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IT cos move to 3-month notice to counter attrition BANGALORE: For serial job hoppers, this is bad news. To counter high attrition rates plaguing them, domestic and MNC technology firms are introducing or returning to a three-month notice regime, mandatory for all exits except for some very senior positions. The one-month regime was a blessing during the days of corporate austerity and retrenchment. But now, markets have improved significantly and abrupt exits have started hurting projects and delivery schedules. A three-month regime also makes the employee 'buy-out' option tougher for poachers and rival companies. 'Buy-out' refers to the practice of the new organization giving the employee the money required (normally the notice-period basic or full salary) so that he can pay off his current firm and join the new one immediately. IBM changed the exit policy about six months ago to move to a 3-month notice regime. Capgemini,too, has recently followed suit. Accenture and Cognizant have done it for certain levels. Even mid-sized players like iGate and Infotech Enterprises have moved to a three-month exit notice regime. Attrition levels in small and medium sized IT companies are now in the range of 25-30%, and for tier-I players, between 14% and 17%. With overseas clients resuming IT spends, companies are in a rush to fill up positions that were allowed to lapse during the recession. Job hopping has become so acute that some companies are finding it hard to include attrition levels in their quarterly performance reports. Under the one-month scheme, an employee can leave and take a new job in a week or even in a couple of days because the resultant salary hike would be good enough to pay off the notice period cost. "Under a three-month regime, there is also greater chance of retaining the employee as HR heads get enough time to convince, cajole or make a counter-offer," says a senior HR executive of a multinational organization. Back |
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