Why a bond at all.....

Each company has its own criteria to form a bond as per its requirements. It basically revolves around:

Ø the training expenses borne by the company,

Ø the cost involved in recruiting the employee,

Ø the threat of competition.

In present circumstances, when unemployment is soaring high every moment, there is hardly anything that an ordinary person can do about it. If at all an employee refuses bind by such an agreement, it is he who is losing and not the employer. There are certainly a myriad number of potential candidates for the job who will not hesitate accept such kind of bonds where there are restricted departure from the firm before a prescribed time period.

These bonds are essentially drafted to protect the employment interest of the employer as the employees, once they are trained, seek for better incentives, improved work culture and higher pay. As experienced people are preferred for many of the jobs, it becomes very essential for a firm to keep a check on more and more employees leaving the organisation after gaining experience and utilising it for their own good.

Any such bond is justified if it gives both employer and employee an equitable chance to benefit from each other. It is favourable to both the parties if it does not curb the growth opportunities of the employee. Even if it is too restrictive, it will not do much good to the company because if an employee is not satisfied with the job, it is likely that the performance will deteriorate. This can cost the company even higher than employee attrition.

These bonds have become quite indispensable due to increasing competitiveness. The cases of solicitation of employees are increasing daily and it is no more a secret that what it can cost to an organisation if it is not proactive in curbing it. In order to cover up the cost of recruitment and training of the employee, and to gain as much as possible for the effort made so as to acquire the employee, it is rarely possible for an organisation to do away with an employment bond.