Why Are Our Sales Staff Quitting Right After Payday? Seeking Advice on Handling This Trend

SRIPATI KUMAR SWAIN
Dear Seniors, Some of our sales personnel have resigned soon after receiving their salary. This has now become a common practice, with employees resigning immediately upon payment and requesting immediate relieving. Additionally, some employees are not cooperating in handing over responsibilities and are uncommunicative. I seek all of your advice on this matter.

Regards,
SKS
HR Hiral Mehta
Employee Retention Challenges

This issue is faced mainly by all organizations, and that is why a lot of companies in the mid-90s came up with a policy of retaining some amount from the salary. Nowadays, the same is practiced as a performance incentive. However, the solution lies within. Can you elaborate on your exit policies, including the probation period, and discuss the reasons you believe employees in your organization are doing so? Are the team leaders/managers not able to sustain them?

Also, please refer to this discussion thread as it will help you a lot: https://www.citehr.com/434933-how-co...scondance.html
sunita meena
This is the problem that every organization faces. I agree with Mr. Mehta on retaining some amount from their salary, which could be given as a retention bonus after the time decided.
PreetamDeshpande
I agree with Hiral and Suneeta that almost all organizations are facing the same issue. I would like to know what action you took when the first such incident happened. Did you let them go easily without follow-up, or did you even inform their employers about the same? If you took it lightly the first time, the signal you sent was that such absconding was tolerated by the organization, and therefore now everybody is taking the same road. All said and done, you also need to analyze the root cause of such behavior.

Regards,
Preetam Deshpande
SRIPATI KUMAR SWAIN
Hi all,

As we are in the premium food product category and a startup, our management does not want to confront the existing employees face-to-face and prefers to part ways amicably. The underlying issue, as recognized by our management, is the sales pressure associated with a premium product. Since the employee became unreachable after submitting his resignation, we have labeled him as absconding and dispatched a registered letter with acknowledgment due, instructing him to respond within 15 days, failing which appropriate disciplinary action will be taken. Kindly confirm if this approach is acceptable. Please advise on the next steps if he fails to respond to our correspondence. Additionally, we have temporarily suspended his final settlement. We are also aware of his new employment. Would his new employer take action if we inform them?

Regards,
Sripati
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