Hello experts,
I am an HR of a private coaching institute in Pune, Maharashtra. The team size is 45 (including teachers and non-teaching staff) distributed in 4 centres. I am facing an issue of employees leaving the organization without serving notice period.
I understand and have seen in my previous organizations the common reasons to leave abruptly are health issues, family emergency, absconding. However, for a small scale organization like us with niche skills of each employee making them irreplaceable, it's very crucial to retain employees. Recently an employee left a day after salary got credited giving family reason.
Is it valid to cut employees' part of salary as a kind of security deposit and pay back with interest at FnF only when they serve the notice period?
From India, Pune
I am an HR of a private coaching institute in Pune, Maharashtra. The team size is 45 (including teachers and non-teaching staff) distributed in 4 centres. I am facing an issue of employees leaving the organization without serving notice period.
I understand and have seen in my previous organizations the common reasons to leave abruptly are health issues, family emergency, absconding. However, for a small scale organization like us with niche skills of each employee making them irreplaceable, it's very crucial to retain employees. Recently an employee left a day after salary got credited giving family reason.
Is it valid to cut employees' part of salary as a kind of security deposit and pay back with interest at FnF only when they serve the notice period?
From India, Pune
Hi,
Please find out the actual reason for employees leaving without information. You may try to reach them over phone and discuss with the reason. Conduct periodical one to one sessions get feedback especially for new joiners.
To promote long term employment I suggest you to introduce Retention Bonus based on the Grade. Let it be out of CTC salary and the amount will get accumulated on monthly basis but will be paid to the employee upon completion of certain time period say 50% after completing one year and another 50% upon completion of second year thereby employees might tend to continue for the sake of receiving Bonus amount.
From India, Madras
951Please find out the actual reason for employees leaving without information. You may try to reach them over phone and discuss with the reason. Conduct periodical one to one sessions get feedback especially for new joiners.
To promote long term employment I suggest you to introduce Retention Bonus based on the Grade. Let it be out of CTC salary and the amount will get accumulated on monthly basis but will be paid to the employee upon completion of certain time period say 50% after completing one year and another 50% upon completion of second year thereby employees might tend to continue for the sake of receiving Bonus amount.
From India, Madras
While the frustration of employees leaving without serving notice periods is understandable, implementing a policy to cut a portion of their salary as a security deposit might not be the best solution. Such a practice could raise legal and ethical concerns, and it may not be well-received by your employees. Instead, consider the following alternatives to address this issue:
1. Clear Communication and Policies:
Ensure that your notice period policy is clearly communicated to all employees during the onboarding process. Make sure they understand the importance of adhering to the notice period and the consequences of not doing so.
2. Exit Interviews:
Conduct exit interviews with employees who are leaving to understand their reasons for not serving the notice period. This feedback can help you identify any organizational issues that might be contributing to this problem.
3. Flexible Notice Periods:
Consider offering flexible notice periods based on individual circumstances. This could include shorter notice periods for employees facing genuine emergencies or health issues.
4. Encourage Open Communication:
Create an environment where employees feel comfortable discussing their plans to leave in advance. Encourage them to communicate any potential issues that might affect their notice period, allowing the organization to plan accordingly.
5. Retention Strategies:
Implement retention strategies to create a positive work environment that encourages employees to stay. This could include career development opportunities, competitive compensation, work-life balance, and employee recognition programs.
6. Non-Compete Agreements:
You can introduce non-compete clauses in employment contracts that prohibit employees from joining competitors for a specified period after leaving. However, these agreements should be legally valid and enforceable in your jurisdiction.
7. Consider Offering Notice Pay:
If employees are leaving without serving notice, consider recovering the notice pay amount from their final settlement.
8. Legal Consultation:
Consult with a legal expert to ensure that any policies or actions you take are compliant with labor laws and regulations in your region.
It's important to remember that retaining employees involves creating a positive work environment and addressing their needs and concerns. By focusing on improving employee engagement, communication, and organizational culture, you can work towards reducing instances of employees leaving without notice.
1. Clear Communication and Policies:
Ensure that your notice period policy is clearly communicated to all employees during the onboarding process. Make sure they understand the importance of adhering to the notice period and the consequences of not doing so.
2. Exit Interviews:
Conduct exit interviews with employees who are leaving to understand their reasons for not serving the notice period. This feedback can help you identify any organizational issues that might be contributing to this problem.
3. Flexible Notice Periods:
Consider offering flexible notice periods based on individual circumstances. This could include shorter notice periods for employees facing genuine emergencies or health issues.
4. Encourage Open Communication:
Create an environment where employees feel comfortable discussing their plans to leave in advance. Encourage them to communicate any potential issues that might affect their notice period, allowing the organization to plan accordingly.
5. Retention Strategies:
Implement retention strategies to create a positive work environment that encourages employees to stay. This could include career development opportunities, competitive compensation, work-life balance, and employee recognition programs.
6. Non-Compete Agreements:
You can introduce non-compete clauses in employment contracts that prohibit employees from joining competitors for a specified period after leaving. However, these agreements should be legally valid and enforceable in your jurisdiction.
7. Consider Offering Notice Pay:
If employees are leaving without serving notice, consider recovering the notice pay amount from their final settlement.
8. Legal Consultation:
Consult with a legal expert to ensure that any policies or actions you take are compliant with labor laws and regulations in your region.
It's important to remember that retaining employees involves creating a positive work environment and addressing their needs and concerns. By focusing on improving employee engagement, communication, and organizational culture, you can work towards reducing instances of employees leaving without notice.
Dear Priti Parchure,
If the employees are leaving without serving a proper notice period, then it is called an abandonment of employment. You need to identify the root cause of this problem. Why do they do it?
One of the reasons is the lack of loyalty towards the organisation. However, loyalty is not a one-way street. If one expects employees to be loyal, then fairness demands loyalty to the organisation by the employer also.
The second reason is the unsuitable culture of the organisation. What kind of culture your organisation has? Are the employees treated properly? How is the interpersonal environment in the company? Do the whims and fancies of the managers or the top boss rule the roost?
You have come up with the idea of taking caution money from the employees. The money will be paid provided they complete the notice period. However, not in all cases this formula could work. Those who wish to abandon employment will have no qualms about forgoing the security deposit. What if they rationalise the loss and move on?
Most companies grapple with the challenge of employee attrition. Your challenge is one level up. The only remedy I can suggest is to do a survey of the organisation's culture. In fact, the survey is also not required. This is because the reasons for the abandonment of the employees are well known. However, the survey just validates and uncovers the known truth.
Thanks,
Dinesh Divekar
From India, Bangalore
If the employees are leaving without serving a proper notice period, then it is called an abandonment of employment. You need to identify the root cause of this problem. Why do they do it?
One of the reasons is the lack of loyalty towards the organisation. However, loyalty is not a one-way street. If one expects employees to be loyal, then fairness demands loyalty to the organisation by the employer also.
The second reason is the unsuitable culture of the organisation. What kind of culture your organisation has? Are the employees treated properly? How is the interpersonal environment in the company? Do the whims and fancies of the managers or the top boss rule the roost?
You have come up with the idea of taking caution money from the employees. The money will be paid provided they complete the notice period. However, not in all cases this formula could work. Those who wish to abandon employment will have no qualms about forgoing the security deposit. What if they rationalise the loss and move on?
Most companies grapple with the challenge of employee attrition. Your challenge is one level up. The only remedy I can suggest is to do a survey of the organisation's culture. In fact, the survey is also not required. This is because the reasons for the abandonment of the employees are well known. However, the survey just validates and uncovers the known truth.
Thanks,
Dinesh Divekar
From India, Bangalore
Creating long-term employment in the coaching industry involves a tailored approach that considers the unique dynamics of the Indian job market and cultural context. Here are specific strategies to help you achieve this goal:
Focus on Purpose: Emphasize the meaningful impact that coaching has on students' lives. Align employees with the organization's mission to foster a sense of purpose and commitment.
Career Growth Path: Provide clear career progression paths for employees. Offer opportunities for promotions, skill development, and leadership roles within the coaching organization.
Skill Enhancement: Offer regular training and skill development programs to enhance employees' teaching and coaching abilities. Invest in continuous learning to keep them motivated.
Work-Life Balance: Promote a healthy work-life balance by implementing flexible work arrangements and encouraging employees to take breaks to recharge.
Recognition and Rewards: Recognize and reward employees for their achievements and contributions. Publicly acknowledge their successes and milestones.
Competitive Compensation: Provide competitive salaries and benefits to attract and retain top talent. Regularly review and adjust compensation to match industry standards.
Inclusive Work Environment: Foster an inclusive and diverse work environment that respects different backgrounds, perspectives, and experiences.
Performance Feedback: Conduct regular performance evaluations to provide constructive feedback and guidance for improvement. Recognize and celebrate achievements.
Employee Empowerment: Involve employees in decision-making processes and give them ownership over certain aspects of their roles. Empowered employees are more likely to stay long-term.
Employee Well-Being: Prioritize employee well-being by offering wellness programs, counseling services, and initiatives that promote mental and physical health.
Open Communication: Maintain open lines of communication with employees. Listen to their concerns, ideas, and feedback and take action to address their needs.
Stable Work Environment: Provide a stable work environment where employees feel secure about their job and the future of the organization.
Personal Development Plans: Collaboratively create personal development plans for employees, outlining their growth trajectories and skill enhancement.
Team Building: Organize team-building activities and events that strengthen relationships among colleagues and create a sense of camaraderie.
Job Satisfaction: Regularly assess employee satisfaction levels and identify areas of improvement. Address any issues promptly to maintain a positive work environment.
Leadership Development: Invest in leadership development programs to cultivate strong leaders who can inspire and guide teams effectively.
Mentorship Programs: Establish mentorship programs where experienced educators guide and support newer employees, fostering a sense of community.
Quality Work Environment: Provide modern facilities, technology, and teaching resources that contribute to a comfortable and efficient work environment.
Transparency: Be transparent about organizational decisions, changes, and future plans. This helps build trust and confidence among employees.
Feedback Loop: Establish a feedback loop that allows employees to share their suggestions, concerns, and ideas for improvement.
By combining these strategies with a genuine commitment to employee well-being and growth, you can create an environment that encourages long-term employment and loyalty in the coaching industry.
Focus on Purpose: Emphasize the meaningful impact that coaching has on students' lives. Align employees with the organization's mission to foster a sense of purpose and commitment.
Career Growth Path: Provide clear career progression paths for employees. Offer opportunities for promotions, skill development, and leadership roles within the coaching organization.
Skill Enhancement: Offer regular training and skill development programs to enhance employees' teaching and coaching abilities. Invest in continuous learning to keep them motivated.
Work-Life Balance: Promote a healthy work-life balance by implementing flexible work arrangements and encouraging employees to take breaks to recharge.
Recognition and Rewards: Recognize and reward employees for their achievements and contributions. Publicly acknowledge their successes and milestones.
Competitive Compensation: Provide competitive salaries and benefits to attract and retain top talent. Regularly review and adjust compensation to match industry standards.
Inclusive Work Environment: Foster an inclusive and diverse work environment that respects different backgrounds, perspectives, and experiences.
Performance Feedback: Conduct regular performance evaluations to provide constructive feedback and guidance for improvement. Recognize and celebrate achievements.
Employee Empowerment: Involve employees in decision-making processes and give them ownership over certain aspects of their roles. Empowered employees are more likely to stay long-term.
Employee Well-Being: Prioritize employee well-being by offering wellness programs, counseling services, and initiatives that promote mental and physical health.
Open Communication: Maintain open lines of communication with employees. Listen to their concerns, ideas, and feedback and take action to address their needs.
Stable Work Environment: Provide a stable work environment where employees feel secure about their job and the future of the organization.
Personal Development Plans: Collaboratively create personal development plans for employees, outlining their growth trajectories and skill enhancement.
Team Building: Organize team-building activities and events that strengthen relationships among colleagues and create a sense of camaraderie.
Job Satisfaction: Regularly assess employee satisfaction levels and identify areas of improvement. Address any issues promptly to maintain a positive work environment.
Leadership Development: Invest in leadership development programs to cultivate strong leaders who can inspire and guide teams effectively.
Mentorship Programs: Establish mentorship programs where experienced educators guide and support newer employees, fostering a sense of community.
Quality Work Environment: Provide modern facilities, technology, and teaching resources that contribute to a comfortable and efficient work environment.
Transparency: Be transparent about organizational decisions, changes, and future plans. This helps build trust and confidence among employees.
Feedback Loop: Establish a feedback loop that allows employees to share their suggestions, concerns, and ideas for improvement.
By combining these strategies with a genuine commitment to employee well-being and growth, you can create an environment that encourages long-term employment and loyalty in the coaching industry.
Thanks Lakshmi.
Instead of monthly deduction, can it be 50% each from two consecutive salaries? Because, the employee I mentioned, left taking just the first salary of hers. In such cases, this amount deducted under retention bonus can act as a penalty.
Please suggest
From India, Pune
Instead of monthly deduction, can it be 50% each from two consecutive salaries? Because, the employee I mentioned, left taking just the first salary of hers. In such cases, this amount deducted under retention bonus can act as a penalty.
Please suggest
From India, Pune
Hi Priti,
Legally speaking Employer cannot hold any part of wages/salary earned by workers/employees to retain the employees in the service. As a shortcut if you are fixing 30,000/- CTC for an employee allocate Rs.1000/- for Retention Bonus which will be out of CTC. So CTC Rs.29000/+ Rs.1000/- as Retention Bonus. Make it clear in writing that RB will be paid only upon completion of certain specific period. Retention Bonus is just a small move to arrest attrition %. If the working working environment is not congenial, if opportunity for growth is not there , if work hours are more, if salaries are paid late (and so on.....) irrespective of Retention bonuses employees will tend to leave. Even if everything is smooth one or two will abscond without information which is natural. But if the numbers are on the higher side then you need to do R&D and bring in measures to arrest the situation.
From India, Madras
Legally speaking Employer cannot hold any part of wages/salary earned by workers/employees to retain the employees in the service. As a shortcut if you are fixing 30,000/- CTC for an employee allocate Rs.1000/- for Retention Bonus which will be out of CTC. So CTC Rs.29000/+ Rs.1000/- as Retention Bonus. Make it clear in writing that RB will be paid only upon completion of certain specific period. Retention Bonus is just a small move to arrest attrition %. If the working working environment is not congenial, if opportunity for growth is not there , if work hours are more, if salaries are paid late (and so on.....) irrespective of Retention bonuses employees will tend to leave. Even if everything is smooth one or two will abscond without information which is natural. But if the numbers are on the higher side then you need to do R&D and bring in measures to arrest the situation.
From India, Madras
Leaving the employment is the will of the employee. An employee leaves one for another with better package or facility.
The employees are leaving should honour the terms of employment, if are not doing is gross violation.
Don't let them go this way, send them legal notice in claim of payment in leu of notice.
Change the employment clause or take bond with clause of pay twice of the notice amount, if leaves without notice. There are several procedures to arrest the issue considering the reasons of leaving job.
From India, Mumbai
The employees are leaving should honour the terms of employment, if are not doing is gross violation.
Don't let them go this way, send them legal notice in claim of payment in leu of notice.
Change the employment clause or take bond with clause of pay twice of the notice amount, if leaves without notice. There are several procedures to arrest the issue considering the reasons of leaving job.
From India, Mumbai
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