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IT Firms Ask Staff Deposits
Posted by Pradeep Sadanapalli | June 18, 2008 | 333 views
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Loading ...IT companies are seeking security bonds ranging from Rs 75,000 to Rs 2 lakh from new recruits to discourage them from moving to other firms. Software professionals who leave a job without sufficient notice period will lose the money.
Many IT companies have taken this step as software professionals shift jobs frequently. “We are spending not less than Rs 1 lakh on training each prospective candidate,” said a senior official working in the HR wing of a leading IT company. “After getting the training, the youth are shifting jobs.” He added that companies got frustrated not just because of the financial loss but also because all their planning went awry.
Because of the acute shortage of manpower, IT majors such as Infosys, Wipro, Satyam, and TCS are intensively recruiting youngsters from campuses and are even selecting and training third-year engineering students.
But many students are shifting to jobs in other companies after being trained by the initial recruiter. And some others go for higher studies in the US, Britain and Australia leaving the IT companies in the lurch. “We spent nearly $175 million on training alone in 2006-07,” said an Infosys spokesperson. “Without loyal staff, we can’t fulfill our commitments.” While some companies are insisting on a security bond worth Rs 2 lakh, others are content with a collateral agreement with the candidate with at least two ‘strong’ references.
Interestingly, certain firms are helping candidates get loans to pay for the security bond. The SBI is extending loans to the candidates under study loan category. Almost all companies are insisting on two-year contract. After that the candidate can take money and leave.
A software professional who recently left Satyam to join TCS said the former company has returned the money without any problem.
“We plan for at least one year of service from the candidate,” said an executive at Satyam. “Though the security bond is there, we invoke it rarely.”
SOURCES:
Deccan Chronicle
Topics: Information Technology |
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