Tool against the Employee : Employment Bond

Employment Bond is a tool against the employee to restrict them from joining any other orgainsation in the initial period of employment. This is done to make sure that the cost that the company incurs in the requirement process and training period. Every company spends a lot of money over the employee and hence don’t want to leave them early. But is this correct on the part of the employee?

In today’s competitive environment every employee has the right to chose the best carrier option for them. Every company tries to lure the best talent my giving them better compensation and position in the company. And its not unjustified on the part of the employer.

There are companies like Infosys, Wipro and Satyam who enforces employment bond and there are companies like IBM, CTS that does not enforces employment bond. Companies that enforces employment bond can use autonomy and little freedom is given to the employment in terms of projects, locations or any other affairs because they know that the employee can’t leave within a stipulated 1 or 2 year. These lead to employee dissatisfaction and hence affect productivity.

Companies like IBM & Cognizant does not have employee bond, employee is given autonomy in terms of project selection, location preference, and competency. This in turn leads to job satisfaction. Generally people have a wrong notion that companies can reduce attrition by forcing them to sign employment bond. But this reduces their productivity.

So I believe that the companies should use this tool very effectively as there is a very high probability that the strategy can backfire.