Outsourcers WorldOUTSOURCERS WORLD WELCOMES YOU!!!!!!Retention Strategies in ITES-BPO IndustryIntroduction: HR professionals all over the world, working is Call-Center or Contact Center orBPO industry are breaking their heads to formulate Retention Strategies but nothing is workingin their favor. The average attrition rate in this sector is still 35-40%. No perks, no rewards…justnothing is working.Before proceeding further, lets see why people are leaving? Why there is high attrition rate.Why people are moving?When there are so many benefits associated with BPO industry…. when there are so manyprivileges for the BPO employees than what makes them to change the company/industry?? Is itonly MONEY that matters or anything else as well?? After taking exit-interviews and analyzingthe trend I am able to list out following reasons for a BPO professional to change his/her job. No growth opportunity/lack of promotion For higher Salary For Higher education Misguidance by the company Policies and procedures are not conducive No personal life Physical strains Uneasy relationship with peers or managersLets also see as what are the various benefits…that have been extended to people working in thissector.Employee Benefits Provided By Majority Of the BPO CompaniesA part from the legal and mandatory benefits such as provident-fund and gratuity, below is a listof other benefits…BPO professionals are entitled to the following: 1. Group Medi-claim Insurance Scheme: This insurance scheme is to provide adequate insurance coverage of employees for expenses related to hospitalization due to illness, disease or injury or pregnancy in case of female employees or spouse of male employees. All employees and their dependent family members are eligible. Dependent family members include spouse, non-earning parents and children above three months 2. Personal Accident Insurance Scheme: This scheme is to provide adequate insurance coverage for Hospitalization expenses arising out of injuries sustained in an accident. This covers total / partial disablement / death due to accident and due to accidents.
3. Subsidized Food and Transportation: The organizations provide transportation facility to all the employees from home till office at subsidized rates. The lunch provided is also subsidized.4. Company Leased Accommodation: Some of the companies provides shared accommodation for all the out station employees, in fact some of the BPO companies also undertakes to pay electricity/water bills as well as the Society charges for the shared accommodation. The purpose is to provide to the employees to lead a more comfortable work life balance.5. Recreation, Cafeteria, ATM and Concierge facilities: The recreation facilities include pool tables, chess tables and coffee bars. Companies also have well equipped gyms, personal trainers and showers at facilities.6. Corporate Credit Card: The main purpose of the corporate credit card is enable the timely and efficient payment of official expenses which the employees undertake for purposes such as travel related expenses like Hotel bills, Air tickets etc7. Cellular Phone / Laptop: Cellular phone and / or Laptop are provided to the employees on the basis of business need. The employee is responsible for the maintenance and safeguarding of the asset.8. Personal Health Care (Regular medical check-ups): Some of the BPO‘S provides the facility for extensive health check-up. For employees with above 40 years of age, the medical check-up can be done once a year.9. Loans: Many BPO companies provide loan facility on three different occasions: Employees are provided with financial assistance in case of a medical emergency. Employees are also provided with financial assistance at the time of their wedding. And, The new recruits are provided with interest free loans to assist them in their initial settlement at the work location.10. Educational Benefits: Many BPO companies have this policy to develop the personality and knowledge level of their employees and hence reimburses the expenses incurred towards tuition fees, examination fees, and purchase of books subject, for pursuing MBA, and/or other management qualification at India‘s top most Business Schools.11. Performance based incentives: In many BPO companies they have plans for, performance based incentive scheme. The parameters for calculation are process performance i.e. speed, accuracy and productivity of each process. The Pay for Performance can be as much as 22% of the salary.12. Flexi-time: The main objective of the flextime policy is to provide opportunity to employees to work with flexible work schedules and set out conditions for availing this provision. Flexible work schedules are initiated by employees and approved by management to meet business commitments while supporting employee personal life needs .The factors on which Flexi time is allowed to an employee include: Child or Parent care, Health situation, Maternity, Formal education program13. Flexible Salary Benefits: Its main objective is to provide flexibility to the employees to plan a tax-effective compensation structure by balancing the monthly net income, yearly benefits and income tax payable. It is applicable of all the employees of the organization. The Salary consists of Basic, DA and Conveyance Allowance. The Flexible Benefit Plan consists of: House Rent Allowance, Leave Travel Assistance, Medical Reimbursement, Special Allowance
14. Regular Get together and other cultural programs: The companies organizes cultural program as and when possible but most of the times, once in a quarter, in which all the employees are given an opportunity to display their talents in dramatics, singing, acting, dancing etc. Apart from that the organizations also conduct various sports programs such as Cricket, football, etc and regularly play matches with the teams of other organizations and colleges. 15. Wedding Day Gift: Employee is given a gift voucher of Rs. 2000/- to Rs. 7000/- based on their level in the organization. 16. Employee Referral Scheme: In several companies employee referral scheme is implemented to encourage employees to refer friends and relatives for employment in the organization. 17. Employee Stock Option Plan Now, the actual question, why people are leaving? What types of retention strategies are required? What is expected from HR Professional and how they can address this issue?Retention – A Big ChallengeFundamental changes are taking place in the work force and the workplace that promise toradically alter the way companies relate to their employees. Hiring and retaining good employeeshave become the chief concerns of nearly every company in every industry. Companies thatunderstand what their employees want and need in the workplace and make a strategic decisionto proactively fulfill those needs will become the dominant players in their respective markets.The fierce competition for qualified workers results from a number of workplace trends,including: A robust economy Shift in how people view their careers Changes in the unspoken ―contract‖ between employer and employee Corporate cocooning A new generation of workers Changes in social mores Life balanceConcurrent with these trends, the emerging work force is developing very different attitudesabout their role the workplace. Today‘s employees place a high priority on the following: Family orientation Quality of life issues AutonomyTo hold onto your people, you have to work counter to prevailing trends causing the jobchurning. Smart employers make it a strategic initiative to understand what their people want andneed — then give it to them.Retention Strategies
This is not an exhaustive list, one can add or delete any of the below mentioned strategies.Secondly, the need of the hour is to have ―right basics‖. Every individual is different, his needsare different, and his emotions, his problems are different. So, dear HR-Professionals…sit downand concentrate on your basics. I have classified retention strategies into two parts: Main andAncillary.Main retention strategiesThis is not an exhaustive list, one can add or delete any of the below mentioned strategies.Secondly, the need of the hour is to have ―right basics‖. Every individual is different, his needsare different, and his emotions, his problems are different. So, dear HR-Professionals…sit downand concentrate on your basics. 1. Communications – Getting Your People to CareCommunication is the first step toward creating the kind of environment that people care about, and if they care, they just may stay. I‘m not talking about a lot of New Age stroking designed to bring out the inner person or false praise that creates a misplaced sense of security. Instead, keep your people in the loop about what‘s happening with the company. At any time, all of your employees should have a pretty good idea of how business has been, and they should be aware of what issues the company is attempting to address. That means that you regularly keep your people up to date with important events affecting the company. If November was good, let them know, and while you‘re at it, tell them what you expect to happen in December. Share good news, as well as points of concern. If you‘ve got ―issues,‖ talk about them before they start making you crazy. And if they don‘t get resolved, figure out whether the problem stems from a couple of individuals or from your system. The point here is that you want to treat these people as your partners, which they are. They may not have to worry about covering the payroll this week, but they do have worries of their own. Treat them with at least as much respect as they give you. As the store‘s owner or manager, you set the tone for the entire organization. If your salespeople, for instance, enjoy their encounters with you, they are much more likely to greet customers with a positive attitude. They are also much more likely to enjoy their work when they don‘t have a fire-breathing dragon looking to singe their butts. Listen to your employees when they have ideas for improvement. Again, the benefits extend beyond just making people feel appreciated for their contributions. These are, after all, the people who do the work every day. They may have some ideas to improve productivity, and when they do come up with one, let everybody know where it came from. Post a ―brag board‖ in your break room, or circulate an internal newsletter that touts these contributions. The pay-off is a contagious feeling of pride and, perhaps, some new efficiency that saves the company money. 2. Set Clear Expectations o How often do you appraise your employees/team-members?
o What are your expectations from your employees/team-members? What are the parameters to measure their performance? Have you communicated to them? o What will be the consequences, if they fail? o What will be the rewards, if they exceed the expected level?If you are not having any expectations, how you are going to appraise, your employees?Yes, you are going to be biased, because you don‘t have set standards.The role of a CEO, HR Manager is like a director of a movie; choreographer of a stageshow, where there is a defined role for each character, each participant.Setting expectations initiates the process. Managers need to sit down with each employeeand clearly define what‘s expected of them. Management consultant, Kenneth Philips,states that when expectations are not clear, employees may not be in sync with their job‘scurrent demands and priorities. Setting expectations is not a once and done activity. Jobschange. Priorities change. Resources change. Managers need to revise and set newexpectations throughout the year. Setting expectations revolves around the followingthree areas: o Key job responsibilities o Performance factors and standards o GoalsWhy is a setting expectation important? Quite simply, this process can be the cornerstoneof improving the motivational climate within your sphere of responsibility. If youremployees know what is expected of them, it allows them to focus on results and tomonitor themselves against the set standards. Environments in which expectations are notclear, or change from week to week, seldom create high-performing work groups.The three principles that should drive expectations are clarity, relevance, and simplicity.Clarity. Expectations should focus on outcomes, not activities. In other words, youachieve clarity when you identify the expected results rather than the method forachieving them. Managers often make the mistake of attempting to direct the process thatan employee will use rather than being clear about results. The advantage of identifyingthe outcome is that you, the manager, focus only on the goal; after all, the employee willdevelop the method for achieving the desired results.Defining the objective often requires some thought on the part of the manager because itis easy to fall into the ―activities trap.‖ While developing a strategic plan for a departmentor division is a worthy activity, it does not represent an outcome. In the activities trap,developing a plan is the goal, rather than increasing your market share.Relevance. The principle of relevance helps define the ―why‖ of the assignment. If youremployees have a full understanding of the project‘s importance, they can makeadjustments as unanticipated factors crop up within the process. They probably also will
be more committed to the result because they can see more easily how it fits into the big picture and how their efforts impact the company. This understanding typically is accomplished through dialogue between the manager and subordinate, which allows for a more thorough review of the situation and for feedback and discussion. This process builds good will with the employee and sets the stage for additional responsibilities. Simplicity. Simplicity creates a sense of grounding for employees as they endeavor to carry out assignments. If managers identify the work in simple, straightforward terms, employees will find it much easier to follow through on managers‘ wishes. To accomplish this, a manager must identify the key message in a fashion that the employee can embrace.3. Proper RewardingA research reports says that in today‘s scenario, o 70% of your employees are less motivated today than they used to be. o 80% of your employees could perform significantly better if they wanted to. o 50% of your employees only put enough effort into their work to keep their job. As you might be aware of Employee Reward covers how people are rewarded in accordance with their value to an organization. It is about both financial and non- financial rewards and embraces the strategies, policies, structures and processes used to develop and maintain reward systems. The ways in which people are valued can make a considerable impact on the effectiveness of the organization, and is at the heart of the employment relationship. The aim of employee reward policies and practices, if any in your organization is to help attract, retain and motivate high-quality people. Getting it wrong can have a significant negative effect on the motivation, commitment and morale of employees. Personnel and development professionals will be involved frequently in reward issues, whether they are generalists or specialize in people resourcing, learning and development or employee relations. Keep following parameters in mind, while designing a reward policy: Build a high degree of recognition value into every reward you offer. Recognition is the most cost-effective motivator there is. While the high cost of other rewards forces us to give them sparingly, recognition can be given any time, at very little cost. Some very ordinary items and events can be imbued with extraordinary motivational significance, far in excess of their monetary value. I am constantly amazed at how motivating a pizza or movie tickets can be if is given with sufficient appreciation. A sincere thank you can be delivered at any place and at any time, costs absolutely nothing and can be more motivationally powerful than a substantial monetary bonus. Organizations can provide innovative recognition in an infinite number of ways.
For example, (A Hypothetical Incident) a small manufacturing company made itsemployees feel like heroes when they attained a major safety milestone – 100 dayswithout a single accident. On the morning of day 100, it was announced that a cateredlunch would be served the next day, if they made it to the 5:30 shift without an accident.At 5:15 anticipating was building. Managers took confetti and streamers to the balconyoverlooking the shop floor. When the 5:30 whistle blew, there were congratulations allaround, confetti flew through the air and banners were unfurled. It was a great momentfor everyone – and one that was not soon forgotten. The recognition value of thiscelebration was extremely high, while the monetary cost was relatively low.Highly motivating organizations even celebrate small successes. A health-consciouscompany distributes fruit bowls to employees‘ work areas when key personal milestonesare attained. Another company uses a more fattening approach: fresh-baked chocolate-chip cookies to say thank you.Reduce entitlements and link as many rewards as possible to performance.Clearly the traditional ―pay for loyalty‖ systems in most organizations need to bechanged. Don‘t let attendance be your major criterion for rewards. Most employees resentthose who only put in their time and yet receive the same reward as those who go theextra mile. Today‘s employees have higher expectations for what work can and shouldbe, and they want to receive rewards that reflect their personal efforts and contributions.This is why so many companies are moving toward performance-based rewards,including performance bonuses, gain-sharing and non-monetary recognition. Althoughnot a panacea, companies are finding that these new reward systems do allow them togive substantial rewards to those who really deserve them. Smart organizations arelooking for opportunities to reduce across-the-board entitlements, and thereby find moreresources for discretionary performance-based rewards, without increasing the total costof rewards.Troubleshoot your reward system to make sure that what it is rewarding is whatyou really want to happen.The Law of Rewards – ―What you reward is what you get‖ – Is extremely powerful. Nomatter what your orientation materials or job description might say, it is the rewards yourorganization gives that communicate the real expectations. The most important questionto ask in evaluating the reward system in your organization is, do the rewards we aregiving elicit the performance we want? Start with the results you want to achieve andthen pinpoint the types of behaviors needed to achieve them. For example: o If you believe teamwork is going to get you the results you want, make sure you reward teamwork, and not internal competition between departments. o If you want quality, make sure that productivity isn‘t over emphasized. And, o If you want long-term solutions, don‘t reward quick fixes
Also, don‘t confuse employees with too many rewards. It is better to focus rewards on thecritical few behaviors and results, rather than diluting them by rewarding the trivialmany.Reward promptly. Rewards should be given as soon as possible after the performancehas taken place. This is why the most successful gain-sharing programs pay employeesmonthly, rather than quarterly or annually as in the past.There is a well-accepted law of behavioral psychology, that if you want someone torepeat a behavior, you should positively recognize it immediately. From this law, smartsupervisors and managers can learn a vital lesson: Look for any employee doingsomething right, right now, and recognizes it.A support to this, here is my favorite reward story:―When a senior manager in one organization was trying to figure out a way to recognizean employee who had just done a great job, he spontaneously picked up a banana (whichhis wife had packed in his lunch), and handed it to the astonished employee with heartycongratulations. Now, one of the highest honors in that company has been dubbed the―Golden Banana Award‖.‖Give employees a choice of rewards. Rewards are as different as the people who receivethem and it doesn‘t make sense to give rewards that recipients don‘t find rewarding. Forexample, some people prefer more pay, while others prefer more time off. A promotionmight be more rewarding to one person, while a job-sharing arrangement might be morerewarding for another. Some people are excited about sports events, others about movies.Some employees would love a dinner in a romantic restaurant, others a book by theirfavorite author. Food, fun, education, improved work environment, gifts, travel, family-oriented activities – the options are endless.How do you know what will be rewarding to employees? Ask them. Smart organizationsare also letting employees choose their own rewards from reward menus and catalogs.Personalizing rewards shows that a company cares enough to discover what ―interests‖each employee, rather than just distributing generic items. It also reduces the followingdanger: In one organization I was visiting, an employee opened a big drawer in his deskand disdainfully showed me all the ―worthless trinkets‖ he had collected over the years.Increase the longevity of your rewards. This can be done in a number of ways: One ofthe keys to reward longevity is symbolism. The more symbolic an item is of theaccomplishment, the more likely it is to continue reminding the employee of why it wasgiven. For instance, a T-shirt of coffee mug with a meaningful inscription will continuerewarding those who wear it, or use it, long after its initial receipt. There are many tokensof appreciation I still keep on or near my desk that remind me of the joy of pastaccomplishments, while the monetary rewards I have received are long spent and longforgotten.
Another way to increase the longevity of rewards in your organization is by using somekind of point system. Rather than rewarding each individual behavior or accomplishment,points can be awarded, which employees can accumulate and eventually trade for itemsfrom a reward menu or gift catalog. This keeps the anticipation of rewards fresh forlonger periods of time. It also addresses the need for reward individualization.One company that designs motivational systems offers an electronic debit-card system tohelp larger clients cope with the complexity of distributing, tracking and redeemingemployees‘ points. Employees can use their points to purchase virtually anything theywant, from sports equipment and clothing to automobiles and overseas vacations. Theyonly caveat for such programs is to make sure that the recognition value of the rewardsisn‘t lost because of the impersonal nature of the technology.One company uses a game it Call Safety Bingo. All employees receive a weekly bingocard. When an employee is observed working safely, a number is presented (immediaterecognition). When they get ―bingo‖, they receive a safety jacket (along with appropriateverbal reinforcement). The rewards escalate for subsequent wins. This type of programkeeps employees interested for long periods of time, even though there might be weeks ormonths between rewards, and makes routine work more fun overall.Interestingly, when researchers have investigated the motivational dynamics of theseworkplace games, they have found that the major motivator is the playing, not the prize.Be continually vigilant of demotivators that may undermine your organization’sbest efforts to provide power rewards, and reduce them promptly.Most demotivators can be dramatically reduced by soliciting employee involvement inidentifying highest-priority demotivators and by enlisting top-management commitmentto support their reduction.It is probably self-evident that considerable sensitivity is needed in the administration ofany reward system. One demotivator that is probably endemic in any reward systemmodification (especially as an organization moves from entitlements to moreperformance-based rewards) is a sense that something is being taken away. Employeesneed to be educated about the reasons that this is being done, understand the ultimatebenefits to them and the organization, and should probably have some input into thechange process.To avoid the perception of unfairness, it is important, first and foremost, that the processfor allocating rewards is viewed by employees as being impartial. This requires anobjective measurement system that few organizations have. Without such objectivemeasurement, any reward system is probably destined to failure.Ancillary Retention Strategies
7. The quality of the supervision an employee receives is critical to employee retention. People leave managers and supervisors more often than they leave companies or jobs. It is not enough that the supervisor is well liked or a nice person, starting with clear expectations of the employee, the supervisor has a critical role to play in retention. Anything the supervisor does to make an employee feel unvalued will contribute to turnover. Frequent employee complaints center on these areas. Lack of clarity about expectations, Lack of clarity about earning potential, Lack of feedback about performance, Failure to hold scheduled meetings, and Failure to provide a framework within which the employee perceives he can succeed.8. The ability of the employee to speak his or her mind freely within the organization is another key factor in employee retention. Does your organization solicit ideas and provide an environment in which people are comfortable providing feedback? If so, employees offer ideas, feel free to criticize and commit to continuous improvement. If not, they bite their tongues or find themselves constantly ―in trouble‖ – until they leave.9. Talent and skill utilization is another environmental factor your key employees seek in your workplace. A motivated employee wants to contribute to work areas outside of his specific job description. How many people could contribute far more than they currently do? You just need to know their skills, talent and experience, and take the time to tap into it. As an example, in a small company, a manager pursued a new marketing plan and logo with the help of external consultants. An internal sales rep, with seven years of ad agency and logo development experience, repeatedly offered to help. His offer was ignored and he cited this as one reason why he quit his job. In fact, the recognition that the company didn‘t want to take advantage of his knowledge and capabilities helped precipitate his job search.10. The perception of fairness and equitable treatment is important in employee retention. In one company, a new sales rep was given the most potentially successful, commission-producing accounts. Current staff viewed these decisions as taking food off their tables. You can bet a number of them are looking for their next opportunity.In another instance, a staff person, just a year or two out of college, was given 20,000 in raises over a six month time period. Information of this type never stays secret in companies so you know, beyond any shadow of a doubt; the morale of several other employees will be affected. For example, you have a staff person who views her role as important and she brings ten years of experience, an M.B.A. and a great contribution record to the table. When she finds she is making less money than this employee, she is likely to look for a new job. Minimally, her morale and motivation will take a big hit. Did the staff person deserve the raises? Yes. But, recognize that there will be impact on others.
11. Your best employees, those employees you want to retain, seek frequent opportunities to learn and grow in their careers, knowledge and skill. Without the opportunity to try new opportunities, sit on challenging committees, attend seminars and read and discuss books, they feel they will stagnate. A career- oriented, valued employee must experience growth opportunities within your organization. 12. A commonplace complaint or lament I hear during an exit interview is that the employee never felt senior managers knew he existed. By senior managers I refer to the president of a small company or a department or division head in a larger company. Take time to meet with new employees to learn about their talents, abilities and skills. Meet with each employee periodically. You‘ll have more useful information and keep your fingers on the pulse of your organization. It‘s a critical tool to help employees feel welcomed, acknowledged and loyal. 13. No matter what the circumstances are but never, never, ever threaten an employee’s job or income. Even if you know layoffs loom if you fail to meet production or sales goals, it is a mistake to foreshadow this information with employees. It makes them nervous; no matter how you phrase the information; no matter how you explain the information, even if you‘re absolutely correct, your best staff members will update their resumes. I‘m not advocating keeping solid information away from people; however, think before you say anything that makes people feel they need to search for another job. Conclusion Take a look at your organization Are you doing your best to retain your top talent? Employ these ten factors in your organization to retain your desired employees and attract the best talent, too. This report is not exhaustive, you can innovate many new strategies to retain your people. These are just the basics and if implemented in a proper way can give good results.I did mention in my previous write-up that recruitment is a challenging job in KNOWLEDGEbased industry, whether it is IT or ITES/BPO or Service Industry. Also, in one of my earliermails I mentioned about ―Performance Management System‖, this time round, it is ―RecruitmentManagement System‖. Did you ever felt the need of it? Every year, a company spends millionson recruitment, but what is the result?“According to the Corporate Advisory Board of Washington DC, the cost of replacing staffcan be anything between 50% and 175% of that persons annual salary and, as we are allaware, employees in the new millennium do not stay with a company for life as perhapstheir grandparents did.”Before proceeding further, I like to share some facts about recruitment, probably known to you,in a survey it has been found that -
1. 38% of organizations produce no reports on recruitment activity whatsoever and are therefore unaccountable for the time and spend involved. 2. 77% measure Cost per Hire (CPH) in some way or the other. The largest number favored the Staffing/Cost Ratio 52% of those that measure CPH make no differential between discipline or role rendering the CPH figure relatively meaningless Easily measured hard costs were most usually tracked (e.g. agency fees) Measurement of soft costs (e.g. management time) was rare 3. 66% measure Speed to Hire (STH) in some manner Most common start point was vacancy sign off Most common stop point was start date – potentially very misleading due to different notice periods or other factors which determine the actual start date. Very few track the whole process consistently making it very difficult to pinpoint bottlenecks This lack of tracking exposes organizations to potential legal challenge 4. 58% have some Customer Satisfaction measurement Of these, 77% measure only ‗overall satisfaction‘, again making it difficult to address specific issues Only 10% use Service Level Agreements (SLA) 5. Only 54% have some measure of Quality of Hire, potentially the most important metric of all The most common measurement was the appraisal process – unfortunately whilst this is entirely appropriate for specific organisations it does not help promote standardisation across industries Most analysis is made against people at the same level leaving no room for an assessment of speed of progress to that role 6. Only 8% have any form of competitor benchmark Process measurements, which focuses on quantity (number of CVs) rather than quality (shortlist, initial CV rating against the job specification, hire ratios to CVs). Again lack of logging of critical process details leaves organizations potentially exposed in any legal action and indicates widespread non-compliance with Data Protection Act requirements.Lets start with existing recruitment sequence/procedure: 1. Identify vacancy 2. Prepare job description and person specification 3. Advertise 4. Managing the response 5. Short-listing 6. Visits 7. References 8. Arrange interviews 9. Conduct the interview 10. Decision making 11. Convey the decision 12. Appointment actionThe recruitment process for most organizations is designed along the same path; applications arereceived, either via an online application form, a postal form or a CV. Candidate are short-listedand invited for interview. The interview format can vary considerably, as we discuss later, andcan include assessment centers. The number of interviews also varies. Some companies aresatisfied after just one interview whereas others will want to bring back a further shortlist of
candidates for one or more interviews. If you are successful at the interview stage you willreceive an official letter offering you the job. This information describes what you can expect atinterviews and assessment centers, and takes you through to making a decision about any offersthat may result.When considering whether or not to invest, most of us ask perfectly sensible questions like:―What will the return be?‖, ―What‘s the risk?‖ and ―How quickly will I get the returns?‖ Wouldyou put your hard-earned money into high-risk investment schemes without knowing about theirpast performance? Would you invest with professionals who are very thorough, but who can‘tprove that their methods deliver business results? At the end of the day, the organization isinterested in knowing the return on recruitment investments and HR Manager/RecruitmentManager is responsible for it and hence can be questionable. I remember, once someone askedme, how HR department can become ―Earning Department‖, it is only by saving costs andsaving expenses.As organizations, one of the biggest investments we will ever make is in recruitment.Fortunately, as HR professionals, we can all prove that the business is getting outstanding returnson this investment. We can point at the money spent, and put intelligent estimates on thefinancial and human benefits accrued. We can show that our recruitment processes deliveroutstanding performance, control costs, increase sales, maintain efficiency and develop theorganization. We do not employ poor performers. The confidence of the business in what we dois exceptional, and we are perceived as being directly pivotal to the performance of the wholeorganization. Our credibility is beyond doubt.That would be a wonderful position to be in, wouldn‘t it?How many organizations expect sensible questions about the return on recruitment investment tobe answered? The truth is that very few really do. Recruitment is evaluated on the basis of thespeed with which positions are filled the feedback from participants and the percentages ofcandidates who end up being employed. Very few organizations expect that the true impact onbusiness performance can ever be proven, or recruitment processes fine-tuned to deliverprecisely the business benefits required. Instead, recruitment is allowed to carry on withoutanyone ever knowing if it is delivering the goods, or if opportunities are being missed.Because recruitment is not an exact science, it is allowed to continue (often very thoroughly)without proving its true value.But is it really so unrealistic to believe that we can measure the business impact of differentapproaches to recruitment? More and more organizations are asking these questions, and theones who can respond effectively are achieving surprising business results through their HRfunctions. A wide range of organizations in western countries, have invested in examining thebusiness success of their recruitment practices, and achieved clear returns. Organizations arestarting to find that, with some skill, it is possible to assess the return on investment. It ispossible to define the business benefits required, and track the results. This is not just a bean-counting exercise aimed at proving that we are right – it points the way to improve results, anddeliver business performance through HR.
What should a Recruitment/Hiring Manager do to calculate the return on investments onrecruitment? A. Start off with a clear analysis of the organizational and commercial outcomes required from recruitment. What is the business trying to achieve, and what part will successful candidates need to play? B. Develop clear ways of tracking and measuring these outcomes C. Carry out an objective and open-minded analysis of the qualities people need to perform. Ruthlessly avoid your judgement being colored by past practice or ―knowing what works from experience‖. if doing this well seems expensive in the short run, it‘s never as expensive as doing it badly in the long run! D. Ensure that you assess the full range of qualities needed for success – include personality, motivation and aptitude as well as experience E. Ensure that everyone involved in recruitment is trained to the highest possible standards F. Carefully connect recruitment to induction, training, management and performance management – to ensure that the business does not just get the right people, but nurtures and capitalizes in them as wellThese approaches deliver returns of investment because They identify people who perform, Reduce the risk of employing people who cannot (or will not) perform, Cut the costs of recruitment and development, and Play a major part in driving forwards organizational change.In common with all people processes, recruitment is there to deliver tangible human and businessbenefits. Devoting a little time to considering the return on investment is not a nebulous luxury –it is essential to delivering the results the organization needs. It is also a powerful way ofpositioning HR at the heart of the business. You will not regretThe need to have RECRUITMENT MANAGEMENT SYSTEM, its importance in streamliningrecruitment process and calculating the RETURN ON INVESTMENT.As we are in 21st century, which is being governed by INFORMANTION MANAGEMENTSYSTEM and wherein we are talking about SYSTEMS, be it Performance Management System,Compensation and Benefits Management Systems etc, we also have RECRUITMENTMANAGEMENT SYSTEM, hope you all knows about it.Technology has ushered in new ways of thinking about and executing on talent attraction,selection, and acquisition. Applicants can be processed more efficiently and with greater care. Candidate relationship management, once reserved for top-tier professional applicants, can be realized across every level of job seeker.
Proprietary talent communities provide companies with opportunities for targeted marketing and can ultimately reduce time-to-fill and cost-per-hire while increasing the value of the employment brand.These benefits provide a foundation for talent management to be in play at a broad andindividual level.Don‘t be mistaken. If the biggest pain point in your recruiting process today is that you have noway to track applicants electronically.For most recruiters, a basic applicant tracking system, even if it starts as an Excel spreadsheet orAccess database, is a key to survival and certainly to efficiency. If anything, the urgency toimplement even a basic system has only increased in the past few years, as the Internet has madeit so easy for candidates to apply for jobs. If you don‘t have an automated way to capture andsearch for candidate information, your job is going to be defined by performing administrativetasks that consume a significant portion of your available time-time that could almost certainlybe better spent on higher-level activities. The good news is that if you‘re just getting started withapplicant tracking, there are many good systems available today to fit almost any budget.Recruitment Management picks up where applicant tracking left off. Tracking your applicantsefficiently is no longer a self-sustaining hiring process and you will inevitably start focusing onthe following areas to raise your recruiting process to the next level: Tight integration between the hiring management system and corporate recruitment site. This is key because it is the basis for ensuring a consistent and positive job seeker experience, and the most visible aspect of the online employment brand interface. The hiring management system needs to support the integrity of the company‘s brand first and foremost – which, depending on the company, plays out at varying levels of complexity. An intuitive, flexible interface, supported by data capture, provides insight into the job seeker and drives the overall effectiveness of the system. Engaging above-average talent by providing a streamlined and user-friendly online application process-one that candidates tell you is better than your competitors‘. The ability to seamlessly pre-screen candidates by asking job-specific questions in addition to collecting their resumes. This component should also add value to the applicant‘s experience while supporting recruiter productivity. If done well, a well- thought-out approach integrated in to your Hiring Management System can serve as a self-screen or job preview. The ability, at a glance, to see how a candidate fits with the job he or she has applied for, individually and in comparison with all other applicants. Making it easy for your recruiters to communicate and build relationships with candidates throughout the recruiting process. Additional recruiter productivity enhancement tools. The ability to extract data from your system to make decisions that support continuously improving your recruiting and talent attraction process.Conclusion:
At the end, I like to say that HR professional is having a big responsibility to hire a best personfrom the available talent pool. At the same time, one needs to be cost conscious. It is a goodpractice in recruitment to be objective and seek to identify the candidates‘ abilities. Judge onindividual merits and set the same standards for all. Whereas generalized assumptions madeabout ability or ambition, based on applicant‘s sex, caste, age, religious belief, sexual orientationor any disability, is a bad practice. One need to use the technology, to get the best results fromrecruitment process.