The document outlines a process for hiring great employees every time with three stages: planning, recruitment, and finalizing. The planning stage involves identifying open positions, developing job descriptions, and selecting interviewers. Recruitment includes posting jobs, initial screening, and interviews. Finalizing consists of selecting candidates, reference checks, and making an offer. It recommends interviewing at least three candidates for each role and having candidates interviewed by three people. The document then evaluates the cost of the process versus the return on investment by estimating costs for each stage and the cost of hiring a wrong candidate, finding that not following the process results in higher costs due to replacing wrong hires.

1. “How to Hire Great People--Every
Time”
Its all about getting a perfect match
of Knowledge, Skills & Employability,
between the Prospective Employers
& Employees.

2. Problem Identified
• How to Hire Great People
• Everytime
• Solution:We need a Process

3. Process
Stage 1:
Planning
Identify need for
recruitment (open
position)
Develop JD
Activities, sources and
timelines
Select interviewers
Stage 2:
Recruitment
Job posting, attract
potential employees
Initial Screening
Interviews
Stage 3: Finalize
Select from interviewed
pool
Reference checks
Negotiation and Roll

4. Recruiting
• Always interview at least three people for a position.-The
more people you interview, the greater the selection of
choices you will have, and the more likely it is that you will
make the right choice.
• Interview the candidate you like in different places. It is
amazing how the personality of a person can change when
you move the interview setting from your office to a coffee
shop across the street.
• Have the candidate interviewed by at least three different
people for a Review.

5. Cost of the Process vs Return on
Investment (ROI)
• Now that we identified a process for hiring
great people , we need to evaluate the
Business Case for this to evaluate the Profit.
• The following approach is considered for the
Business Case:
Cost of the Process vs Return on Investment
(ROI)

6. Cost of the Process vs Return on Investment (ROI)
Stage Steps Involved Cost
(Man
Days)
Cost
(Rs)
Stage 1 -
Planning
Identify need for recruitment (open position) 2
Develop JD 0.5
Activities, Sources and Timelines 0.5
Select Interviewers 0.5
Stage 2 -
Recruitment
Job posting, attract potential employees 2 500
Screening Candidates 1
Interviews 4
Stage 3 –
Finalize
Select from interviewed Candidates 1
Reference Checks (Outsource) 100
Negotiation and Rollout 1
Total 12.5 600

7. Assumptions
• Cost of Background check assumed at Rs.100/ candidate based on data from
discussion forums
•Portal cost assumptions
•Rs. 50000 - annual subscription
•100 candidates recruited per year
•Hence, cost per candidate is Rs.500
•Man days to Rupees Conversion
•Average salary of employee is 10 LPA
•Average salary of employee per man day is Rs.3333(10 L/300 working days)
Category Cost(Rs.)
Man days (12.5 man days) 41666(12.5*3333)
Subscription and other costs 600(100+500)
Total Rs.42266

8. Cost of Recruiting wrong candidate
•Entire hiring process needs to be run again (for hiring a fresh candidate as
replacement) : Rs.42266
•We lose a 6 month period (assumption based on research) before we realize the
candidate selected is a wrong hire
•150 man days (Rs.499950)
•Probability of a candidate being a wrong hire is 0.2 (1 out of every 5 hires).
•So, total cost is :
Specifications Cost
Iterating Recruitment
process
42266
Lost Time due to wrong
hire
499950
Total cost 542216
Net cost (probability of
0.2)
108443.2

9. Business Case Evaluation
Cost of Following process for
“Hiring Great People Always”
42266 Rs
Cost of “Not Hiring Great
People Always” (cost of not
following process and hence
hiring wrong candidates)
108443.2 Rs

10. • Cost of Hiring a Wrong candidate is always
higher than the cost of Hiring a Right
Candidate