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To all HR are employee bonds are still demand or is there any other option to bound employees with the company?

I am from IT Service Sector and having private limited company and my team size is around 25 to 30 employee.

We do not have employee bond but in recent time I hired Sr level person with the good hike and after working for couple of months he resign and get other good hike. We planned so many things for him and due to this change we need to suffer mentally and commercially as well.

Now I am looking to implement employee bond for at-least 1 year so that company do not have to suffer all the time. I need guidance on the employee bonds for IT company, what kind of bonds are in current practice, is there any option of bonds to keep employee working for your company like deduct part of salary and give it after completing certain period of months or taking advance cheques?

If going with Bond is too old stuff then what is the current practice in option of that?

Do I need to notarise those bonds to make it legal? Are this bond is enough to take legal action in court?

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    This question is attracting close votes because it's a legal question, and these should be consulted with your legal team or a lawyer, not with random people on the internet. :)
    – Erik
    Commented Aug 11, 2021 at 10:46
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    I find that chains work better than bonds if you want to avoid those pesky employees from fleeing your company.
    – Gregory Currie
    Commented Aug 11, 2021 at 12:04
  • So you gave them a raise on starting for you and the next company gave them a raise when starting for them. How underpaid was this person in their former job? Sounds horrible.
    – nvoigt ♦
    Commented Aug 11, 2021 at 13:31

2 Answers 2

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IANAL, so I cannot comment on the legality part of it. However, if you need to resort to legal ways to keep the employees working for you, be sure that there's some dysfunction that crept into your organizational policies that needs deeper inspection.

People (employees) stay when they see three things:

  • Appropriate Compensation and fair play
  • Growth opportunity and new challenges
  • Work-life Balance.

These bullets can be further broken down into finer sub-parts, but basically, when there is job satisfaction, employee retention is high.

Note: There will surely be job hoppers, no matter how hard you try, so you always got to account for that. However, if you are able to provide a high level of job satisfaction, this aspect will be minimal.

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Treat your employees well and they will do good work and stay.

Most companies in the world face the same problem: people leaving is disruptive, it's time consuming and costly to hire people, and once you have someone good, you want them to stay. Employees leaving is called "Attrition" and preventing that is called "Retention" . Many companies put significant effort into Retention, since it's a lot more efficient that constantly hiring.

It seems to be a problem for IT companies in India, for example Cognizant apparently has an attrition rate of almost 30%. See article

There is a lot of research on effective Retention. For example this and something specific for India is here.

I highly doubt that "bonds" will address your problem, since no one would sign this unless they have absolutely no other job options. Are these the type of people you want in your company?

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