Dear all,
As per the client's request, we are allowing our employees to work from our client's place after establishing an MOU between the two companies. After three months, our employees who are working from the client's place are starting to resign one by one. Meanwhile, I came to know that one of my outsourced employees, who had absconded a month before, is now working in the client company. I am no longer interested in continuing business with them. Kindly guide me on how to handle this situation with the client and please correct the letter below, which I wish to send to my client:
Disappointment Letter
I would like to express my disappointment. I hope you agree with me that our outsourced employees working from your place are resigning gradually, and this is not acceptable under any circumstances. We need to understand the reasons behind this issue. I trust that you will address this matter urgently. I also trust that you will take the necessary precautions to prevent such incidents in the future.
I am looking forward to hearing back from you.
Regards,
XYZ
From India, Chennai
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6As per the client's request, we are allowing our employees to work from our client's place after establishing an MOU between the two companies. After three months, our employees who are working from the client's place are starting to resign one by one. Meanwhile, I came to know that one of my outsourced employees, who had absconded a month before, is now working in the client company. I am no longer interested in continuing business with them. Kindly guide me on how to handle this situation with the client and please correct the letter below, which I wish to send to my client:
Disappointment Letter
I would like to express my disappointment. I hope you agree with me that our outsourced employees working from your place are resigning gradually, and this is not acceptable under any circumstances. We need to understand the reasons behind this issue. I trust that you will address this matter urgently. I also trust that you will take the necessary precautions to prevent such incidents in the future.
I am looking forward to hearing back from you.
Regards,
XYZ
From India, Chennai
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Dear XYZ,
Correcting the format of the "Disappointment Letter" is a different matter. However, before sending the letter to the client, have you investigated the causes of employee exits? How many employees exited in what span of time? What is the percentage? What is the attrition ratio in the client's company for the employees who are on their rolls?
Just because of continuous exits, it would be wrong to blame the client. Have you conducted exit interviews? What are the outcomes of such interviews? Sending a disappointment letter could be counter-productive and it might challenge your assumption. Possibly some other reasons like poor remuneration may also be the cause, for which not necessarily the client is responsible.
Lastly, if possible, go in person and visit the client. In the personal meeting, explain your difficulties regarding employee turnover and how it increases your costs. Sending a letter like this could be assertive in the highest kind. The language that you have used is quite harsh. Please note that harshness has no place in a professional setup.
In view of this, I recommend investigating the matter thoroughly, having a personal meeting with the client, and then sending a letter as a follow-up or just sending minutes of the meeting. Please note that there are intricacies in every business and losing a client is not advisable. In running a business, one has to wade through these challenges. You have this type of challenge.
Thanks,
Dinesh Divekar
From India, Bangalore
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Correcting the format of the "Disappointment Letter" is a different matter. However, before sending the letter to the client, have you investigated the causes of employee exits? How many employees exited in what span of time? What is the percentage? What is the attrition ratio in the client's company for the employees who are on their rolls?
Just because of continuous exits, it would be wrong to blame the client. Have you conducted exit interviews? What are the outcomes of such interviews? Sending a disappointment letter could be counter-productive and it might challenge your assumption. Possibly some other reasons like poor remuneration may also be the cause, for which not necessarily the client is responsible.
Lastly, if possible, go in person and visit the client. In the personal meeting, explain your difficulties regarding employee turnover and how it increases your costs. Sending a letter like this could be assertive in the highest kind. The language that you have used is quite harsh. Please note that harshness has no place in a professional setup.
In view of this, I recommend investigating the matter thoroughly, having a personal meeting with the client, and then sending a letter as a follow-up or just sending minutes of the meeting. Please note that there are intricacies in every business and losing a client is not advisable. In running a business, one has to wade through these challenges. You have this type of challenge.
Thanks,
Dinesh Divekar
From India, Bangalore
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Mr.Dinesh Divekar, Thank you so much for your valuable reply.
From India, Chennai
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From India, Chennai
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(Fact Check Failed/Partial)-The user reply does not address the content of the original post.
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Have you done root cause analysis on employee attrition? Have you taken exit interviews of the employees who left? What type of difficulties/problems do your employees face at client locations?
First of all, you need to study the MoU. This document governs your relationship with your client. If your MoU is silent on the issue of employing your current or ex-employee(s), then nothing can be done.
Regarding absconded employees, is there any complaint or charge against them from your side? If not, you should not do anything. If there is something related to dues or integrity, you can inform your client, and the rest depends on your client.
A face-to-face meeting may help clear any misunderstandings or doubts.
From India, Thane
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First of all, you need to study the MoU. This document governs your relationship with your client. If your MoU is silent on the issue of employing your current or ex-employee(s), then nothing can be done.
Regarding absconded employees, is there any complaint or charge against them from your side? If not, you should not do anything. If there is something related to dues or integrity, you can inform your client, and the rest depends on your client.
A face-to-face meeting may help clear any misunderstandings or doubts.
From India, Thane
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(Fact Check Failed/Partial)-The user reply contains several inaccuracies. It is important to address the issues of employee resignations and the presence of an absconded employee at the client's site properly. Additionally, the legal implications of the MOU and potential actions regarding the absconded employee need to be considered. Amendment: Provide proper guidance on handling the employee resignations, address the legal aspects of the MOU, and consider appropriate actions regarding the absconded employee.
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Mr. Dinesh Divekar,
As you said, I conducted a thorough investigation with my employees regarding their resignations. The client is a startup company, and they are personally approaching our employees to recruit them as their own and offering some monetary benefits. At the same time, they are receiving a salary from my end. This is the second time I am facing this issue. In order to retain my client, I have continued my business with them after having two personal meetings. However, I am incurring losses due to their irregular payments and pending payments each time. If this continues, there may be further losses in the future. Therefore, I have decided to stop continuing the business with them.
Thank you.
From India, Chennai
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As you said, I conducted a thorough investigation with my employees regarding their resignations. The client is a startup company, and they are personally approaching our employees to recruit them as their own and offering some monetary benefits. At the same time, they are receiving a salary from my end. This is the second time I am facing this issue. In order to retain my client, I have continued my business with them after having two personal meetings. However, I am incurring losses due to their irregular payments and pending payments each time. If this continues, there may be further losses in the future. Therefore, I have decided to stop continuing the business with them.
Thank you.
From India, Chennai
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(Fact Checked)-The user's reply contains accurate insights into the situation with the client company. The issues of employees being approached by the client and facing irregular payments are correctly identified. (1 Acknowledge point)
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Dear XYZ,
This is the reply to your second post.
If the client is poaching contract employees, it could be partially due to the improper wording of the contract. Startup companies often resort to these methods to save costs on the service charge of the contractor plus service tax.
Regarding irregular payments, I recommend having a third and final meeting. Discuss each point and take notes to create the Minutes of the Meeting (MoM). Afterwards, send out the MoM. As a follow-up to the MoM, send a letter for the termination of the contract.
My main point was about maintaining a professional approach in your communication. It's understandable to feel frustrated because of your client; not all clients are as easy to work with. However, we can separate professionally without letting this frustration show. You have provided the format of the letter in your first post. However, a letter of this nature could alienate the client and potentially lead to further delays in payment. Please do not overlook this aspect.
Thanks,
Dinesh Divekar
From India, Bangalore
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This is the reply to your second post.
If the client is poaching contract employees, it could be partially due to the improper wording of the contract. Startup companies often resort to these methods to save costs on the service charge of the contractor plus service tax.
Regarding irregular payments, I recommend having a third and final meeting. Discuss each point and take notes to create the Minutes of the Meeting (MoM). Afterwards, send out the MoM. As a follow-up to the MoM, send a letter for the termination of the contract.
My main point was about maintaining a professional approach in your communication. It's understandable to feel frustrated because of your client; not all clients are as easy to work with. However, we can separate professionally without letting this frustration show. You have provided the format of the letter in your first post. However, a letter of this nature could alienate the client and potentially lead to further delays in payment. Please do not overlook this aspect.
Thanks,
Dinesh Divekar
From India, Bangalore
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(Fact Check Failed/Partial)-The user's reply contains some inaccuracies. There is no mention of the legality of poaching contract employees or the handling of termination properly. The advice on communication and termination may not align with best practices.
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Mr.Dinesh, Thanks for your suggestions and i want to take this issue in the polite manner. Can you please send the sample letter for the termination of the contract.
From India, Chennai
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From India, Chennai
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(Fact Check Failed/Partial)-The user's reply is incorrect. Terminating a contract should be handled professionally with legal advice. Seek proper guidance to ensure compliance.
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(Fact Check Failed/Partial)-The user reply contains valuable advice on investigating the causes of employee exits, conducting personal meetings, and avoiding harsh language in professional communication. However, it does not address the legal implications of the situation, such as the absconded employee working at the client's company. It would be beneficial to consider legal aspects and potential liabilities in this scenario.