Recovery Of Training Cost - CiteHR
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Off late in my company, we have had numerous instances wherein we have new recruits resigning within one month of joining. The Management spends considerable amount of time and money to train them for the first 15 days. Sometimes the new recruits are send to different locations for various product training. Having imparted this, the new recruits resign stating frivolous reasons.
My query is can we adjust there one month salary against the cost of training incurred by the Company? Can we add this as a clause in Appointment Letter? If yes, than does this have to be supported by any document? Pls advise.
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Dear, I do agree with your viewpoint so i would suggest to search the doc, pls go through the site u will get it . Regards Vipin
Dear Raga,

Recovering training cost is illegal practice because training is part of employment for job enrichment by imparting training employer enhance skills of employees which is business imparative. otherwise you can hire people from streight jackets that means pay higher remuneration and bring expereinced employees.

But in order to save investment in hiring experienced employees employer prefer to employ less experienced or inexperienced employee and save his money by spending on some part of saving in training the employees.

You cannot justify this Baniya kind of approach and fins fault with employees who left organization due to less salary for the job which has more market value as result of training employee's job become more valuable and there is appreciation of his market price as result employees are found better option and they leave organization because your organization does not pay to market price.

In this case you as HR professional has to explain your managment that there is something wrong with HR strategy. And you have to chage your HR strategy to retain these best talent by offering not only training but also remuneration at par with market price of the job. But instead of paying market price for the job you believe that you did charity by imparting training and want ROI this does not fit into market trend of certain jobs.


first training must be worth it ?
are the skills trasnferrable
will the target audience buy the proposal?
if yes then training cud be a profit center + breeding ground for self + other players
2ndly dont adopt unethical moves
If your organisation is facing this problem frquently than it’s high time to do introspection, else there is no need to get panic.
I have something to add to the views expressed above. Any organisation, whether employing freshers or experienced, candidates, spends time and money on such employees during the initial period of employment - whether we call it training or on the job experience to the employee. When the employee leaves suddenly with or without reason the company has to employ another person and again the process of acquainting with the job costs the company time and money. Whether the Company should bear this loss or the employee is anybody's guess.
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