Thursday, September 15, 2005

Training Bond

New employees joining NTUC Income is required to sign an agreement to pay us back one month's salary if they leave our service within the first year.

This is a training bond. It is intended to compensate us for the cost of training the new employee. Our actual cost is much higher.

We have implemented this condition for the past five years. It has produced an unexpected benefit. A new employee who is not serious about joining us will not accept our job offer. Those who accept our offer are serious about making a career with us.

This is an effective "selection process". We get the right employee to join us. We enjoy a low turnover rate, and reduced wastage in recruiting and training the wrong people.

We have a few cases where the new employee is not suitable for the job. We ask the employee to leave and waive the training bond.
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3 comments:

sharon tay said...

I strongly agree that a training bond is an effective screen against candidates with little/no commitment towards joining a new organization.

Someone who is truly enthusiastic about developing and growing with NTUC Income would overlook the bond as it is negligible compared to the potential benefits of working for Income.

September 19, 2005 3:56 PM
commoninterviewquestions said...

Thanks very much for your useful post.

Other sources about new employee training, I think also useful for your readers.

Source: new employee training

Best regards

February 19, 2009 8:00 PM
Maria_Rilke said...

Some big companies are acquiring elearning tools or softwares to train their employees in a much shorter time than that of conventional ways of learning.

October 27, 2010 10:20 AM

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