Notice periods getting longer

Johannesburg - More businesses are including longer notice periods of up to six months in their contracts with high-ranking employees so as better to manage succession when these managers resign.

Madge Gibson, a partner of the Jack Hammer Executive Headhunters recruitment company, says that a three-month notice period for managing executives and specialists is currently standard practice for many businesses.

This trend is in line with the ongoing shortage of sought-after high-level talent, and gives companies valuable time to replace staff in key positions. It also serves as a deterrent to competitors trying to poach skilled managers, declares Gibson.

It easily takes an executive recruiting agency three months to recruit a suitable candidate for a senior position. Apart from it being difficult to find a suitable replacement, companies also want to limit the loss of skills and the associated impact on the business.

However, says Gibson, in cases where a key person resigns to go to the opposition, the company generally allows the person concerned to leave immediately, regardless of the stipulated notice period in the contract.

This is done to reduce the impact on the morale of colleagues, as well as the employee's access to sensitive corporate information, Gibson explains.

The employee who has resigned remains in the service of the employer during this period, and may not start in his new position before his notice period expires.

- Sake24.com

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