Bond!! can be a value to Employer with no harm to Employee

From an employer perspective, Bond is one effective way to retain employment and to get a return from the employer on which the company spends huge amount in terms of training. Now a days, in order to remain competitive, companies (especially IT) spend a huge amount on training. So, the company expects the employee to be retained so that they can at least get back the cost of training. Thus, I am in favor of bond for the employee. Even Public Sector Companies have the provision of bond and the bond amount is generally larger than the IT companies.

However there are flaws in the system of which either if the party takes the advantage and other becomes the victim. For example, in many IT companies, employees take advantage by leaving the job immediately after completing the training. In this case employer can do nothing except holding back the work experience certificate of the employee which will not matter to the employee as a two-three months experience does not add any value to the CV. Thus employer can only bear the burnt.

A simple solution to this problem is adopted by the Wipro in which case the company takes the deposit of Rs. 75,000 in advance from the employee and return it back after the bond duration is complete. But what a poor person will do in this case. Take the loan and pay the amount? The answer is yes. As already mentioned by the sir, the bank will guarantee the bond amount to the employee and the employee in turn has to pay interest to the bank, means paying interest to the principal amount which he never uses.

Moreover, due to some personal issues or in order to join some university for higher studies if an employee has to leave the job even a day before the completion of bond period, then also the employee has to pay the complete bond. Isn’t it unjust that even after completing 99% of the stipulated time one has to pay back 100% of the bond money?

So, there has to be a way ahead wherein bond serves the real purpose to the employer and the employee on the other hand does not have to bear the burnt. Here, I would like to describe the model of Accenture Services Pvt. Ltd where I worked. There the bond money depends on the technology in which the employee has been trained, like for SAP, Informatica etc the bond amount is Rs. 1,00,000 which for the common technologies the amount is Rs. 50,000. Also the bond period is only for one year. The best feature about this is that the bond amount progressively decreases with time one spends in the office. For example, in case of bond amount of Rs. 50,000, for the first six months, the bond amount will be Rs. 50,000 and after six month this decreases to Rs. 25,000. I the last month the amount remains a little over Rs. 4,000.

The above system is quite beneficial as this motivates the employee to remain in the company who tends to leave the job (without paying the bond) due to the higher bond amount. Also due the lighter Bond norms, Accenture is able to attract the good talent to work for it. Moreover, employee will not have to pay the full money if he/she leaves the job during the last month.

I think the other companies should learn from it…..