Just as it is said - “Beauty lies in the eyes of the beholder”, everything has a meaning which can be construed on the basis of your attitude towards it. For instance, if you look at the dictionary meaning of the word “Bond” it means - “A connection based on kinship or marriage or common interest" or "A restraint that confines or restricts freedom”. Just one word and it has both positive and negative connotations. In this discussion, our understanding of the term "Employment bond" is in terms of limitations or restraints in movement of the employee to any other company within the contracted term in the Employment bond.
Having personally experienced the situation of having signed an employment bond, and aware of what an employee undergoes throughout in this process, I feel it would be quite useful for HR professionals to understand the emotional effects of the bond on an employee, and not just focus on the legal and logical perspective of the employment relation.
Human beings are emotional creatures, and respond to incentives like rewards and punishments. Punishments can be construed as negative incentives, while rewards can be summarized as positive ones. For example, payment of bonuses after completion of certain period in the company is a positive incentive in an Employment bond.
Some negative incentives or construed punishments for violating the relation can be listed as:
- Forfeiture of joining bonus for leaving the company before certain period
- Payment of bond money by employee before joining the company which is subject to forfeiture if the employee leaves the company before completion of bond
- Bond signed before going onsite, attracting penalty if employee breaks the bond.
- Employee signing bond before joing some specific training or when company pays for employee’s certification
Considering the high rates of attrition in many industries, it is only practical and commonsense to have a contract that safeguards the interests of both the employer and the employee. And in this case, since the employer is the one who prepares the bond, the equation is slightly tilted in its favor.. But in the end, it is basically a power game which is not necessarily pro-employer, and the balance may shift in the favor of the person with greater bargaining power. Who you are and what you bring to the table will decide what kind of treatment you will get, and how much you can be arm-twisted to contract in the company’s favor. For example, it is much easier to make freshers sign an employment bond before joining the company. Experienced employees however would be quite reluctant to sign such bonds, unless they have very few job options or the economy is in a recession.
Power game it is in the short run, but if you look at it from a long term perspective, it is a zero sum game. In the mind of the employees, the mention of an "Employment bond" in the beginning of the relationship puts them on the defensive, and keeps them on guard. The difference is between compulsion and one's own volition. You can force the employee to remain in your company, but you cannot force the employee to be productive, and loyal to you.
In the words of Ayn Rand - "Force and mind are opposites; morality ends where a gun begins."
I am putting forth this perspective because I have also been a part of this system. My first job at Wipro Technologies came with a 15 month bond collateralized with Rs 75,000 loan taken from SBI. Enthusiastic about my first job, any concern for my independence was brushed aside as I felt 15 months would just fly past. After joining the job however, most of us went through these stages in the lifecycle of an Employment bond.
Motivated optimism gave way to disillusionment, and the realization that we had no freedom to change jobs resulted in anxiety, panic and finally resigned acceptance. By the time we finished the 15 month period, everyone was raring to gain their liberty, and resignations flew - a dime a dozen!
Hence, it is not sufficient to just get the bond signed, because that is not what will motivate the employee to work better. Rather, it would be much better if we create an environment which will generate the other type of "Bond" in the workplace. Building connections based on common interests, and integrating the employees’ desires with the long term strategic direction of the company will help build the Employment bonds that are not based on legalities but mutual faith and trust.
Just wondering:
Can we replace the old "Employment bond" with these “new” ones?!!
No comments:
Post a Comment