Now, firms buying out notice p

The buoyancy in the economy and opening up of the job market has not only resulted in high attrition rates, but also in a mad rush among companies to buy out notice periods.

Analysis by some leading HR consultants like Team Lease and Ma-Foi Randstand, revealed that there has almost been a 20% to 25% rise in the number of companies willing to buy out notice periods of perspective employees.

"In the 18-odd months during slowdown, we did not see any such trend. But in the last two quarters there has surely been a significant rise among companies buying out notice periods. Unlike earlier, two companies out of 10 were buying out notice periods, at present at least eight of them are willing to pay up the amount to get a desired candidate," said vice-president Team Lease Services Private Ltd Sangeeta Lala.

The Team Lease employment outlook report released last week also stated that attrition is at an all-time high in all major cities.

Business volumes are picking up and companies getting large contracts are being viewed as reasons behind this desperation among companies to buy out notice periods.

"Companies are doing this in sheer desperation. With large projects coming in, it has become an utmost necessity to have the talent on board and they are willing to pay any price. We can clearly see the trend coming back and with much vigour," said Lala.

It is not only in IT, but the same trend is noticed in banking, finance, manufacturing and engineering sectors.

"At present, there are a lot of vacancies in all the companies, which are looking for the right people in a short period of time. Hence in such circumstances not paying could be a deterrent so there is surely a rise in the trend," said former chairman Nasscom and vice-chairman and managing director Zensar Technologies Ganesh Natarajan.

Zensar alone is looking to fill up 200 posts. Infosys said it would hire over 30,000 employees this year. Wipro has said it would hire over 8,000 this fiscal, whereas TCS too has lavish recruitment plans.

"There is a rise in this trend in the mid and senior level in the last two quarters and with markets looking cartier watches up we only expect the desperation to grow," said CEO of Ma-Foi Randstad E Balaji. He, however, added, "If there is desperation among companies to buy out notice period, there is also a growing reluctance among some to let go people. It was only last month, that Pune-based IT companies had mooted a proposal that no company would buy out notice periods of employees willing to join."

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"There is a rise in the trend and that is why this proposal was mooted, as cartier watches we feel this has to be controlled," said associate vice-president and centre head Infosys, Pune, and president of the Hinjewadi Industries Association Mritjunjay Singh who mooted this proposal.

"We are back to the scenario prevailing in 2008 when companies continued to hire. Hence, it would be difficult to get such a clause of not buying notice periods passed unless there is complete co-operation. Any initiatives on the issue at the local level will not help in these changing times," added Natarajan.

Credit:Nilanjana Ghosh Choudhury