BANGALORE: Joining bonus is not entitled to CEO’s alone. The trend is gaining momentum with blue-chip companies giving joining bonuses to campus recruits as the hunt for talent picks up.  Well reputed companies that include Philips India, P&G, ITC, M&M, and HUL, among many others are putting forward such incentives to draw in the top brains while retaining internal pay parity. Experts cite that the joining bonus for fresher level vary between Rs 1.50 lakh to Rs 5.0 lakh. HUL, is one such company that has started providing students with joining bonus, reports ET.

D Rajiv Krishnan, Partner -advisory services & leader-people & organization at EY India said, "There is an upscale in joining bonus being handed out by companies where there is a war for talent. The extra lump sum cash in hand helps young talent take care of their education loans and at the same time it helps companies maintain their internal pay parity.”

In addition, as the competition heats up, Joining bonus also assist companies to step up in their game so as to come up to the market leaders who are constantly revising their salaries while the surplus cash helps young talents.

Krish Shankar, head HR, Philips India & subcontinent said, "Management education in India is not cheap. Hence this money can also be used to pay off some amount of the education loan as well."  The need or requirement for trendy or essential goods is met with the extra cash that campus graduates will receive. "We give joining bonus for several reasons. And surprisingly not all reasons are linked to remuneration. On the softer side we are aware that for most campus recruits this is their first real job. From a remuneration perspective this amount could be given in lieu of an incentive program that management trainees may not be eligible for during their training period," Shankar added.

Furthermore, for management graduates from top business schools that are hired by Mahindra & Mahindra in general management category are provided joining bonus. They receive Rs 1 lakh on joining and leave with Rs 2 lakh by the end of two years based on performance and fulfilling other important criterias.

Prince Augustin, Executive Vice President group Human Capital & Leadership Development, Mahindra & Mahindra said, "This trend has crept in the top B-Schools so as to help young hires manage their initial costs related to loans (as majority of them take loans to fund their education) and other essential needs. This is just a partial support that is given by corporates and at times, is also seen as a salary bridge.”

Similarly, a P&G spokesperson said, "Based on the assessment of internship (of summer interns) we offer a pre-placement offer which also includes a joining bonus that can enable them to fulfill personal obligations like school fees.”

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