Sudha's Dilemma: How to Handle Employees Leaving Without Notice and Prevent Future Exits?

My name is Sudha. I am working in an organization in Kolkata as a Senior HR Executive, and currently, I am the only HR personnel, so I have no one to guide me as I am a fresher.

Recently, four of our experienced employees have left the organization without giving any notice. Perhaps they have found better opportunities elsewhere. They were supposed to give a month's notice. However, after receiving their salary for the month of April, they are not responding anymore.

Legal Action and Preventive Measures

Is it possible for us to take any legal action against them? More importantly, how can I prevent the rest of the employees from doing the same?

Please suggest a solution as soon as possible.

Regards,
Sudha

Yes, you can stop the rest of the employees from doing the same. You can create a feedback form for employees. In that form, you can include objective-type questions (Yes/No) regarding company policy, culture, and HR policy. Each individual employee can fill out the form and provide feedback. It should be kept very confidential. After completing this process, you can analyze the feedback to identify the major problems that are causing employees to leave the organization.

By following this process, you will obtain insights into what employees think about the company. It is essential to discuss these problems with the management and work towards finding solutions that benefit both sides.

Regards,
Hardik

Even I have faced this problem in my previous organization. Try blocking the salary of employees who have submitted their resignation, as this may compel them to serve their notice period. The notice period can be adjusted in their full and final settlements.

You cannot take any legal action against them, but you can make them wait until they complete their notice period by withholding their relieving letters.

Regards,
Monika

Appointment Letter as a Service Contract

An appointment letter itself is a service contract. By signing it, both the employer and the employee agree to abide by the terms and conditions outlined in the document. If there is a notice period clause, you can take legal action against the employee on the grounds of breach of contract according to the provisions of the "Indian Contract Act, 1872." There are other remedies available as well.

Regards,
Sutanu Maulik
[Phone Number Removed For Privacy Reasons]
Durgapur

Though you can take legal action for a breach of contract, it is not worth pursuing due to the time and civil litigation costs to the company. You can try the methods suggested by Monika.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai

Reasons for Employee Turnover in India

There are so many reasons for this, and it happens across India. I am listing some of the reasons:

1. Salary and benefits
2. Location of the workplace
3. Working atmosphere
4. Management culture (high pressure, organization not growing, etc.)
5. Industrial relations situation
6. Canteen
7. Supervisors' and managers' attitudes
8. Nature of the industry (it happens in the hotel industry)
9. Employee age group
10. Company policies on leave
11. Growth opportunities for the employee

Analyze, work out an action plan, and then act.

Best wishes,
Sivasankaran

Addressing Employee Attrition: Strategies and Solutions

If people are leaving the company without informing, this clearly implies you have a sizeable "fence-sitter" population. Adopt good talent development practices. Build job descriptions on "must-haves," not "good-to-haves"—this single step will help reduce attrition in most companies, as the ideal candidates will be difficult to motivate and will have short stays.

We started a Toastmasters' club specifically as our employees lacked good communication skills in English. We also extended loans to staff to pay for their further education. Some of our employees were so poor we even gave loans to buy computers for kids back home, bikes, etc. (we don't have a single default on loans to date).

Implementing Key Performance Indicators (KPIs)

Introduce key performance indicators (KPIs) so that appraisals are transparent and objective. Targets should be mutually acceptable so that unreasonable expectations are curtailed from day one. Do you provide appointment letters in your company?

I have worked with a company (name withheld) wherein, barring 10-15 people, the entire staff—from department heads to interns, numbering over 500 people—were hired on contract. The arrangement was a sham.

Deterrent Steps and Exit Interviews

Adopt deterrent steps. Follow the procedure and release an advertisement in the paper declaring the employee "absconding"—it reflects poorly on a person. Conduct world-class exit interviews: hire a third party to meet your ex-employees 2-3 months after they have left and are firmly settled elsewhere. Remember, the focus is solely on organizational learning.

Prevention is Better Than Cure

As Mr. Rana pointed out, prevention is better than cure. However, I don't understand one thing: how can employees working in your organization for a sufficient period abruptly leave and join another without completing any exit formalities? In my organization, without submitting a relieving and experience letter from the previous employer, we do not issue an appointment letter or make salary payments to the employee. I think this practice is followed everywhere in Mumbai.

Regards,
Rajesh Rane
Manager - HR