Hi Tara,
Further to my response, please refer the article on innovative retention strategy by a major IT Firm in India.
INNOVATIVE RETENTION STRATEGIES BY IT Company
Bangalore-based firm has a novel way of keeping its
employee attrition rate under control.While most infotech companies ask their prospective employees to sign bonds, This company wants new recruits to plonk a Rs 75,000 refundable deposit on the table before they can collect their appointment letters.
Such a drastic measure was warranted by the fact that nearly 50 per
cent of new recruits were flying the coop after their training
programme.
"The Rs 75,000 deposit discourages those who join us only for our
training programme," said the company’s vice-president and
global human resources head.
The deposit system, which works through a tripartite agreement between
Company, the candidate and a bank, requires the employee to deposit the
money in the bank directly.
The deposit, along with the interest on it, is refundable when the
engineering graduate completes 12 months with Company after the
three-month training period. Science graduates, who undergo a
six-month training period, have to wait 18 months to claim their
refund.
Those unable to put down the deposit have the option of taking a Rs
75,000 loan from the bank, for which they will have to pay interest.
At the end of the period, they can claim the deposit amount as well as
a retention bonus as compensation for the money they lost by way of
interest.
The agreement was introduced in April 2004 and has been used for two
placement seasons now. The company claims it has had no impact on its campus recruitment.
"All other companies in the industry get their employees to signs
bonds and other agreements. So we are not doing something that nobody
else is. The company’s placement has not suffered at all under this tripartite
agreement.
Cheerio
Rajat