Employment is an agreed relationship between an employer and employee in which both get mutually benefited. What makes a job exciting for an employee apart from his dream career, is the salary. All of us work to earn money, with experience and accomplishments in once career, salary grows and so does the knowledge.
A service bond is an agreed legal document between employee and employer regarding the remuneration that would be paid to an employee in lieu of money spent by the employer for specialized training of the candidate in a stipulated period time. A salary doesn’t bond an employee legally to the company but expects the employee to show trust and faithfulness towards the company in all market conditions. In some industries like ITES and IT where the employee attrition rate is very high an employment service agreement is beneficial to the company and also for the employee as these industries are susceptible to market conditions.
Is Salary a better remuneration option than Service bond?
What are the advantages of opting for Salary option than employee bond? A person who is well qualified for a job in terms of work experience and educational qualification, would definitely opt for a Salary, the reason is very clear that his candidature is an asset to companies and they require the services of this person. In case an experienced professional opts for a job which is a new category created in the company he might sign an employment agreement for a stipulated period of time to test the water. In the situation where it is a startup company it is wiser on the part of employees to sign a bond with a time frame in mind. For a fresher signing a bond for a calculated period of time is always a benefit as he would acquire the domain expertise, stipend during training and also job security.
The major threat a Salaried professional faces is that of losing a job in situations like companies lays off its employee or terminate the contract due to non performance or closure of units or turbulence in the economy of the country. A salary negotiation after clearing a job interview always opens up higher remuneration packages to employee and in most of the cases employees negotiate for more than 30 % hike as per the industry standards.
Is employee service agreement or bond a better remuneration option?
What is an employee service agreement? Is it a safeguard method opted by a company to check its attrition rate or is it a good remuneration decision on the part of employees who opts for it. In both the cases it is a win-win situation as the company’s as well as employees interests are safeguarded.
In a situation when markets are at all time high, recession is not to be seen in some quarters around should an employee sign a bond? A candidate who is confident about his skill sets in terms of education for fresher’s and experience in terms of professionals a person should opt for a salary as it puts him into the better economic condition and his growth prospects are better. A service agreement should always be welcomed by an employee when he is travelling abroad as it will not only safeguard his employment but also safeguard him from any management decisions that might go against him.
As a fresher one must study the industry trends as per his skill set and before appearing for an interview should check on the salary structures of the company one opts for. One should consider market conditions, reputation of the company, job role and its future line of growth before making a decision on opting for a salary or for employment bond.