'Notice Period' is one of the terms of any appointment letter, set by the Company. The period may vary from 15 days to even 6 months, depending upon the grade of the employee and / or the company policy. Here are some of the reasons and its impacts in IT Companies:-
- To safeguard the business interests of the company, some companies specially IT companies set such a longer notice period of 3 months..
- Another reason is to prevent key IT staff from exiting from the company in short notice as they are in great demand..
- Companies need time (say 3-6 months) to find a most suitable replacement. Some IT staff, who are in demand and obliged to give 3 months notice to the current employer, are not able to join another company as the prospective employer needs them immediately.
- Some IT companies which get lot of projects are not able to procure the manpower due to reduction in its manpower strength by exit. To control the high rate of labour turnover due to demand for IT Professionals in the market, IT companies have increased the Notice Period to 3-6 months.
- When there are not adequate manpower strength to manage and complete a project, companies set the term of 3 months of notice period to find the replacement.
- Some companies even refuse the 'salary payback' option form the employees to prevent them from exiting from the company before the notice period.
- However, retaining the employees who have resigned with 3 month notice period has negative impacts. He can influence the motivation / morale level of his superiors / peers / subordinates.