MM Bagali 2013


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MM Bagali 2013

  1. 1. Get connected M M Bagali, PhD in HRProfessor of Management and Human Resources, Coordinating, Research in Management, JAIN University 319 / 17TH CROSS / 25TH MAIN / 6th PHASE / JP NAGAR, Jain University/ Bengalore -560 078 / India Tel: 80 43430400 / Fax: 080 26532730
  2. 2.
  3. 3. You listen or hear some people speaking Gone could not make it Was tough Was really unexpected
  4. 4. Also, you listenYahoo…… Did wellSure will have it Made itCooolllllll Top of world…….
  5. 5. When do you hear to listen such reactions……
  6. 6. Module 4 RecruitmentHiring the Right Person
  7. 7. Nature of work of HRHR responsibilities: HR is a strategic partner in company planning HR monitors current trends and legal developments HR disseminates information to the organization HR communicates with and supports employees at different physical locations
  8. 8. % of work of HR• Training 20• R/S 40• Performance Management 20• Others 20
  9. 9. As HR students• importance of recruitment• calculate costs associated• understand all steps followed in an effective recruitment process
  10. 10. – Methods used by organizations to recruit and select employees.– Legal issues that affect recruitment and selection– HR’s role in the recruitment and selection process
  11. 11. • analyze requirements and create competence map formats• screen and shortlist application to lower short term attrition using motivational and image checkpoints• conduct behavioral & functional Interviews efficiently & effectively
  12. 12. Why is Recruitment considered critical
  13. 13. considered critical
  14. 14. Employers Are Looking for New Ways to Make Work ―Work‖ — to Create More Effective Workplaces• Meet the changing workforce and workplace dynamics• Increase employee commitment and engagement• Improve retention• Continue to meet organizational goals and objectives
  15. 15. Rationale• Acquiring and retaining high-quality talent is critical• Job market becomes increasingly competitive• Poor recruiting decisions can produce long-term negative effects• High training and development costs to minimize
  16. 16. “You need to have the right person at the rightplace and right time to get the work right andin the right fashion”
  17. 17. • Recruitment is the Process by which organizations locate and attract to fill job vacancies through discovering Manpower• Recruitment is identifying and attracting qualified person to apply for vacant position in an organization
  18. 18. Recruitment is described as “the set ofactivities and processes used to legally obtaina sufficient number of qualified people at theright place and time so that the people andthe organisation can select each other in theirown best short and long term interests”
  19. 19. • The process of attracting individuals in sufficient numbers with the right skills and at appropriate times to apply for open positions within the organization
  20. 20. Criticality of Talent AcquisitionIt is estimated that at least 1/3 of businessfailures are due to poor hiring decisions andinability to attract and retain the right talent
  21. 21. • The average cost of replacing a manager or professional is 1.5 to 4 times salary• The cost of working around an under- performer can run as high as six figures• Each vacant position costs your organization Rs. 60,000 on average. For some management positions, it can easily run into six figures.
  22. 22. Recruitment Process 23
  23. 23. • Job Open • Advertisement• Accepting Application • Application Review• Lining-up Candidates • Walk-in • Written Testing • Oral Interaction 24
  24. 24. Cont: • Interview • Final Interview • Selection • Test • Medical • Other Call Letter References 25
  25. 25. Sources of recruitment
  26. 26. National online job boards (e.g., etc.) 48% Employee referrals 43% Career section of organizations website 35% Internal job postings 16% Industry-specific/ niche online job boards 13% Print advertising 12% Job fairs 8% On-campus college recruiting 8% Regional online job boards 5% Direct hire agencies/ search firms (excluding temp agencies) 5% Informal networking 3% Temporary agencies 3% Social networking sites (Facebook, M ySpace, Friendster) 3% Online campus recruiting 2% Trade publications (print & online) 1% Open house events 1% Research/ sourcing firms 1% Online job boards, employee TV advertising 0%referrals and the career Radio advertising 0%section of an organization’swebsite, are the primary Other 3%sources used for recruiting. 0% 10% 20% 30% 40% 50% 60%
  27. 27. Sources of recruitment• Internal : – Job Posting – Employee Referrals – Current employees – Former employees• Transfer• Deputation• Lien• Word of Mouth
  28. 28. • Advantages: – Inexpensive. – Quick and easy to post announcement. – Responses arrive faster and in greater quantity. – Will generate a wider range of applicants. – Applicants can be screened by computer. – Some selection tests can be administered by computer. – Automated applicant tracking.• Disadvantages: – Ease of submission will result in a lot of applicants, many whom are not qualified. – May take more HR time to sort through the greater quantity of applicants.
  29. 29. Sources of recruitment :External Sources• Employment agencies• Executive search firms• In-house recruiters• Local advertising: – Newspaper – Multimedia• Internships• Job fairs• College recruiting• Walk-in candidates
  30. 30. Types of ApplicantsActive applicants: – Present favorable organization image – Provide access – Job sites and postingsPassive applicants: – Best people often are not looking for jobs – Recruiter has to actively search for the person – Search engines provide information – Social networking sites provide access
  31. 31. Other Methods used for Recruitment • Traveling Recruiters • Walk in application • Employee referrals • Newspaper • Journals/ Magazine • TV/Radio • Emails/ Website 32
  32. 32. Cont: Employment Services (Exchange) Search firms Trade fair / Education Fair Employee Referrals Succession Planning Government Agencies Career Advisors Students Societies 33
  33. 33. Technology and RecruitingJob search sites• General sites: – – –• Microsites: – Boeing – McDonalds – Proctor and Gamble (P&G)
  34. 34. Technology and RecruitingVideo recruiting decisions• Involve IT department: – To help decide where and how videos will be posted – YouTube• Options for video production: – Check for resources in the organization – Marketing department – Employee involvement: • Employee contests
  35. 35. Recruiting Passive Applicants• Networking is an important source of leads about passive applicants.• Social networks: • LinkedIn. • Facebook. • MySpace.©SHRM 2009 36
  36. 36. Guidelines for Recruiting and Selection• Remember that nondiscrimination rules apply.• Documentation and support for decisions.• Privacy protections need to be in place.• Time and access requirements.• Consider the job.©SHRM 2009 37
  37. 37. Why Google is the best: Talent Acquisition Strategy
  38. 38. That “worth 300 times more than average”
  39. 39. Detect talents in its infancy• Their recruitment methodology used• Contests and mathematical problems placed in technology magazines universities• Answers along with their resumes
  40. 40. Challenging interviews and selection process• Several weeks• Technical questions are alternated with “brain teasers” as curious as how many golf balls fit in a school bus? Or how much would you charge for cleaning all windows in Seattle?
  41. 41. Speed up the on boarding process• Culture transfer• With Seniors very close• 20% on own projects
  43. 43. We say bad recruitment occurs in three situations• Can not do: The person lacks the skills required• Will not do: The person lacks the attitude• Does Not Know what to do: The person lacks the Knowledge
  44. 44. Bad Recruitment CostsNormally costs of bad recruitment varybetween 1-2 years of salary for executives and1-4 years of salary in case of managers
  45. 45. Direct Recruitment Costs (3-6 months)• Advertising• Travel and stay• Time costs of people concerned
  46. 46. Induction Costs (1-2 months)• Administrative costs• Relocation costs
  47. 47. Stabilization costs (2-6 months)• Learning time• Mentoring and Team time
  48. 48. De-motivation Costs (1-2 years)• Unproductive time• Other People leaving• Team Loss
  49. 49. Client Related (1-2 years)• Internal / External Client loss• Future business loss
  50. 50. Leaving Costs (1 month)• Other people leaving• Redundancy costs• Handover costs
  51. 51. Why Bad Recruitment happens
  52. 52. • Poor analysis of job function- / Job description• A through JD of each job
  53. 53. • Poor analysis of necessary personality-skill profile
  54. 54. • Inadequate initial screening- skills required to screen
  55. 55. • Inadequate interviewing techniques- methodology
  56. 56. • Inadequate questioning techniques-skills
  57. 57. • Poor utilization of second opinions-any other ways
  58. 58. • References were not checked- how to go about
  59. 59. OVERVIEW OF HIRING PROCESS Determining requirements Sourcing & Shortlisting Assessment Techniques Interview Methods Non Interview Methods Selection & Reference Check
  60. 60. Determining requirements Do you require ….. Technical skills? Communication skills? Creative Skills? Public Speaking Skills? Law Skills? ………Marketing / HR / Finance / Consultancy / Research ………
  61. 61. Sourcing and Short listing• Mode of getting the CV• Checklist for shortlist
  62. 62. Assessment Techniques• Interview and Non Interview
  63. 63. Selection and Reference check• Rules/ Code/ Standing Orders• Mode to get info
  65. 65. Efficiency Metric The extent to which time or effort is well used for the intended task or purpose Ratio of output to input, terms of: Time Cost Speed
  66. 66. The formula• Cost per Job filled• Time Per job filled• Actual time spent in interviews and the selected process – CV screening – Committee – Logistic – Outscored, if any
  67. 67. Effectiveness Metric whether the process is successful in producing suitable candidates for the desired positions effectiveness metrics are more goal oriented
  68. 68. The formulaRetention Rate in the first 6 monthsNumber of jobs filledNo of candidates applyingNo of candidates shortlist versus selectionJob satisfaction – 3 months laterSatisfaction of hiring manager with person recruited
  69. 69. YIELD RATES PYRAMID New Hires Offers made (2:1) Candidates interviewed (3:2) Candidates invited (4:3) Leads Generated (6:1)
  70. 70. CaseCalculate the cost of bad recruitment andgroup them under major heads:
  71. 71. Case• The resignation of a project leader in an organization has created a vacancy in the organization, which has to be filled up immediately. The HR Manager sought the help of the placement consultants who were not able to help him find the candidate. The HR manager advertised in the appointment columns of the leading news paper across the country which resulted in many applications pouring in from different cities.• After a thorough scrutiny of the applications the HR Manager had to interview many candidates at different locations. After three days of intensive interviewing they were able to finalize a candidate by name A paying him a salary of 50,000 USD per annum.• The Technical Manager spent three weeks inducting Amit into the organization and handed over the project to him. After taking up the job Amit was a habitual latecomer and also a regular absentee. He started showing negative impact on the team he was leading. The relationship he maintained with his subordinates was poor, which forced two senior software engineers to look out for a better opening with a competitor. The project eventually got delayed which frustrated Amit and he resigned without handing over the project to a competent person this further delayed the project.
  72. 72. • Total Cost for Head 1 :• Total Cost for Head 2 :• Total Cost for Head 3 :• Total Cost for Head 4 :• Total Cost for Head 5 :• Total Cost for Head 6 :• Total Cost for Bad Recruitment :
  73. 73. Cost Heads……• Direct Recruitment Cost• Reference/ Consultants/ Agencies• Advertisement• Training Costs• Coaching• Induction Cost….. Outside experts/ insider trainers• Relocation costs/ Leaving costs• Joining Bonus…. Dues from old company to fix• Interview costs• Process / Operational cost• Clients related costs• Infrastructure costs
  74. 74. • Stabilization costs• Socialization process• Finding feet in the process• Comfort level efforts• Demotivation costs• Brand lose• Cost in/ for …… – Attitude – Clients not happy – Project delay/work delay – Oppournities costs
  75. 75. • Perceptual Metrics Candidates and new employees perceive about the recruitment process
  76. 76. The Formula• Perception of new joinees towards the system, organization and environment• Candidate perception about the process• Employment branding leading to preferential treatment by colleges/ institutions• Referrals by candidates
  77. 77. Six Sigma in Recruitment Process• systematic, scientific, data driven approach that leads to the best possible process• set defined measures and actions while conducting the recruitment process
  78. 78. i. Understanding of hiring needs from departments properlyii. Identifying the right approach for recruitment driveiii. Selecting the message (including introduction to company and career prospects)iv. Selecting the right media and short-listing mechanism for recruitmentvi. Making the offer with terms and conditionsvii. On-boarding and induction process
  79. 79. Suggested ReadingsRecruitment: Science and Practice By James A. Breaugh, PWS-Kent Pub. Co. Hire With Your Head: Using POWER Hiring to Build Great Companies, By Lou Adler, John Wiley and Sons
  80. 80. • Session 2• Requirement Analysis
  81. 81. • What is competency• Competency iceberg model• Why competency based recruitment• Motivational job specification• Creation of functional specification• Creating behavioral specification• Threshold trait analysis• Definitions of Quan-com