Understanding Joining Bonuses: Key Insights and Considerations

Can somebody help me with the following topic - What is a joining bonus? Why is it given, and how much is usually the joining bonus given? Which companies offer joining bonuses? Awaiting your mail. Kindly help me with all these answers.

Dear Aditi,

Thank you for the good question.

A joining bonus can be given for several reasons, sometimes to attract candidates from different locations. A joining bonus is a sum of money paid to a new employee by a company as an incentive to join that company. They are often given as a way of making a compensation package more attractive to the employee.

Companies offer joining bonuses as the demand for a skilled workforce is high. There are crucial positions that need to be filled quickly, and companies cannot afford to wait to onboard people.

The main reasons for offering a joining bonus are to ensure that the company acquires the right talent at the right time. Joining bonuses are estimated to be in the range of 10 to 20 percent of the employee's Cost to Company (CTC).

The trend of offering joining bonuses is more prevalent in sectors such as BFSI (Banking, Financial Services, and Insurance), IT, services, power, energy, and infrastructure.

I have noticed that several companies offer joining bonuses to prospective employees to join early (or shall I say "immediately").

I hope this clears up your doubt.

Thank you very much, Ganesh, for your help. It has indeed cleared all my doubts. Thanks once again. Can you share your email address with me so that in the future, if I have any doubts, I can email you? I hope I am not asking for too much from you.

Regards,
Aditi

Mostly, the word "Joining Bonus" is a euphemism for compensating the Notice Pay paid to the previous employer in order to take the employee on board immediately.

Pon

Hi! Adding to this query, can someone please help me as I am currently being offered a job with less pay (20 percent less than what I am getting). After long negotiation, they agreed to also pay a joining bonus of 50,000/-. I am thinking to take up this opportunity due to financial instability of my current company, which causes delayed salaries, etc.

The prospective offer/employer is a brand name in the IT sector; hence, I foresee better career growth and stability. Please suggest, should I take this offer? If yes, can I negotiate further on the joining bonus as the tax liability would be huge? Can I lose this offer if I negotiate too much? Please guide me at the earliest as I need to revert back to them asap.

Hello Sir,

I am getting such points in my initial offer later that can't be properly understanding, so please tell me what is this "Joining Bonus" -

The Point is - "JOINING BONUS: You will be paid a Joining bonus of INR 5,000 if joining by 18th May 2015. The Joining Bonus will be recoverable if you leave the company before 1 year."

I recently came across a job portal that offers a joining bonus for candidates to encourage active job seekers and reduce the rate of offer-to-joining failures. This initiative will enable employers to decrease the costs associated with bench resources and reduce recruitment cycle times. One significant aspect of this portal is its ability to address issues related to duplicate profiles, thereby preventing genuine candidates from being rejected. For further details, you can visit [My Joining Bonus - Unique Job Portal](http://www.Myjoiningbonus.com).

They are also planning to engage independent/freelance recruiters very soon.