Retention Strategy Dilemma: Should Experience Letters Be Tied to One-Year Completion?

Jayalatheesh
Issuing Experience Letters as a Retention Strategy

As part of our retention strategy, can we issue an experience letter only if the employee works and completes a minimum of one year? We have noticed employees leaving before completing one year, and we are looking to retain them. Please advise.
Dinesh Divekar
Dear Jayalatheesh,

As of now, you are issuing the "Experience-cum Employment Certificate" whether employees stay with you for a year or not. To ensure they stay for at least a year, you would like to stop issuing the experience letter to those who quit before a year.

However, your solution is akin to applying a band-aid to a festering wound. You need to find out why the wound is not healing. If employees are not staying even for a year in your company, then you need to identify where the problem lies.

Employee Attrition Study

If people are leaving so soon, have you conducted a study of employee attrition? Previously, I provided reasons why employees leave the company. You may click here to refer to my reply.

Employee Retention Challenge

Employee retention is a challenge, and it requires a commitment from top management. Without their involvement and commitment, this challenge cannot be overcome.

Thanks,

Dinesh Divekar
saswatabanerjee
Experience Certificate Requirements

Most of the shop and establishment acts require you to provide an Experience Certificate, which is known by different names in different states. Therefore, please check with the relevant state acts to determine if you are in violation of the same.

Issuing Relieving Letters

Furthermore, can you refuse to issue a relieving letter to an employee who has served or is willing to serve their notice period? By doing so, you may be encouraging employees to leave without giving proper notice. In the event that you do issue relieving letters, it is usually sufficient in most companies to secure a new job with the experience being considered valid.
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute