Being startup company, How to stop our employees joining competitors. We suspect One of the employee joining our competitor. Please advise
From India, Chennai
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1From India, Chennai
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We suspect one of the employees is joining our close competitor. When we ask him for reasons for leaving, he mentions some personal family problems.
How to Convince an Employee to Stay
How can we convince him to stay and ensure he does not join our competitor? Please advise me on industry practices.
Thanks,
Mohan
From India, Chennai
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How to Convince an Employee to Stay
How can we convince him to stay and ensure he does not join our competitor? Please advise me on industry practices.
Thanks,
Mohan
From India, Chennai
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Dear Mohan ji, You can not stop any body joining anywhere. My answer to you in one sentence since I want this discussion to continue by other members.
From India, Mumbai
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From India, Mumbai
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Employees quit their jobs for many reasons. The root causes for leaving the organization by the employee(s) are specified below:
Relationship with Boss
Employees don't need to be friends with their boss, but they need to have a relationship. The boss is too much of an integral part of their daily lives at work for an uncomfortable relationship. The boss provides direction and feedback, spends time in one-to-one meetings, and connects the employee to the larger organization. Having a toxic relationship with the person an employee reports to undermines the employee's engagement, confidence, and commitment. A bad boss is also the number one reason why employees quit their jobs. Here's how to get along with your boss.
Bored and Unchallenged by the Work Itself
No one wants to be bored and unchallenged by their work. Really. If you have an employee who acts as if they are, you need to help them find their passion. Employees want to enjoy their job. They spend more than a third of their days working, getting ready for work, and transporting themselves to work. Work closely with employees who report to you to ensure that each employee is engaged, excited, and challenged to contribute, create, and perform. Otherwise, you will lose them to an employer who will.
Relationships with Co-workers
When an employee leaves my company, every email that is sent to the whole company to say goodbye includes a comment about passionate coworkers who the employee cares about and will miss. Second only to an employee's manager, the coworkers with whom they sit, interact, and serve with on teams are critical components of an employee's work environment. Research from the Gallup organization indicates that one of the 12 factors that illuminate whether an employee is happy in their job is having a best friend at work. Relationships with coworkers retain employees. Notice and intervene if problems exist.
Opportunities to Use Skills and Abilities
When employees use their significant skills and abilities on the job, they feel a sense of pride, accomplishment, and self-confidence. They are participating in activities that they are good at and that stretch their skills and abilities even further. Employees want to develop and grow their skills. If they're not able to do this in your jobs, they'll find one where they can. This includes opportunity. If an employee can't see a path to continued growth in their current organization, they are likely to look elsewhere for career development or promotion opportunities. Make sure that you're talking with them and that you know their hopes and dreams.
Contribution of Work to the Organization's Business Goals
Managers need to sit with each reporting employee and discuss the relevance of the employee's job and key contributions and deliverables to the overall strategy and business plan of the organization. Employees need to feel connected and that they are part of an effort that is larger than just their job. Too many managers assume that the employee will receive the communication from executive staff and make this leap. They don't. They need your help to understand and connect their job to the bigger picture. If they're not part of it, you'll lose them.
Autonomy and Independence
Organizations talk about empowerment, autonomy, and independence, but they are not something that you can do to people or give them. They are traits and characteristics that an employee needs to pursue and embrace. You are responsible for the work environment that enables them to do this. They are responsible for doing it. A colleague presented a session about the Oz Principles at a recent company event. He pointed out that by creating a culture of accountability, you create empowerment as employees own and execute their responsibilities. Without this, your best employees will leave.
Meaningfulness of Job
Ah, yes, meaningful work. We all want to do something that makes a difference, that isn't busy work, or transactional work, and that contributes to something bigger than ourselves. Ambitious and doable. But, managers must help employees see where their work contributes to the execution of deliverables that make a difference in the world. With some products and services—cancer research, feeding the hungry, animal rescue, diagnosing and curing illnesses, producing milk or crops—meaningfulness is obvious, but everyone's work needs the same meaningfulness. Help employees connect to why their work has meaning or they will find an employer who will.
Organization's Financial Stability
Financial instability: a lack of sales, layoffs or reduced work hours, salary freezes, successful competitors highlighted in the news, bad press, employee turnover, mergers, and acquiring companies all lead to an employee's feeling of instability and a lack of trust. Employees who are worried tend to leave. Make every change and potential change transparent. Let them know how the business is doing at all times and what the organization's plans are for staying on track or recovering in the future.
But, the most important issue here is the employees' trust in and respect for the management team. If they respect your judgment, direction, and decision-making, they will stay. If not, they will leave. After all, they have the financial stability of their families to consider when they decide which executive they will follow—or not.
Overall Corporate Culture
While it's not the top item on employee lists, the overall culture of your company makes a difference for employees. Does your organization appreciate employees, treat them with respect, and provide compensation, benefits, and perks that demonstrate respect and caring?
Is your work environment conducive to employee satisfaction and engagement? Do you provide events, employee activities, celebrations, and team-building efforts that make employees feel that your organization is a great place to work? Employees appreciate a workplace in which communication is transparent, management is accessible, executives are approachable and respected, and direction is clear and understood. Your overall culture keeps employees—or turns them away. Which gets you what you want and need for success?
Management's Recognition of Employee Job Performance
Many place employee recognition further up the list, but this is where recognition scored in a recent Society for Human Resources Management (SHRM) survey of employees. While recognition is important, it is not among employees' chief concerns. A lack of recognition can affect many of the above factors, especially culture, but it's probably not the deciding factor in an employee's decision to leave your organization. Provide a lot of genuine appreciation and recognition as icing on the cake for employee retention. But, pay attention to the more significant factors, the cake, if you wish to retain your best employees. Make recognition the way you live in your organization to keep your best talent.
And the question is why employee(s) joining your competitor might be possible. Your competitor may be providing them with better scope, perks, and working culture. So, try to understand the working culture, salary structure, bonus and incentive policy, and other facilities provided by your competitor. These things help you to find the root cause of why your employee(s) join another organization or your competitor's organization.
With Regards
From India, Ranchi
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Relationship with Boss
Employees don't need to be friends with their boss, but they need to have a relationship. The boss is too much of an integral part of their daily lives at work for an uncomfortable relationship. The boss provides direction and feedback, spends time in one-to-one meetings, and connects the employee to the larger organization. Having a toxic relationship with the person an employee reports to undermines the employee's engagement, confidence, and commitment. A bad boss is also the number one reason why employees quit their jobs. Here's how to get along with your boss.
Bored and Unchallenged by the Work Itself
No one wants to be bored and unchallenged by their work. Really. If you have an employee who acts as if they are, you need to help them find their passion. Employees want to enjoy their job. They spend more than a third of their days working, getting ready for work, and transporting themselves to work. Work closely with employees who report to you to ensure that each employee is engaged, excited, and challenged to contribute, create, and perform. Otherwise, you will lose them to an employer who will.
Relationships with Co-workers
When an employee leaves my company, every email that is sent to the whole company to say goodbye includes a comment about passionate coworkers who the employee cares about and will miss. Second only to an employee's manager, the coworkers with whom they sit, interact, and serve with on teams are critical components of an employee's work environment. Research from the Gallup organization indicates that one of the 12 factors that illuminate whether an employee is happy in their job is having a best friend at work. Relationships with coworkers retain employees. Notice and intervene if problems exist.
Opportunities to Use Skills and Abilities
When employees use their significant skills and abilities on the job, they feel a sense of pride, accomplishment, and self-confidence. They are participating in activities that they are good at and that stretch their skills and abilities even further. Employees want to develop and grow their skills. If they're not able to do this in your jobs, they'll find one where they can. This includes opportunity. If an employee can't see a path to continued growth in their current organization, they are likely to look elsewhere for career development or promotion opportunities. Make sure that you're talking with them and that you know their hopes and dreams.
Contribution of Work to the Organization's Business Goals
Managers need to sit with each reporting employee and discuss the relevance of the employee's job and key contributions and deliverables to the overall strategy and business plan of the organization. Employees need to feel connected and that they are part of an effort that is larger than just their job. Too many managers assume that the employee will receive the communication from executive staff and make this leap. They don't. They need your help to understand and connect their job to the bigger picture. If they're not part of it, you'll lose them.
Autonomy and Independence
Organizations talk about empowerment, autonomy, and independence, but they are not something that you can do to people or give them. They are traits and characteristics that an employee needs to pursue and embrace. You are responsible for the work environment that enables them to do this. They are responsible for doing it. A colleague presented a session about the Oz Principles at a recent company event. He pointed out that by creating a culture of accountability, you create empowerment as employees own and execute their responsibilities. Without this, your best employees will leave.
Meaningfulness of Job
Ah, yes, meaningful work. We all want to do something that makes a difference, that isn't busy work, or transactional work, and that contributes to something bigger than ourselves. Ambitious and doable. But, managers must help employees see where their work contributes to the execution of deliverables that make a difference in the world. With some products and services—cancer research, feeding the hungry, animal rescue, diagnosing and curing illnesses, producing milk or crops—meaningfulness is obvious, but everyone's work needs the same meaningfulness. Help employees connect to why their work has meaning or they will find an employer who will.
Organization's Financial Stability
Financial instability: a lack of sales, layoffs or reduced work hours, salary freezes, successful competitors highlighted in the news, bad press, employee turnover, mergers, and acquiring companies all lead to an employee's feeling of instability and a lack of trust. Employees who are worried tend to leave. Make every change and potential change transparent. Let them know how the business is doing at all times and what the organization's plans are for staying on track or recovering in the future.
But, the most important issue here is the employees' trust in and respect for the management team. If they respect your judgment, direction, and decision-making, they will stay. If not, they will leave. After all, they have the financial stability of their families to consider when they decide which executive they will follow—or not.
Overall Corporate Culture
While it's not the top item on employee lists, the overall culture of your company makes a difference for employees. Does your organization appreciate employees, treat them with respect, and provide compensation, benefits, and perks that demonstrate respect and caring?
Is your work environment conducive to employee satisfaction and engagement? Do you provide events, employee activities, celebrations, and team-building efforts that make employees feel that your organization is a great place to work? Employees appreciate a workplace in which communication is transparent, management is accessible, executives are approachable and respected, and direction is clear and understood. Your overall culture keeps employees—or turns them away. Which gets you what you want and need for success?
Management's Recognition of Employee Job Performance
Many place employee recognition further up the list, but this is where recognition scored in a recent Society for Human Resources Management (SHRM) survey of employees. While recognition is important, it is not among employees' chief concerns. A lack of recognition can affect many of the above factors, especially culture, but it's probably not the deciding factor in an employee's decision to leave your organization. Provide a lot of genuine appreciation and recognition as icing on the cake for employee retention. But, pay attention to the more significant factors, the cake, if you wish to retain your best employees. Make recognition the way you live in your organization to keep your best talent.
And the question is why employee(s) joining your competitor might be possible. Your competitor may be providing them with better scope, perks, and working culture. So, try to understand the working culture, salary structure, bonus and incentive policy, and other facilities provided by your competitor. These things help you to find the root cause of why your employee(s) join another organization or your competitor's organization.
With Regards
From India, Ranchi
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You may implement a Non-compete or Non-Disclosure agreement; however, it will remain a paper tiger unless you work on deeper issues. Why is the employee so motivated to join your competitor? You may not be able to influence external factors such as money or even brand name. However, loyalty remains a different game. What have been your stumbling blocks towards it? If you put yourself in the employee's shoes, what reasons do you see? Looking forward to hearing from you.
From India, Mumbai
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From India, Mumbai
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There may be many reasons for your employees to join a competitor. I want to know whether your competitors are also new to the industry.
Addressing Employee Turnover
In our business, we have encountered a similar issue. Consider whether the employee who is leaving held a powerful position and if they know the nuances of your business. Please reply to me so that I may offer suggestions based on what we did after facing a similar issue.
From India, Coimbatore
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Addressing Employee Turnover
In our business, we have encountered a similar issue. Consider whether the employee who is leaving held a powerful position and if they know the nuances of your business. Please reply to me so that I may offer suggestions based on what we did after facing a similar issue.
From India, Coimbatore
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Dear Venkatesh,
I see some suggestions for a non-compete or NDA. We had the same problem. We also had a Non-compete and NDA. One of our senior employees joined a competitor. We sent him a legal notice and then went to court, thinking he would quit. But the competitor decided to fight the case on behalf of the employee. The court's verdict was that no one can restrain anyone from joining the competition. In case there is a restraint, then it has to be time-bound, which can be restrictive for a maximum period of two years. But this restraint can be there only if the employer can prove that the employee was part of a strategic long-range planning committee in the company and was part of evolving strategy. A person implementing strategy cannot be restrained from joining the competition since he will not be privy to the overall strategy. We also had to pay a fine and pay the employee an amount of Indian Rupees 5 lakhs for the harassment that we caused to him. He had asked for one crore.
So all these companies which sign an NDA or Non-compete agreement are committing an act which is not illegal. When challenged in court, they would be reprimanded. The media did not publicize the case much. So these NDA and non-compete agreements can only be a mental barrier, but in the true sense are not implementable when one goes to court.
So, we came up with one scheme, wherein we built in a variable component in the compensation. According to this, a sum equivalent to a minimum of 4 months of compensation is deferred, and we pay 2 months in July and 2 months in January. This is based on the performance of the company. We call this EPLIS (Employee Performance Linked Incentive Scheme). This amount can go up to 10 months equivalent salary in a whole year. In the first year, 50% of the EPLIS declared is retained by the company. It could vary between 2 to 5 months depending upon the performance of the company. This retained 50% is paid as a rollover in the following year, and the next year's 50% is retained. This retention is for a period of 4 years. After 4 years, we do not retain anything.
But, we being in a very specialized industry, people skills are extremely critical. Apart from the statutory gratuity, we have our own ex-gratia scheme. For an employee who has completed a minimum of 5 years of service, we pay them an amount equivalent to one month last drawn salary of ex-gratia for every year of service rendered when they separate. The upper cap is 12 months last drawn salary in case an employee completes 12 years of service or more. This is paid when he leaves the company or when he retires from the company. But this is subject to him not joining the competition. When he retires or dies, it is paid instantly. While, when he resigns from the services of the company, then there is a waiting period of 6 months. At the end of 6 months, it will be paid in case he has not joined the competition.
We had to rework our entire compensation package in such a manner that we absorbed the above elements, on account of losing the case in the Supreme Court.
In fact, there is a live case in Singapore which gained wide publicity. The Country manager of Adidas resigned to join Puma. The Country manager is a senior position. There was a non-compete and an NDA also signed and taken. Adidas went to court. But, this employee, who was an Indian, took a stand that all overall strategies were done in the Head office, while he implemented them locally and hence he did not have access to the overall strategy but had access to only some local short-term strategies which were created in his office to complement the parts of the overall strategy.
The court raised a query as to whether Adidas had built in an amount equivalent to two years of salary for him to not join the competition when he separated from the company. The answer was no. So if the employee was not willing to compensate him for the two years of layoff period, then they cannot expect him not to join the competition. This is a violation of the fundamental right to employment. We in India also enjoy this fundamental right.
If you look at globally, if a company gets a person to sign a non-compete agreement, then they ensure that enough compensation is given to him during the layoff period.
One of the landmark cases was that of Mark Hurd, the CEO of HP. He joined Oracle as Co-President. HP went to court, but it was thrown out. The reason was that the person had joined the competition, but the division that he had joined and the role he had in Oracle was where he cannot use the strategy information that he gained from HP in his role. Mark Hurd had joined a division which was in a business different from HP.
Now, this is indeed a landmark judgment. This means the court clearly states that in a non-compete agreement, while the company can state that he cannot join the competition, they have to prove that the employee has joined a role which will create a material loss to the previous company where he worked.
I find that, after the above judgments, the NDA or Non-compete agreement can only be enforced at a very top level where a person has access to all the strategy and his exit and joining a competition can cause material loss to the company. Guys at the senior, middle, and junior level do not get affected by such agreements since it is null and void. Knowing a part of the strategy does not restrain him from joining the competition. Such NDAs and Non-compete agreements are made out of desperation to retain people since there is non-availability of talent.
Ultimately, it boils down to having good HR policies where you make the Place of Work a Place of Joy so that the employee does not leave.
Regards
From United+States, San+Francisco
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I see some suggestions for a non-compete or NDA. We had the same problem. We also had a Non-compete and NDA. One of our senior employees joined a competitor. We sent him a legal notice and then went to court, thinking he would quit. But the competitor decided to fight the case on behalf of the employee. The court's verdict was that no one can restrain anyone from joining the competition. In case there is a restraint, then it has to be time-bound, which can be restrictive for a maximum period of two years. But this restraint can be there only if the employer can prove that the employee was part of a strategic long-range planning committee in the company and was part of evolving strategy. A person implementing strategy cannot be restrained from joining the competition since he will not be privy to the overall strategy. We also had to pay a fine and pay the employee an amount of Indian Rupees 5 lakhs for the harassment that we caused to him. He had asked for one crore.
So all these companies which sign an NDA or Non-compete agreement are committing an act which is not illegal. When challenged in court, they would be reprimanded. The media did not publicize the case much. So these NDA and non-compete agreements can only be a mental barrier, but in the true sense are not implementable when one goes to court.
So, we came up with one scheme, wherein we built in a variable component in the compensation. According to this, a sum equivalent to a minimum of 4 months of compensation is deferred, and we pay 2 months in July and 2 months in January. This is based on the performance of the company. We call this EPLIS (Employee Performance Linked Incentive Scheme). This amount can go up to 10 months equivalent salary in a whole year. In the first year, 50% of the EPLIS declared is retained by the company. It could vary between 2 to 5 months depending upon the performance of the company. This retained 50% is paid as a rollover in the following year, and the next year's 50% is retained. This retention is for a period of 4 years. After 4 years, we do not retain anything.
But, we being in a very specialized industry, people skills are extremely critical. Apart from the statutory gratuity, we have our own ex-gratia scheme. For an employee who has completed a minimum of 5 years of service, we pay them an amount equivalent to one month last drawn salary of ex-gratia for every year of service rendered when they separate. The upper cap is 12 months last drawn salary in case an employee completes 12 years of service or more. This is paid when he leaves the company or when he retires from the company. But this is subject to him not joining the competition. When he retires or dies, it is paid instantly. While, when he resigns from the services of the company, then there is a waiting period of 6 months. At the end of 6 months, it will be paid in case he has not joined the competition.
We had to rework our entire compensation package in such a manner that we absorbed the above elements, on account of losing the case in the Supreme Court.
In fact, there is a live case in Singapore which gained wide publicity. The Country manager of Adidas resigned to join Puma. The Country manager is a senior position. There was a non-compete and an NDA also signed and taken. Adidas went to court. But, this employee, who was an Indian, took a stand that all overall strategies were done in the Head office, while he implemented them locally and hence he did not have access to the overall strategy but had access to only some local short-term strategies which were created in his office to complement the parts of the overall strategy.
The court raised a query as to whether Adidas had built in an amount equivalent to two years of salary for him to not join the competition when he separated from the company. The answer was no. So if the employee was not willing to compensate him for the two years of layoff period, then they cannot expect him not to join the competition. This is a violation of the fundamental right to employment. We in India also enjoy this fundamental right.
If you look at globally, if a company gets a person to sign a non-compete agreement, then they ensure that enough compensation is given to him during the layoff period.
One of the landmark cases was that of Mark Hurd, the CEO of HP. He joined Oracle as Co-President. HP went to court, but it was thrown out. The reason was that the person had joined the competition, but the division that he had joined and the role he had in Oracle was where he cannot use the strategy information that he gained from HP in his role. Mark Hurd had joined a division which was in a business different from HP.
Now, this is indeed a landmark judgment. This means the court clearly states that in a non-compete agreement, while the company can state that he cannot join the competition, they have to prove that the employee has joined a role which will create a material loss to the previous company where he worked.
I find that, after the above judgments, the NDA or Non-compete agreement can only be enforced at a very top level where a person has access to all the strategy and his exit and joining a competition can cause material loss to the company. Guys at the senior, middle, and junior level do not get affected by such agreements since it is null and void. Knowing a part of the strategy does not restrain him from joining the competition. Such NDAs and Non-compete agreements are made out of desperation to retain people since there is non-availability of talent.
Ultimately, it boils down to having good HR policies where you make the Place of Work a Place of Joy so that the employee does not leave.
Regards
From United+States, San+Francisco
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Possible ways to cut down on such exits are as follows:
i. Recruit through known references. This way, the candidates would be loyal to you.
ii. Recruit candidates whose family background is with a low profile.
iii. Implement the Non-Compete & Non-Disclosure Agreement and initiate action against violators.
iv. Ask them to surrender their educational qualification certificates right from the 10th standard onward till the highest qualification. It should be as if they are in dire need of a job and they are volunteering themselves to surrender their certificates for this job, which they want to make their career in the long run.
v. Last but not least, identify the privileges that other corporate companies are offering and then try to match them.
Good Luck,
Arcot
From India, Hyderabad
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i. Recruit through known references. This way, the candidates would be loyal to you.
ii. Recruit candidates whose family background is with a low profile.
iii. Implement the Non-Compete & Non-Disclosure Agreement and initiate action against violators.
iv. Ask them to surrender their educational qualification certificates right from the 10th standard onward till the highest qualification. It should be as if they are in dire need of a job and they are volunteering themselves to surrender their certificates for this job, which they want to make their career in the long run.
v. Last but not least, identify the privileges that other corporate companies are offering and then try to match them.
Good Luck,
Arcot
From India, Hyderabad
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[QUOTE=Arcotk25;2065574]
Possible Ways to Cut Down on Employee Exits:
• Recruit through known references. This way, the candidates would be loyal to you.
Not necessary.
• Recruit candidates whose family background is low profile.
I do not agree with this.
• Implement the Non-Compete & Non-Disclosure Agreement and initiate action against violators.
Legally, you cannot do this with everyone.
• Asking them to surrender their educational qualification certificates right from the 10th standard onward till the highest qualification, as if they are in dire need of a job and are volunteering themselves to surrender their certificates for this job, which they want to make as their career in the long run, is not ethical.
• Lastly, identify the privileges that other corporate companies are offering and then try to match them.
There is no guarantee that people will not leave, but you have to do it.
From India, Mumbai
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Possible Ways to Cut Down on Employee Exits:
• Recruit through known references. This way, the candidates would be loyal to you.
Not necessary.
• Recruit candidates whose family background is low profile.
I do not agree with this.
• Implement the Non-Compete & Non-Disclosure Agreement and initiate action against violators.
Legally, you cannot do this with everyone.
• Asking them to surrender their educational qualification certificates right from the 10th standard onward till the highest qualification, as if they are in dire need of a job and are volunteering themselves to surrender their certificates for this job, which they want to make as their career in the long run, is not ethical.
• Lastly, identify the privileges that other corporate companies are offering and then try to match them.
There is no guarantee that people will not leave, but you have to do it.
From India, Mumbai
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practical way is write to competitor companies not to take employees without concent of both companies and you will also follow the understanding
From India, Hyderabad
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From India, Hyderabad
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I want to begin by saying, "I really feel sorry for the company for losing trained resources to its competitors." Having said this, I quickly wish to add that the problem you are facing is not a new phenomenon; it's been there for ages. Each of the companies that were hurt by this "poaching" act devised means and methods to counter this menace and succeeded in their own way. That may not have happened unless they did some serious introspection and thinking to generate the right strategies to stem the rot, if not eliminate it.
The point that I am trying to make is that there can be several reasons that one can attribute to this happening with respect to your company. If I might say, "you perhaps choose potential people and give them good initial induction training to make them productive," then that seems to be the one that has led to your competitors being attracted to hire people who choose to leave your company.
That apart, there may be something that is missing in your company—it could be the management or the policy that precipitates acts of exit.
There are several reasons cited already here as part of the discussion, and the theory world over would have these and they would have added a few more. This is valid and can be true, which I may choose to repeat:
Unhappiness with the "Boss"
Inadequate compensation
Nature of the work itself
Shifts
Recognize outstanding work
Offer professional development opportunities
etc.
Years ago, I read this on the Internet, the source of which I am not sure, so I'd acknowledge Source - Anon.
I'd like to narrate a story that highlights the point the original writer was trying to make:
A frail old lady was waiting at a bus stop with a load of bags hanging on her shoulders apart from the ones in her hands. After a long wait, a bus came that way and stopped to pick up the waiting passengers. As soon as the bus stopped, young students rushed into it, and as the old lady was struggling to make her way to a vacant seat in the end row, she got pushed and fell down.
Reacting to this incident were some of the passengers: "How rude these days young kids are, didn't their parents teach them any manners," yelled a lady who was a teacher. "Such people should be booked under law and be punished," yelled a man who was a lawyer. "Oh! No, she would have probably broken her shoulder bones, she needs immediate medical attention," was a shrill voice who happened to be a doctor.
Like these, each one was passing his/her comment, but no one really went close to the lady to help her get to her feet and then to her seat, nor inquire about how she was feeling until one person actually did this by helping her stand and then made her sit on the vacant seat, and he turned out to be a Welfare Officer in a local manufacturing company.
This story clearly narrates how people's thinking and behaviors show up according to their professions—the teacher, the lawyer, the doctor, and the welfare officer acted or reacted to help a frail old lady crying in pain. The passengers forgot the fact that they are human beings first and then professionals. This may just seem like a story, but professionals get greatly influenced in their thinking and behavior by the profession they are in.
Keeping the HR part of it aside for the time being, I would want to suggest that you try creating an "Employee Branding Exercise."
It'll be useful for you all as the company's management team to ask the following questions and to get answers for them, which will define the roadmap for brand building.
SWOT Analysis
• What are your strengths as an employer? Your weaknesses?
• How does top talent rate you against your competitors?
• What do your competitors offer that you do not?
• What do you offer that your competitors do not?
• What do employees like about coming to work for you?
• What do employees dislike about coming to work for you?
• What drives job seekers to apply to your jobs?
• What prevents job seekers from applying to your jobs?
• Are you offering competitive pay?
• How could you better position yourself as an employer of choice?
• Where should you be advertising your jobs?
After this is done, and all of you have consensus findings, plan a "branding exercise":
1. Defining Your Message
2. Communicating Your Brand
3. Evaluating Your Message's Effectiveness
4. Assessing Your Employment Brand
This is slightly time-consuming but really worth the effort. Companies that were not there fifteen or twenty years ago have indulged in this, and companies that have been there before that have been established as leading brands, more because of the product's utility and its quality. Names have become household names, "thanks to branding."
The last word from me would be "Be Human in your touch with Employees," and if they still desert you, take it that they don't deserve good people like you. Let them feel guilty for leaving you while you don't have to feel sorry they left you. This will go a long way in solving the problem at hand, and who knows, the competitors will have to work overtime to retain their employees.
Regards
From India, Hyderabad
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The point that I am trying to make is that there can be several reasons that one can attribute to this happening with respect to your company. If I might say, "you perhaps choose potential people and give them good initial induction training to make them productive," then that seems to be the one that has led to your competitors being attracted to hire people who choose to leave your company.
That apart, there may be something that is missing in your company—it could be the management or the policy that precipitates acts of exit.
There are several reasons cited already here as part of the discussion, and the theory world over would have these and they would have added a few more. This is valid and can be true, which I may choose to repeat:
Unhappiness with the "Boss"
Inadequate compensation
Nature of the work itself
Shifts
Recognize outstanding work
Offer professional development opportunities
etc.
Years ago, I read this on the Internet, the source of which I am not sure, so I'd acknowledge Source - Anon.
I'd like to narrate a story that highlights the point the original writer was trying to make:
A frail old lady was waiting at a bus stop with a load of bags hanging on her shoulders apart from the ones in her hands. After a long wait, a bus came that way and stopped to pick up the waiting passengers. As soon as the bus stopped, young students rushed into it, and as the old lady was struggling to make her way to a vacant seat in the end row, she got pushed and fell down.
Reacting to this incident were some of the passengers: "How rude these days young kids are, didn't their parents teach them any manners," yelled a lady who was a teacher. "Such people should be booked under law and be punished," yelled a man who was a lawyer. "Oh! No, she would have probably broken her shoulder bones, she needs immediate medical attention," was a shrill voice who happened to be a doctor.
Like these, each one was passing his/her comment, but no one really went close to the lady to help her get to her feet and then to her seat, nor inquire about how she was feeling until one person actually did this by helping her stand and then made her sit on the vacant seat, and he turned out to be a Welfare Officer in a local manufacturing company.
This story clearly narrates how people's thinking and behaviors show up according to their professions—the teacher, the lawyer, the doctor, and the welfare officer acted or reacted to help a frail old lady crying in pain. The passengers forgot the fact that they are human beings first and then professionals. This may just seem like a story, but professionals get greatly influenced in their thinking and behavior by the profession they are in.
Keeping the HR part of it aside for the time being, I would want to suggest that you try creating an "Employee Branding Exercise."
It'll be useful for you all as the company's management team to ask the following questions and to get answers for them, which will define the roadmap for brand building.
SWOT Analysis
• What are your strengths as an employer? Your weaknesses?
• How does top talent rate you against your competitors?
• What do your competitors offer that you do not?
• What do you offer that your competitors do not?
• What do employees like about coming to work for you?
• What do employees dislike about coming to work for you?
• What drives job seekers to apply to your jobs?
• What prevents job seekers from applying to your jobs?
• Are you offering competitive pay?
• How could you better position yourself as an employer of choice?
• Where should you be advertising your jobs?
After this is done, and all of you have consensus findings, plan a "branding exercise":
1. Defining Your Message
2. Communicating Your Brand
3. Evaluating Your Message's Effectiveness
4. Assessing Your Employment Brand
This is slightly time-consuming but really worth the effort. Companies that were not there fifteen or twenty years ago have indulged in this, and companies that have been there before that have been established as leading brands, more because of the product's utility and its quality. Names have become household names, "thanks to branding."
The last word from me would be "Be Human in your touch with Employees," and if they still desert you, take it that they don't deserve good people like you. Let them feel guilty for leaving you while you don't have to feel sorry they left you. This will go a long way in solving the problem at hand, and who knows, the competitors will have to work overtime to retain their employees.
Regards
From India, Hyderabad
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Thank you to all the seniors who shared valuable knowledge. I believe that good HR policies help avoid such situations; employers must give freedom to their HR team. Careful recruitment will help identify future risks.
From India, Pune
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From India, Pune
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Yes, there are companies that come to a mutual understanding and sign an anti-poaching agreement. However, from my experience, I have seen that one of the companies ends up breaking this rule by persuading an employee to resign and keeping them at home for a few months, while paying their salary, before they join the competitor. This behavior often stems from desperation.
We need to accept this reality.
I appreciate Reliance Industries for their approach. They consistently build Bench Strength. They were pioneers in India in exploring gas and converting it into Polymers. At that time, the required skills were not available in India, so they brought in expats. Simultaneously, they also focused on creating a bench strength by training engineers. Over time, they developed some of the best Polymer specialists globally. However, inevitably, these specialists were poached in the Middle East. Many Indian companies, including Videocon, ventured into gas exploration in other countries, notably in Africa and the Middle East. These Indian companies preferred working with Indians, and employees from Reliance were their top choice. Reliance was not concerned about poaching as they had a robust bench strength policy. Their engineer trainee scheme became renowned worldwide.
Poaching no longer concerns them. In fact, my company aggressively poaches from Reliance. However, this does not affect Reliance due to their strong bench strength policy. They even anticipate turnover.
This is how resilient institutions are built.
From United+States, San+Francisco
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We need to accept this reality.
I appreciate Reliance Industries for their approach. They consistently build Bench Strength. They were pioneers in India in exploring gas and converting it into Polymers. At that time, the required skills were not available in India, so they brought in expats. Simultaneously, they also focused on creating a bench strength by training engineers. Over time, they developed some of the best Polymer specialists globally. However, inevitably, these specialists were poached in the Middle East. Many Indian companies, including Videocon, ventured into gas exploration in other countries, notably in Africa and the Middle East. These Indian companies preferred working with Indians, and employees from Reliance were their top choice. Reliance was not concerned about poaching as they had a robust bench strength policy. Their engineer trainee scheme became renowned worldwide.
Poaching no longer concerns them. In fact, my company aggressively poaches from Reliance. However, this does not affect Reliance due to their strong bench strength policy. They even anticipate turnover.
This is how resilient institutions are built.
From United+States, San+Francisco
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Anybody could seek a job in any kind of organization, and no law or external forces could control anyone to join any organization. If anyone is trying to restrict anyone to hinder anybody from joining any organization, it is a crime and a violation of human rights.
Nowadays, many young and moderately experienced engineers are quickly changing their jobs in the software and related industries, i.e., IT and ITES. Can anyone block someone from joining the same industry, terming it as a competitor's organization?
Please do not allow your thoughts and your company's (management's) thoughts to be unproductive. If you do anything of the sort, you will certainly be under legal scrutiny. It is a violation of human rights altogether.
From India, Pune
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Nowadays, many young and moderately experienced engineers are quickly changing their jobs in the software and related industries, i.e., IT and ITES. Can anyone block someone from joining the same industry, terming it as a competitor's organization?
Please do not allow your thoughts and your company's (management's) thoughts to be unproductive. If you do anything of the sort, you will certainly be under legal scrutiny. It is a violation of human rights altogether.
From India, Pune
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Well, first analyze why your employees are moving to your competitors for salary, perks, facilities, or policies. Based on this analysis, take necessary actions. Additionally, engage with the employees who are considering leaving, discuss their reasons, and try to negotiate and convince them to stay with your company. You may also consider implementing contracts or bonds, but remember that employee satisfaction and welfare should always be the top priority.
From India, Lucknow
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From India, Lucknow
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This is a very good thread. Plenty of views have been exchanged. In my view, the following observations, expressed previously, stand out:
- Agreements do not provide any solution.
- Have a robust training program (or bench strength if the company could afford it).
Regards,
V. Raghunathan
From India
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- Agreements do not provide any solution.
- Have a robust training program (or bench strength if the company could afford it).
Regards,
V. Raghunathan
From India
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One person going to a competitor is not a challenge. But when it becomes repetitive, you need to really probe into the root cause analysis of it. I would suggest adopting a two-way strategy. Firstly, conduct an E-SAT survey to check various dimensions. Secondly, consider hiring an external agency to work on a benchmarking exercise in comparison to your competitors, analyzing both tangible and intangible benefits.
Through the E-SAT survey, you can understand the internal environment and develop an action plan to address priority issues. The benchmarking exercise will help identify gaps in terms of tangible and intangible benefits. By combining insights from these two reports, you can gain a clear idea for designing future strategies to retain the best talent. Additionally, you can introduce better measurability criteria to monitor ongoing performance effectively.
Remember, if you believe in yourself, change will happen. Best of luck.
Regards, Rahul Mehandiratta
From India, Faridabad
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Through the E-SAT survey, you can understand the internal environment and develop an action plan to address priority issues. The benchmarking exercise will help identify gaps in terms of tangible and intangible benefits. By combining insights from these two reports, you can gain a clear idea for designing future strategies to retain the best talent. Additionally, you can introduce better measurability criteria to monitor ongoing performance effectively.
Remember, if you believe in yourself, change will happen. Best of luck.
Regards, Rahul Mehandiratta
From India, Faridabad
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Dear All, it was very informative and technically correct, but I have a suggestion which I once applied and got good results. If you want to retain your employees, all the things are okay, but you may talk to your competitor and reach a two-party agreement that none of them will ever hire the competitor's employee, as the competitor must also be facing some challenges of manpower turnover.
Regards
From India, Mumbai
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Regards
From India, Mumbai
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Dear Vishal, Please read all the messages; such agreements with competitors may be illegal in addition to being unethical.
From United Kingdom
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From United Kingdom
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This is one of the major concerns employers face, especially in start-up companies. You need to understand the various motivational factors that work for different employees. For some, money is everything, while for others, the working environment and culture play an important role.
Conducting Feedback Sessions
Have one-on-one feedback sessions with your employees to understand their reasons for considering joining your competitors. This should be done regularly with all other employees. If there is a disconnect, try to resolve it.
Exit Interviews
Furthermore, if an employee ultimately decides to leave your company, ensure you conduct a thorough exit interview.
Regards
From India, Mumbai
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Conducting Feedback Sessions
Have one-on-one feedback sessions with your employees to understand their reasons for considering joining your competitors. This should be done regularly with all other employees. If there is a disconnect, try to resolve it.
Exit Interviews
Furthermore, if an employee ultimately decides to leave your company, ensure you conduct a thorough exit interview.
Regards
From India, Mumbai
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We can approach this in two different manners.
Appointing at Executive or Manager Level
First, if we appoint them at an executive or manager level, they may have a tendency to switch over as they might not develop affection or loyalty towards the organization. We need not be overly concerned about these individuals.
Appointing at the Bottom Level
Secondly, if we appoint a person at the bottom level and provide them with slow and steady progress in their package, they would need to put in many years of service to reach a higher level. After that, they will face constraints in switching to another company, such as seniority and relocation problems due to family situations. This is a traditional but more effective method.
Regards
From United Kingdom, Oxford
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Appointing at Executive or Manager Level
First, if we appoint them at an executive or manager level, they may have a tendency to switch over as they might not develop affection or loyalty towards the organization. We need not be overly concerned about these individuals.
Appointing at the Bottom Level
Secondly, if we appoint a person at the bottom level and provide them with slow and steady progress in their package, they would need to put in many years of service to reach a higher level. After that, they will face constraints in switching to another company, such as seniority and relocation problems due to family situations. This is a traditional but more effective method.
Regards
From United Kingdom, Oxford
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We can approach this in two different manners. First, if we appoint them at an executive or manager level, they will have a tendency to switch over as they will not have affection or loyalty towards the organization. We need not care about those persons.
Secondly, if we appoint a person at the bottom level and give them slow and steady progress in the package, to reach a higher level, they would have to put in many years of service. They will have constraints to switch to another company like seniority and relocation problems due to family situations. This is a traditional way but a more effective method.
From United Kingdom, Oxford
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Secondly, if we appoint a person at the bottom level and give them slow and steady progress in the package, to reach a higher level, they would have to put in many years of service. They will have constraints to switch to another company like seniority and relocation problems due to family situations. This is a traditional way but a more effective method.
From United Kingdom, Oxford
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Legally you can’t do anything. Just provide good benefits, salary, culture etc,
From India, Pune
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From India, Pune
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Many useful insights have been shared by the senior members of this forum. I would like to add a few things to this discussion:
1. Instead of spending your time on non-compete agreements and NDAs, try to strengthen your exit interview process. This will give you a clear picture of why people leave your organization and what motivates them to do so. When I say "exit interview," it should be conducted professionally and without prejudice. It should be carried out by a third party who does not have a direct connection with the individual, so that people feel comfortable sharing their thoughts. While it may not provide a 100% result, it will certainly offer valuable insights on what can be improved in the future.
2. It is common in all companies for employees to consider joining competitors where they may be viewed as a ready-made product, enabling them to demand more and excel in their field quickly. This tendency may be particularly high in your startup due to the lack of established systems.
Regards,
M. Kannan
From India, Madurai
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1. Instead of spending your time on non-compete agreements and NDAs, try to strengthen your exit interview process. This will give you a clear picture of why people leave your organization and what motivates them to do so. When I say "exit interview," it should be conducted professionally and without prejudice. It should be carried out by a third party who does not have a direct connection with the individual, so that people feel comfortable sharing their thoughts. While it may not provide a 100% result, it will certainly offer valuable insights on what can be improved in the future.
2. It is common in all companies for employees to consider joining competitors where they may be viewed as a ready-made product, enabling them to demand more and excel in their field quickly. This tendency may be particularly high in your startup due to the lack of established systems.
Regards,
M. Kannan
From India, Madurai
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True! You cannot stop people from joining competitors. Introspection is the best way. Ensure that your organization takes care of the points suggested by many people above. If you are good, the employees would like to remain. Instead of focusing on stopping, which sounds negative, think of attracting and retaining talent, which is a positive approach.
Change the Attitude of Your Company/HR
All you need to do is change the attitude of your company/HR.
Regards
From India, Mumbai
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Change the Attitude of Your Company/HR
All you need to do is change the attitude of your company/HR.
Regards
From India, Mumbai
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You can't stop them, but you can include a clause in the employment contract stating that they cannot join a competitor for a period of two to three years after leaving your company.
Regards,
T. Muralidaran
[Phone Number Removed For Privacy Reasons]
From India, Hosur
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Regards,
T. Muralidaran
[Phone Number Removed For Privacy Reasons]
From India, Hosur
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If you can, please speak to the HR of your competitor or any high authority there and have a mutual agreement with them not to hire your staff, and you will not hire from them.
Alternatively, have a clause in your appointment letter stating that after resignation, he/she should not join a similarly business-oriented company for 1 or 2 years. This is also legally viable.
I believe either of these suggestions should be helpful to you.
From India, Chennai
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Alternatively, have a clause in your appointment letter stating that after resignation, he/she should not join a similarly business-oriented company for 1 or 2 years. This is also legally viable.
I believe either of these suggestions should be helpful to you.
From India, Chennai
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Gentleman, You have not read the entire thread. There is enough data provided in the thread stating that such agreements are invalid in law. Regards
From United+States, San+Francisco
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From United+States, San+Francisco
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Dear Murali,
Why should this be in the appointment letter? Do you want a bonded laborer or a contributing member to work with? If you cannot provide an atmosphere (in all respects) for an employee to contribute so that he/she and the organization grow together, why do you want to chain him/her?
Keep in mind, if an organization is successful in creating a bond between the organization and the employees from the heart, then there is no need for any bond or fear of leaving. Many organizations have succeeded in this, and it is not just a theory.
Suresh
From India, Pune
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Why should this be in the appointment letter? Do you want a bonded laborer or a contributing member to work with? If you cannot provide an atmosphere (in all respects) for an employee to contribute so that he/she and the organization grow together, why do you want to chain him/her?
Keep in mind, if an organization is successful in creating a bond between the organization and the employees from the heart, then there is no need for any bond or fear of leaving. Many organizations have succeeded in this, and it is not just a theory.
Suresh
From India, Pune
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Dear all senior members,
I have posted my original with the heading as given below:
"Whole team wants to join Client's new local branch by leaving current employer"
Due to the similarity of my query with this thread, I was advised to participate in this thread. Please go through my original post to understand the situation completely.
After reading all views, I have understood that no company can restrict any employee from joining a competitor, and I hope the same thing would be applicable for joining client companies too. Please confirm.
Below are my queries based on my original post:
Question 3: We are keeping things deeply secret and do not discuss, chat, or mail about it in the office environment to avoid leaving any traces behind. But in case somehow our employer comes to know about the plan, what action can be taken against us?
Question 4: How much risk is involved in all this, and what additional care should we take to avoid any unwanted circumstances?
Also, please consider the fact that a major source of income for our current employer is the billing of our team, and if this billing stops completely, the company may not be able to survive for long.
Thanks & regards,
Aditya
From India, Bangalore
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I have posted my original with the heading as given below:
"Whole team wants to join Client's new local branch by leaving current employer"
Due to the similarity of my query with this thread, I was advised to participate in this thread. Please go through my original post to understand the situation completely.
After reading all views, I have understood that no company can restrict any employee from joining a competitor, and I hope the same thing would be applicable for joining client companies too. Please confirm.
Below are my queries based on my original post:
Question 3: We are keeping things deeply secret and do not discuss, chat, or mail about it in the office environment to avoid leaving any traces behind. But in case somehow our employer comes to know about the plan, what action can be taken against us?
Question 4: How much risk is involved in all this, and what additional care should we take to avoid any unwanted circumstances?
Also, please consider the fact that a major source of income for our current employer is the billing of our team, and if this billing stops completely, the company may not be able to survive for long.
Thanks & regards,
Aditya
From India, Bangalore
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Dear all senior members, I have posted my original with the heading as given below:
"Whole team wants to join Client's new local branch by leaving the current employer"
Due to the similarity of my query with this thread, I was advised to participate in this thread. Please go through my original post to understand the situation completely. After reading all views, I have understood that no company can restrict any employee from joining a competitor, and I hope the same thing would be applicable for joining client companies too. Please confirm.
Below are my queries based on my original post:
Question 3: We are keeping things deeply secret and do not discuss, chat, or email about it in the office environment to avoid leaving any traces behind. But in case somehow our employer comes to know about the plan, what action can be taken against us?
Question 4: How much risk is involved in all this and what additional care should we take to avoid any unwanted circumstances?
Also, please consider the fact that a major source of income for our current employer is the billing of our team. If this billing stops completely, the company may not be able to survive for long.
Thanks & regards,
Aditya
You do not have to worry about this matter at all. In fact, in the 70s, such a coup happened in Chennai. You may know the famous advertising agency in Chennai by the name R K Swamy & Associates. Mr. R K Swamy was the branch manager of the Chennai branch of J Walter Thomson, now known as Hindustan Thomson Associates. Mr. Swamy on his own floated a company called R K Swamy & Associates and while pitching for business for JWT, was also pitching for business for his own company. He got some good accounts. He then took some of his senior colleagues into confidence in the branch, and they engineered one of the biggest coups in the corporate world.
The lease of the building in which the JWT office was housed was expiring, and so he spoke to the owner and took the lease of the building in the name of R K Swamy & Associates. One fine day, he made appointment orders for all the employees with an increase in salary by 50% and one level higher. He came to the office, called everyone for a meeting and announced that the building is now in the name of R K Swamy & Associates. The telephones were in their name with new numbers, and the furniture, mostly hired in advertising agencies, was theirs since they changed the hirer's name. He made an open offer in the group meeting, stating that they are all welcome to join his new advertising agency at a 50% higher salary and also one level higher. He mentioned prestigious accounts like BHEL, BEL, HMT, and other such Public sector accounts with huge revenue budgets that would place R K Swamy & Associates among the top 10 agencies in the country in the very first year. He spoke about a great career if all joined him. Those who desired to stay with JWT were welcome to leave the office.
All employees except three of them accepted the new offer. The three were asked to leave the office. All others were issued appointment letters, and there was a celebration with beer and lunch on the house. He then arranged to send telegrams in the name of each employee to JWT's HR department, submitting their resignation and seeking immediate release.
The three employees went to a Post office and booked a trunk call to Mumbai, as there were no STD facilities in those days. After a two-hour wait, they got the call and informed the seniors at JWT about what had happened.
The then CEO of JWT, Mike Khanna, rushed to Chennai. They consulted a lawyer who advised that nothing could be done since the building lease had expired. The furniture was on rental and was now in the name of R K Swamy & Associates. All the papers and documents pertaining to JWT were neatly packed and kept aside, and a telegram was sent to JWT asking them to pick up their property. The only items available were the typewriters and the telex machine. However, they had prestigious accounts such as Spencers, Ponds, etc., and they had to save them. So they immediately took a space in Hotel Connemara business center and started servicing their clients. Emergency staff were flown in from other offices until the vacancies were filled.
A couple of weeks later, JWT went to court. But JWT lost the case since the employees had complied with every clause of the terms of appointment and had also sent in cheques of one month's notice period pay, which was obviously covered by R K Swamy.
Though unethically done by R K Swamy, they were protected by law since the law has no emotions. So, as long as you are complying with the law, you don't have to worry.
Incidentally, R K Swamy's grandson is Arvind Swamy, who acted as the hero in the famous Indian movie called Roja.
Since the major billing is with the client, the company may approach the client, and the client may decide to compensate them or fight it out in court. It does not matter to you. You comply with the terms of appointment and be done with it. The company cannot sue you. And in case they do, then most of the time, in such corporate coups, the employer fights the case in proxy. So be at peace.
From United+States, San+Francisco
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"Whole team wants to join Client's new local branch by leaving the current employer"
Due to the similarity of my query with this thread, I was advised to participate in this thread. Please go through my original post to understand the situation completely. After reading all views, I have understood that no company can restrict any employee from joining a competitor, and I hope the same thing would be applicable for joining client companies too. Please confirm.
Below are my queries based on my original post:
Question 3: We are keeping things deeply secret and do not discuss, chat, or email about it in the office environment to avoid leaving any traces behind. But in case somehow our employer comes to know about the plan, what action can be taken against us?
Question 4: How much risk is involved in all this and what additional care should we take to avoid any unwanted circumstances?
Also, please consider the fact that a major source of income for our current employer is the billing of our team. If this billing stops completely, the company may not be able to survive for long.
Thanks & regards,
Aditya
You do not have to worry about this matter at all. In fact, in the 70s, such a coup happened in Chennai. You may know the famous advertising agency in Chennai by the name R K Swamy & Associates. Mr. R K Swamy was the branch manager of the Chennai branch of J Walter Thomson, now known as Hindustan Thomson Associates. Mr. Swamy on his own floated a company called R K Swamy & Associates and while pitching for business for JWT, was also pitching for business for his own company. He got some good accounts. He then took some of his senior colleagues into confidence in the branch, and they engineered one of the biggest coups in the corporate world.
The lease of the building in which the JWT office was housed was expiring, and so he spoke to the owner and took the lease of the building in the name of R K Swamy & Associates. One fine day, he made appointment orders for all the employees with an increase in salary by 50% and one level higher. He came to the office, called everyone for a meeting and announced that the building is now in the name of R K Swamy & Associates. The telephones were in their name with new numbers, and the furniture, mostly hired in advertising agencies, was theirs since they changed the hirer's name. He made an open offer in the group meeting, stating that they are all welcome to join his new advertising agency at a 50% higher salary and also one level higher. He mentioned prestigious accounts like BHEL, BEL, HMT, and other such Public sector accounts with huge revenue budgets that would place R K Swamy & Associates among the top 10 agencies in the country in the very first year. He spoke about a great career if all joined him. Those who desired to stay with JWT were welcome to leave the office.
All employees except three of them accepted the new offer. The three were asked to leave the office. All others were issued appointment letters, and there was a celebration with beer and lunch on the house. He then arranged to send telegrams in the name of each employee to JWT's HR department, submitting their resignation and seeking immediate release.
The three employees went to a Post office and booked a trunk call to Mumbai, as there were no STD facilities in those days. After a two-hour wait, they got the call and informed the seniors at JWT about what had happened.
The then CEO of JWT, Mike Khanna, rushed to Chennai. They consulted a lawyer who advised that nothing could be done since the building lease had expired. The furniture was on rental and was now in the name of R K Swamy & Associates. All the papers and documents pertaining to JWT were neatly packed and kept aside, and a telegram was sent to JWT asking them to pick up their property. The only items available were the typewriters and the telex machine. However, they had prestigious accounts such as Spencers, Ponds, etc., and they had to save them. So they immediately took a space in Hotel Connemara business center and started servicing their clients. Emergency staff were flown in from other offices until the vacancies were filled.
A couple of weeks later, JWT went to court. But JWT lost the case since the employees had complied with every clause of the terms of appointment and had also sent in cheques of one month's notice period pay, which was obviously covered by R K Swamy.
Though unethically done by R K Swamy, they were protected by law since the law has no emotions. So, as long as you are complying with the law, you don't have to worry.
Incidentally, R K Swamy's grandson is Arvind Swamy, who acted as the hero in the famous Indian movie called Roja.
Since the major billing is with the client, the company may approach the client, and the client may decide to compensate them or fight it out in court. It does not matter to you. You comply with the terms of appointment and be done with it. The company cannot sue you. And in case they do, then most of the time, in such corporate coups, the employer fights the case in proxy. So be at peace.
From United+States, San+Francisco
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Thanks, Anonymous, for your reply. As per your response, we employees are on the safe side and don't have to worry about legal issues. On the other hand, our employer can sue the client and demand compensation. However, as I mentioned in my original post, our client (a German-based IT company) does not have any agreement with our employer that restricts the employment of each other's employees. So, if our employer sues the client, whose legal position would be stronger? Also, what could be the approximate minimum and maximum compensation amount the client would have to pay to the employer if the client loses the case? Your valuable feedback is appreciated.
From India, Bangalore
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From India, Bangalore
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Thanks, Anonymous, for your reply. As per your response, we employees are on the safe side and don't have to worry about legal issues. On the other hand, our employer can sue the client and demand compensation. However, as I mentioned in my original post, our client (a German-based IT company) does not have any agreement with our employer that restricts the employment of each other's employees. So, if our employer sues the client, who would have the stronger legal position? Also, what could be the approximate minimum and maximum compensation amount the client would have to pay to the employer if the client loses the case?
Please provide your valuable feedback.
There is no basis for the employer to sue the client since there is no contract or agreement preventing poaching between them. Given that this client contributes significantly to the billing, it is more likely that your company owners will seek an amicable resolution with the client and possibly offer some compensation.
In contrast, European MNCs are not typically as generous as American MNCs in such matters. An American MNC might engage directly with your company's owners, potentially acquiring the company and offering key roles. For example, when MSN acquired Hotmail, they appointed Sabir Bhatia as General Manager before he later left to start his own venture. European companies tend to consider the commercial aspects and may opt to hire employees rather than acquire entire companies.
Considering your employers' financial constraints, it is improbable that they will pursue legal action. Doing so would deplete their limited resources in legal battles, especially as the German MNC, acting on behalf of the employees, is likely to have substantial resources.
Therefore, rest assured that you are in a secure position, benefiting from a favorable deal. You are well-protected, and your employer is unlikely to take legal action. Their focus will likely be on expanding the business and acquiring new clients rather than engaging in legal disputes.
From United+States, San+Francisco
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Please provide your valuable feedback.
There is no basis for the employer to sue the client since there is no contract or agreement preventing poaching between them. Given that this client contributes significantly to the billing, it is more likely that your company owners will seek an amicable resolution with the client and possibly offer some compensation.
In contrast, European MNCs are not typically as generous as American MNCs in such matters. An American MNC might engage directly with your company's owners, potentially acquiring the company and offering key roles. For example, when MSN acquired Hotmail, they appointed Sabir Bhatia as General Manager before he later left to start his own venture. European companies tend to consider the commercial aspects and may opt to hire employees rather than acquire entire companies.
Considering your employers' financial constraints, it is improbable that they will pursue legal action. Doing so would deplete their limited resources in legal battles, especially as the German MNC, acting on behalf of the employees, is likely to have substantial resources.
Therefore, rest assured that you are in a secure position, benefiting from a favorable deal. You are well-protected, and your employer is unlikely to take legal action. Their focus will likely be on expanding the business and acquiring new clients rather than engaging in legal disputes.
From United+States, San+Francisco
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Thank you very much, Anonymous Sir. Do other senior members of this forum have any different views or suggestions about my queries? Please provide more feedback or confirm the views of Anonymous Sir.
Thanks,
Aditya
From India, Bangalore
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Thanks,
Aditya
From India, Bangalore
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As HR Managers, our focus should be more on retaining employees than on stopping them from joining a competitor. Our retention strategy should include attracting talents through unique recruitment practices, motivating employees to develop competencies that are rare and inimitable, providing learning opportunities, fostering a sense of community, and making employees strategic partners.
What do you think?
From India, Mumbai
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What do you think?
From India, Mumbai
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Dear Venkatesh,
No employee can be stopped from joining a competitor unless they work in a senior position and are involved in planning. Every employee has the right to join any company they are interested in. It's a fundamental right as per the Constitution of India.
From India, Madras
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No employee can be stopped from joining a competitor unless they work in a senior position and are involved in planning. Every employee has the right to join any company they are interested in. It's a fundamental right as per the Constitution of India.
From India, Madras
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Effective employee retention strategies-BPO. doc
Employee Retention Tools.pdf
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