IT Cos Talk Tough on Notice Periods
By
siliconindia | Tuesday, 08 November 2011, 19:22 IST
All through the 2008 recession, a lot of companies have heaved to a one month notice period system, predominantly at junior level. But as the industry is recovering, the companies are trying to seize employees as much as possible.
The attrition level at IT sector was highly volatile since 2008 recession. As the global economy started recovering, the attrition level that led to single level during recession jumped to higher than 20 percent. But the attrition level was moderated over the last couple of quarters.
Though job hoppers are discouraged with the new system, the severe rule allows time for companies for replacement hiring and knowledge transfer and handover. "The IT sector is moving towards the 90 day notice period," says HCL Technologies. Companies like IBM and Capgemini have moved to the 90 day regime over a year now. Infosys too has 90 days and Wipro has 60 days.
A 90-day notice is common in industries like engineering, pharmaceutical, construction and manufacturing. "The three month period helps us better resource planning and efficient knowledge transfer to ensure business continuity." said an HCL spokesperson. The employees still have buy out option at HCL as well as CMC India. "But the longer notice period has an unconstructive impact on companies like HCL that depends on on-demand lateral hiring," feels Amitabh Das, CEO of Vati Consulting. There have been several instances where longer notice periods providing people an opportunity to search new jobs during the serving notice and therefore decline the original offer for which they had to quit job.
