How Can IT Companies Prevent Employee Turnover After Costly Training Investments?

If an IT company is providing high-value technical training to its employees, which is a significant cost to the company, then what can it do to ensure employees don't leave after the training? Should there be a bond for a year?

Hi!

The company could ask the employees to repay the cost of training incurred by the company. This can be done by way of an agreement entered with the employees. Employees who leave, say, before one year of training, have to repay the entire cost incurred on training. This will ensure that employees would stay with the organization. And until the employee is on board, the organization can use him productively.

Priyanka

Company can also make them sign a bond for a period, depending upon the cost incurred by the company on such training. For example, we have sent an employee to Japan for a 6-month training, and we made the employee sign a bond for 3 years or two lakh rupees. This means the employee has to stay with the company for at least three years after returning from the training or will need to pay two lakh rupees in case he chooses to leave the company before the three years. There is absolutely no harm in getting the employee to sign the bond.

Rohit

Bond cannot be a solution to stop employees from quitting. This may demotivate the employee, giving a feeling that the company doesn't have faith in him. In today's market, there are so many opportunities that it's difficult to hold back any employee.

According to me, we can distribute the training according to the time frame. If one batch of candidates gets trained, ask them to train the other batches. This will motivate some of the employees who wish to take part in training. Try to focus on internal training rather than going for external training. :)

Kumar Arun
09850841183
Pune

It entirely depends on the type of training imparted - is it specific to an assignment which needs a commitment of a certain time span, or the training is imparted to groom the individuals for higher roles. Also, other factors like if the training is conducted internally or by an external agency, if the individuals were deputed to a different location for training (overseas, etc.).

A right combination of the above factors will determine if you should apply a bond system for those identified/undergoing training. It is important to communicate the terms & conditions/commitments to those undergoing the training well beforehand rather than after completion of training; else, it could become a non-compliance or breach of trust.

Hope the above input is useful.

I agree with Asha completely. Can you please help me out? I want an updated salary bandwidth for employees from 1 year to 15 years of experience, as per the market rates. For example, what offer is the company making for a 5-year candidate in Pune? I am waiting for an early response.