High Absconding Rate in Small IT Firm: How Can We Prevent Future Occurrences?

Hi Seniors, I am here with a situation in my organization, an IT product and service-based company with a stable count of 35 employees. In the last 8 months, five employees have absconded without giving any notice or reasons for such actions (we have a 60-day notice period to be served). A 5 out of 35 people absconding rate is quite high, and I would like to control it instead of avoiding such occurrences in the future. Therefore, I would like to know what possible options I need to work on to address this issue.

I look forward to your valuable inputs.

First, identify the root cause for absconding. There may be many reasons. Begin by counseling employees regularly to identify the issues they are facing. Implement rewards and recognition plans to motivate the employees. There are also many other options to consider.

From experience, I can say that when an employee wants to quit, there's nothing you can do to stop them. However, at the same time, there are some safety or caution nets which can be applied.

Open Communication

Open communication is your best friend. Try to establish a good line of communication with employees. Visit with members and build a rapport with them. Even if they decide to quit, give them options and find out if anything can be done to change their minds.

As the user above mentioned, reward employees either monetarily or otherwise. Create a fun atmosphere at work. Share inspiring details with them, and so on...

All the best!

This is a common problem facing personnel and HR. I think in this situation, they may be conflicted with another job, dealing with actual family issues, or not comfortable with the behavior of the boss or your HR policies.

Steps to Address Employee Absconding

In this situation, the first step is to clarify the type of problem they are facing.

Regards,
Niraj Kumar
Administration Dept.
Simplex Infr. Ltd.

Respecting what others have said, I have a few questions about the absconding employees:

1. What percentage are probationary employees, and what percentage are confirmed employees?

2. What is the average experience in terms of the number of years these employees would have? Are they freshers, or do they have between 1 to 3 years of experience, or more than 3 years?

3. Are these absconding employees from one department?

If you can identify these three things and mention them here, it will be easier for members to guide you in the right direction.

It is certain that such employees do not require the experience or relieving letter from your company. What policy have you formulated for exiting employees besides the 2 months' notice? Could you elaborate on that as well? Is the notice period the same for employees on probation and for those who are confirmed, as well as for freshers and experienced employees?

While motivation, rewards, recognition, and open forums are all good, a healthy working environment and organizational culture are essential for success. Identify the prevailing atmosphere within and across departments. I sense there is a communication gap between senior management and team members.

I would prefer to provide comments only after receiving these details.

Regards,
Hiral

Thanks for asking for such a clear view. Please find the below details asked for:

Percentage of Probation

As ours is a start-up company in Web Applications Development, we currently have a team of 27 members, consisting of 1 HR, 1 Accountant, 5 Sales, 17 Developers, and 3 Designers. Out of these, only 8 people are confirmed employees, while the rest are on probation up to date. The probation duration in our organization is 6 months.

Average Experience

- Developers and Designers: 2.6 - 4 years
- Sales: 0.0 - 2 years

All absconded individuals are from the Developers and Designers team.

Please consider the above details and let me know what I can do best to improve the situation.

Regards,
Aisha.K

Hi Aisha, see, your 50% problem is solved here. It is not only the organizational culture or open forum that is a problem; otherwise, employees from other departments would have absconded too.

With due respect (please note this is my perception), I've observed that Developers (supposed to be the most logical) are the least logical and practical. For them, policies and procedures are only those that they create, not those which the company establishes.

Addressing Developer Concerns

Now, let's address your point: Developers and designers are more concerned about technology and upgrading their skills with new technology. Is your company working on an older platform? If yes, you cannot help as this will be a management decision. If not, then a team of 20 developers and designers needs to be organized in terms of a proper and equal opportunity platform. What grabs my attention is that only 8 employees out of the total strength are CONFIRMED! Surely, the new hire is unable to visualize their GROWTH. Another aspect to consider is that (I am certain) these absconding employees are probationary employees. Frankly, no company issues experience certificates to probationary employees, even if they complete the notice period, and this fact is known to your employees, which is why they are not serving it. Additionally, a 2-month notice period for probationary employees is unacceptable. You should reduce it to 15 days. For confirmed employees, a 2-month notice period is appropriate.

Improving Employee Retention

Firstly, reduce your probation period to 3 months. Secondly, examine the type of bonding these employees have within their department. Is it possible that there are a few handpicked employees who are tarnishing the culture and speaking negatively about your company in front of other colleagues? Lastly, provide a growth path to every new hire (succession planning) after the probation period. I am confident you will notice a difference.

Thank you.

Hi Mr. Hiral Mishra, Thanks for the analysis and sorry for the late reply. As our startup company has only the required resources, which are frankly less than needed, every employee's role is crucial, and we value each one greatly. Therefore, reducing the notice period from two months to 15 days might not provide us with sufficient time to find replacements within such a short timeframe. This change could also give an advantage to employees who are seeking temporary positions or aiming for better opportunities with Level 5 or those who have recently joined us and are still adjusting to our organizational practices.

During the initial days, every employee must establish themselves within the organization and face challenges during this period. I believe that implementing a 15-day notice period may have unintended consequences and could impact our employees differently.

Please consider the situation described above and share your thoughts on the matter.

The point is not that the employee is important for your company. The point is that he has an offer on hand with a higher package, possibly a better brand, and, most importantly, does not require a relieving or experience certificate. With less than 6 months of experience, many candidates do not show or mention that experience in their CV, indicating that the new employer may not require an experience or relieving letter. Furthermore, there is no question of BC as your company's name would not be mentioned in his profile.

Therefore, try to convince your management that even though all employees are important, having a buffer of candidates with the same profile or shortlisting multiple candidates for each role is practical. Hiring one additional manpower in just one department will not be a burden for a start-up company. See if you agree with this logic and if it works for you.

Considering all the suggestions above, I have come up with an option of Band-based Notice Period. I have grouped all the employees into two different bands. Band-1 includes all leadership and senior-level employees, while Band-2 comprises executives and junior-level employees. I have received a positive response from all sides.

Thank you for your support throughout this issue. I appreciate all your help.

Thanks to everyone.

Regards