Is Requiring Original Certificates Hurting Our Start-Up's Recruitment Efforts? How Can We Balance Retention and Attraction?

Challenges in Employee Retention and Recruitment

We are a start-up company building our team. The top management in my organization is insisting on the submission of original certificates from all new joiners. The philosophy behind this decision is to retain employees and control attrition. For me, it's a great ambiguity as I believe it would be difficult to attract and retain talent with such outdated policies.

I am already struggling with the welfare of existing employees and attracting new talent from the recruitment market, as they perceive this policy as illegitimate and unreasonable. Please suggest a way out so that I can recruit good employees and convince the management as well. Please let me know if labor law has any provisions for or against this practice.

Regards,
Dinesh

Process Maturity and Employee Retention Strategies

Organizations looking at process maturity should not be thinking this way. Converting threats into challenges and making strategies to overcome those would be the best option. In this particular case, the threat is attrition. Challenges could be retention, and strategies could include employee-friendly policies and creating an environment for employees to stay with the company (revisit policies, structure, and growth opportunities inside the organization, etc.). If it is required, you can think of getting a bond signed by the employees.

Regards.

Retention Strategy for Freshers

Hire freshers and train them. In turn, keep their certificates for a period of 18 months. Within these 18 months, give them 2 increments: one after completing training and the second one after 1 year. They shall definitely not leave if, during this period, they adapt themselves to the company's atmosphere.

The Importance of Original Documents

The need for originals is to ensure that the copies are 'true' and not printouts. If your employer still insists, then let them know you'll need to spend a lot of money in ensuring the originals are 'protected', as specified by law and HRDB standards applicable in today's times:

1. Originals need to be kept secure from destruction, which means a safe deposit record management system—huge expenses!
2. Originals need to be protected from damage, including natural causes—that's another huge expense with climate controls, etc.
3. Original documents are possessions of an individual nature and thus, the employee is justified in asking for them the day he quits or even needs it for other requirements—and can file a claim with the police or in court for 'unlawful' possession of documents.

Your recommendation ought to be that originals need to be submitted just to verify the copies are verified as 'true' and then returned to the employee the same instant; retention of the 'Original' document is an ethical issue. The top management (HR Head) will definitely understand when you bring up the 3 points above. Hope it helps.

Addressing Attrition with Effective Strategies

Organizations looking at process maturity should not be thinking this way. Converting threats into challenges and making strategies to overcome those would be the best option. In this particular case, the threat is attrition. Challenges could be retention, and strategies could be employee-friendly policies and creating an environment for employees to stay with the company (revisit policies, structure, and growth opportunities inside the organization, etc.). If it is required, you can think of getting a bond signed from the employees.

Mathew, I digress with your point about a 'bond'; it's illegal. Moreover, it's now accepted that trying to get applicants to sign any sort of 'bond' serves no purpose and might lead to a perception problem.

Talentsorcerer has given you good inputs on 'how to handle' your management with respect to avoiding the retention of originals. As far as the bond solution is concerned, just use the research facility in CiteHR, and you will know how many employees jump bonds—will your company be ready to get into the legal aspects—including the legal expenses and time involved? Please note that this is not a 'right' or 'wrong' situation at all—it's more to do with the 'preferences' and 'priorities' of the company.

Prima facie, retaining originals would definitely lead to a 'perception' problem with the employees [like talentsorcerer mentioned]—in a way, you are conveying to them that 'we don't trust you, but you trust us'. Would that mentality be realistic/practical, in general and in the long term? If it were you, would you (or, for that matter, anyone in the management) agree to such a condition?

However, this is not to say that the problem you are facing is unrealistic or rare—it definitely is a problem even for well-established companies. However, the way the issue is being addressed isn't just right—if you are looking for a long-term solution.

Solutions for Attrition Issues

Some of the solutions we had given to start-up clients, to preempt rather than handle the attrition issues, were as follows:

1. Instead of synchronizing the first salary raise with clearing the probation, it was given after 3 months of joining—and this was clearly mentioned in the offer letters. This conveyed two things: if you perform, money isn't a problem, which we are 'committing in writing', and your staying with us for a long time isn't linked with the salary we give.

2. Where the probation was for 1 year, it was reduced to 6 months, and in some cases to 3 months, subject to satisfactory performance.

3. Take into confidence every employee on the overall (not the details, for other reasons) organizational plans for the future—essentially, this generates, very subtly, a sense of belonging in the employee for the company. Once this is achieved, not many would leave the company unless something drastic happens. This is also not to say that there won't be exceptions to this way of handling—there definitely will be. But whoever stays will be imbued with a 'sense of belonging'—which goes a long way for any company.

4. A sound and simple grievance reporting and redressal mechanism—ensuring that the controlling person is 'recognized' as fair and impartial—since if this aspect isn't adhered to, this step can lead to a far more serious problem than if there wasn't such a mechanism in place at all.

5. Typical steps to enhance the camaraderie among the staff—I think this issue was discussed many times in CiteHR earlier.

However, please remember that not all of the above worked in all companies—that's where the true intent of the management comes out. Also, these suggestions were to handle experienced persons—not freshers, since the basic mental psyche of freshers is different.

The bottom line always has to be: we trust you—but if you take advantage of it, we will come down very hard (something that's an equivalent to the legal line: innocent until proven guilty).

All the best.

Regards,
TS

Employee Undertaking for Training Duration

Can we not look at this option as an undertaking signed by the employee stating that he/she shall serve the company for a particular duration after receiving training in certain areas provided by the company? If the employee breaches this agreement, he/she shall be required to pay the employer the specified costs outlined in the undertaking. Is this practice illegal?

Regards,
Mathew

According to me, the submission of original documents is not a very healthy idea. Instead of taking original documents, your company can make a valid contract to minimize attrition. Firstly, nobody will agree to submit their important documents to the company. Even if anybody is willing to submit, there is still a high-risk factor involved. How your company keeps the submitted documents is crucial as your company must take special care of all those important documents to prevent damage, which can be very costly.

If you are finding difficulties in recruiting new people, it may be because there are many companies in the market that provide jobs without requiring original documents.

Ways to Minimize Attrition

There are various ways to minimize attrition such as:

1. Various training programs.
2. Employee engagement sessions like small rewards and recognition programs, calling their family, and arranging a family day.
3. Offering various performance bonuses.
4. Listing out the best performer's name and photo in the reception area.

I am also against collecting the documents. There is no company that has grown by collecting documents. However, HR has no choice if management insists on collecting the certificates.

Thanks,
Prakash

Just by keeping originals, you cannot ensure attrition is controlled. There are other ways and means to control attrition; why don't you (your management) try that.

Best wishes.

It's a very sad state of affairs that even in India, such employers still exist. I have had an opportunity to work in the Middle East. There are many companies that insist on depositing original certificates and passports.

If you look at the Middle East situation, there is a fair amount of justification for such a policy because an employee who possesses company property such as a laptop, imprest amount, or advances can fly back to India without informing the company and abscond. This practice in the Middle East is primarily for security purposes.

Trust Issues with Employee Policies

In your case, it's a matter of "Trust." Firstly, you are sending a message to the market from which you recruit candidates that:

- "I don't trust my employees from day one."

- Passports, driving licenses, and education certificates are all personal property of an individual, and in India, no individual or organization can take and keep them; it's not legal.

- A bond from an employee is not valid in India unless the other party (the organization) has incurred expenses on the employee's training. The amount of money spent (with sufficient proof for such expenses), the duration of the bond period, and the amount spent should have a reasonable correlation.

- If you insist that an employee serves a bond period but they are not willing to continue in your organization, it is akin to keeping an unproductive, unhappy, and negative person with you, which can be counterproductive and lead to spreading negativity about the workplace. It might seem like an attempt to unionize the employees.

Instead, try to create a positive environment. If someone wishes to leave, smile and wish them well, but make an effort to understand the reasons and work on them.

Organizations looking at process maturity should not be thinking this way. Converting the threats into challenges and making strategies to overcome those would be the best option. In this particular case, the threat is attrition. Challenges could be retention, and strategies could be employee-friendly policies and creating an environment for employees to stay with the company (revisit policies, structure, and growth opportunities inside the organization, etc.). If it is required, you can think of getting a bond signed from the employees.

Thanks, Mr. Mathew. Your suggestions are appreciable. May I get the template of such a bond? I am sure if I get it, I might convince the management and overcome the challenge of attrition.

Regards

I agree with you. Collecting original documents is not a perfect solution to minimize attrition. As mentioned above, employees should be taken into confidence by providing a better environment, package, and applicable freedom of work. Various performance packages and appreciation of work will surely foster commitment towards the organization.

We should also understand that for some organizations, like the Education Sector, it is necessary to retain the original certificates of employees for availability during inspections by universities, government agencies, etc.

Minimizing Attrition: Beyond Document Collection

Collecting original documents is not a perfect solution to minimize attrition. Employees should be taken into confidence by providing a better environment, package, and applicable freedom of work. Various performance packages and appreciation of work will surely foster commitment towards the organization.

It is important to understand that for some organizations, like the education sector, it is necessary to retain the original certificates of employees for inspection by universities, government agencies, etc.

Regards.

Fraudulent Practices in Companies

See, this is fraud. I have worked in such a company with a bond and submitted my original documents. That company is LIBSYS LIMITED, a fraudulent company... totally fraudulent. They took, no, actually snatched, our original documents by telling us so many lies and promises. After one month, they started showing us their true colors (i.e., darker than black). I hated that company so much that I didn't care about my bonuses of 1.4L and resigned the next day after completing the bond. The whole batch of 2010 left their bonuses and finally left the company without caring about bonuses. So, I hate those companies a lot.

Remember, LIBSYS has many well-talented employees, but no one is willing to stay with the company, and everybody switches to top branded companies without any failure. In my last terms, "LIBSYS IS FRAUD, FULL OF PIRACY, CRIMINAL, DISGUSTING, AND WORSE THAN HELL."

Always remember, in reality, a company is the team of employees. So, if you do not take care of employees and their happiness, then you will face challenges in retaining talent.