Retention due to Employment bonds?

Employment bonds are used by many employers to reduce attrition rate. Use of these bonds is basically done at entry level jobs in which employees require rigorous training (As mentioned in earlier posts). But do they really help in controlling employee turnover is questionable. It may deter some employees but if type of work, work force environment does not suit an employee, there is a high chance of him or her leaving the company.
At least the attrition rate of Satyam, Infosys, Wipro and TCS tell us the same. All these companies make their employees sign employee bonds but the attrition rate of these companies is as high as 30 – 40 % for employees who have worked less than a year.
Better opportunities in other companies also encourage people to break their bonds. Some MNC’s even provide bonus to employees of companies providing rigorous training to join their companies, so that employee can honour their bonds. These MNC get trained employees at much cheaper cost.
Higher studies are also a major factor why there is high employee turnover at the entry level jobs. Employees mostly after their graduation join a firm to get some experience. But due to lack of job satisfaction and clear growth of progress in these companies, employees go for higher education.
Therefore only employment bonds will not ensure the retention of employees; Companies need to make their policies employee friendly. They need to select right people which are culturally fit for their companies. They should offer fair and competitive package to their employees. More over the company should special care that an employee is clear about its performance appraisal based incentives and should be aware of his or her career growth opportunities in company.
Therefore employment bonds is necessary for the firms which make huge investment on their employees initially but only employment bonds will not help them to retain employees, they should also look at their employment related policies to retain them.