Talent retention via extended notice periods. Surely there's a better way....?

Today, I thought I’d share some frustrations I have with the misuse of extended notice periods by some employers, and the ill-feeling it generates, which can only be counter-productive in the long run.

It’s commonly accepted that those in management, highly paid, or specialist knowledge roles will need to sign an employment contract that requires the individual to serve a three month notice period. The reasons are justifiable, and rarely cause any problems for the individual when they come to leave, as future employers would generally expect to have to wait three months to secure the services of someone at an equivalent level.

The problem is when an individual is in a position or at a career level where it is extremely rare for someone to have a notice period any longer than one month. In these circumstances, the individual will face genuine problems securing their next move and will effectively be stuck with the following options:

·         Option 1: To accept the reality of seeing good opportunities pass them by whilst they try to find an employer who considers them to be so perfect for an opportunity that they’re happy to wait a full two months longer for them to start than they would for the next best applicant.

·         Option 2: To resign before securing their next position in the hope that they will be offered something suitable within the last 5-6 weeks of their notice period.

·         Option 3: To not honour their full notice period and risk leaving their current firm under a cloud after a month.

None of the options are attractive, and all of them are to the detriment of the individual’s future career. Option 1 will inevitably mean missing out on good opportunities, which will lead to compromise on the range of opportunities they would consider. Option 2 is throwing the dice; hoping that a suitable opportunity will arise within a specific timeframe and therefore also encouraging compromise. Option 3 could well lead to real problems further down the line, and would clearly damage relationships that have taken long to build.

The reasons for these unusually long notice periods that I’ve encountered is generally due to them having been introduced during negotiations between an employer and employee when the employer is attempting to retain them with a counter offer, or whilst appeasing a restless employee who feels undervalued, with a slight change in job title and a payrise.

It will of course only happen to individuals that an employer particularly wants to retain, and can seem at the time to be a tit-for-tat compromise during negotiations. Ultimately however, the introduction of an extended notice period is not going to encourage someone to stay with a firm if they want to leave, it just makes it difficult for them to do so and limits the career options available to them. Surely there are more positive ways to retain talent within an organisation? If not, wouldn’t it just be better to wave goodbye to a star performer on good terms rather than chaining them down whilst they grow resentful?