1. SEGMENTS OF THE HUMAN
RESOURCE INDUSTRY
Karan Saini2nd June 2015

2. Structure of the HR Industry
HR Services
Permanent
Recruitment
Executive
Search
Recruitment
Temporary
Recruitment
Professional
Staffing
General
Staffing
Other
Services
RPO
Payroll
Processing
Training and
Development
Performance
Management

3. Permanent Recruitment
 Estimated to be in the range of INR28-INR31
billion1
 Can be divided into Executive Search and
Recruitment
 Four Step Process – Sourcing, Screening,
Selection and On-boarding
 Top 3 Success Factors – Network of Client
Relationships, Track Record and Efficient Sales
Team
 Growth Drivers – Booming Economy and Focus

4. Executive Search
 Niche category focused on hiring of CXO-
Level Posts
 Fee in the range of 25%-30% of the Annual
Cost-to-Company Salary
 Key Players – Egon Zehnder, Heidrick &
Strugglers, Russel Reynolds, Spencer Stuart
and Amrop
 Trends – Large MNCs requiring CXO Level,
Family Conglomerates shifting to search from
referrals

5. Recruitment
 For Middle and Junior Level Posts
 Fee of 12%-16% for Middle Level and 7%-10%
for Junior Level with the latter having a high
volume
 Key Players – ABC Consultants and Mafoi
(Indian); Micheal Page and Kelly (MNCs)
 Trends – Recruitment Firms providing RPO
Offering, ABC Consultants started a joint
venture with Alexander Mann, Elixir and
PeopleStrong new entrants

6. Temporary Recruitment/Staffing
 Estimated to be an INR172 billion market1
 Temporary Staffing is usually required in sectors
which are cyclical in nature and require frequent
adjustment of Staffing Levels
 Can be divided on the basis of skill into Professional
Staffing and General Stuffing
 Top 3 Success Factors – Pan-India Presence,
Client Network and Sales Team
 Growth Drivers – Shift to Temp due to uncertain
economic condition
 Challenges – Loss of lease employees to client
company

7. Processional Staffing
 Essentially for Engineering and IT Sectors
 High margin of 30%-35% due to high skilled
nature
 Key Players – Team Lease, Manpower, Adecco,
Mafoi and Kelly plus several other small firms
 Trends – Manpower and Ikya, both Recruitment
and General Staffing firms, recently acquired
WDC and Magna respectively, to enter the
Professional Staffing; Prof. Staffing firms
entering Vocational Service domain

8. General Staffing
 Divided into White Collar(ITeS, Retail, Telecom
Sector) and Blue Collar(Factories, Plants)
 White Collar jobs have salaries of INR10,000 to
INR13,000 pm and fees are 7%-10%
 Blue Collar jobs have salaries of INR5,000 to
INR8,000 pm and fees are 15%-18% along with high
volume
 Key Players – Adecco, Manpower, Team Lease,
Futurz along with labour unions
 Trends – Change in Labour laws incentivising shift to
organised general staffing, Addeco(MNC) acquired
Ajinkya(Indian) in FY08

9. Recruitment Process Outsourcing
(RPO)
 Provider acts as a company’s internal recruitment
function for its recruitment activities, e.g. sourcing of
the right candidates, screening candidates, selection
of candidates, and on-boarding and training.
 Usually extend from 6 months to 1 year and is an
annuity
 Nascent stage in India with offerings from Elixir,
Mafoi and PeopleStrong
 Many recruitment agencies offering RPOs so as to
prevent cannibalising effect of RPOs over the
market e.g. ABC Consultants joint venture with
Alecander Mann

10. Payroll Processing and
Compliance
 Takes over the functions of Analysis of
Organisational Data, Computation of Gross
Salaries, Computation and filing of TDS,
Reimbursement of Expenses, etc
 A growing trend in the market due to the
difficulty experiences while establishing own
payroll system
 Charge of INR100-INR150 per employee
 Key Players – Hewitt and Mafoi

11. Other Services
 Training and Development-
 Gamification of the process being the trend as it
leads to a 2-way process
 Shift to Capability Development and Continuous
Learning
 Usage of Tech in the form of Mobile and Social
learning on the rise
 Performance Management-
 HR Software like Oracle, SAP, Workday and ADP
used
 Easy to use end-to-end talent management

12. References
1. Human Resources Solutions Industry
Research Report, Ernst and Young India
2. Predictions for 2014 Research Report, Bersin
by Deloitte
3. Global Human Capital Trends 2014, Deloitte