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We are a start-up company and building our team. The top management in my organization is insisting on the submission of original certificates of all the new joiners. The philosophy behind such a decision is to retain the employees and control attrition. For me, it's great ambiguity as I believe that it would be difficult to attract talent and retain it with such outmoded policies.

I am already struggling for the welfare of existing employees and attracting new talent from the recruitment market as they perceive this policy as illegitimate and unreasonable. Please suggest a way out so that I am able to recruit good employees and convince the management as well. Please let me know if labor law has any provisions for or against this practice.

Regards,
Dinesh

From India, Pune
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Organizations looking at process maturity should not be thinking this way. Converting the threats into challenges and making strategies to overcome those would be the best option. In this particular case, the threat is attrition. Challenges could be retention, and strategies could be employee-friendly policies and creating an environment for employees to stay with the company (revisit policies, structure, and growth opportunities inside the organization, etc.). If it is required, you can think of getting a bond signed from the employees.
From India, Chennai
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Hire freshers and train them. In turn, keep their certificates for a period of 18 months. Within 18 months, give them 2 increments: one after completing training and the second one after 1 year. They shall definitely not leave if, during this period, they adapt themselves to the company's atmosphere.
From India, Madras
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Dinesh - The need for originals is to ensure that the copies are 'true' and not printouts. If your employer still insists, then let them know you'll need to spend a lot of money in ensuring the originals are 'protected', as specified by law and HRDB standards applicable in today's times:

1) Originals need to be kept secure from destruction - which means a safe deposit record management system - Huge expenses!

2) Originals need to be protected from damage, including natural causes - that's another huge expense with climate controls, etc.

3) Original documents are possessions of an individual nature and thus, the employee is justified in asking for them the day he quits or even needs it for other requirements - and can file a claim with the police or in court for 'unlawful' possession of documents.

Your recommendation ought to be that originals need to be submitted just to verify the copies are verified as 'true' and then return it back to the employee the same instant; retention of the 'Original' document is an ethical issue. The top management (HR Head) will definitely understand when you bring up the 3 points above. Hope it helps.

From India, Mumbai
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From India, Mumbai
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Hello Dinesh,

Talentsorcerer has given you good inputs on 'how to handle' your management with respect to avoiding the retention of originals.

And as far as the bond solution is concerned, just use the research facility in CiteHR and you will know how many employees jump bonds—will your company be ready to get into the legal aspects—including the legal expenses and time involved? Please note that this is not a 'right' or 'wrong' situation at all—it's more to do with the 'preferences' and 'priorities' of the company.

Prima facie, retaining originals would definitely lead to a 'perception' problem with the employees [like talentsorcerer mentioned]—in a way, you are conveying to them that 'we don't trust you, but you trust us'. Would that mentality be realistic/practical, in general and in the long term? If it were you, would you (or, for that matter, anyone in the management) agree to such a condition?

However, this is not to say that the problem you are facing is unrealistic or rare—it definitely is a problem even for well-established companies. However, the way the issue is being addressed isn't just right—if you are looking for a long-term solution.

Some of the solutions we had given to start-up clients, to preempt rather than handle the attrition issues, were as follows:

1] Instead of synchronizing the first salary raise with clearing the probation, it was given after 3 months of joining—and this was clearly mentioned in the offer letters. This conveyed 2 things: if you perform, money isn't a problem, which we are 'committing in writing' and your staying with us for a long time isn't linked with the salary we give.

2] Where the probation was for 1 year, it was reduced to 6 months, and in some cases to 3 months, subject to satisfactory performance.

3] Take into confidence every employee on the overall [not the details, for other reasons] organizational plans for the future—essentially, this generates, very subtly, a sense of belonging in the employee for the company. Once this is achieved, not many would leave the company, unless something drastic happens. This is also not to say that there won't be exceptions to this way of handling—there definitely will be. But whoever stays will be imbued with a 'sense of belonging'—which goes a long way for any company.

4] A sound and simple grievance reporting and redressal mechanism—ensuring that the controlling person is 'recognized' as fair and impartial—since if this aspect isn't adhered to, this step can lead to a far more serious problem than if there wasn't such a mechanism in place at all.

5] Typical steps to enhance the camaraderie among the staff—I think this issue was discussed many times in CiteHR earlier.

However, please remember that not all of the above worked in all companies—that's where the true intent of the management comes out. Also, these suggestions were to handle experienced persons—not freshers, since the basic mental psyche of freshers is different.

The bottom line always has to be: we trust you—but if you take advantage of it, we will come down very hard (something that's an equivalent to the legal line: innocent until proven guilty).

All the best.

Regards,

TS

From India, Hyderabad
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Can we not look at this option as an undertaking signed by the employee stating that he/she shall serve the company for a particular duration after receiving training in certain areas provided by the company? If the employee breaches this agreement, he/she shall be required to pay the employer the specified costs outlined in the undertaking. Is this practice illegal?

Regards,
Mathew

From India, Chennai
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Hello Matthew,

You have a valid suggestion. But the problem arises when a company attempts to 'use' the training angle to coerce an employee into signing a bond/agreement without any intention of providing training or actually delivering any training. Just go through the earlier posts on CiteHR, and you will come across many discussions on such occurrences. However, this does not imply that all such posts are authentic—there are also employees who attempt to exploit this situation.

I hope you understand the point.

Regards, TS

From India, Hyderabad
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Hi Dinesh,

According to me, the submission of original documents is not a very healthy idea. Instead of taking original documents, your company can make a valid contract to minimize attrition. Firstly, nobody will agree to submit their important documents to the company. Even if anybody is willing to submit, there is still a high risk factor involved. How your company keeps the submitted documents is crucial as your company must take special care of all those important documents to prevent damage, which can be very costly.

If you are finding difficulties in recruiting new people, it may be because there are many companies in the market that provide jobs without requiring original documents. Regarding the attrition part, there are various ways to minimize attrition such as:

1. Various training programs.
2. Employee engagement sessions like small rewards and recognition programs, calling their family, and arranging a family day.
3. Offering various performance bonuses.
4. Listing out the best performer's name and photo in the reception area.

From India, Durgapur
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Dinesh,

I am also against collecting the documents. There is no company that has grown by collecting documents. However, HR has no choice if management insists on collecting the certificates.

Thanks,
Prakash

From India, Madras
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