Right Balance Employers - Long notice periods

Team KritikalHire

May 19th, 2022   
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There is no rationale why Indian companies need a 60 – 90 days notice period. The same organizations that have 90 days notice period expect candidates to join within two weeks, which doesn't really add up. There is a critical need for industry bodies and significant individual players to set the right tone. They would need to go back to the whiteboard and relook at the existing notice period rules. 

Though the argument is not new, it has again come to the fore amid the era of mass layoffs, rapid hiring, and increasing attrition rates.

In his article "$6 billion - the hidden cost of 90-day notice period to companies, economy," Gaurav Chatter provides an analysis of the hidden cost of unproductive time during the notice period, associated with the three months long notice periodi. The other costs he noted are related to increased bench strength, increased cost of recruitment efforts, and loss in predictability in staffing for project inevitably resulting in loss of reputation for company and country. 

The severe consequence as stated above in the last line refers to:

  • Loss of company reputation
  • Loss of country reputation

It means high prices to pay in both the short and long term for Indian companies and the country. In the current situation, whether employer or employee wins, we all will lose in the long term. How do you address this?

We wish to gather employer and employee input, stories, and experiences in a series of articles on the Long Notice Period. We want to hear more from the Global Recruiting Heads, APAC Recruiting Heads, and India Recruiting Heads. 

Notice periods provide a chance for both the employer and employee to make arrangements when employment is terminated. John Earley, in his article "Notice Periods and Their Value," has excellent input on how employers and employees should manage the relationship during the notice period: 

  • Should the employer decide that a long notice period is essential, they also understand that the outgoing employee will need careful management and close support to ensure that the engagement is maintained as much as possible. 
  • The employer must be flexible, allowing perhaps flexible hours, sometimes working from home, and even agreeing on milestones leading to earlier termination.
  • Any employer insisting that the outgoing employee rigidly continues his routine throughout the notice period will likely have to deal with a counterproductive reaction.
  • Also, the employee must be open with their manager, be clear about their focus and commitment, and work with them to find the best solution should the notice period be extended. It is essential to set goals throughout the notice period so the outgoing employee can see these being achieved as a series of steps leading to the new job.
  • Should the outgoing employee have performed his job well and created a sustainable role, well documented and executed, then the hand-over, which the employer is keen on securing, will be much less critical.
  • Also, employers need to realize that, especially at senior levels, the incoming employee will likely want to put their stamp on the function from day one.  

Industry leaders say the continuance of an outgoing employee at the workplace for a long time after putting in his papers may negatively impact the existing employees. Eight out of ten employees want the duration of the notice period reduced to a month from three months, according to a survey of 2,800 employees in major banks and IT companies in metro cities by HR tech platform Hush. 

The critical points from the employer and employee perspective are covered above, but we want to know what employees should do.

While studying the subject came across an excellent article from Rishika Singh, "Don't blow up your career on your notice period," and she states seven tips to the employees on surviving your notice period without derailing your career.ii

  1. Tie up all loose ends
  2. Don't burn your bridges
  3. Preserve your network
  4. Exceed performance expectations
  5. Show your appreciation
  6. Offer to train your replacement
  7. Get information on your employee benefits

Please check the next blog to know the national and international thoughts. 


iChattur, G. (June 25, 2021). $6 billion - the hidden cost of 90-day notice period to companies, economy.|https://www.businesstoday.in/opinion/columns/story/6-billion-the-hidden-cost-of-90-day-notice-period-to-companies-economy-296565-2021-05-20 

iiSingh, R. (September 02, 2021). Don't blow up your career on your notice, period.|https://tweakindia.com/work/career/dont-blow-up-your-career-on-your-notice-period/

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