Notice Period Buyout for New Recruits: What Challenges Should We Expect?

Dear Group,

Our company is planning to initiate a notice period buyout policy for new recruits. I am not familiar with this trend. What would be the bottlenecks one could face when implementing this? Is this practice recommended for a company?

Regards,
Betzi

Hi Betzi,

The only challenge in implementing a buyout as a policy rather than an option is that when an employee resigns, he/she would demand the buyout on the exit date instead of requesting it. This could lead to a lot of discord. I would suggest that you consider having notice period buyout as an option rather than making it a strict policy.

Thank you.