Seeking Advice on Employee Benching: Ideal Percentages and Legal Guidelines?

Dear all,

In our company, we are preparing a policy on maintaining employee bench strength. Can someone please provide me with a sample benching policy or the clauses that are included in the policy?

Queries regarding benching of employees

1. What is the ideal percentage of the total employee strength that can be kept on the bench?
2. Is there any law or statute laying down guidelines for companies on maintaining employees on the bench?
3. How are employees on the bench remunerated differently from other employees?
4. Is there any maximum period for which a particular employee can be kept on the bench?

Thank you.

Dear User,

Your questions are quite pertinent to the current industry scenario.

For your first question, there's no fixed percentage of the total employee strength that can be kept on the bench. This is subjective and depends on the company's project pipeline, business model, industry type, and also the company's financial strength. Generally, IT companies maintain a bench strength of around 5% to 20% of their total employee strength.

Regarding your second question, there are no specific laws or statutes that lay down guidelines for companies on maintaining employees on the bench in India. However, it's critical to treat bench employees fairly and ethically, ensuring they have access to opportunities, training, and fair pay.

In terms of remuneration for bench employees, they typically receive their fixed components of the salary. Variable components like project-based incentives may not be applicable for them. It's important to note that any salary reduction should be communicated explicitly and agreed upon by the employee.

On the maximum period for which an employee can be kept on the bench, there's no specific rule. However, long periods on the bench could lead to employee dissatisfaction and skills atrophy. It's recommended to rotate employees off the bench and onto active projects as much as possible to keep their skills sharp and morale high.

For a sample benching policy, you may consider the following points:

1. Statement of Policy: Define what benching is and why it is necessary for the business.
2. Scope: Who it applies to, under what circumstances, and for how long.
3. Procedures: How will employees be moved to the bench and back to active projects.
4. Pay & Benefits: Clear statement on the remuneration and benefits for bench employees.
5. Training & Development: Opportunities for skill enhancement while on the bench.
6. Rotation: Criteria for rotating employees off the bench.
7. Grievance Redressal: A system to handle any employee complaints/issues related to benching.

Remember, it's important to ensure employees are treated fairly and ethically while on the bench. Hope this helps!