10 Secrets-to-Success of Employee Referrals in India

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Indrajit Sen's presentation from the ERE Expo 2009 Spring.

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10 Secrets-to-Success of Employee Referrals in India

  1. 1. 10 Secrets-to-Success of Employee Referrals in India -Ere Expo 2009 Spring , March 31, 2009
  2. 2. Agenda Understanding India   Snapshot of Indian IT Industry   The Hiring Environment in India   Aricent at a Glance   Introducing Aricent’s Referral Program   The 10 Secrets-to-Success   During Current Recession   The Future   2 Aricent Confidential
  3. 3. Understanding India
  4. 4. India…Basics Smaller : Area: 34% of US   Crowded : Population: 3.6 X US   Poorer : GDP: 5.5% of US   Younger : Population under 15: 32% vs. 21% US   Rural : Population in   –  Agriculture: 60% vs. 1% US –  Services: 23% vs. 76% US –  Industry: 17% vs. 23% US 4 Aricent Confidential
  5. 5. The India Differences …Contradictions to Complexity CONTRADICTIONS COMPLEXITY Multi-party democracy with universal   28 States & 7 Union Territories   franchise 22 official languages (1000+ dialects)   27.5 % below the poverty line   8 significant religions   Sub-tropical, desert and Himalayan Chandrayan-1 orbiting the moon for the     terrains last few months Appx 250 political parties (including   Adult Literacy 61%   6 National parties) Nuclear power since mid-70s   5 European colonial legacies   7.6% children die before reaching 5 years   1000+ castes/sub castes in dominant   Largest producer of milk   religious group 53 % drop out of school after enrolment   ~8% GDP growth last 3 years   5 Aricent Confidential
  6. 6. India .. IT Trends Revenues : Indian IT-ITES sector-export revenues (USD billion)   Total IT-ITES industry - USD 71.7 billion (expected) accounting for 5.8% of ~ 16 -17% 47.0 India’s GDP 40.4 ~ 29%   Software revenues - USD 60 billion 31.3   Software export revenues - USD 47 billion in 2009 FY2007 FY2008 FY2009E 6 Aricent Confidential
  7. 7. India…IT Industry (Manpower)   Direct employment in Indian IT-ITES to reach nearly 2.23 million in 2009   Indirect job creation estimated at ~8 million Industry remains a “net hirer” and employment creator 7 Aricent Confidential
  8. 8. India IT …. Hiring Environment   Access –  Multiple communication channels: •  Only print media till ~2000 •  Small but growing internet penetration: individual/ ‘cyber cafes’ •  Explosive mobile phone usage   Expectations –  Lifetime employment –  Annual double-digit salary hike –  Matrimonial value –  Overseas travel & stay –  Technology exposure –  Co-location with spouse –  ‘College Batch’ parity: compensation & title –  Reduced travel after children   Influence –  Multiple agents: •  Parents & ‘Extended family’ •  Peers / Seniors (-including teachers) •  Spouse 8 Aricent Confidential
  9. 9. Aricent at Glance Co-Create
  10. 10. Aricent: Powering Communications   Aricent an international leader in the field of communications software   Believes in restricting to niche telecom skills   Operations in 19 countries business to niche Telecom areas rather than spreading thin into multiple worldwide   Current Revenue $382M   Strength of organization: Approx. 8000. 85% in India Milestones and Industry Firsts   9 of the top 10 telecommunications equipment suppliers   8 of the top 10 mobile phone manufacturers   1.5 billion mobile users connected to industry leading base station   400M handsets shipped with Aricent middleware   World’s 1st commercially available Femtocell solution   1st ever In-flight Broadband roll-out for American Airlines and Virgin America 10 Aricent Confidential
  11. 11. Co-Creating with Our Customers   Simplification of mobile content discovery   New platform for services & developers   Addresses largest obstacle to mobile data usage   Relationship since 2003   Engagements ranging from strategy, device software design & development, and the online experience   Pioneering new products in FMC and 4G   Industry’s first Femtocell gateway; Leading WiMAX base station   Co-developed the world’s first in-flight wireless broadband system   Co-developed marketing leading DSLAM   Supports 85% of global DSL ports 11 Aricent Confidential
  12. 12. Introducing Aricent - Employee Referral Program
  13. 13. Aricent … Employee Referral Program Our Global referral program is known as “iRefer” Earlier the program was known as “Heads u Win” (HUW) The Philosophy of the Program : Opportunity to work with friends/ ex-colleagues/ class mates   Building a better working environment   Win-win situation for both the company & employee   Earning attractive rewards & bonuses   13 Aricent Confidential
  14. 14. Our Success Story   Added hands in hiring….approx. 3000 participating employees supplement the Recruitment team !  Few Facts   Dedicated team members for employee referral channel across all channels   Performance: 10% of referred candidates are rated as ‘Best Performer’ constituting top 20% of the organization’s manpower Quality of Hire   Longevity : 74% of referred candidates are still working with the organization which is 17% higher in comparison to those hired through staffing agencies   Hiring Contribution: 39% of total hiring through this channel globally   Lower Cost per Hire (CPH): 50% lower as compared to Staffing Agencies (STA) Business   Better selection Conversion Ratio : 1:3 interviewed get selected compared to Value 1:4 through other channels   Better Joining Ratio : 79% through referrals. 72% through other channels We co-create – along with our employees to build a culture and strong team 14 Aricent Confidential
  15. 15. 10 Secrets-to-Success in India   Inspiring Awards and Recognition 1   Adhering to Service Level Agreements (SLA) 2   Enhancing Participation 3   Branding and Communications 4   Special Hiring Programs 5   Catching “Boomerangs” 6   Analyzing Metrics and Success Measures 7   Feedback Mechanism 8   Benchmarking Industry for Improvement 9   Overcoming the Negatives 10 15 Aricent Confidential
  16. 16. 1 Inspiring Awards and Recognition Country specific reward structure   Level wise referral bonus   More bonus as the number of referred candidates   increases Announcement of successful referrers on intranet   Monthly winner on giving maximum joinees:   –  Special awards such as mobile phone & gift vouchers Mega draw at the end of financial year :   –  Holiday package/ car/ bike/ laptop etc T-Shirt to all successful referrers   16 Aricent Confidential
  17. 17. 2 Adhering to Service Level Agreements   Transparency & Effective Communication –  Adhering to defined SLAs –  Duplication check feedback SLA: 48hrs on online recruitment tool i.e. Ehire –  Qualitative feedback SLA: 24hrs –  Process feedback SLA at different stages   The ‘Pampered’ Channel: –  Longer validity for a referred profile (3 months vis-à-vis 45 days for other channels) –  Every new requirement is first exclusively open for referrals for one week before being flashed to other channels   Referral Reward Pay-out: –  On completion of 2 months by the referred candidate 17 Aricent Confidential
  18. 18. 3 Enhancing Participation   Progress : Base participation has increased to 35% (target for this year was 25%. Over achieved!)   What works –  Transparency in process –  Timeliness throughout process –  Reaching out to employees personally through iRefer kiosks –  Communication: regular promotional activities through poster campaign, mailer campaign, competition amongst different Business Units to increase participation   Challenges/ Speed Breakers –  Lack of time & interest –  Bypassing online application –  Improper feedback for rejected candidates –  Managing Perceptions: •  Duplication • Maximum participation by Junior & middle level • Low participation by senior level •  Referrers confused with faulty feedback •  Lack of policy awareness in spite of regular communication through various modes 18 Aricent Confidential
  19. 19. 4 Branding & Communication   Tools for Internal Marketing –  Poster campaign –  Mailer campaign –  Reaching out to employees through iRefer stalls –  Ex-factor special campaigns –  Special reward structure for critical & niche hiring –  E-banners on the company intranet –  Orientation to new joinees –  Extending the program to prospective joinees   Events –  Creating competition amongst different SBUs –  Linking with corporate gaming contests –  Quarterly newsletter –  Special program on friendship day –  Open house sessions 19 Aricent Confidential
  20. 20. 5 Special Hiring Programs   ‘Toppings’ -  Over and above base program -  Short term special programs   Case Studies Case Study I   Objective: Ramp-up of Middle level high end technical professionals in 2 months.   Launch of special time bound referral program : Attractive additional bonus & Trip Quick ramp of to Singapore Technical   Gains: Hired 38% though this program which is 10% more than the total hiring Leaders through referrals Case Study II   Objective: Mass ramp-up of fresh engineering graduates within challenging timelines Large ramp up   Launch of Special hiring program exclusively through referrals of Freshers   Gains : (College -  25% lower Cost per hire as compared to direct college recruiting Recruiting) -  34% higher joining ratio as compared to direct college recruiting -  30% reduction in timelines as compared to direct college recruiting 20 Aricent Confidential
  21. 21. 5 Special Hiring Programs Contd… Case Study - III   Hiring CCNA certified professionals with good communications skills (voice & Accent) in one month for one of our Strategic Objective Business Unit.   Quickly “billable” Challenge   Unavailability of dual skill in the market & lack of in-house skill   Launch of “Technical Assistance Center (TAC) Academy” −  Hiring of any technical graduates with Good communication skills. Solution −  Imparting training on ‘Voice & Accent’ , CCNA & on customer products. −  Certification sponsored by Client 49% of total joining through iRefer as compared to 39% thru STA   100% position closure within 30days   52% lower Cost per hire as compared to STA   Gains Interview to selection ratio is 5:4 as compared to 5:2 from other   sources 21 Aricent Confidential
  22. 22. 6 Catching ‘Boomerangs’ : Ex-Factor Program The ‘Ex- Factor’ Program- Re-launched in 3rd Quarter Poster campaign 57% of ‘boomerangs’ came via iRefer 67% of middle level technical Professionals hiring came though iRefer 38% lower joining time than the standard lead time for joining Productivity from day ONE resulting in faster delivery Gaining customer confidence thus Opening doors for future opportunities Less “on Cost Support Quickly Build good job” training effective Hiring “billable” culture required Special reward announced which is over & above the regular reward amount 22 Aricent Confidential
  23. 23. 7 Analyzing Metrics and Success Measures What we track & Analyze   Quality of referral candidates through Hiring Accuracy tool –  Performance –  Longevity   Internal Customer Satisfaction –  Referrer/employee satisfaction –  Hiring manager satisfaction   Hiring Metrics –  Total number of referrals. –  Overall employee participation rate –  Total number of referral hires –  Total time to fill –  Percent of referrals from events /Customized activities –  Referral participation by BUs –  Percent of key jobs filled by referrals –  Offer acceptance rates –  Percentage of applications submitted on ehire vs mail   Cost per hire   Payment Time to Employees 23 Aricent Confidential
  24. 24. 7 Analyzing Metrics and Success Measures Contd… Case Study:   Earlier TA team used to send mails directly to employees regarding referral activities   We were not happy with outcome   Involved Business Heads as Ambassadors of iRefer and they sent mailers and propagated   Improvements were evident Aricent could achieve the above through •  Targeted and sustained internal campaigns •  Employee friendly feedback mechanism •  SLA Adherence •  Meticulous tracking, and timely corrective measures •  Leveraging network of prospective joinees & new joinees 24 Aricent Confidential
  25. 25. 8 Feedback Mechanism Rewards offered under iRefer excite me to refer more   Helpdesk mechanism: to give immediate attention to the referrers queries.   Dedicated email id to receive queries & also the same id being used for all kind of communication   Responsibility chain: dedicated person for each center with a escalation point   ISAT (Internal Satisfaction survey): This helps in knowing the pulse of the program which helps in bringing improvements in the program. Few of the highlights: –  More than 65% employees feel that iRefer reinforces culture of ownership. –  More than 70% employees feel that Rewards offered under iRefer excite them to refer more. –  75% employees find our RMS (Ehire) easy mode for referring candidates. 25 Aricent Confidential
  26. 26. 9 Benchmarking Study iRefer 8000 39% $330 - $800   Company wide recognition WipLinks 95000 20% $220 - $660 for winners.   Special Connect Infy 103000 40% $220 - $1100 consideration to referral cases. Friends 350 23% $330 - $780 Buddy   Feedback 25000 18% $220 - $1220 Management survey Bring your 108229 33% $110 - $ 1100   Regular buddy internal branding activities. Referral Employee Hiring % through Referral Bonus program name Strength referrals Range 26 Aricent Confidential
  27. 27. 10 Overcoming the Negatives   Maintaining Transparency –  Two way feedback mechanism –  Automated tool linking feedback with referrers mailbox –  Adhering to SLAs boost trust and confidence –  Accuracy of feedback –  Dedicated person for each center with a escalation point –  Helpdesk mechanism gives immediate attention to the referrers’ queries. –  Dedicated email id to receive queries & also the same id being used for all kind of communication   Managing Nepotism –  If the referrer is the hiring manager than he is not involved in the selection process –  If the referrer is Immediate & 2nd level supervisor than they become ineligible for referral reward   ‘Money’ Affecting Relationships –  Educating new joinees about the program –  Building a culture of accountability & ownership 27 Aricent Confidential
  28. 28. During Current Recession   Low Hiring   Bad news for Staffing Agencies, Referral programs to the fore at lower costs   Increase in Boomerangs hiring   Staffing agencies looking at outsourcing opportunities to manage other channels of Corporate   Decrease in portal licenses, increase in hiring through Social Networks 28 Aricent Confidential
  29. 29. Some Questions for the Future   Referral Programs Potential Drawbacks –  Reduces Diversity? –  Encourages “clustered” movements?   Unexplored Advantages: –  Creating Opinion Leaders? –  Creating “clustered” influence? 29 Aricent Confidential
  30. 30. Data Sources World Development Reports 2009   Wikepedia information   The ‘Economist’ : World in Figures   Nasscom (India) IT data   Tribune India Cartoon   Aricent MIS   30 Aricent Confidential
  31. 31. Thank You! Indrajit Sen Asst. Vice President (Talent Acquisition), Aricent indrajit.sen@aricent.com 31 Aricent Confidential
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