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Lower attrition trigger relaxation of exit norms by firms
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Lower attrition trigger relaxation of exit norms by firms
The slowdown constraining the threat of high attrition rate, has made companies ease their employee exit policies. "Companies are also sending a clear message by cutting salaries and laying off people. The message is that if you have a job in these bad times, you are fortunate. Executives, too, have realized that it is better to stay put in a job, rather than face the stigma of a pink slip," said Mumbai-based Talent Trackers founder Shekhar Vaishnav.
As Korn/Ferry India Country Head Deepak Gupta says, "This is a new trend and will have an impact across all sectors, where the hiring situation favors the employer." With a `let-them-go` attitude the firms are waiving mandatory bonus tie-ins, slashing notice periods and other measures which were earlier used to hold back senior executives including CEOs. According to industry experts, many financial services companies are now shortening the notice period for CEOs and top management. Infact, pay cuts, as part of global cost cutting programmes, being de riguer in top American FIIs and European banks, make the firms relax the norms to let the unsatisfied employees make an exit. For instance, as reported by Economic Times, when the CEO of a large bank wanted to join a PE firm, his exit was both discreet and quick. The whole process took just a couple of months - something that would have earlier taken nothing less than 4-6 months.
Moreover, "Keeping the bonus component shorter and discretionary allows a company to ask their top honchos to leave at short notice, again working to the employers` benefit and keeping employee costs under check," said a Delhi-based head-hunting source. Sources say that many companies, including those in the financial and auto sector, are looking at making bonuses discretionary in the future or adding similar clauses in their employment contracts for future hires.
Source:
http://www.siliconindia.net/shownews/49103
As Korn/Ferry India Country Head Deepak Gupta says, "This is a new trend and will have an impact across all sectors, where the hiring situation favors the employer." With a `let-them-go` attitude the firms are waiving mandatory bonus tie-ins, slashing notice periods and other measures which were earlier used to hold back senior executives including CEOs. According to industry experts, many financial services companies are now shortening the notice period for CEOs and top management. Infact, pay cuts, as part of global cost cutting programmes, being de riguer in top American FIIs and European banks, make the firms relax the norms to let the unsatisfied employees make an exit. For instance, as reported by Economic Times, when the CEO of a large bank wanted to join a PE firm, his exit was both discreet and quick. The whole process took just a couple of months - something that would have earlier taken nothing less than 4-6 months.
Moreover, "Keeping the bonus component shorter and discretionary allows a company to ask their top honchos to leave at short notice, again working to the employers` benefit and keeping employee costs under check," said a Delhi-based head-hunting source. Sources say that many companies, including those in the financial and auto sector, are looking at making bonuses discretionary in the future or adding similar clauses in their employment contracts for future hires.
Source:
http://www.siliconindia.net/shownews/49103
