Being startup company, How to stop our employees joining competitors. We suspect One of the employee joining our competitor. Please advise
From India, Chennai
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We suspect one of the employees is joining our close competitor. When we ask him for reasons for relieving, he mentions some personal family problems.

How can we convince him to stay and ensure he does not join our competitor? Please advise me on industry practices.

Thanks,
Mohan

From India, Chennai
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Dear Mohan ji, You can not stop any body joining anywhere. My answer to you in one sentence since I want this discussion to continue by other members.
From India, Mumbai
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Dear Venkatesh Mohan

Employees quit their job for many reasons.The root cause to leaving the organization by the employee(s) is specify below

Relationship with boss

Employees don’t need to be friends with their boss but they need to have a relationship. The boss is too much of an integral part of their daily lives at work for an uncomfortable relationship. The boss provides direction and feedback, spends time in one-to-one meetings, and connects the employee to the larger organization. To have a toxic relationship with the person an employee reports to undermines the employee’s engagement, confidence and commitment. A bad boss is also the number one reason why employees quit their job. Here's how to get along with your boss.

Bored and unchallenged by the work itself

No one wants to be bored and unchallenged by their work. Really. If you have an employee who acts as if they are, you need to help her find her passion. Employees want to enjoy their job. They spend more than a third of their days working, getting ready for work, and transporting themselves to work. Work closely with employees who report to you to ensure that each employee is engaged, excited, and challenged to contribute, create, and perform. Otherwise, you will lose them to an employer who will.

Relationships with co-workers

When an employee leaves my company, every email that is sent to the whole company, to say good-bye, includes a comment about passionate coworkers who the employee cares about and will miss. Second only to an employee’s manager, the coworkers with whom he sits, interacts, and serves with on teams, are critical components of an employee’s work environment. Research from the Gallup organization indicates that one of the 12 factors that illuminate whether an employee is happy on their job is having a best friend at work. Relationships with coworkers retain employees. Notice and intervene if problems exist.

Opportunities to use skills and abilities

When employees use their significant skills and abilities on the job, they feel a sense pride, accomplishment, and self-confidence. They are participating in activities that they are good at and that stretch their skills and abilities even further. Employees want to develop and grow their skills. If they’re not able to do this in your jobs, they’ll find one where they can. This includes opportunity. If an employee can’t see a path to continued growth in their current organization, they are likely to look elsewhere for a career development or promotion opportunity. Make sure that you’re talking with them and that you know their hopes and dreams.

Contribution of work to the organization’s business goals

Managers need to sit with each reporting employee and discuss the relevance of the employee’s job and key contributions and deliverables to the overall strategy and business plan of the organization. Employees need to feel connected and that they are part of an effort that is larger than just their job. Too many managers assume that the employee will receive the communication from executive staff and make this leap. They don’t. They need your help to understand and connect their job to the bigger picture. If they’re not part of it, you’ll lose them.

Autonomy and independence

Organizations talk about empowerment, autonomy, and independence, but they are not something that you can do to people or give them. They are traits and characteristics that an employee needs to pursue and embrace. You are responsible for the work environment that enables them to do this. They are responsible for doing it. A colleague presented a session about the Oz Principles at a recent company event. He pointed out that by creating a culture of accountability, you create empowerment as employees own and execute their responsibilities. Without this, your best employees will leave.

Meaningfulness of job

Ah, yes, meaningful work. We all want to do something that makes a difference, that isn’t busy work, or transactional work, and that contributes to something bigger than ourselves. Ambitious and doable. But, managers must help employees see where their work contributes to the execution of deliverables that make a difference in the world. With some products and services - cancer research, feeding the hungry, animal rescue, diagnosing and curing illnesses, producing milk or crops - meaningful is obvious, but everyone’s work needs the same meaningfulness. Help employees connect to why their work has meaning or they will find an employer who will.

Organization’s financial stability

Financial instability: a lack of sales, layoffs or reduced work hours, salary freezes, successful competitors highlighted in the news, bad press, employee turnover, mergers and acquiring companies, all lead to an employee’s feeling of instability and a lack of trust. Employees who are worried tend to leave. Make every change and potential change transparent. Let them know how the business is doing at all times and what the organization’s plans are for staying on track or recovering in the future.

But, the most important issue here is the employees’ trust in and respect for the management team. If they respect your judgment, direction, and decision making, they will stay. If not, they will leave. After all, they have the financial stability of their families to consider when they decide which executive they will follow – or not.



Overall corporate culture


While it’s not the top item on employee lists, the overall culture of your company makes a difference for employees. Does your organization appreciate employees, treat them with respect, and provide compensation, benefits, and perks that demonstrate respect and caring?

Is your work environment for people conducive to employee satisfaction and engagement? Do you provide events, employee activities, celebrations, and team building efforts that make employees feel that your organization is a great place to work? Employees appreciate a workplace in which communication is transparent, management is accessible, executives are approachable and respected, and direction is clear and understood. Your overall culture keeps employees – or turns them away. Which gets you what you want and need for success?



Management’s recognition of employee job performance


Many place employee recognition further up the list, but this is where recognition scored in a recent Society for Human Resources Management (SHRM) survey of employees. While recognition is important, it is not among employees’ chief concerns. A lack of recognition can affect many of the above factors, especially culture, but it’s probably not the deciding factor in an employee decision to leave your organization. Provide a lot of genuine appreciation and recognition as icing on the cake for employee retention. But, pay attention to the more significant factors, the cake, if you wish to retain your best employees. Make recognition the way you live in your organization to keep your best talent.

And the question is why employee(s) joining your competitor might be possible that your competitor is providing them best scope, perks & working culture. So, try to understand the working culture salary structure, bonus & incentive policy and other facility provided by your competitor. These things help you to find root cause to join your employee(s) in other organization or your competitor organization.

With Regards

From India, Ranchi
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Dear Venkatesh,

You may implement a Non-compete or Non-Disclosure agreement; however, it will remain a paper tiger unless you work on deeper issues. Why is the employee so motivated to join your competitor? You may not be able to influence external factors such as money or even brand name. However, loyalty remains a different game. What have been your stumbling blocks towards it? If you put yourself in the employee's shoes, what reasons do you see? Looking forward to hearing from you.

From India, Mumbai
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Hi Venkatesh Sir,

There may be many reasons for your employees to join the competitor. I want to know whether your competitors are also new to the industry. Then coming to your issue, in our business, we came across such an issue now. Whether the employee who is leaving now was in a powerful position. Whether he knows the nuances of your business. Do reply to me so that I may give suggestions on what we did after that issue.

From India, Coimbatore
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Why do people leave?

1. Poor management style
2. Lack of career growth
3. Poor communication
4. Lack of recognition for work
5. Lack of training
6. Excessive workload
7. Lack of tools and resources
8. Lack of teamwork
9. Underpaid

It's time to conduct an employee satisfaction survey to identify the reasons for attrition. Please note that this survey should be confidential, and no employee names should be asked for. Otherwise, you will not get the real picture.

From India, Chennai
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Anonymous
9

Dear Venkatesh,

I see some suggestions for a non-compete or NDA. We had the same problem. We also had a Non-compete and NDA. One of our senior employees joined a competitor. We sent him a legal notice and then went to court, thinking he would quit. But the competitor decided to fight the case on behalf of the employee. The court's verdict was that no one can restrain anyone from joining the competition. And in case there is a restraint, then it has to be time-bound, which can be restrictive for a maximum period of two years. But this restraint can be there only if the employer can prove that the employee was part of a strategic long-range planning committee in the company and was part of evolving strategy. A person implementing strategy cannot be restrained from joining the competition since he will not be privy to the overall strategy. We also had to pay a fine and pay the employee an amount of Indian Rupees 5 lakhs for the harassment that we caused to him. He had asked for one crore.

So all these companies which sign an NDA or Non-compete agreement are committing an act which is not illegal. When challenged in court, they would be reprimanded. The media did not publicize the case much. So these NDA and non-compete agreements can only be a mental barrier, but in the true sense are not implementable when one goes to court.

So, we came up with one scheme, wherein we built in a variable component in the compensation. According to this, a sum equivalent to a minimum of 4 months of compensation is deferred, and we pay 2 months in July and 2 months in January. This is based on the performance of the company. We call this EPLIS (Employee Performance Linked Incentive Scheme). This amount can go up to 10 months equivalent salary in a whole year. In the first year, 50% of the EPLIS declared is retained by the company. It could vary between 2 to 5 months depending upon the performance of the company. This retained 50% is paid as a rollover in the following year, and the next year's 50% is retained. This retention is for a period of 4 years. After 4 years, we do not retain anything.

But, we being in a very specialized industry, people skills are extremely critical. Apart from the statutory gratuity, we have our own ex-gratia scheme. For an employee who has completed a minimum of 5 years of service, we pay them an amount equivalent to one month last drawn salary of ex-gratia for every year of service rendered when they separate. The upper cap is 12 months last drawn salary in case an employee completes 12 years of service or more. This is paid when he leaves the company or when he retires from the company. But this is subject to him not joining the competition. When he retires or dies, it is paid instantly. While, when he resigns from the services of the company, then there is a waiting period of 6 months. At the end of 6 months, it will be paid in case he has not joined the competition.

We had to rework our entire compensation package in such a manner that we absorbed the above elements, on account of losing the case in the Supreme Court.

In fact, there is a live case in Singapore which gained wide publicity. The Country manager of Adidas resigned to join Puma. The Country manager is a senior position. There was a non-compete and an NDA also signed and taken. Adidas went to court. But, this employee, who was an Indian, took a stand that all overall strategies were done in the Head office, while he implemented them locally and hence he did not have access to the overall strategy but had access to only some local short-term strategies which were created in his office to complement the parts of the overall strategy.

The court raised a query as to whether Adidas had built in an amount equivalent to two years of salary for him to not join the competition when he separated from the company. The answer was no. So if the employee was not willing to compensate him for the two years of layoff period, then they cannot expect him not to join the competition. This is a violation of the fundamental right to employment. We in India also enjoy this fundamental right.

If you look at globally, if a company gets a person to sign a non-compete agreement, then they ensure that enough compensation is given to him during the layoff period.

One of the landmark cases was that of Mark Hurd, the CEO of HP. He joined Oracle as Co-President. HP went to court, but it was thrown out. The reason was that the person had joined the competition, but the division that he had joined and the role he had in Oracle was where he cannot use the strategy information that he gained from HP in his role. Mark Hurd had joined a division which was in a business different from HP.

Now, this is indeed a landmark judgment. This means the court clearly states that in a non-compete agreement, while the company can state that he cannot join the competition, they have to prove that the employee has joined a role which will create a material loss to the previous company where he worked.

I find that, after the above judgments, the NDA or Non-compete agreement can only be enforced at a very top level where a person has access to all the strategy and his exit and joining a competition can cause material loss to the company. Guys at the senior, middle, and junior level do not get affected by such agreements since it is null and void. Knowing a part of the strategy does not restrain him from joining the competition. Such NDAs and Non-compete agreements are made out of desperation to retain people since there is non-availability of talent.

Ultimately, it boils down to having good HR policies where you make the Place of Work a Place of Joy so that the employee does not leave.

From United+States, San+Francisco
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Dear Kumar Malay Kishor,

Please excuse me for using your post as an example to inform other members on how to post copy and paste messages to avoid plagiarizing or violating copyrights. As is my habit, I checked online to see if what you have posted has already been shared there. To no surprise, I discovered that it is the work titled "Top 10 Reasons Why Employees Quit Their Job: A Checklist for Talent Retention" by Susan M. Heathfield. It can be found at [Top 10 Reasons Why Employees Quit Their Job](http://humanresources.about.com/od/resigning-from-your-job/a/top-10-reasons-employees-quit-their-job.htm).

I would have briefly mentioned that there are 10 reasons explained by Susan M. Heathfield and provided a link to the website mentioned above.

From United Kingdom
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Dear Mr. Mohan,

Possible ways to cut down on such exits are as follows:

i. Recruit through known references. This way, the candidates would be loyal to you.

ii. Recruit candidates whose family background is with a low profile.

iii. Implement the Non-Compete & Non-Disclosure Agreement and initiate action against violators.

iv. Ask them to surrender their educational qualification certificates right from 10th standard onward till the highest qualification. It should be as if they are in dire need of a job and they are volunteering themselves to surrender their certificates for this job, which they want to make their career in the long run.

v. Last but not least, identify the privileges that other corporate companies are offering and then try to match them.

Good Luck,
Arcot

From India, Hyderabad
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[QUOTE=Arcotk25;2065574]

Possible ways to cut down on such exits:

i. Recruit through known references. This way, the candidates would be loyal to you.

Not necessary.

ii. Recruit candidates whose family background is low profile.

I do not agree with.

iii. Implement the Non-Compete & Non-Disclosure Agreement and initiate action against violators.

Legally, you cannot do this with everyone.

iv. Asking them to surrender their educational qualification certificates right from the 10th standard onward till the highest qualification and it should be as if they are in dire need of a job and they are volunteering themselves to surrender their certificates for this job, which they want to make as their career in the long run is not ethical.

v. Lastly, identify the privileges that other corporate companies are offering and then try to match them.

There is no guarantee that people will not leave, but you have to do it.

From India, Mumbai
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Hi,

Malay and Anonymous have provided all the answers. I am just expressing it differently. Only organizations that are unable to retain talent resort to using coercive methods to retain employees. Individuals do not easily leave a challenging job; those who are engaged with their company rarely move on.

What does a person seek in a job?

1. Good work culture
2. Favorable work environment
3. Opportunities for advancement
4. Stimulating work
5. Recognition for accomplishments
6. Social standing
7. Happy family
8. Competitive compensation

These are fundamental aspects that all HR managers should ensure within an organization. If not addressed, employees will inevitably depart.

This issue was prominent during the IT boom from 2000 to 2006; numerous top IT firms reassessed their HR strategies and work environments. It was a period where skilled HR managers were highly sought after and received lucrative compensation.

During this era, there was a focus on positive work culture, attractive salaries, extensive employee welfare programs, and more. I witnessed and personally experienced these changes.

Initially, employees would hold HR responsible if things went awry; they looked to HR for guidance. However, as the job market shifted and the number of job seekers surpassed available positions, employees were no longer treated the same way. The dynamics changed.

It is the responsibility of HR managers to ensure talent retention. I am confident they are diligently working towards this objective.

Best Regards

From India, Hyderabad
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practical way is write to competitor companies not to take employees without concent of both companies and you will also follow the understanding
From India, Hyderabad
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Hi, I just came across a very good article on interviews. It is not directly related to the topics being discussed, but it does lead to hiring good employees and thus leads to less attrition. I hope you all like this article.

Best regards,

From India, Hyderabad
Attached Files (Download Requires Membership)
File Type: docx 10 qualities of exceptional interviewers.docx (18.1 KB, 60 views)

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I want to begin by saying, "I really feel sorry for the company for losing trained resources to it's competitors."

Having said this I quickly wish to add that the problem that you are in is not a new phenomenon it's been there for ages. And each of the companies that were hurt by this "poaching" act, devised means and methods to counter this menace and succeeded in their own way. That may not have happened unless they did some serious introspection and thinking to generate the right strategies to stem the rot if not eliminate.

The point that I am trying to make is that there can be several reasons that one can attribute to this happening with respect to your company. If I might say, "you perhaps choose potential people and give them good initial induction training to make them productive," then that seems to be the one that has led to your competitor's being attracted to hire people who choose to leave your company.

That apart there may be something that is missing in your company - it could be the management or the policy that precipitates acts of exit.

There are several reasons cited already here as apart of the discussion and the theory world over would have these and they would have added a few more.

This is valid, and can be true, which I may choose to repeat

Unhappiness with the "Boss"

Inadequate compensation

Nature of the work itself

Shifts

Recognize outstanding work

Offer professional development opportunities

etc.,


Years ago, I read this on the Internet, the source of which I am not sure, and so I'd acknowledge Source - Anon

I'd like to narrate a story which highlights the point the original write was trying to make

A frail old lady was waiting at a bus-stop with load of bags hanging on her shoulders apart from the one's in her hands.

After along wait a bus came that way and stopped to pick the waiting passengers. As soon as the bus stopped, young students, rushed into it and as the old lady was struggling to make her way on to a vacant seat in the end row, she got pushed and she fell down.

Reacting to this incident were some of the passengers, " How rude, these days young kids are, didn't their parents teach them any manners," yelled a lady who was a teacher.

"Such people should be booked under law and be punished, " yelled a man, who was a lawyer.

"Oh! No, she would have probably broken her shoulder bones, she needs immediate medical attention, " was a shrill voice who happened to be a doctor.

Like these each one was passing his/her comment but no one really went close to the lady to help her get to her feet and then to her seat, nor inquire her about how she is feeling till one person actually did this, by helping her stand and then made her sit on the vacant seat, and he turned out to be a Welfare Officer in a local manufacturing company.

This story clearly narrates how people's thinking and behaviors shows up according to their professions - the teacher, the lawyer, the doctor, and the welfare officer acted or reacted to help a frail old lady crying in pain. The passengers forgot the fact that they are human being first and then professionals. This may just seem like a story, but professionals get greatly influenced in their thinking and behavior by the profession which they are in.


Keeping the HR part of it aside for the time being I would want to suggest that you try creating an "Employee Branding Exercise"

It'll be useful for you all as the company's management team to ask the following question and to get answers for that which will define the roadmap for brand builidng.

SWOT Analysis

• What are your strengths as an employer? Your weaknesses?

• How does top talent rate you against your competitors?

• What do your competitors offer that you do not?

• What do you offer that your competitors do not?

• What do employees like about coming to work for you?

• What do employees dislike about coming to work for you?

• What drives job seekers to apply to your jobs?

• What prevents job seekers from applying to your jobs?

• Are you offering competitive pay?

• How could you better position yourself as an employer of choice?

• Where should you be advertising your jobs?


After this done, and all of you have a consensus findings, plan a "branding exercise

1. Defining Your Message

2. Communicating Your Brand

3. Evaluating Your Message’s Effectiveness

4. Assessing Your Employment Brand

This is slightly time-consuming but really worth the effort. Companies that were not there fifteen or twenty years ago have indulged in this, and companies that have been their before that have been established as leading brands, more because of the product's utility and it quality. Names have become house-hold names, "thanks to branding."

The last word from me would be "Be Human in your touch with Employees" and if they still desert you, take it that they don't deserve good people like you. Let them feel guilty for leaving you while you don't have to feel sorry they left you.

This will go a long way in solving the problem on hand, and who knows the competitors will have to work overtime to retain their employees.

From India, Hyderabad
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Dear TSK. Raman ji, Great sharing. Great learning. Unfortunate thing, today’s HR Professionals, majority of them are lacking in Human Touch. I am sorry say it.
From India, Mumbai
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Hi,

TSK Raman really hits the nail on the head. I enjoy reading his posts; they make a lot of sense and are rewarding. After reading his post, I recall one incident that happened to me. When I was leaving a company and at the going-away party, my manager said something very special. He said, "We do not permanently employ good people; we just borrow them."

A lot can be read from this statement - the way a manager or a company looks at their employees. Why should someone stay forever with a company? Why should a company expect an employee to stay with them forever? Is it a marriage "till death do us part" or is it a transition in the employee's journey up the ladder? Give it a thought, and more answers will emerge.

Have a great day.

Regards

From India, Hyderabad
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Thanks to all seniors who shared valuable knowledge. I believe that good HR policies help to avoid such situations; employers have to give freedom to their HR team. Careful recruitment will help to identify future risks.
From India, Pune
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My humble thanks to Mr. Keshav Korgaonkar and Mr. Ronald de Saran, for their appreciation, however, the larger part of the discussion is that we are all thriving or trying to thrive in a "chaotic" set up. Not all employers are good or bad, not all employees are good or bad, but yes the challenge often is how to be good both as an employer and an employee. We need to eliminate pain points from our workplaces, and be sincere to those who employ us, as much as remembering to be good advocates of those whom we serve. We should keep our "internal customers happy" and to make that possible we as HR people will have to work closely with everyone from the CEO to the last in the line to make things happen. We need to be utterly transparent… be more open and honest than any of our competitors to enable our employees feel proud to be working with us. The management has to be as simple as possible, and for that elimination of "policing policy," if there is one, is a must. We should care for their "Work -Life Balance" so that we all end up on the winning side.

And this is one bit of an eye-opener for CEO's and management's of companies..."Experts advise young people these days, not to bet their career on a company that hasn’t relooked or changed its business model since it came into being." Please take cue from this. If your company needs to keep pace with times, relook at your business model.

Another option Innovate or perish.

From India, Hyderabad
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After 45 years of experience in HR field, I realize that HR is getting neglected in most organizations. There is a lot to be desired in this field. It has become a breadwinner for the business, not just a responsibility. It is high time that in India we make sincere efforts for HR branding to retain our talent. Let every organization measure itself on the following scale:

1. Clarity of job expectations
2. Career guidance and support
3. Learning opportunities
4. Social significance of the job
5. Work values
6. Career advancement
7. Positive relationship with supervisors
8. Cooperative colleagues and subordinates
9. Effective communication - upward and downward
10. Rewards and recognitions

From India, Mumbai
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Anonymous
9

Yes, there are companies that come to a mutual understanding and sign an anti-poaching agreement. However, from my experience, I have seen that one of the companies ends up breaking this rule by persuading an employee to resign and keeping them at home for a few months, while paying their salary, before they join the competitor. This behavior often stems from desperation.

We need to accept this reality.

I appreciate Reliance Industries for their approach. They consistently build Bench Strength. They were pioneers in India in exploring gas and converting it into Polymers. At that time, the required skills were not available in India, so they brought in expats. Simultaneously, they also focused on creating a bench strength by training engineers. Over time, they developed some of the best Polymer specialists globally. However, inevitably, these specialists were poached in the Middle East. Many Indian companies, including Videocon, ventured into gas exploration in other countries, notably in Africa and the Middle East. These Indian companies preferred working with Indians, and employees from Reliance were their top choice. Reliance was not concerned about poaching as they had a robust bench strength policy. Their engineer trainee scheme became renowned worldwide.

Poaching no longer concerns them. In fact, my company aggressively poaches from Reliance. However, this does not affect Reliance due to their strong bench strength policy. They even anticipate turnover.

This is how resilient institutions are built.

From United+States, San+Francisco
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Dear Mr. Snisonko,

Firstly my humble appreciation and acknowledgement to you Sir, a senior pro Snisonko whose views, not only me, but every reading member of CITEHR will fully endorse. The views expressed by him are to be etched in our minds as I can see his anguish of things drifting, and the virtual plea to do whatever we can to restore pride in the profession and to salvage lost ground.

I too have about 40 years or working experience of which nearly 25 of it has been in IT. I have seen changes in every aspect - technology to people. It was a "challenge" to understand what the technology people were speaking as most of it would seem "Greek and Latin."

I have been consciously keeping pace with the changes and have ensured that I keep my mind free and open to learning. That has helped me upgrade myself, at least of the technology movement front. I must admit that I have had the good fortune of working for companies where things were happening on all aspects - business, technology, people, branding and growth. HR which owes its birth to IR was getting more and more scientific and analytical - thanks to the technology influx.

While this was good, it sort of began to remove the human element slowly. The speed of technology development increased with the appearance of "internet" (about near twenty years ago) have contributed a lot for the changes that we now see.

Does human resource get the priority it’s worthy of?

Not always, not everywhere. Survival of the fittest’ might seem to be a merciless reality. But, it’s becoming all the more true in the current circumstances, where competency means everything. While the solutions providers and systems integrators in India have scaled up in both in terms of technologies and market reach, where do they stand when it comes to human resource management?

This question might be tough to answer, but one thing is certain. The results are clear signs of need for improvement. It’s very important to consider HR as something beyond just a drop in the bucket as it makes an organization ‘fit’ for growth.

The sheer volumes - business, people, transactions added with the dimension of geographic distances and the various divisions made in the ways HR has been split (Recruitment, C&B, L&D, HR Ops, HR Admin. HR Welfare etc., and the list goes one, with load of people in each of these areas, serving people flung across locations - domestic and abroad) makes it not only a "Frankenstein Monster," but has taken away the human element totally. Companies work to keep pace with the competition to enable investors earn bonus shares, dividends etc. To keep the wheel moving they pay "above the roof salaries" to their "producers" viz., Techies, and pay a much lesser salary for those who enable these functions moving smoothly calling HR as a support function. In the parlance to business HR and Admin are not money earners and so they are several rungs below and are not supposed to compare themselves with anyone - not techies but even Tech. Support people. The dividing lines are made, and so it's merely transactional. This is the scene in large multi-nationals, which however is different from SME (Small Medium Enterprises), where one gets more satisfaction in being and doing hands on HR. However the challenges are to manage and match - Branded companies, attracting the right talent for Recruitment, working on cutting edge technologies for Retention, big-fat Compensation, and all other +'s Plush Working Spaces, Food Courts, Snack Bars, Perks (non-existence Gym. HelathClub, Memberships to elite clubs, etc.). Weekend Bashes, Fully Paid Annual Excursions to exotic places. etc.

There's a lot to say, but I would only submit, "there is a lot to do as well."

It all begins right at the top.

The Promoter/CEO, has to make it a priority to treat each employee as an entrepreneur. Apart from trusting on his own skills, the Promoter/CEO should also have confidence on the potential of his employees. Concisely, treat every employee as a partner. He does not have to share the ownership with employees, but he can definitely co-share power. After all, each employee is a potential ambassador of the company.

The next thing that the Promoter/CEO, should do is to stop assuming that he/she knows everything, and so go on to appoint professionals who will run the business and on the top of this list should be HR. After doing this they should empower them sufficiently to enable them carry on the business of running a successful company. On technical aspects they consult tech. specialists, likewise on the people front they should "consult" HR which acts more in an advisory role.

On the other side, my humble request to HR folks would be "Hold your head high, do not fall for small favour and accept things just because it comes from the top. Know that you are responsible as you hold a trust worthy position, as the same time pelase remember you are meant for the "people" so your allegiance is more for them."

Some might think this is a pipe dream or just for theory, but I am a living example of having fulfilled my role in this the HR position with great dignity and respect. Some of them who were hired then today are "entrepreneurs" in their own right, and this gives me is the greatest pleasure today, for at that time I only hired a programmer" with potential and promise, but today it turns out that they have become leaders in their own right.

Believe in your abilities, be human as there is no power beyond a human and here is a Chinese quote to support what I said, "The fishes, though deep in the water, may be hooked; the birds, though high in the air, may be shot; but man's thoughts are out of our reach. The heavens may be measured, the earth may be surveyed; the heart of man only is not to be known to anyone except him.".

.

From India, Hyderabad
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I support Keshav Koragaonkar's appreciation of the piece written by Anonymous. Apart from factual instances, there are enough facts and references to support his contention, with which I fully agree.

I too, wish for more of such high-quality, in-depth inputs from our members. I learned quite a lot from this post.

Warm regards.

From India, Delhi
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Dear Venkat,

Anybody could seek a job in any kind of organization, and no law or external forces could control anyone to join any organization. If anyone is trying to restrict anyone to hinder anybody from joining any organization, it is a crime and a violation of human rights.

Nowadays, many young and moderately experienced engineers are quickly changing their jobs in the software and related industries, i.e., IT and ITES. Can anyone block someone from joining the same industry, terming it as a competitor's organization?

Please do not allow your thoughts and your company's (management's) thoughts to be unproductive. If you do anything of the sort, you will certainly be under legal scrutiny. It is a violation of human rights altogether.

From India, Pune
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Well, first analyze why your employees are moving to your competitors for salary, perks, facilities, or policies. Based on this analysis, take necessary actions. Additionally, engage with the employees who are considering leaving, discuss their reasons, and try to negotiate and convince them to stay with your company. You may also consider implementing contracts or bonds, but remember that employee satisfaction and welfare should always be the top priority.
From India, Lucknow
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Hello everyone,

This is a very good thread. Plenty of views have been exchanged. In my view, the following observations, expressed previously, stand out:

- Agreements do not provide any solution.
- Have a robust training program (or bench strength if the company could afford it).

V. Raghunathan

From India
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One person going to a competitor is not a challenge. But when it becomes repetitive, you need to really probe into the root cause analysis of it. I would suggest adopting a two-way strategy. Firstly, conduct an E-SAT survey to check various dimensions. Secondly, consider hiring an external agency to work on a benchmarking exercise in comparison to your competitors, analyzing both tangible and intangible benefits.

Through the E-Sat survey, you can understand the internal environment and develop an action plan to address priority issues. The benchmarking exercise will help identify gaps in terms of tangible and intangible benefits. By combining insights from these two reports, you can gain a clear idea for designing future strategies to retain the best talent. Additionally, you can introduce better measurability criteria to monitor ongoing performance effectively.

Remember, if you believe in yourself, change will happen. Best of luck.

Rahul Mehandiratta

From India, Faridabad
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Dear Anonymous, Really appreciate your suggestion, this can really help various employees who are working in such organisation following these companies unethical practices. Regards Megha
From India, Mumbai
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Dear All,

It was very informative and technically correct, but I have a suggestion which I once applied and got good results. If you want to retain your employees, all the things are okay, but you may talk to your competitor and reach a two-party agreement that none of them will ever hire the competitor's employee, as the competitor must also be facing some challenges of manpower turnover.

From India, Mumbai
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Dear Vishal, Please read all the messages; such agreements with competitors may be illegal in addition to being unethical.
From United Kingdom
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When reading Kumar Malay Kishor's post, I too had a doubt whether this is his own contribution or copied. But not researched to prove my doubt clear. However, thanks to Nashbramhall to bring the reality out and also appreciate for this investigation.
I suggest if a post gets appreciation points and later proved it is a plagiarised one, can the moderators take out these appreciation points. Because in general one is being appreciated for own efforts & contributions and not for eating someone else’s cake.
Here the above members’ post got around 13 appreciations just only for making a cut & paste work. This is not to punish the member but to train be sincere to oneself.
Suresh

From India, Pune
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Dear Venkatesh,

This is one of the major concerns employers face, especially in start-up companies. You need to understand the various motivational factors that work for different employees. For some, money is everything, while for others, the working environment and culture play an important role.

Have one-on-one feedback sessions with your employees to understand their reasons for considering joining your competitors. This should be done regularly with all other employees. If there is a disconnect, try to resolve it.

Furthermore, if an employee ultimately decides to leave your company, ensure you conduct a thorough exit interview.

Regards

From India, Mumbai
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Hi,

The need for proper employee engagement surveys cannot be highlighted more than what is being said in these posts. An organization must feel the pulse of its employees. This is the best way to know what is going on in their minds. If an organization wants to keep its employees, it must know how to keep them and must know how the employees feel about the company. Do not be an ostrich and bury your head in the sand hoping for the crisis to end. The HR team plays a very important role in this and must convey the importance of such surveys to management. All good companies have good HR, and companies with good HR are good companies.

Regards

From India, Hyderabad
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Dear Mohan,

We can approach this in two different manners. First, if we appoint them at an executive or manager level, they will have a tendency to switch over as they will not have affection or loyalty towards the organization. We need not care about those persons.

Secondly, if we appoint a person at the bottom level and give them slow and steady progress in the package. To come to a higher level, they would have to put many years of service. After that, they will have constraints to switch to another company like seniority, relocation problems due to family situations. This is a traditional but more effective method.

From United Kingdom, Oxford
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Dear Mohan,

We can approach this in two different manners. First, if we appoint them at an executive or manager level, they will have a tendency to switch over as they will not have affection or loyalty towards the organization. We need not care about those persons.

Secondly, if we appoint a person at the bottom level and give them slow and steady progress in the package, to reach a higher level, they would have to put in many years of service. They will have constraints to switch to another company like seniority and relocation problems due to family situations. This is a traditional way but a more effective method.

From United Kingdom, Oxford
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Legally you can’t do anything. Just provide good benefits, salary, culture etc,
From India, Pune
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Dear Venkatesh,

Many useful insights have been shared by the senior members of this forum. I would like to add a few things to this discussion:

1. Instead of spending your time on non-compete and NDA, try to strengthen your exit interview process, which will give you a clear picture of why people leave your organization and what motivates them to do so. When I say "exit interview," it should be conducted professionally and without prejudice. It should be carried out by a third party who does not have a direct connection with the individual, so that people feel comfortable sharing their thoughts. While it may not provide a 100% result, it will certainly offer valuable insights on what can be improved in the future.

2. It is common in all companies for employees to consider joining competitors where they may be viewed as a ready-made product, enabling them to demand more and excel in their field quickly. This tendency may be particularly high in your startup due to the lack of established systems.

Regards,

M. Kannan

From India, Madurai
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True! You cannot stop people from joining competitors. Introspection is the best way.

Ensure that your organization takes care of the points suggested by many people above. If you are good, the employees would like to remain. Instead of focusing on stopping, which sounds negative, think of attracting and retaining talent, which is a positive approach.

So all you need to do is change the attitude of your company/HR.

From India, Mumbai
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From India, Hosur
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Dear Mohan,

If you can, please speak to the HR of your competitor or any high authority there and have a mutual agreement with them not to hire your staff, and you will not hire from them.

Alternatively, have a clause in your appointment letter stating that after resignation, he/she should not join a similarly business-oriented company for 1 or 2 years. This is also legally viable.

I believe either of these suggestions should be helpful to you.

From India, Chennai
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Anonymous
9

Gentleman, You have not read the entire thread. There is enough data provided in the thread stating that such agreements are invalid in law. Regards
From United+States, San+Francisco
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Dear Murali,

Why should this be in the appointment letter? Do you want a bonded laborer or a contributing member to work with? If you cannot provide an atmosphere (in all respects) for an employee to contribute so that he/she and the organization grow together, why do you want to chain him/her?

Keep in mind, if an organization is successful in creating a bond between the organization and the employees from the heart, then there is no need for any bond or fear of leaving. Many organizations have succeeded in this, and it is not just a theory.

Suresh

From India, Pune
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Dear all senior members,

I have posted my original with heading as given below:

""Whole team wants to join Client's new local branch by leaving current employer""

and due to the similarity of my query with this thread, I was advised to participate in this thread. Please go through my original post to understand the situation completely.

After reading all views, I have understood that no company can restrict any employee from joining a competitor, and I hope the same thing would be applicable for joining client companies too. Please confirm.

Below are my queries based on my original post:

Question 3: We are keeping things deeply secret and do not discuss, chat, or mail about it in the office environment to avoid leaving any traces behind. But in case somehow our employer comes to know about the plan, what action can be taken against us?

Question 4: How much risk is involved in all this, and what additional care should we take to avoid any unwanted circumstances?

Also, please consider the fact that a major source of income for our current employer is the billing of our team, and if this billing stops completely, the company may not be able to survive for long.

Thanks & regards,

Aditya

From India, Bangalore
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Anonymous
9


From United+States, San+Francisco
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Dear Anonymous, Hats off to you for giving the case of RK Swamy. My question to you, why you keep your identity hide?
From India, Mumbai
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Thanks, Anonymous, for your reply. As per your response, we employees are on the safe side and don't have to worry about legal issues. On the other hand, our employer can sue the client and demand compensation. However, as I mentioned in my original post, our client (a German-based IT company) does not have any agreement with our employer that restricts the employment of each other's employees. So, if our employer sues the client, whose legal position would be stronger? Also, what could be the approximate minimum and maximum compensation amount the client would have to pay to the employer if the client loses the case? Your valuable feedback is appreciated.
From India, Bangalore
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Anonymous
9


From United+States, San+Francisco
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Thank you very much, Anonymous Sir.

Do other senior members of this forum have any different views or suggestions about my queries? Please provide more feedback or confirm the views of Anonymous Sir.

Thanks,
Aditya

From India, Bangalore
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Dear Venkatesh,

As HR Managers, our focus should be more on retaining employees than on stopping them from joining a competitor. Our retention strategy should include attracting talents through unique recruitment practices, motivating employees to develop competencies that are rare and inimitable, providing learning opportunities, fostering a sense of community, and making employees strategic partners.

What do you think?

From India, Mumbai
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Dear Venkatesh,

No employee can be stopped from joining a competitor unless they work in a senior position and are involved in planning. Every employee has the right to join any company they are interested in. It's a fundamental right as per the Constitution of India.

From India, Madras
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This is a hard topic. It's one of the problems big companies face. I created an infographic - How to Make Filipino Employees Happy - EnterPH although it's PH setting, this can be applied to every company.
From Philippines, Quezon City
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