Industrial Relations And Labour Laws
Management Consultancy
Manager Hr

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Dear All, In Sales Team Junior Level attrition rate is too high. Would like to do Fix Term Contract for 12 months to avoid long term benefits or third party roll.
What would be best way according to you? Kindly guide. Many Thanks in advance for your suggestions.

From India, Vadodara
Sales Team Junior Level attrition rate is too high. - ????
a) What is your product?
b) Why people leave the organization?
c) What tenure they complete with your organization?
d) Is this problem related to particular HoD/Manager?
e) What is average Age & Gender of leaving employees?
7) What is educational qualification for leaving employees?
8) Where do they join after leaving your organization?

From India, Pune
you can have them on direct contract with fixed compensation.(TDS and Prof tax will be applicable) or revenue sharing basis.
From India, Chennai
Both outsourcing and engaging employees for fixed period with a Fixed Term Contract are illegal due to various reasons. The employees are in to your sales function and this function is very much a perennial function which can be carried out by employing full time employees regularly and as such you cannot have contract labour in that function. Sales involves high degree of personal relationship. Sales team will directly report to the company's prime persons. No compromise is possible in this function. An outsourced person cannot take a decision by himself as he is 'expected to be' working without direct supervision by the company officials. As such outsourcing is no way a remedy for this.
Coming to FTC or Fixed Term Contract, I would say that a contract of employment is always continuous unless it is for a particular project or time. It is okay if you give FTC appointment to an employee or some employees who are engaged in a particular project which is expected to be over in a certain time period. Once the project is completed the employment contract will get terminated automatically and without any notice or compensation the employee should leave the company. But sales is not like this. It is not for a fixed period. It will come to an end only when the company is wound up. Therefore, engaging sales team on FTC is not legally possible. Remember that engaging employees for long time on such contract is an unfair practice under the Industrial Disputes Act.
Now coming to practical scenario, you can see MNCs engaging employees in core areas of operation through contractors. Almost all big players do this. That has created a lot of aggrieved, disgruntled work force also and in many cases this has resulted in disputes, violence and murder of Personnel/ HR Managers!! (poor guys who implement the management policy and decisions!)
There have been a lot of FTC requirements in these new generation companies. Very strictly this practice is minimum wherever Trade Unions are strong.
Madhu T K

From India, Kannur
Mili: Are you operating in a market segment where sales personnel do not matter and your product, for any reason whatsoever, sells a lot?. Otherwise, it does not appear that FTC route will solve your problem of high attrition rate of your sales force. You also need to think as to whether the sales figure will go up with change of personnel on fixed intervals. Will it not affect your sales relationship, retention of customers etc.Will you not be disclosing your sales secrets to too many, a situation that can be exploited by your competitors. As pointed out by Madhu Sir it is not a correct solution otherwise also.
From India, Mumbai
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