The trend of several companies offering ‘joining bonus’, to their new recruits is catching up rapidly. Did you collect yours, asks shubhashish.

In one of his last interviews, Peter Drucker, a few years ago said, that ‘choice’ is one of the greatest things that man has created in this century. And no matter what you do or buy, choices are aplenty and omnipresent whether you are buying a car, choosing the best school for your child, selecting a cafe to sip a cup of coffee or even finding a job! And the biggest challenge one faces is to make that important decision and choose one of the many. Corporate India has understood what Drucker was trying to say and hence is now trying to narrow down the power to make ‘choice’ for the people. And one such way of doing this is by offering a ‘joining bonus’ to their new recruits.

What is it all about?    
So, what exactly is a ‘joining bonus’? Does it mean that you get paid even before starting work? Believe it or not, it does! Sudeshna Datta, Co - Founder and EVP Corporate Development and HR, Absolute Data Research and Analytics says, "A joining bonus can be anything from three months advanced salary to the employee coming into the organization, to a paid vacation for the employees’ entire family, etc. Though a very common practice in the US, it is fast catching up in India as well." A bonus before working... sounds exciting, right? Experts say that it does not only have to be in monetary terms. "We sometimes offer gifts like iPods, palm tops, holiday packages, etc. as joining gifts to our new recruits," says Shoba Chetty, Director HR, Impetus Technologies.

If you are thinking as to why an organization would pay an employee before joining, experts say that the policy was designed to attract the employees in a talent stricken environment, and by giving them freebies they come on board and fill the vacant posts as soon as possible. And this trend seems to be a win-win situation for a new hire as he/she gets the job as well as some extra incentives!

For the right reasons   
Also termed as the ‘golden handshake’, the policy is viewed by the corporate world as a tool for getting people on the rolls immediately. "The demand versus supply in this market is not well balanced. Joining bonus facilitates hiring the right kind of personnel in most favorable time frame and also helps to persuade the candidate," says Chetty.

Indrajit Sen, Director – Talent Acquisition, Aricent gives a few statistics to support the success of the policy. He says, "In the current fiscal year, till date around 10 per cent of new joiners were those who were offered a joining bonus and out of those, 64 per cent joined the organization." "As a practice, we do not offer joining bonuses to all the candidates. Typically, we present it to around 15 per cent of the candidates and it usually covers the junior to mid level positions," says Chetty. Chandan Chattaraj, Executive Director, HR, Xerox India Limited says, "Around 50 per cent of our new hires at functional head positions have been offered joining bonus in past one year."

The fortunate ones  
Though an attractive policy that can tilt the decision in the organization’s favor, they are playing safe and making conscious decisions to offer the bonus only to a select few. "Joining bonus is certainly not a mandatory bonus for all candidates and is offered to a candidate at a senior executive/management level," says Sen. Aruna Sampat, Founder and Managing Director, Career Catalysts says, "With increasing competition, this trend is gaining significance with candidates bringing key skills to the organization in junior positions also." Shailja Dutt, Founder and Managing Director, Stellar Search and Selection seconds Sampat. She says that across senior and top management, it is a practice gaining fair momentum and, for exceptional middle management candidates, most companies are now willing to consider a joining bonus.

So if you are offered more than just a lucrative pay package, don't be surprised as your company feels that you are among the select few who deserve a joining bonus!