Feeling Stuck: How Should I Handle My Denied Recruitment Bonus Promise?

Very good morning to all, I am working with an IT company in HR, handling HR operations, IT recruitment, as well as all general functions. I have recruited more than 70 resources from April 2013 onwards. Being a small company, I directly report to the directors. During my last appraisal, they had promised me a recruitment bonus of 50K in case I cross 50 candidates in a year, and they will be paying me on a quarterly basis. Now, as usual, they are denying the same and always keep on saying we will review the same.

Queries Regarding Recruitment Bonus

I have the following queries:

1. I would like to know what is the usual incentive structure as I always tell them to make it per resource, and they do not agree, saying you are not just a recruiter, etc.

2. In case they deny to give, what actions can I take? I have their signature on my letters.

Regards,

Bonus/Incentive Policies

Bonus/Incentive (other than the bonus under the Payment of Bonus Act, for which you are probably not eligible) is generally at the discretion of the management. The exception is when it is clearly quantified against measurable KPIs and is more in the form of deferred payment rather than an actual incentive.

You mentioned having a signed letter, but you have not disclosed its contents.

Recurring Denial of Promised Incentives

Also, you mentioned, "As usual they deny." Does this imply that similar situations have occurred previously? If you have repeatedly been denied an incentive that was promised, why are you still employed there?

Legal and Practical Considerations

You may not be able to take any action against them unless it is explicitly stated in their letter. If your salary is less than Rs. 18,000, you can seek action under the Payment of Wages Act from the labor officer. Otherwise, pursuing the matter through the civil court would be both time-consuming and costly. Even if you were to file a complaint with the labor officer, your tenure at the company may come to an end.

Essentially, if you are dissatisfied, it might be best to seek opportunities elsewhere as there are limited alternatives.

Recommendation

I recommend discussing with the firm's owner or decision-maker to clarify the incentives they are prepared to offer you and the reasons behind the initial denial.

Incentives in HR Roles

On another note, I am aware of instances where HR professionals receive incentives. While recruitment may be a component of the job or even the primary responsibility, it is uncommon for companies to provide incentives for recruitment activities. Your salary compensates you for your job responsibilities, and incentives/bonuses are typically awarded for exceptional achievements.

Recruitment agencies are an exception where such incentives are more prevalent, as recruitment is their primary function.

Regards,