Sunday, March 14, 2010

It’s a Bond not Bondage!

Sameer Srivastav quit 3i infotech limited after 3 months of training and joined Oracle and is currently settled in US (need I mention the salary?)
Poonam Goyal quit Infosys after 4 months of joining Infosys and joined IBM and is in London now.
Ashok Kumar Nayak quit BPCL after 6 months of joining and joined Shell as he was offered a fat salary package.
These may be some startling facts for some but definitely eye openers for quite a lot of companies which shell out huge sums of their capital on providing the best quality training to their trainees.
Though it is their business requirement because they heavily rely on human capital but this also has a large contribution to the employees who join these organizations initially and build and grow their career from the initial company.
One big question that comes to my mind is why somebody should join a company if he wants to leave the company after 3/4 months to latch upon a better offer. Joining a company, utilizing the resources of the company through high quality training provided by the company and leaving the company before even contributing to any productive process of the company seems nothing better than a farce!
Another good piece of analysis would be why at all these companies are coming up with funny and weird kind of bond agreements day by day when some years ago there were no such offerings.
Perhaps it is because of the behavior displayed by the employees which has forced them to come up with some sort of restrictive measures which would prevent the new joinees to leave so early without contributing anything to the company. Undergoing training and getting paid for it does not add any value to the companies. It’s only when the employees utilize the knowledge and skill sets acquired during the training and apply them to the core business activities that the company gains. Let us not forget that a company runs the businesses to churn profit and add value to the shareholders. In the process whatever training and other skill building processes are required the company invests and seeks for the results.
To throw some more light on the real life examples that I have taken, in case of Sameer Oracle valued the rigorous and thorough training that 3i infotech renders to its trainees and therefore selected him and offered him double the salary he used to draw from 3i infotech. Similar is the case with Poonam as Infosys also provides one of the best training programmes of the world. Then why should the parent company(makes sense) be punished instead of getting rewarded for providing the best possible foundation for the career of a trainee? Why should somebody else reap the benefits of somebody else’s labor?
Industry stalwarts are of the view that frequent job hopping in the initial stages of the employment is in fact detrimental to the career growth and development of an employee(A rolling stone gathers no moss!). Now the even more pertinent question in the light of this discussion would be is there any harm in having such restrictive mechanisms to avoid these sorts of behavior of the employees which is beneficial even for their own career? I know this logic is highly debatable. But my gut feeling says that the initial years of our career should be focused on understanding the various processes in the organization and spend some considerable time(at least one or two years) which would go a long way for building the career if one is not in a spree of hopping across sectors.
Moreover even if we consider the amount of the bond (1 or 2 lacs) it’s pretty justifiable given the quality of the training provided by the employer, the opportunity cost of the employer and the opportunity gain of the employee! (Most of the times the new job offers at least a 70 % hike in the pay)
Now when we consider the other facet of the discussion which involves the employee’s side I think there could be one issue as far as the clauses of the bond is considered. Most of the times if the trainees are not confirmed as employees and their employment (read traineeship) is cancelled for reasons of underperformance or otherwise they land into trouble. For all other cases where the trainee gets a highly lucrative offer and quits the current company the bond amount should not be a problem.

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