Wednesday, February 29, 2012

Recruiters treat class of 2012 at top B-Schools like bonus babies

Vying for the best talent, recruiters at top B-schools are compensating 2012 grads with hefty joining bonuses in a year of moderate hikes. The creme de la creme of Class of 2012 at premier B-schools like Indian Institutes of Management (IIMs), Indian Institute of Foreign Trade ( IIFT), XLRI and Faculty of Management Studies (FMS), Delhi, have received bonuses ranging from Rs. 100,000 to Rs. 300,000 this year. The Class of 2011 had to settle for joining bonuses ranging between Rs. 40,000 and Rs. 50,000 and on rare occasions, a lakh or so.

"In premier institutes, there is still a struggle for talent. It is only in the lower order (of institutes) that companies can relax a bit," says Sandeep Chaudhary, regional practice leader, compensation consulting, Asia-Pacific, Aon Hewitt. "For the best talent, competition remains high," says Elango R, HR head, MphasiS. The ITeS firm has offered a joining bonus of Rs. 100,000-200,000 to 10 students it has picked from IIM-Ahmedabad, IIM-Bangalore, IIM-Lucknow and Indian School of Business (ISB). But it has not raised its compensation package this year, which ranges between Rs. 900,000 and Rs. 2 million.

"The joining bonus trend is here to stay for some more time," says Rajiv Krishnan D, director-human capital, Mercer. "They (companies) want to be absolutely sure they break into the top 90th percentile and rope in the best." That is perhaps why consumer goods and hospitality major ITC Ltd has for the first time offered a joining bonus of Rs. 300,000 to campus recruits. The company picked up 70 students from management institutes, including the IIMs and FMS Delhi. Sources at IIM-Calcutta confirmed joining bonuses to ITC recruits.

"Since we rely more on pre-placement offers to students, the joining bonus component helps attract the best of talent," says Rahul Gama, VP (HR), Godrej Consumer Products. Apart from a joining bonus of Rs. 100,000 to 11 campus recruits, the company has also increased its average campus offer this year from Rs. 1.3 million to Rs. 1.5 million.

Source: The Economic Times, February 29, 2012

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