeing such companies and their practices I had marked the statement which you have listed in the first line of your conversation.
However for the rest of your content we both are thinking the same and I agree with you.
From India, Madras
Hello Getsie Jesse, All I can say is the concept/practice of "Penny wise, Pound Foolish" isn’t limited to small companies. Only the scale/grade varies I guess. Rgds, TS
From India, Hyderabad
From India, Hyderabad
If Gordon Gekko was still wandering around Wall Street today, he’d probably be surprised to learn that his favorite mantra, ”Greed…is good,” has been replaced by “Ethical is good.”
How do businesses get labeled ethical?
The standard definition of ethical behavior from Merriam-Webster is, “conforming to accepted standards of conduct,” while words such as “moral” “virtuous” and “honest” serve as synonyms. The extensive list of twenty-first century unethical corporate behavior from companies such as Enron Corp., Bear Stearns, and Arthur Andersen, Satyam, Sharada (WB) and the many other dubcious finanace companies have undoubtedly left many consumers feeling jaded.
The culture and values practiced by an organization reinforces its commitment and responsibility to those who serve in the organization.
In areas that include:
Talent Acquisition
Learning and Development
Employee Benefits
Communication- companies that are steeped in values, culture and tradition, ensure that company communications are frequent highlighting business initiatives and strategy, employee recognition, work-life assistance, volunteerism opportunities, business conduct and ethics practices and social responsibility practices.
For gold you have a standard of purity - 24 carat, unfortunately we do no have now for measuring ethical behaviors.
This might help understand what is being discussed:
https://en.wikipedia.org/wiki/Business_ethics
The World's Most Ethical Companies - Forbes
ETHICAL ACCREDITATION MEMBERSHIP <link updated to site home> ( Search On Cite | Search On Google )
The advantages of being ethical | Financial Post
Crane and Matten blog
Ethical business: companies need to earn our trust | Guardian Sustainable Business | Guardian Professional
Why Be an Ethical Company? They're Stronger and Last Longer - Businessweek <link updated to site home> ( Search On Cite | Search On Google )
From India, Hyderabad
How do businesses get labeled ethical?
The standard definition of ethical behavior from Merriam-Webster is, “conforming to accepted standards of conduct,” while words such as “moral” “virtuous” and “honest” serve as synonyms. The extensive list of twenty-first century unethical corporate behavior from companies such as Enron Corp., Bear Stearns, and Arthur Andersen, Satyam, Sharada (WB) and the many other dubcious finanace companies have undoubtedly left many consumers feeling jaded.
The culture and values practiced by an organization reinforces its commitment and responsibility to those who serve in the organization.
In areas that include:
Talent Acquisition
Learning and Development
Employee Benefits
Communication- companies that are steeped in values, culture and tradition, ensure that company communications are frequent highlighting business initiatives and strategy, employee recognition, work-life assistance, volunteerism opportunities, business conduct and ethics practices and social responsibility practices.
For gold you have a standard of purity - 24 carat, unfortunately we do no have now for measuring ethical behaviors.
This might help understand what is being discussed:
https://en.wikipedia.org/wiki/Business_ethics
The World's Most Ethical Companies - Forbes
ETHICAL ACCREDITATION MEMBERSHIP <link updated to site home> ( Search On Cite | Search On Google )
The advantages of being ethical | Financial Post
Crane and Matten blog
Ethical business: companies need to earn our trust | Guardian Sustainable Business | Guardian Professional
Why Be an Ethical Company? They're Stronger and Last Longer - Businessweek <link updated to site home> ( Search On Cite | Search On Google )
From India, Hyderabad
Hi Every one,
Three Month Notice period is known to an individual before joining a Company.
So according to me, if any one does not agree to it, one should negotiate
and get it reduced to ONE month before taking up the assignment.
In general all Companies include a clause about the Notice Period
as a part of their Appointment Order conditions. Even if it is not given,
one can try to get it the way one wants.
Such conditions as these, are governed by DEMAND AND SUPPLY
in the market and how desperate is the Company or the Individual.
If the candidate is very good, Management relaxes the Notice Period
as they do not want to loose a Talent for this reason.
In my view one cannot initially agree and later on brand it as unethical.
V.Raghunathan
From India
Three Month Notice period is known to an individual before joining a Company.
So according to me, if any one does not agree to it, one should negotiate
and get it reduced to ONE month before taking up the assignment.
In general all Companies include a clause about the Notice Period
as a part of their Appointment Order conditions. Even if it is not given,
one can try to get it the way one wants.
Such conditions as these, are governed by DEMAND AND SUPPLY
in the market and how desperate is the Company or the Individual.
If the candidate is very good, Management relaxes the Notice Period
as they do not want to loose a Talent for this reason.
In my view one cannot initially agree and later on brand it as unethical.
V.Raghunathan
From India
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