IT cos hiring through referral schemes, double hiring incentives
By siliconindia   |   Tuesday, 14 December 2010, 09:34 IST   |    7 Comments
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IT cos hiring through referral schemes, double hiring incentives
Bangalore: India's leading IT firms like Wipro and Infosys are in a hiring mode and are planning to take in at least a quarter of new employees through employee referral schemes. The move took place in order to get prepared for addressing renewed demand for their services in 2011, reports The Times Of India. While Wipro has increased cash incentives for each new hiring from 20,000 to 40,000, Infosys and TCS are distributing more incentives in order to encourage their employees to bring in quality staff. According to Priti Rajora, General Manager-talent engagement and development at Wipro Technologies, the company uses to do on-ground promotions through activities like fun games and quizzes, where employees get the chance to bring their friends. Last year, the IT industry reported nearly 80,000 gross employee additions, the number is expected to increase to 2,00,000 employees over the next one year. A few weeks ago, Infosys sent a mail offering a double amount for each staff joining through employee referral. According to some employees, the cash incentives are still much lower than what companies pay to recruitment consultants. "If the person is hired through a consultancy the company has to pay at least 33 percent of the total CTC to them. But when we refer we are given around 15,000 to 20,000. Rewarding us actually costs less than picking up talent through a consultancy," says another Infosys employee. Avoiding the mad scramble next year is another reason for which tech firms are opting for hiring through employee referral schemes. Recruitment expert E Balaji of Ma Foi Consultancy said that employee referral schemes are a year-end strategy. Usually IT firms allocate a specific budget for employee referrals. Companies look for every possible channel to bring in talent. That's the reason they have spruced up the process and increased the money.

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