Don't take job exits lightly

January 17, 2012

 A survey by TeamLease, its 12th in 'India's New World of Work' series on 'Impactful exits' has found that: 

• Around 92% of Indians across all industries and cities believe exit policies should be taken seriously and given lot of importance. Bangalore and Chennai with 99% topped the list whereas employees in Mumbai did not care much.

• A majority of around 76% of the companies still conducted exit interviews manually only.

• Better prospects and salary hike are the top two reasons for leaving the company.

• 23% of companies surveyed said they do not proceed with employment due to unavailability of relieving letter.

• Relieving letter is an important document while recruiting a new person for most of the companies across industries.

• Overall, 78%of employees surveyed feel that longer notice period (>30 days) is required for a company.

• More than half (56%) of HR managers opted for Salary deduction for not serving the required notice period.

• Overall, 39% of HR managers take legal action against errant employees who have violated any integrity or ethical boundaries.

• Higher % of Mumbai employees has observed the change in behaviour from managers to resignee (17%), from peers to resignee (9%) as well as by resignee themselves (12%). 

• Resignee shows less responsibility and low interest towards work in their notice period. 

• Fixed factors related to job profile, compensation, work environment, company policies are captured by higher % of companies during the exit interviews as compared to variable factors which are more dependent on people (e.g. support and guidance provided by the managers, training, timely feedback, clarity of communication, etc.).  

• Exit policy mainly helps in future decision and policy making for HR managers

 

 

 

The survey conducted across major cities revealed that a majority (92%) of employees and managements across all industries followed exit policies very seriously. This went up to around 99% in Bangalore and Chennai, establishing Gen Y’s preferences for policies and processes at workplace along with a good pay packet. Another startling revelation made by the study was the importance of relieving letter. Apart from a mere 8%, majority of the companies expressed apprehension in formalizing recruitment without the relieving letter.  

Aimed at mapping in-depth facts about the beliefs and practices of Gen Y, the current study tries to capture the importance of exit policy and its impact on exit process. According to the study, better prospects and salary hike motivated employees to quit the incumbent organization. However, one third (33%) of the employees surveyed said they would re-join their organization if given an opportunity. 

Further, according to the study except for a minor 8%, majority of the companies’ still favoured manual exit interviews over online, emphasizing the reliance on face-to-face interactions. Also another startling disclosure was unlike the popular notion Silicon Valley of India still lagged behind in terms of adopting online exit interviews. Only a mere 4% of the companies conducted exit interviews online in Bangalore. The study also highlighted the demand for longer notice period. Around 78% of employees stressed on having longer notice periods for the company, helping the employees to complete pending work as well as the companies to contract the right candidate. 

Apart from the sentiments of employees, viewpoints of HR managers from a company perspective have also been captured in the study. Though salary deduction is the norm for non-compliance, companies did not hold back from taking legal action in cases of violation of integrity. With more than half of the HR managers in Mumbai (55%) using the feedback as a resource, the study has further reinforced Exit interviews as an important data source for formulating HR policies. 

Employees are recognizing that the labour markets are a small place and ungraceful exits come back with compound interest later. Adherence to a professional and clean exit is increasingly being seen amongst the work force today. But we don’t anticipate relieving certificates becoming a deal breaker for new employers until the skill crisis eases.

Conducted by Market Search IPL for TeamLease, the survey covered employees in the 8 major cities namely Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune. The respondents’ profile ranged between the age group of 21-45 years across industries; and functions of sales, marketing, business development, operations, finance, admin/HR, systems (IT) and others. The study covered a total sample of 800 respondents.

 

  

CITY HIGHLIGHTS

Mumbai

Bangalore

  • Higher % of Mumbai employees (15%) don’t follow exit policy quite seriously
  • Around 29% of companies in Mumbai conducted exit both manually and online
  • Higher % employees in Mumbai have observed the change in behaviour from managers to resignee (17%), from peers to resignee (9%) as well as by resignee themselves (12%).
  • Around 32% of employees in Mumbai suggested payment issue as one of the reasons for leaving a company.
  • 10% of Mumbai employees think people don’t get proper guidance & support from superiors.
  • More than 35% of employees in Mumbai find the longer notice period to be helpful in completing pending work.
  • More than half of Mumbai employees (52%) suggest to providing relieving letter & other documents in time.
  • Higher % of HR Manager in (Mumbai 43%) think people are leaving jobs due to higher pay package in other organization
  • 28% of HR managers in Mumbai find exit policy is useful for identifying company’s strengths & weakness.

 

  • Majority of employees (99%) in Bangalore took exit policy very seriously.
  • Salary package is found to be the most common reason in Bangalore (66%) for quitting the job.
  • However, 61% of Bangaloreans also think people are leaving jobs for better prospects.
  • Around 41% of respondents were in favour of giving an extension for submitting the reliving letter.
  • However, respondents posed a mixed view (50:50) on longer notice periods.
  • Most of the Bangalore employees (81%) suggest to do all claim settlement on priority basis
  • Around 66% of companies in Bangalore   vouching for stricter actions against erring employees, the HR managers in Bangalore seemed to be quite strict as compared to other cities.
  • With 29%, Bangalore topped the list in taking the legal action.
  • Around  83% of the exit interviews also capture  satisfaction levels with the consistent feedback given during appraisals
  • 63% HR Managers in Bangalore think people are leaving jobs due to payment issues

 

Chennai

New Delhi

  • Around 99% employees in Chennai took exit policy very seriously
  • However, with only 1% of companies, Chennai was least receptive towards online exit interviews.
  • About 10% in Chennai feel that people leave their jobs for going abroad.
  • More than 35% of employees in Chennai find longer notice period helpful for completing pending work.
  • Around 11% of respondents in Chennai were in the process of resigning from their current company.
  • Around 52% of HR managers in Chennai  were willing to give an extension for
    submitting the relieving letter

 

  • Higher % of employees in Delhi (87%) prefer longer notice period.
  • More than half of employees (53%) in Delhi find longer notice period is beneficial for the resignee for finding better job.
  • Delhi employees look for behavioral aspects for making exit process better – they suggest giving send off to the resignee (45%) & behaving properly with resignee (31%).
  • Around (28%) of companies did not proceed with the employment in absence of relieving letter.
  • 91% HR Managers in Delhi think people are leaving jobs for better prospects in other organisation.
  • Around 62% of companies in Delhi vouching for stricter measures, the HR managers in Delhi seemed to be quite strict.
  • Higher % of HR managers in Delhi (71%) deducts the employees salary who don’t provide required notice period.

Hyderabad

Kolkata

  About 10% in Hyderabad feel that people leave their jobs for going abroad.

  one in three companies in Hyderabad (30%)  are quite strict & do not proceed with the employment in absence of relieving letter

  • Around 9% of respondents in Hyderabad were in the process of resigning from their current company.

 

  Salary package is found to be the most common reason in Kolkata (65%) for quitting the job.

  With around 26% companies in Kolkata was more open to  online interviews than any other city

  Companies in Kolkata are quite lenient in terms of receipt of relieving letter; only 5% do not proceed with the employment.

  Around 39% Kolkata employees feel giving an extension to submit reliving letter will further delay the process of joining.  

  Around 91% of employees prefer longer notice period

  Around half of employees in Kolkata (48%) find longer notice period would help in finding a new person in replacement.

Ahmedabad

Pune

  • 94% of employees have not observed any change in behavior from managers to resignee as well as from peers to resignee.
  • Around half of employees in Ahmedabad (47%) find longer notice period would help in finding a right replacement.
  • Around 11% of respondents in Pune find better learning & development is also one of the common reasons for leaving the job.
  • More than 35% of employees in Pune find the longer notice period is helpful for completing pending work.

 

 Click here for a detailed version of the Report

 

- Surabhi Mathur Gandhi is senior vice president, TeamLease Services -  India's largest staffing solutions company spearheading the Temporary Staffing revolution in India for over eight years now.

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