Hi,
I have a problem in my organization. We are in a very niche field where finding experienced employees is very difficult. We have started hiring freshers and training them. However, the issue now is that these freshers do not stay for more than 3 to 6 months. We provide them with training, and just when they are ready to contribute effectively, they leave their jobs. This leads us to restart the recruitment cycle.
My boss has suggested that we make them sign a bond for 1 year, but I am not fully convinced about this approach. Can you please advise on what can be done in this situation? Also, if anyone has a sample of a legal bond, please share it.
Regards,
Samruddhi
From China
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I have a problem in my organization. We are in a very niche field where finding experienced employees is very difficult. We have started hiring freshers and training them. However, the issue now is that these freshers do not stay for more than 3 to 6 months. We provide them with training, and just when they are ready to contribute effectively, they leave their jobs. This leads us to restart the recruitment cycle.
My boss has suggested that we make them sign a bond for 1 year, but I am not fully convinced about this approach. Can you please advise on what can be done in this situation? Also, if anyone has a sample of a legal bond, please share it.
Regards,
Samruddhi
From China
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Hello, I suppose your boss is absolutely correct. Signing a bond would make them stick to the organization, at least initially. You can have this concept to make the joiners aware of the actual policies of the company. Thus, they will think twice before joining to consider if they actually want to join or not.
From India, New Delhi
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From India, New Delhi
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Dear Samrudhi,
Greetings!
Making a bond is not a big issue, but if you start requiring a bond from candidates, even fresher candidates won't come for interviews. Even if they do come, you won't attract good, smart, and intelligent candidates.
So, please think twice before implementing this policy.
Regards,
John N
From India, Madras
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59Greetings!
Making a bond is not a big issue, but if you start requiring a bond from candidates, even fresher candidates won't come for interviews. Even if they do come, you won't attract good, smart, and intelligent candidates.
So, please think twice before implementing this policy.
Regards,
John N
From India, Madras
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Hi,
I am a fresher, and I have faced many interviews in companies where they have been asking for a bond. I didn't get into those organizations that asked me for a bond, and now, I have joined the organization where there is no bond. Freshers opt for bonds only when they don't find a way to get into good companies or when they are totally vexed by these interviews. Bonds are typically implemented by companies with a higher attrition rate.
So, look for the causes within your organization and then for the reasons why employees leave. Explore alternative measures instead of implementing a bond. This is my suggestion. If the organization provides employees with a good quality of work life, then why would anyone leave the organization? Therefore, as an HR professional, think about other measures that your company can implement.
Regards,
Gowtam
From India, Hyderabad
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I am a fresher, and I have faced many interviews in companies where they have been asking for a bond. I didn't get into those organizations that asked me for a bond, and now, I have joined the organization where there is no bond. Freshers opt for bonds only when they don't find a way to get into good companies or when they are totally vexed by these interviews. Bonds are typically implemented by companies with a higher attrition rate.
So, look for the causes within your organization and then for the reasons why employees leave. Explore alternative measures instead of implementing a bond. This is my suggestion. If the organization provides employees with a good quality of work life, then why would anyone leave the organization? Therefore, as an HR professional, think about other measures that your company can implement.
Regards,
Gowtam
From India, Hyderabad
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hi Please do a search on CiteHR on the topic of bonds.. Read here There was an interesting discussion. You will find what you need over there Regards Ryan
From India, Mumbai
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From India, Mumbai
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hi i agree with Goutham See the problem within the orgnaisation thatis increasing attrition...and not simply blame the workers! bring in techniques to improve work life regs CV
From India, Kochi
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From India, Kochi
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Hi Samruddhi,
I can understand your problem, because even I have gone through the same phase in my company. The better way to retain the candidate is to analyze him during the interview, during the induction. Try to tell him/her the importance of staying in a company for a longer time. Tell him/her that the company has designed a career plan for candidate, which requires some time to materialize. I try to tell the candidates that the company to analyze the candidate and the Candidate to anlayze the company will take some time, say one year. or so. Also tell the candidate that after one year even you will be in a better position judge things well, whether to stay in the company or not, to achieve your career goals. This will make him/her understand the situation to some extent, then tell him/her to make things easy it is better we sign an agreement for a stipulated period. This will try to solve the problem. Even the candidate will not think that the company is forcing me to sign an agreement.
This is my personal opinion and it has worked for me. But things may not be the same all time for everyone. So think on these lines, hopefully it will help you.
For my company I have prepared a Legal service agreement for new employees. I hope it will be of some help to you. Go through it and make the necessary changes according to your company's requirements.
Thanks & Regards,
Chandrakanth
AGREEMENT UNDER THE SERVICE CONTRACT
Agreement of Service Contract made on this the day of __________________, BY AND BETWEEN
M/s. XXXXXXXX Technologies Private Limited a company Registered under The Companies Act 1956 having its Registered Office at # 301, XXXXXXX, XXXXXXXX Lane, XXXXXXX, Hyderabad - 500082 represented by its Authorised Signatory Mr. XXXXX XXXXXXXXX, The Director of the Company hereinafter referred to as First part for brevity which term shall unless repugnant to the context mean and include its Successors-in-interest, sister companies, subsidiaries and assignees
AND
Ms. G. XXXXXXXXXX D/o Mr. XXXXXXXX, aged about 23 Years, currently residing at Flat No. S4,XXXXX, XXXXXX Nagar, XXXXXXXt, Secunderabad, 500056... hereinafter referred to as Second Part.
WHEREAS
1. The Second part approached the first Part for a suitable employment in first Part Company XXXXXX Technologies Private Limited.
2. The First Part after scrutiny of education qualification certificates of the Second Part has interviewed the Second Part for suitable position and agreed to appoint the Second Part as employee of XXXXXX Technologies Private Limited.
3. The First Part specifically mentioned to the Second Part that the Second Part has to serve XXXXXX Technologies Private Limited for a term of Twelve (12) months and enter into an Agreement under the Service Contract.
4. The Second Part has agreed and accepted the offer made by the First Part on such terms and conditions as mentioned herein.
NOW IT IS HEREBY MUTUALLY AGREED TO BY AND BETWEEN THE PARTIES AS UNDER: -
I. The Second Part has agreed to serve XXXXXX Technologies Private Limited for a term of Twelve (12) months on such terms and conditions as mentioned herein.
II. The period of Twelve (12) months for this agreement starts from the date the Second Part joins the Office.
III. The Second part if resigns from the services of the First Part earlier than the period as agreed and as stated at clause I for any reason attributable to the second part, then Second part hereby agree to give 60 (Sixty) days notice to the first part and second part further agree to abide with clause No IX as stated hereunder.
IV. During the period of the contract, the Second Part shall faithfully, diligently and to the best of the ability discharge the responsibilities. The Second Part shall confirm to carry out and obey all orders, directions and instructions of the first part and/or Authorities during the term of his employment and shall use his endeavor to promote the interest of XXXXXX Technologies.
V. The Second Part shall devote his time and attention in receiving the necessary instructions or other purposes for which he has been engaged and shall not absent himself from duty at any time without prior written sanction of the First Part.
VI. The Second Part shall carry out all the duties and responsibilities of his position and shall perform all such work as may be entrusted to him or as he may be called upon or required to do such capacity, with due-diligence, punctuality and to the best of his ability and skill, and shall conduct himself honestly, faithfully and diligently at all times throughout the period of the term of his employment and shall not be guilty of any negligence, misconduct or misbehavior or commit any breach of this Agreement.
VII. During the employment period and thereafter, the Second part will not give out to anyone in writing or by word of mouth or otherwise particulars or details of work process, technical know-how, research carried out, security arrangements and/or matters of confidential or secret nature which Second Part may come across during his service period with XXXXXX Technologies.
VIII. The Second Part shall subject to be governed by the service rules, standing Orders and regulations of first Part in force from time to time, so far as they are not at variance with the terms herein contained and thereafter.
IX. In case the Second Part at any time makes a breach of all or any of the Provisions of this Agreement or fails to carry out all or any of his obligations hereunder, this Agreement shall automatically stand Terminated and the second part shall forthwith return to the First Part an amount equivalent to 6 (Six) months worth of monthly salary as stated in the offer letter. In case the Second Part fails to pay back the amount, the First Part shall be entitled to recover the same from any of the monetary claims that the Second Part may have or by having recourse to legal proceedings against Second Part at Second Part's risk, cost and/or from Second part's heirs, executors administrators, sureties etc.,
General:
I. First part hereby agrees to initially employ the second part as its Software Engineer and the second part hereby accepts such Offer of employment in accordance with the terms of this Agreement and the terms of the Offer Letter applicable to regular employees of the first part. In the event of any conflict or ambiguity between the terms of this Agreement and terms of Offer Letter applicable to regular employees, the terms of this Agreement shall control.
II. Any reference to the masculine gender will also include the feminine gender and plural gender where appropriate.
III. This Agreement terminates and supersedes all prior understandings or agreements on the subject matter hereof. This Agreement may be modified only by a further writing that is duly executed by both parties.
IV. Any change in the above addresses of any of the concerned parties i.e. Company or Employee, shall be duly informed to the other parties by the party whose address has changed within a period of seven days of such change.
V. If no such change has been intimated or received, the addresses mentioned shall be deemed to be the addresses of the concerned parties.
VI. In case of any dispute arising out of the above Agreement, the jurisdiction shall be the courts in Hyderabad. No other courts either in India or outside India shall have jurisdiction in respect of the enforcement, interpretation and other aspects of and in connection with this Agreement.
Jurisdiction:
The parties agree that they will use their best efforts to amicably resolve any dispute arising out of or relating to this Agreement. Any controversy, claim or dispute that cannot be so resolved shall be subject to the jurisdiction of the Civil Courts of Hyderabad
IN WITNESS WHEREOF the First Part and the Second Part acting in person have signed and executed this Agreement in their respective names and on their behalf and delivered to the First Part on the Day, month and year first above written.
SIGNED AND DELIVERED BY
. .. .
First Part Second Part
XXXXXXXXXXXXXXXXX XXXXXXXXXXX
For M/s. XXXXXX Technologies Pvt. Ltd.
Witnesses:
. .. .
Name and Name and
Address: Address:
From India, Hyderabad
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I can understand your problem, because even I have gone through the same phase in my company. The better way to retain the candidate is to analyze him during the interview, during the induction. Try to tell him/her the importance of staying in a company for a longer time. Tell him/her that the company has designed a career plan for candidate, which requires some time to materialize. I try to tell the candidates that the company to analyze the candidate and the Candidate to anlayze the company will take some time, say one year. or so. Also tell the candidate that after one year even you will be in a better position judge things well, whether to stay in the company or not, to achieve your career goals. This will make him/her understand the situation to some extent, then tell him/her to make things easy it is better we sign an agreement for a stipulated period. This will try to solve the problem. Even the candidate will not think that the company is forcing me to sign an agreement.
This is my personal opinion and it has worked for me. But things may not be the same all time for everyone. So think on these lines, hopefully it will help you.
For my company I have prepared a Legal service agreement for new employees. I hope it will be of some help to you. Go through it and make the necessary changes according to your company's requirements.
Thanks & Regards,
Chandrakanth
AGREEMENT UNDER THE SERVICE CONTRACT
Agreement of Service Contract made on this the day of __________________, BY AND BETWEEN
M/s. XXXXXXXX Technologies Private Limited a company Registered under The Companies Act 1956 having its Registered Office at # 301, XXXXXXX, XXXXXXXX Lane, XXXXXXX, Hyderabad - 500082 represented by its Authorised Signatory Mr. XXXXX XXXXXXXXX, The Director of the Company hereinafter referred to as First part for brevity which term shall unless repugnant to the context mean and include its Successors-in-interest, sister companies, subsidiaries and assignees
AND
Ms. G. XXXXXXXXXX D/o Mr. XXXXXXXX, aged about 23 Years, currently residing at Flat No. S4,XXXXX, XXXXXX Nagar, XXXXXXXt, Secunderabad, 500056... hereinafter referred to as Second Part.
WHEREAS
1. The Second part approached the first Part for a suitable employment in first Part Company XXXXXX Technologies Private Limited.
2. The First Part after scrutiny of education qualification certificates of the Second Part has interviewed the Second Part for suitable position and agreed to appoint the Second Part as employee of XXXXXX Technologies Private Limited.
3. The First Part specifically mentioned to the Second Part that the Second Part has to serve XXXXXX Technologies Private Limited for a term of Twelve (12) months and enter into an Agreement under the Service Contract.
4. The Second Part has agreed and accepted the offer made by the First Part on such terms and conditions as mentioned herein.
NOW IT IS HEREBY MUTUALLY AGREED TO BY AND BETWEEN THE PARTIES AS UNDER: -
I. The Second Part has agreed to serve XXXXXX Technologies Private Limited for a term of Twelve (12) months on such terms and conditions as mentioned herein.
II. The period of Twelve (12) months for this agreement starts from the date the Second Part joins the Office.
III. The Second part if resigns from the services of the First Part earlier than the period as agreed and as stated at clause I for any reason attributable to the second part, then Second part hereby agree to give 60 (Sixty) days notice to the first part and second part further agree to abide with clause No IX as stated hereunder.
IV. During the period of the contract, the Second Part shall faithfully, diligently and to the best of the ability discharge the responsibilities. The Second Part shall confirm to carry out and obey all orders, directions and instructions of the first part and/or Authorities during the term of his employment and shall use his endeavor to promote the interest of XXXXXX Technologies.
V. The Second Part shall devote his time and attention in receiving the necessary instructions or other purposes for which he has been engaged and shall not absent himself from duty at any time without prior written sanction of the First Part.
VI. The Second Part shall carry out all the duties and responsibilities of his position and shall perform all such work as may be entrusted to him or as he may be called upon or required to do such capacity, with due-diligence, punctuality and to the best of his ability and skill, and shall conduct himself honestly, faithfully and diligently at all times throughout the period of the term of his employment and shall not be guilty of any negligence, misconduct or misbehavior or commit any breach of this Agreement.
VII. During the employment period and thereafter, the Second part will not give out to anyone in writing or by word of mouth or otherwise particulars or details of work process, technical know-how, research carried out, security arrangements and/or matters of confidential or secret nature which Second Part may come across during his service period with XXXXXX Technologies.
VIII. The Second Part shall subject to be governed by the service rules, standing Orders and regulations of first Part in force from time to time, so far as they are not at variance with the terms herein contained and thereafter.
IX. In case the Second Part at any time makes a breach of all or any of the Provisions of this Agreement or fails to carry out all or any of his obligations hereunder, this Agreement shall automatically stand Terminated and the second part shall forthwith return to the First Part an amount equivalent to 6 (Six) months worth of monthly salary as stated in the offer letter. In case the Second Part fails to pay back the amount, the First Part shall be entitled to recover the same from any of the monetary claims that the Second Part may have or by having recourse to legal proceedings against Second Part at Second Part's risk, cost and/or from Second part's heirs, executors administrators, sureties etc.,
General:
I. First part hereby agrees to initially employ the second part as its Software Engineer and the second part hereby accepts such Offer of employment in accordance with the terms of this Agreement and the terms of the Offer Letter applicable to regular employees of the first part. In the event of any conflict or ambiguity between the terms of this Agreement and terms of Offer Letter applicable to regular employees, the terms of this Agreement shall control.
II. Any reference to the masculine gender will also include the feminine gender and plural gender where appropriate.
III. This Agreement terminates and supersedes all prior understandings or agreements on the subject matter hereof. This Agreement may be modified only by a further writing that is duly executed by both parties.
IV. Any change in the above addresses of any of the concerned parties i.e. Company or Employee, shall be duly informed to the other parties by the party whose address has changed within a period of seven days of such change.
V. If no such change has been intimated or received, the addresses mentioned shall be deemed to be the addresses of the concerned parties.
VI. In case of any dispute arising out of the above Agreement, the jurisdiction shall be the courts in Hyderabad. No other courts either in India or outside India shall have jurisdiction in respect of the enforcement, interpretation and other aspects of and in connection with this Agreement.
Jurisdiction:
The parties agree that they will use their best efforts to amicably resolve any dispute arising out of or relating to this Agreement. Any controversy, claim or dispute that cannot be so resolved shall be subject to the jurisdiction of the Civil Courts of Hyderabad
IN WITNESS WHEREOF the First Part and the Second Part acting in person have signed and executed this Agreement in their respective names and on their behalf and delivered to the First Part on the Day, month and year first above written.
SIGNED AND DELIVERED BY
. .. .
First Part Second Part
XXXXXXXXXXXXXXXXX XXXXXXXXXXX
For M/s. XXXXXX Technologies Pvt. Ltd.
Witnesses:
. .. .
Name and Name and
Address: Address:
From India, Hyderabad
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Attrition-rate. xls
Effective employee retention strategies-BPO. doc