Recent Trends in Human Resource Management

Saturday, December 20, 2008

IT firms hike referral bonuses

IT firms hike referral bonuses

Though recession goes on worsening, some U.S. firms in India are on a hiring mode for outsourcing jobs and they are increasingly hiking referral bonuses for existing employees. Referral bonuses are supposed to be given to employees who refer talented people to the company. U.S. Firms like Deloitte, ADP, Pegasystems and Broadridge in India have hiked the referral bonuses already, reported The Economic Times.
Deloitte, which employs over 6,000 people in India, has doubled its referral bonus to employees last week. The employees will now get Rs. 10,000-50,000 for every person who they refer, depending on the level at which they will be joining the firm. The company has also increased its campus hiring by 20-30 percent this year.

An industry analyst said, "This is the right time to hire as salary expectations of people have become realistic and referral system helps identify suitable people. Besides, expansion of India operations will help the firm cut cost significantly and mitigate the risk of the U.S. slowdown."

"Most firms in the West are trimming down workforce there to cut cost. This is expected to bring more offshore work to India. This could lead to an increased demand for people especially the high-end talent pool," said, Prashant Srivastava, HR expert & managing partner (India), The Gallup Organization.

He also mentioned that firms are under pressure to scale up faster and the referral system provides a cost-effective way to get people with right-skill and attitude. Compared to the recruitment process through executive search firms referral will be at least 10-15 percent cheaper.

Pegasystems, a U.S. based business process management (BPM) software provider is looking to hire 60-80 high-end talent-pool for its R&D center in Hyderabad in six months. "Our referral bonus ranges from Rs 25,000-75,000 per person. As we want to scale up our operations at a faster pace, we have increased this bonus by Rs 50,000 for referring a person at certain positions like tech lead. Hence, if a candidate is selected, an existing employee can earn up to Rs 1.25 lakh, which will be beyond his salary. We will give this extra benefit for the next six months," said Suman Reddy Eadunuri, MD, Pegasystems Worldwide India.

Similarly, ADP, the $9 billion business outsourcing solutions firm, is looking at recruiting 400 people in the next six months at its Hyderabad and Pune centers. This year (June-December), the company added 400 people. Of this, about 52 percent were selected through referral process as against 45 percent last fiscal.

Ref: http://www.siliconindia.com/shownews/49984

5 comments:

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