Hi CiteHR,
I had faced the problem of retaining freshers in my company, initially we tried to get the BOND signed from them, but it really did not work. Good candidates used to back out at the very mention of word BOND.
So I thought for a while & suggested my management to raise the salary package of the freshers by 30-50% than the normal standard industry level & retain 25% of the the emoluments as deposit & keep such an amount very religiously in fixed deposit of a bank & return the amount to employees after a period of one year with inetrest ( same as bank would give). The amount which is forfeited ( if employee leaves before completion of one year), is to be utilised for the welfare of the on roll employees.
( Here I must tell you that we are small company, our training to the freshers is specialised one, the trainers come from US to train them.)
By this we really achieved what was expected, the advantages were as follows :
1. As we were paying more to the freshers than any other company, we could hire the best candidates
2. We saved on attrition cost in terms of money, energy, time etc.
3. As the cost of the employee is too high compared to his experience, he is not easily hired by other companies ( even though his take home is less, his CTC is very high )
4. Any wise employee would not like to hop for a job, unless he is getting more than the present employer. The employees have a full trust on management, they know, they will get their deposit back with interest once they complete one year.
5. The employees are also convinced that the management is paying them more & retaining the EXTRA part of remueration.
After the successful implementation of this strategy we have started applying the same logic to confirmed employees too.......... even to these employees we have given 40% increment compared to our normal increment of 15-20% every year.
the 40% increment is divided in following way :
50% - direct raise in salary
30% - based on monthly performance to be paid next month
( this way we can timely check on the commitments given by them)
20% - to be retained & paid after six months alongwith interest
( Only initially it will be for one year)
This way we will always have six months sizable amount with the company, hence, the employee will think twice before putting his papers. Atleast it has stopped employees from hopping jobs for few thousands.
This way again we have seen to it, that the other companies will not be able to hire our employees easily, as their cost is too high. At the same time we have also taken some measures to give all possible facilities to the employees, we had a employee satisfaction survey & all the employees are really satisfied with the culture, the facilities & the future plans.
Mind you, the formula based on increment is applicable to only to employees with outstanding performance & not to all, so its a sort of pride for those employees who are under this scheme.
The rest of the employees are looking forward to it.
Pl. let me know your comments.
Regards,
KAVITA
I had faced the problem of retaining freshers in my company, initially we tried to get the BOND signed from them, but it really did not work. Good candidates used to back out at the very mention of word BOND.
So I thought for a while & suggested my management to raise the salary package of the freshers by 30-50% than the normal standard industry level & retain 25% of the the emoluments as deposit & keep such an amount very religiously in fixed deposit of a bank & return the amount to employees after a period of one year with inetrest ( same as bank would give). The amount which is forfeited ( if employee leaves before completion of one year), is to be utilised for the welfare of the on roll employees.
( Here I must tell you that we are small company, our training to the freshers is specialised one, the trainers come from US to train them.)
By this we really achieved what was expected, the advantages were as follows :
1. As we were paying more to the freshers than any other company, we could hire the best candidates
2. We saved on attrition cost in terms of money, energy, time etc.
3. As the cost of the employee is too high compared to his experience, he is not easily hired by other companies ( even though his take home is less, his CTC is very high )
4. Any wise employee would not like to hop for a job, unless he is getting more than the present employer. The employees have a full trust on management, they know, they will get their deposit back with interest once they complete one year.
5. The employees are also convinced that the management is paying them more & retaining the EXTRA part of remueration.
After the successful implementation of this strategy we have started applying the same logic to confirmed employees too.......... even to these employees we have given 40% increment compared to our normal increment of 15-20% every year.
the 40% increment is divided in following way :
50% - direct raise in salary
30% - based on monthly performance to be paid next month
( this way we can timely check on the commitments given by them)
20% - to be retained & paid after six months alongwith interest
( Only initially it will be for one year)
This way we will always have six months sizable amount with the company, hence, the employee will think twice before putting his papers. Atleast it has stopped employees from hopping jobs for few thousands.
This way again we have seen to it, that the other companies will not be able to hire our employees easily, as their cost is too high. At the same time we have also taken some measures to give all possible facilities to the employees, we had a employee satisfaction survey & all the employees are really satisfied with the culture, the facilities & the future plans.
Mind you, the formula based on increment is applicable to only to employees with outstanding performance & not to all, so its a sort of pride for those employees who are under this scheme.
The rest of the employees are looking forward to it.
Pl. let me know your comments.
Regards,
KAVITA