Why Do Companies Prefer Hiring in October or March-April? Seeking Insights on Interview Question

Hi everyone,

I wanted to ask one question regarding recruitment. During the interview, they asked me why many companies generally prefer acquiring new candidates in the month of October or March-April.

I answered that it helps in the performance appraisal procedure and the calculation of incentives and increments for new joiners if they join in October or April.

I am unsure if my answer is correct as I am a fresher. What is the correct response to this question?

Regards,
Radhika.

Hello Radhika,

Your answer is on the right track but on the reverse side. Usually, all companies conduct their appraisals in the months of March and September. This timing makes salary negotiation with other organizations easier for those who are interviewing elsewhere.

For example, if an employee is currently earning 10,000/- per month and receives a 20% appraisal, they can potentially negotiate with another company by stating their current salary is 12,000/-.

That's it.

Regards,
Anal Shah

There cannot be an ideal answer for any interview unless it's a technical question. Usually, a person is not asked why they are leaving in a particular month right after their appraisal. Instead, they are asked why they want to leave the previous job. One can simply say for better prospects, but nowadays, it's like avoiding the question. So, if one has truly performed well in their previous employment, they can probably say that the appraisal was not up to the mark or as per the words of the management, and so on.

One more thing, not only this, but all the general answers are judged according to the mood of the interviewee, so there's no need to prepare the answers. Instead, one can work on how to judge the mentality and nature of the interviewee so that you can easily convince him/her.

Regards,
Anal Shah
shahanal12@yahoo.com

Hi!

My views:

Normally, organizations provide increments effective from 1st April of every year. Now, the cutoff date for considering an employee eligible for an increment is 30th September of the previous year. That is, those who have joined on or before 30th September 2007 will be considered for increments effective from 1st April 2008. Those who have joined on 1st October onwards will be eligible for an increment in 2009.

In such cases, what we do is justify both parties. For instance, if the average increment is 12%, we add 6% to our offer as support. This approach helps us in negotiating and enables us to justify our stance regarding matching with existing employees.

- Hiten

Hi,

In addition to the above replies, which are very relevant, I would like to say that candidates are hired during the month of October because in the Indian scenario, the bonus is paid during September or October, and the employees don't want to miss that if they are eligible for a bonus. So, if the employee is willing to leave their present job, they collect the bonus amount and then shift to a new job. This answer is based on employee feedback.

Regards,
Swateelekha.

Hi Sweeteelekha!

Actually, I would like to add to your comment that the payment of bonus is a mandatory payment. It has to be paid irrespective of the employee's date of leaving. Yes, it is true that it is paid within 6 months of the end of the financial year, which is 30th September, and coincides with Diwali on most occasions. However, the payment of bonus is to be done for those employees as well who leave employment before the declaration and disbursement of bonus.

Please correct me if I am wrong.

- Hiten

Hi Radhika,

I would like to add one more point, saying that for the companies having the appraisals during March and September, it will also help them to get adjusted to the ESI half-year periods, which are the same as the companies' appraisal period.

Friends, I would like to have your views on this. Correct me if I am wrong.

Regards,
Amith R.