Is It A Retention Strategy? - Jpg Download - CiteHR
Dgm - Hr
Trainer, Facilitator & Consultant
Hr Professional
Rajat Joshi
Hr Consulting ,trainer -creative Thinking
Software Related
Shweta Malhotra
Hr Manager
Tony Thomas.A
Hr Professional
Talent Acquisition, Training
Placement Consultant

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Dear Seniors,

I work for a company which has engineering work as one of the verticals. Recruitment is difficult as we are very specific when it comes down to few thing.

I wanted to know what all are the possible retention policies for such kind of crowd.

Majority we have are Kerala boys in this team. One of the retention strategies which we have are taking a cheque from them on joining of first three months salary and returning it to them on one year completion.

Management is now deciding to change the clause and extending it to two years.

I need to know from seniors would that work out in retaining people or would that tighten up the recruitment further.

Please reply..

well your are following a bad practice, mmmmm btw its a good idea to take cheques for security, but not encouraged, so please return the cheques of all employees. PLS PLS PLS PLS return the cheques of all employees PLS PLS PLS
Hi Shewta,

Fully agree with K Ravi as this is not a good practice and certainly not the retention strategy at all!..

Just ponder if the Management did the same thing with you ..would you still stay in the organization and be happy?..

Please refer the link on retention strategies which I had written in 2005 on this forum and it may assist you to formulate some sound strategies.

You mentioned that most of them are from Kerela..God’s own Country..have you celebrated the Onam festival in your office by way of organizing the flower rangolis or giving them gifts like silver coins..make them feel home as they are away from home!

Most importantly remember, Retention strategy is no rocket science…

Best wishes,


Dear Mr. Rajat,
Thank you for your prompt reply....and the informative link as well...
We celebrated Onam with full spirits and fun ...We had arranged traditional food for that day know as "Onasadya" and were all dressed in traditional outfits ...
Now going back to my concern ... The group head of that team is not willing to reduce the limit it has to be two years do u convince her...
As she says that training team members in that team takes round about eight months and almost on completion of one year people quit jobs..
I know it my self that this would be forceful retention and the productivity of such an employee would be nill.........

Dear Shweta

The practise of keeping cheque is as good as a bond. Even if you are getting people with this one year clause, you will find it very difficult to recruit people with two years clause.

Explain your HOD that it will affect the overall moral of the people, and if at all someone gets a good offer outside, they may opt for letting the 3 months salary go off. There are companies, big engineering & construction companies who do reimburse such amount in lieu of notice period or bonds, to attract good people and make them join fast.

Retension is to make people stay in your company, out of their own desire. Not by pressurising them. There could be steps where you can introduce a good gift ( a family tour for 4 days in India, or a household appliance) as non monetory reward, or a amount of 50000 to 1.5 lacs as monetory benifit, for serving the company for long.

These thngs should be from company's side, not to confiscate money of employees even before they get their first salary from your company.

Its a shame that senior people of your company practise such low level retension systems.

Sr. Executive HRD

Dear Ms. Priyanka,

Thank you for your opinion…You have actually got it right I am really finding it difficult to recruit people infact I made an offer to four candidates none of them materialized due to the same reason..

I think you are right …Some kind of monetary benefit or some kind of recognition needs to be introduced as when the employees get older in the organization.

On human ground and on professional ground I would still fight against two years bond…. Rest all is for the management to decide…

Thank you all you seniors who have contributed their opinions… Every single feedback does matters …

Hi Shweta,
Numbers would help- the only way to convince your managers that your policy is bad is to show them the numbers (in this case, exit interview data, and offer rejects with the reasons). Second, look for alternatives to this practice. A service bond is practised by many companies but it is hard to recover. If your training costs are high, you could consider tie-up with an external training institute: the candidate pays for (all or part of) his own training, but on completion, you will make him an offer provided he meets other criteria. Here the money the candidate spent on training is the stick, and the work experience is the carrot. You could also scout local colleges for similar tie-ups.
Sreedevi V

one thing to convince ur group head is to ask her to view this thread seriously, do it ;-)
No you do not get much productivity from people whom you force to stay on. The point is that you should endeavour to become an attractive brand and that is surely not the way to make yourselves appealing to prospective employees. Rather address why people cant wait to leave you rather than forcing them to stay with you.
To solve any problem look at the causes. Is there enough data to prove the fear of people leaving after taking the training. If yes, what were the causes, untill you have facts you would be shooting in dark. Evey industry has attrition. what is your industry benchmark. and what are your counterparts doing. It will give you some pointers to work on.

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