Pros And Cons Of Signing A Bond With Any Organization

By Lekhaka

These days, when a company hires a candidate, a substantial amount of the company's resources goes into training them and thereby making the person fit for the job. This extends to more than mere technical skills. There are a bunch of ethical and moral skills that a candidate needs to instil in order to ensure that they are good enough to fit into the company culture. For that, a significant amount of resource investment has to be made on the part of the organization. In light of all of that, the organization often demands that candidates who join the firm must sign a contract wherein they cannot leave the organization in the first year of their tenure.


Now, the other side of the story is the fact that indulging in an act like this is a clear violation of one's right to freedom. In a democratic country like India, an individual has the right to choose when and where they would want to work and no one has the right to dictate the same.

Pros And Cons Of Signing A Bond

This indeed puts a huge question mark on whether signing a bond is actually beneficial to an individual or does it prove otherwise? In this article, we shall discuss in depth the pros and cons of signing a service bond with any organization.

· Pros

  • Job Security

If a company wants you to sign a bond for a certain amount of time, they consider themselves to be in a position to be able to pay you your salary for that period. This naturally means higher job security for you. If you are able to perform to your basic standards, you can be confident of taking home the required pay cheque at the end of the month for the duration of the bond.

  • Quality Of Work

Psychologists have confirmed that if an employee knows that they will stay in a particular company for quite some time, they will invest all their time and energy in learning more about the company and its work culture. Skills that are required for the said job position will also be nurtured by the employee.

However, if the employee knows that they might leave the company at any given time, they will not invest as much energy in delivering quality work.

  • Shorter Bonds

These days, most companies do not have a bond that lasts more than a year or two. In such a situation, it is not a bad idea since a couple of years of continued service with any firm will look good on your resume as well. Anything less than that will make a prospective employer question your loyalty.

  • Ability To Grow And Better Work Experience

If a company wants to keep you for a given period of time, they will not want you to do the same tasks over and over again. The organization will surely have chalked out plans for your career growth and if you put in the due efforts, chances are that you will climb up as and when the company dictates.

Not only will this facilitate a better learning environment, but it will also ensure that your overall work experience becomes a much better one.


This is all the way more applicable for fresher candidates. If this is your first job, then chances are that there will be certain aspects of your job that will not appeal to you and you may feel like quitting. If you have signed a service bond, you might have to think twice before doing so.

It has been seen that in most cases, candidates who survive this initial difficult phase are seen to do very well later in life.

· Cons

  • Long Bonds

In the world of technology, a lot can change in a matter of years. The field or domain that was in vogue once may no longer be so and this might make you want to switch ships. Having a bond often prevents an employee from making a domain shift. These days, it is often seen that when a candidate wants to switch their job, it is usually a change in their domain that they want and not a change in the employer or organization.

  • Personal Reasons

No matter how interested a particular person is in a job, at any given time, some personal reason might occur that might compel them to leave the job. In such a situation, if the person concerned is under some sort of some bond, they have to unnecessarily pay an exorbitant amount of money to get out of it.

In some companies, there is the practise of blacklisting a candidate if they abscond the organization for such personal reasons. Such a thing will have a very negative impact on the person's long-term career plans.

  • Incompatibility

It may so happen that in the course of working in the organization, a particular employee gets into clashes with their supervisors or colleagues. If the magnitude of these clashes is so large that they prove to be torturous to the person concerned, they might want to leave the company.

In such a situation, if they are in a bond with the organization, it might affect their mental health in a very negative manner.

  • Change Of Interests

This point is all the way more applicable for freshers and other people who are just beginning their career. At such initial stages, it is difficult to decide exactly what you want. Most of them end up taking any random job.

It may so happen that after a certain number of months in the organization, a candidate discovers what they actually want. This may be an altogether different career choice. In such a case, a bond with the employer will become a hindrance to professional growth.

  • Loss Of Job Opportunities

While working with a particular organization, you may actually end up stumbling upon job opportunities in some other place that is actually better than that of your own. The pay might be much higher than your current salary or the job location may be more convenient for you. In some cases, this might also mean an opportunity to work with your dream company. In such a situation, if you have signed a bond, you might not be able to proceed.

Just like every other thing in this world, the bonds that companies make you sign before giving you a job also has two sides. Now, it is up to you to evaluate the pros and cons discussed above and then decide for yourself if you want to sign a bond or not.

This is a personal decision and what seems to work for others may not be the same in your case. Thus, after having discussed both the sides of the coin, we now leave it to your able judgement to take a sensible decision in this regard.

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