PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Business Mentor, Consultant And Trainer
Insolvency N Gst Professional
Prashant B Ingawale
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Prashant B IngawaleAm working with very growing company. - Means your top management too wants to grow
Attrition rate is too high in all departments. - What are the reasons for it?
(50% in marketing) - Any particular problem with this department Boss/ Collegue/ Team Spirit?
that's why since long As per top management instructions we are not issuing appointment letter. This is unethical practice contradicting to your first line " Am working with very growing company" .
Senior & Middle level employees are leaving without notice period. - Who are the persons those prompting this to do?
Work suffers due to them. - Its Obvious
Instead of issuing appointment letter to existing 700 employees, what would be the best solution we can have they should leave with notice period. - 1.Why don't you do all that necessary things by which people will not even think to leave your organization in short span only?
From India, Pune
Dinesh DivekarDear Mili,
This is in addition to what Prashant has said.
Appointment letter is a contract between employer and employee. It is valid under the provisions of Indian Contract, 1872. If the appointment letter is not issued that does not mean that the contract does not exist. Even then also it exists and it is called as implied contract. Nevertheless, implied contract does not imply the terms and conditions of the employment as well. These need to be mentioned explicitly in the appointment letter itself.
Not issuing appointment letter is illegal under the provisions of shops and establishment act or factories act as applicable.
Coming to the issue of offer letter. It appears that alike many in HR, your management has confusion between offer letter and appointment letter. Former cannot be at par with the latter. Validity of the offer letter ceases to exist once the employee joins the company.
Even if you mention the conditions of separation in the offer letter, these will not be valid because if the contract itself is not establishment, then these will not be legally enforceable.
Finally for a growing company like yours if employee attrition is a severe problem, then it manifests faulty management practices or practices that are unfriendly to the employees. Therefore, your management needs to address this root cause. Experiments like introduction of notice period clause in offer letter are superficial in nature and will not work beyond a point. Probably business growth has blinded your management, hence this tinkering in the general management practices.
From India, Bangalore
Good Morning !!!
All departments are having their targets/ key KPI's
Whoever perform well they are working since long.
Whoever fail to achieve target they will get terminated by top management or they quit by own. For sales team they are giving 2 to 3 three months time.if they won't give single rupee business. Am working with FMCG. they will get terminated very quickly. For other departments Top Management is giving one year time.
Every month 50 to 60 termination would be there & recruitment accordingly.
In that scenario issuing offer letters, F & F ,Recruitment would HR major jobs.
Now kindly guide best way, Can we issue back dated appointment letters to other departments or policy for sales & marketing team or common for all?
Am thinking to make one policy to address all sales existing & new employees in which all term & condition would be there like appointment letter.
Will get free from monotonous jobs & concentrate to develop good culture in the organization.
Kindly guide as per factories act 1948. In which do we have any option rather than appointment letter?
From India, Vadodara
AnonymousYou need to have a exit Interview calls to the associates who left recently, whether they left getting a job or left due to any issues.
If issues what are they
2. Work Burden
3 . Unable to Understand the type of work
This can solve your problems, and important thing a company cannot stop or hold offer letters without informing to the employee at the time of joining- Conditions apply.
From India, Hyderabad
nathraoAttrition is high.
50% in Marketing Department-- why?? Marketing department is the visible face of the company and departures of senior staff rapidly will be easily noticed.
Growing company means lot of pressure on employees.
But remember your attrition rate will put paid to growth.
Immediate action plan to tackle attrition and adoption of basic rules of HR need to be initiated.
Appointment letters are a basic requirement of any job contract.
Terms and conditions of employment -notice period for exit and other terms and conditions fo job need to be written in black and white.
Do not function in an opaque manner.
Top management needs to take holistic view of the whole thing-have proper HR policies, exit and entry policies.
Attrition of senior level staff is not a good sign and by conducting exit interviews reasons can be analysed.
Basically management should treat employees as valuable and not as easily replaceable pawns.
Growth will be badly hit by improper HR policies.
From India, Pune
mili_sinharaDear Seniors, Many Thanks for your highly appreciated reply. Thanks, Mili
From India, Vadodara