How Can We Keep Fresh Graduates from Leaving After Training in a Small Firm?

Hi,

I am working in a small-scale firm as an HR executive. I am the only person in the HR section, handling all HR responsibilities, policies, etc., by myself. We are planning to recruit freshers from top universities and provide them with three months of training. After the training period, based on their performance and knowledge, we will consider them for permanent positions.

However, a major concern is that we do not want to be taken advantage of. Typically, in small or large companies, freshers join as trainees, learn new technologies during training, and then leave. We need strategies to retain them after training and ensure they stay for a longer duration.

Many companies offer stipend salaries to trainees on a three-month or quarterly basis. For instance, giving half the salary monthly initially and gradually increasing it. I am unsure if this is the right approach. Please advise on effective methods to retain these individuals.

I would appreciate a prompt response as I need to present a plan to the manager the day after tomorrow.

Regards,
Ajitha

Dear Ajitha,

It's true that the freshers have a huge fictitious ambition, which they dream of when they are in college. There is no exact formula to retain anybody in any type of organization. Some freshers look for the money, others look for the work and learning, and some look for the brand. The organizational culture and the interpersonal relationships in your organization will play a key role in retaining them.

As freshers, they don't have much knowledge; they expect to build a good rapport with their colleagues and really look up to the seniors. So, try to be polite, nurture them, and provide them with a good career path. The rest totally depends on TIME.

Regards,
Diwesh

Ajitha,

As Vennila suggested, you can retain them when you have a service agreement in place and a penalty clause for breaking the service agreement. The majority of IT companies in India are following this principle to protect employees from leaving after the training period.

After the initial training, you will have to ensure they are on projects; otherwise, they will start absconding without information. Keep them busy with work, then you can retain.

Regards

Hi Ajitha,

I am a student of HR. I would like to express my opinions too.

First of all, I feel students from preferably the 2nd grade of colleges should be recruited and not necessarily from the top institutions, as you mentioned being in a small-scale firm. This strategy would make appointed employees more eager to learn and rise within your organization, thus staying longer. Students from top colleges, due to peer comparison in college, would be inclined to join a top-branded company payroll and could, therefore, leave faster. They might even consider your offer as a last preference.

In such a scenario of recruiting from 2nd grade colleges, the quality of training provided should be a top priority for you. If we are not recruiting the best in the business, our training has to be top-notch.

Secondly, it is against the law to have employees sign bonding agreements. One solution could be to have employees sign an agreement stating that they would have to pay back the expenses borne by the company on them for training and development if they were to quit the job within 3 years (or so). This is practically applicable and is in practice too.

Hope I have been of assistance in some form. Take care.

Sam Amose

Student of HR

Alliance Business Academy, Bangalore

Email: sam_amose@yahoo.com

Hi Ajitha,

Sam gave a good suggestion. That will be beneficial for small organizations. If they break the bond, you will get back the amount you spent on him. So, you may not be the loser at that time.

Good suggestion, Sam.

All the best, Ajitha & Sam.

Regards,
Suma

Hi Friends,

In the eyes of the law, such bonds have no value. It's just an eyewash. It's better to impart good training and create opportunities for growth and development.

Rajeev

Dear Ajitha,

What is the training cost?

50% of the training fee can be paid by the company and the remaining 50% can be paid by the individual. This 50% of the training fee can be returned to the individual after completion of a certain duration of service with the company (e.g., 1 year or after 2 years).

Regards,

Dasa

Dear Ajitha,

Greetings!

I agree with Mr. Rajeev. It might be better if you target professionals from a different background. If you are looking for a BE Fresher, consider candidates with a B.Sc, BBA, etc. They are likely to stay with the company after training.

Regards,
John N

Hi,

I think what you can do is start creating emotional bonding with the freshers. Find out why they want to change. If the majority of responses are for higher growth, start making the job more challenging, offer rotation, or provide additional attractive learning and training programs. Some entertainment could be possible to keep in the organization. For example, every weekend, have 15-minute debate sessions on any topics or hold non-monetary events that the freshers would enjoy.

Another important point is that if you try to retain an employee for 1 month, they will stay for 3 months. If you aim to retain them for 3 months, they are likely to stay with you for 6 months, and so on. Building attachment between employees and the organization is crucial.

I hope my suggestions would help. What do you all think?

- Sanjukta

Hi,

What I feel is that Sam has given you very practical guidance. Being a small company, even if you are able to attract job aspirants from top-notch universities, after training, surely you'll find it difficult to retain them. This is a problem encountered by most of the companies.

Even from the point of view of assessing the return on investment from training, it will definitely take years to accomplish. By then, attrition must have started.

So, it would be advisable to focus on Sam's advice. Signing an agreement/contract is a common feature nowadays. However, people are able to break it. So it is not foolproof! But from the company's point of view, it is reasonable.

After the training period, devise methods to retain them. If possible, you can give them a small hike. Above all, develop methods to motivate them. Every day should be different; there should be some learning, some creativity involved. Make them aware of the career prospects if they stay back! For all these, you need to have a good rapport with them.

Anyway, all the best!

Rakhee

Hi Ajitha,

I'm an HR student and would like to share my ideas with you. I hope they are of some help to you.

Since you mentioned that yours is a small firm, I think you should consider students from B or C grade institutions. Students from these colleges have an immense desire to work. Try to select three to four students from the same college. Firstly, they will be competitive among themselves and will also be willing to work since they will have someone they know in the same organization.

How often is performance appraisal done in your firm? If it is done half-yearly, inform the candidates that they will receive a salary hike according to your company's norms.

A fresher will always opt for a good working environment, even if the salary offered is average. They would prefer an environment where they are not treated as inexperienced workers. Include them in the company's problem-solving process to make them feel they are part of the company. Encourage them to provide suggestions when you face challenges.

Motivation through participation is the best way to retain employees, especially freshers.

I hope my ideas will be of some use to you.

Regards,

Priyanka

Dear Ajitha,

Trainees should be nurtured, valued, their views considered, given a certain amount of freedom, offered a chance to rectify themselves if they go wrong, and guided as a mentor rather than as a boss. This is one of the best ways to retain trainees.

D. V. Ramana Rao

Hi Ajitha,

The issue you are discussing is universal now. Your professional clarity about not adopting the practice of paying them half salary for retaining is appreciated. Also, the laws are very much against 'negative covenants' in bonds.

We should be practical enough that 35-40% are likely to stay with us beyond the training period. Paying a high salary is not going to help.

You have to go into the psychological aspect of youngsters. What do they want? Money / position / challenges in work / career advancement opportunity?

Of course, they want all :)

But you can prioritize these and address them accordingly.

I personally feel that discussing a clear career path with them should help. Where they will be at the end of 3 years... such a projection will help.

Also, you should try to have assignments lined up for them in advance for a period of 1 year. (Easy to say but difficult to do. But must be attempted)

You should keep them on training for 6 months. Then when you confirm them, project a salary rise. Then when they complete 1 year (6 + 6), give another rise. (Two small rises look better than one larger one). After this, they should be subjected to an increment policy at par with others based on performance.

Their performance appraisal should be quarterly. With clear inputs from superiors.

What we adopt for our manufacturing facility is like this - We take 6 students for our requirement of 3 and train them, the stars we pick and nurture, others we extend the training period with a slight rise. They may stick or go.

Share your views.

- Hiten

Hi Ajitha,

It's a wonderful issue that you have brought into the forefront. Well, I am working as a Management Trainee in an organization. Actually, I was retained by my Manager after my training period. It's really a beautiful feeling.

So, from my personal experience, I can say that while the trainees are working under you, make them work with ease, try to maintain interpersonal relations, and inculcate in them the feeling of belongingness. Most importantly, on the day they join your organization, offer them the proposal of hiring them if they work hard. I can assure you that you will get extraordinary results.

What I feel is that a comfortable and respectable working environment attracts every employee.

Pooja

Ajitha,

I have faced this question many times in my career.

We all train freshers as it is not always feasible for smaller organizations to recruit talents from the industry. We have various checks and measures developed over a period of time to address retention after training. Since you have brought up this interesting topic for discussion, let me share our philosophy with all.

1. We have a two-sided bond or what legal experts say a valid and binding bond by law. This is not a 100% deterrent for all.

2. We have ensured that after training, each new trainee is assigned to a team lead who is responsible for the trainee's growth for the next three months.

3. We have tried to identify friends of the trainees who are senior members in the organization and got them involved with the trainees.

4. We have been fair in the appraisal and made sure the trainees are rewarded at least twice a year with monetary appraisals so that they don't feel cheated. This is a very important factor as we will usually be paying trainees very little. Don't ever hold back the salary you pay to a trainee. Give them what they deserve.

5. Trainees need to feel important. Give them small jobs (under the guidance of a senior) to execute independently. Don't criticize them for the mistakes they make all the time. Correct them and encourage them to do better.

6. Trainees are naive and don't understand the importance of a long career. They are more enamored by what their friends say. As HR, it is our duty to maintain a good relationship with them and keep making them aware of our industry and the importance of our company in the industry.

7. However small an organization we are, we will still have our unique selling point. We use this when we recruit the best talent. We can always recruit the best and retain them if we get the existing employees involved in the process or training.

Remember, there is no greater factor for an employee to work for a company than achievement. Make sure everyone gets a chance to prove something and feel contented.

Hope the above-mentioned points help many.

Regards,

Praveen

Hi Ajitha,

Here is something you can try. These are the practices we are implementing in my organization and have been quite successful for us.

1) Mentorship Program: Each trainee should be assigned a mentor who would be responsible for the trainee's transition and overall development in the organization. Mentors should be trained in effective mentorship.

2) Performance Feedback: Trainees should receive regular feedback on their performance and be informed of their progress. Every reporting manager of the trainee should conduct feedback sessions once a month, and the reports should be documented in the trainees' personnel files. This will facilitate decision-making regarding the continuation or discontinuation of the trainee.

3) Growth Path: Trainees should be presented with a growth path outlining their expected responsibilities and how meeting them will enhance their level of competency. They should understand the potential growth they can achieve by performing as expected.

4) Motivation: Recognize trainees with awards such as Best Trainee of the Year, Best Achiever of the Year, Outstanding Contribution, etc.

5) Feedback from Trainees: HR should regularly gather feedback from trainees regarding their satisfaction levels and the challenges they encounter. This feedback should be shared with the reporting managers.

6) Most importantly, empower them.

I hope this helps you.

Regards,

Priyanka Upasani

Sam's suggestion is good. It will really work, I hope. Also, if we create a mindset that the trainees will have a great future with our company, then it will help to some extent, I hope.

It's our part to present an induction program to impart the values of our organization.

Padmavathi G.

Hi,

I partly agree with the view that most of the trainees take up the training and quit. However, what we had done was to have the trainees pay 50% of the training cost. This approach ensured that they would be less likely to leave once they are trained. Those who could not afford the fee paid a token amount, and the remaining sum was deducted from their stipend.

Regards,
Karuuna

Hi Ajitha,

You can also make a provision in the contract that they would be getting incentives/bonuses, like a retention bonus if they stay longer. This is the monetary aspect. Apart from this, if you keep them engaged and do not let their work become monotonous, then surely they will stay for a long time.

Regards,
Rajesh Kumar