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MAHARISHI DAYANAND SARASWATI UNIVERSITY,AJMER

A PROJECT ON

BENCHMARKING OFRECRUITMENT AND SELECTION

PROCESSES

(CONDUCTED AT DSCL,KOTA)

SUBMITTED BY:AKANKSHA RUSTAGIDMS-MDSU,AJMER

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ACKNOWLEDGEMENT

I owe a huge debt of thanks to a large number of

people without whom this project would not have

been possible. I express my sincere gratitude to the

whole management of DSCL Ltd, Kota.

I am extremely thankful to Dr.M.S.Rau forpermitting me to take up training at this prestigious

organization.

I am also really very grateful to Mr.Shashank Tyagi

who provided me with this topic and without whose

guidance and support this project could not becompleted

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Contents:

1. Acknowledgement 22. The overview:project title 4objective of the projectscope of the projectdeliverables of the project

3. Executive summary 5-64. Company profile 7-105. Recruitment process 12-266. Selection 27-29

7. The questionnaire 30-328. Process followed at SFC 33-389. Benchmarking overview 39-4210.Profile of other organizations 43-4511.Outcomes of the study 4612.Suggestions 4613.Best practices in the industry 47-5814.Bibliography 59

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PROJECT TITLE:

A DETAILED STUDY OF EFFECTIVENESS OF RECRUITMENT AND SELECTIONPROCESS AT SFC (SHRIRAM FRTILIZERS & CHEMICALS) AND CONDUCT ABENCHMARKING TO IDENTIFY BEST PRACTICES IN THE INDUSTRY

Objective of the project:

To review and analyze the recruitment and selection process at SFC[kota] and conduct a

comparative study to benchmark with the best practices followed in industry.

Scope of the project:

The project not only helps in understanding the recruitment and selection process at SFC but as

we are trying to know about the practices being followed at other similar firms of the chemical

industry, this would help us in comparing the practices of the home industry with others and so

we shall be able to find out where our firm lacks behind or where is it a cut above the others.

Well get to know about which practices are sufficing our needs and what improvements are

required, if any. Similarly, what new practices need to be picked up to cater to our demands.

Deliverables:

1. Identify various methods of recruitment and selection process.

2. Map and analyze the process followed at SFC[Kota]:

A] Recruitment process

B] Use of psychometric tools

3. Identify the best practices used in industry.

4. Comparative study between SFC [Kota] and other

identified organizations of the industry.

5. Suggest improvement in existing system of the industry.

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EXECUTIVE SUMMARY

A good workforce is essential for healthy functioning of any organization. This workforce comes

from people working inside the organization or either from the people present outside the

organization. Any organization gets workforce for itself by use of processes like

RECRUITMENT AND SELECTION.

The basic idea is of getting

RIGHT PERSON AT RIGHT PLACE AND RIGHT TIME

Prior to recruitment and selection we shall know that they are preceded by the process of JOBANALYSIS and JOB DESCRIPTION:

These include the type of job, its location, machinery and equipments involved, skills required

etc

such that even a layman can know about the job type.

Need for an employee may arise in following cases:

any employee retires from a position;

the job wants involvement of more employees;

some new kind of job arises, and so on..

The process of recruitment is as follows:

Personnel requisition being raised by some department

checking for the requisition by the HR department of the firm

giving job vacancy advertisements in newspapers and on job sites

at times internal sources are also checked for the requirements i.e. whether if candidates are

available within the organization, this helps in saving the recruitment and selection costs and

only training needs to be provided, also the person is well acquainted with the organization.

the sources of recruitment also involves recruitment drives in colleges from where freshers are

taken up, these kind of candidates have fresh knowledge may have new idea but they lackpractical experiences so they need to be trained for some time before being put on real job

situations.

Old employees help as referrals i.e. they can help in suggesting some eligible candidate, in their

knowledge, to the organizations.

along with these, media today is the most major mode of communication these days,

organizations put the job profiles on job sites here the candidates can apply for the job. On these

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sites n-number of applicants are present they post all their qualifications, specifications on sites

and also keep on tracking the vacancies that keep on arising time and again.

When external sources are looked after job applications pour in from candidates who think that

they capable for the job.

After this screening is done wherein only best suiting applications are sorted out and the

applicants are called for further processes like tests and interview.

Various kinds of tests are organized which involve aptitude test , skill test, ability test ,stress test

medical and physical tests are also done depending on the type of job.

This helps in sorting out more candidates and those who pass well through these tests are eligible

for further steps.

now the sorted candidates are called for interview, it is an interaction of the candidate with the

HR of the company along with him some other people of the organization are also present who

test the knowledge and skill and personality of the candidate.

if the candidate is successful in the interview he is given the selection letter which includes the

joining date and other details related to the job.

The candidate[s] report to the job if the candidates are new and not aware with the completely

they are sent for trainings, where they learn all the minutes of the job. When the candidates

successfully complete the training they are now ready to work in real time situations.

As this is a benchmarking study I have also included a few organizations from the similar

industry and have done a study to know what is the process of RECRUITMENT AND

SELECTION at these firms. The firm which have been included in this study are as follows:

1.Instrumentation Limited,Kota

2.CFCL,Gadepan.Kota

3.Semtel Glass,Kota

The profiles of these organizations has also been included in the report so that we can have a

knowledge about these organizations as well

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COMPANY PROFILE

DSCL- An Overview

Founded by Sir Shriram in 1889 (as DCM limited), today DCM Shriram Consolidated Limited

(DSCL) is a large scale industry with turnover of Rs. 2940crores.

DSCL has manufacturing facilities at Kota (Rajasthan), Bharuch (Gujarat), and Ajbapur,

Rupapur, Hariawan and Loni (UP).The hybrid seed operations are at Hyderabad (India),

Vietnam, Philippines and Thailand. The Company also has its window fabrication units at

Bhiwadi, Bangalore, Mumbai, Hyderabad and Chennai.

DSCL has strong brand equity reflective of credibility, ethical values and consistent high quality

product image. With over 30 years of experience in managing large scale process industries with

sustained high level of performance, DSCL meets the needs of a wide range of customers from

farmers to industrial users, from house builders to business owners. Fostering enduringrelationships is at the core of DSCL's business philosophy - with vendors, business partners, and

customers and within the organization between employees.

The company operates in a range of energy intensive businesses in the Chloro-Vinyl and agri-

sectors. The company is always seeking to produce multiple downstream products in a manner

that it derives the maximum earnings accrual from every unit of power that it generates in a

sustainable way and in varied market conditions. It follows this model across its manufacturing

operations at different locations with an endeavor to add value while it curtails operating costs.

Such an approach allows it to direct resources and inputs to various downstream businesses in

the most efficient manner and also become a cost competitive producer in our chosen area.

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In a major IT initiative the company has networked all its locations on a Wide Area Network

(WAN) and implemented SAP R/3 Enterprise Resource Package (ERP) across the Company.

The key IT enabling initiatives are Customer Relationship Management (CRM) and Business

Information Warehousing (BIW).

The Hariyali division of the company was awarded ACE-Best Customer Award for successful

implementation of the SAP IS retail package.

All its main line locations/products have ISO 9000, 14000 certification and OHSAS 18001: 1999

system of Occupational Health and Safety certifications. The Kota complex of the company was

given 5 Star rating for last 4 years & instituted in 2006 & 2008 with the prestigious Sword of

Honor by British Safety Council for implementing and practicing the best safety standards.

In an increasingly global business environment, DSCL's vision is to strengthen its agri and

energy intensive business while ramping up "Value Added" & "Knowledge based" products &

services in the areas of its operations. Accordingly, DSCL is expanding its rural retail initiative

HariyaliKisan Bazaar to create a rural hub that makes agro and consumer products (of all

manufacturers) and agri services available to farmers in a fair, transparent and convenient

format.

The company had launched value added UPVC window system business under the Fenesta TM

brand in India. This product has very attractive design and insulation attributes that makes it

strong business proposition as the concept is gaining acceptability.

DSCL strongly believes in socially responsible business activity. DSCL has made significant

contribution to the society in the fields of Environment, Health Care, Family Planning,

Education, Cultural Heritage, Rural Development and in promoting. For its social contributions

DSCL's Chlor-Alkali facility at Bharuch has been recognized with a SA 8000:2001 certification

by RINA (RegistroItalianoNavale), making it amongst the few companies in India to get this

recognition.

Core Values & Beliefs

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DSCL's core values and beliefs are a reflection of its commitment to build a world class, learning

organization, striving for excellence in all its endeavors.

Customer Focus:

Be sensitive to the needs of the customer; develop superior customer insight

Commitment to surpass expectations and deliver superior value

Innovation and Excellence:

Strive to think differently and promote creativity

Make continuous improvement a way of life; drive excellence

People Development:

Continuously improve and upgrade the skills and competencies of our people

Support people to realize their potential

Team work:

Work closely as a cohesive, well-knit team

Inculcate a spirit of openness and collaboration

Relationships and Human Dignity:

Value people and partnerships

Nurture understanding, compassion, trust and respect in all relationships

Social Responsibility and Ethics:

Be a socially responsible corporate, addressing the needs of the community and

environment

Conduct business ethically

Maintain highest standards of personal integrity

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The main business units of DSCL now comprise of:

Energy Intensive Businesses :

Chemicals

Calcium Carbide & PVC Resin

Cement

Value Added Businesses:

Fenesta Building Systems

PVC Compounds

Energy Services(ESCO)

Agri Businesses:

Sugar

Urea

Agri Inputs

Shriram Bioseeds

Hariyali Kissan Bazaar

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INTRODUCTION OF

RECRUITEMENAND

SELECTION

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INTRODUCTION OF RECRUITMENT

WHAT IS RECRUITMENT?

RECRUITMENT may be definedas: -

RECRUITMENT is the process to discover the sources of manpower to meet the requirements of

the staffing schedule and to employ effective measures for attracting that manpower in adequate

numbers to facilitate effective selection of an efficient working force.

DALE YODER

RECRUITMENT is the process of searching for prospective employees and stimulating and

encouraging them to apply for jobs in an organization.

EDWIN FLIPPO

RECRUITMENT is the development and maintenance of adequate manpower resources. It

involves the creation of a pool of available labor upon whom the organization can draw when

additional employees intend.

DALES. BEACH

THEORIES REGARDING RECRUITMENT

Recruitment is a two-way street: it takes a recruiter & a recruited, just as the recruiter, has a

choice whom to recruit and whom not, so also the prospective employee has to make the decision

if he should apply for that organizations job. The individual makes this decision on usually 3

different bases: the objective factor, critical contact & subjective factor.

The objective factortheory views the process of organization choice as being one of weighing &

evaluating a set of measurable characteristics of employment offers, such as pay, benefits, location,opportunity for advancement, the nature of the work to be performed, & educational opportunities.

The critical contact theory suggests that typically candidate is unable to make a meaningful

differentiation of organizations offer in terms of objective or subjective factors, because of his

very short or limited contact with the organization choice can be made only when the applicant can

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readily perceive the factors such as the behaviour of the recruiter, the nature of the physical

facilities, & the efficiency in processing paper work associated with the application.

The subjective factor theory emphasizes the congruence between personality patterns & the

image of the organization, i.e., choices are made on a highly personal and emotional basis.

Now the question is who are involved in this RECRUITMENT process?

The parties involved in this process mainly include the RECRUITER & the RECRUITEE.

ARECRUITER is someone engaging in recruitment, which is the solicitation of individuals to fill

jobs or positions within any group such as a sports team or corporation.

Recruiters can be divided into 2 groups: those working internally for one organization, and those

working for multiple clients in a 3rd-party broker relationship, sometimes called headhunters.

Internal Recruiters

An internal recruiter is member of a company or organization, typically works in human resource

(HR), which in the past was known as Personnel Office, or just Personnel.

Internal recruiters may be multifunctional, serving in an HR generalist role (hiring, firing, exit

interviews, employee disputes, contracts, benefits, recruiting, etc.) or in a specific role focusing alltheir time on the activity of recruiting. They can be permanent employees or hired as contractors

for this purpose. Contract recruiters tend to move around between multiple companies working at

each one for a short stint as needed for specific hiring purpose.

Third Party Recruiters or HEADHUNTERS

A third party recruiter can work on their own or through an agency, and acts as an independent

contact between their client companies and the candidates.

they recruit for a position. Most recruiters tend to specialize in permanent or full-time, direct hire

positions or contract positions, but occasionally in both.

Those recruiters who specialize in contract placements (where the candidate is typically paid

hourly for temporary work) may divide their labours into two functional groups, with one group

working to sell to clients and open job orders, and other group focusing on recruiting candidates.

Both staffing and consulting firms employ recruiters specializing in contractor placements. Most

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recruiters are compensated with a base salary, but receive a commission or bonus that is somehow

tied to the number of placements they make.

Third party recruiters who specialize in placing job seekers in full-time positions with their client

companies are more often referred to as headhunters. Compensation methods for recruiters

specializing in direct hire placements fall into 2 categories: contingent and retained. Retainedrecruiting teams are often divided into researchers, who source viable candidates, recruiters, who

present opportunities and oversee the interview process for their clients.

Features: -

Recruitment is a process or a series of activities rater than a single act or event.

Its a linking activity as it brings together those with jobs (employer) and those seeking jobs

(prospective employees).

It is a two-way process. The recruiter has the choice regarding recruiting the most suitable

candidates and the candidates have the choice regarding joining the most luring organization.

Recruitment is a Complex job as it entails many sub processes and systems.

The basic purpose to locate the sources of people required meeting the job requirements and

attracting such people to offer them for employment in the organization.

It makes it possible to acquire the number and type of persons necessary for the continued

functioning of the organization.

RECRUITMENT NEEDS

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PLANNED ANTICIPATED

UNEXPECTED

Plannedneeds arise from changes in organization and retirement policy.

Anticipatedneeds refer to those movements in personnel, which an

organization can predict by studying trends in the internal and externalenvironments.

Resignations, deaths, accidents and illness give rise to Unexpected

needs.

Therefore there are a number of possible reasons as to why a business may have to recruit more

employees:

Changes in organization structure involving job redesign, job regrouping, etc.

Changes in technology resulting in rise in job demands.

Changes in the jurisdiction of some departments requiring relocation of employees.

Fluctuation in the volume of work due to expansion, diversification, recession, etc.

Introduction of new products and process and stoppages of existing products and

processes.

Changes in the knowledge, skills, aptitudes and values.

Changing demands of trade unions, to protect the rights of their members.

Problem of maintaining interpersonal relations.

Changing government role in human resource management.

Social and cultural changes in the region.

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FACTORSAFFECTING RECRUITMENT PROCESS

Image of the organization.

Nature of the jobs offered.

Organizational policies.

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RECRUITMENT

External Forces

. Supply & Demand

.Unemployment Rate

. Labour Market

. Political- Social

. Sons Of Soil

. Image Of Co.

Internal Forces. Recruitment Policy

. HRP

. Size Of the Firm

. Cost

. Growth & Expansion

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Working conditions.

Compensation levels in the organization.

Rate of growth of the organization.

Past recruitment record.

Employment conditions in the community.

Trade union attitudes.

Labour laws.

Culture and environment (sons of the soil).

Government policies (reservation for SC/ST).

PROCESS OF RECRUITMENT

18

HUMAN

RESOURC

E

PLANNING

RECRUITING

REQUIRED

PERSONNEL

SELECTIN

G

QUALIFIE

D

PERSONN

EL

PLACING

SELECTED

PERSONN

EL ON

JOB

Finding

and

Developin

g

Sources of

Potential

employ

ees

Search for

prospective

Employees:

Developing

techniques

Attracting

candidates

Evaluating

effectiveness

of

recruiting

Internal

Sources

External

Sources

Personnel

research

Job

posting

Experience

Employee

referrals

Advertisi

ng

Scouting

Transferring to new job

Upgrading in same

position

Promoting to higher job

Providing information

Clarifying doubts

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THE RECRUITMENT PROCESS

As discussed earlier the recruitment process consists of several steps, more or less these are

followed by all organizations as per their requirements-

1. Identifying 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 interviews

10. Decision making

11. Convey the decision

12. Appointment action

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13. Identifying vacancy

14. Prepare job description and person specification

15. Advertise

16. Managing the response

17. Short-listing

18. Visits

19. References

20. Arrange interviews


22. Decision making




26. Decision making



The recruitment process for most org. is designed along the same path; applications are

received, either via a Candidates are short listed and invited for interview. The interview format

can vary considerably and can include assessment centers. Some companies are satisfied after just

one interview whereas others will want to bring back a further short list of candidates for 1 or more

interviews. A candidate if successful at the interview stage shall receive an official letter offering

the job.

FIVE COMPONENTS OF RECRUITMENT PROCESS

1. Recruitment policy

2. Recruitment organization

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3. Developing sources of recruitment

4. Techniques used to tap these resources

5. Method of assessing the recruitment programme

1. The Recruitment Policy

Specifies the objectives of recruitment and provides a framework for the implementation of

recruitment programme. It may involve commitment to principles such as enriching the

organizations human resources by filling Vacancies with the best-qualified people, attitude

towards recruiting handicaps, minority groups, women, friends & relatives of present employees,

promotion from within. Recruiting policy should be based on the recognition that it is hard to Find

qualified executives. A recruitment policy involve the Employers commitment to such general

principles as:

to find and employ the best qualified periods for each job.

to retain the most promising of those hired.

to offer promising opportunities for life time working careers.

to provide facilities and opportunities for personnel growth on the job.

A properly planned & systematic recruitment policy is necessary to minimize disruption of work

due to changes in employees and to secure equitable distribution of employment opportunities. A

well-considered and pre-planned recruitment policy based on the goals, needs & environment of

the org. will help to avoid hasty or ill-conceived decisions & help to man the with the right kind of

personnel.

PRE-REQUISITES FOR A GOOD RECRUITMENT POLICY

1.Abide by the relevant public policy and legislation on hiring and employmentRelationship.

2. provide employees with job security and continuousemployment.

3. Integrate organizational needs and employee needs.

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4. Provide each employee with freedom and opportunity toutilize and develop knowledge

& skills to the maximum possible extent.

5. Treat all employees fairly and equitably in all employment relationships.

6. Provide suitable jobs and protection to handicapped, women and minority groups.

7. Encourage responsible trade Unions.

8. Be flexible enough to meet the changing needs of the organization.

2. The Recruitment Organization

Recruitment PRACTISE differ from one organization to another, some organizations like public

sector banks adopt centralized recruitment whereas other organizations resort to decentralized

recruitment. Undercentralizedrecruitment personnel department at the head office performs allthe functions of recruitment. Every operating department sends requisitions or indents for

recruitment to their central office. While, each department/ unit carries out its own recruitment in

case ofdecentralizedrecruitment.

Merits of centralized recruitment

A) reduces administrative costs by consolidating all recruitment Activities at one place.

B) helps in better utilization of specialties.

C) ensures uniformity in recruitment & selection of all types of staff.

D) facilitates interchangeability of staff .

E) relieves the line executives of the recruitment problem thereby Enabling them to concentrate on

their operational activities.

F) tends to reduce favouritism & make the process more scientific.

Demerits of centralized recruitment

a) delay in recruitment as operating units cannot recruit staff as & when require.

b)the central office may not be fully familiar with job requirement of different units & the most

suitable sources for the required staff.

c)recruitment is not flexible because operating units loose control over the process.

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The choice between the two will depend on the management philosophy and needs of the

particular organization. Lower level staff is recruited centrally while middle & Top level

Executives are recruited in a decentralized manner.

3.Sources of Recruitment

Before an organization activity begins recruiting applicants, it should consider the most likelysource of the type of employee it needs. some companies try to develop new sources, while mostonly try to tackle the existing sources they have. these sources, accordingly, may be termed asinternal and external.

SOURCES OF RECRUITMENT

Internal Externali) Transfers i) Press Advertisementii) Promotions ii) Educational institutionsiii) Employee Referrals iii) Placement agencies iv) Employment exchange

v) Labour contractorsvi) Unsolicited applicationvii) Recommendationsviii) Factory gates

INTERNAL SOURCESBeing the most obvious sources the Internal sources includes personnelalready on the pay roll of an organization e.i., its present working force. Whenever any vacancyoccurs, somebody from within the organization is upgraded, transferred, promoted orsometimes demoted. This source also includes personnel who were once on the pay roll of thecompany but who plan to like to retire, such as those on leave of absence, those who quitvoluntarily, or those on production lay-off.

Some common internal sources are described below: -

1) TRANSFERS: -A transfers refers to a horizontal or lateral movement of an employeefrom one job to another in the same organization without any significant changes in status& pay. Transfers has been defined as lateral shift causing movement of individuals fromone position to another usually without involving any marked change in duties,responsibilities, skills needed, or compensation.Transfers may be initiated either by the company or the employee. A company mayinitiate a transfer to place employees in positions where they are likely to be moreeffective. Similarly, employees may initiate transfers to locations where they are likely toget greater satisfaction. Transfers may be within the same department or acrossdepartment, temporary transfers arise due to ill health, absenteeism, etc of an employee

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whereas permanent transfers are made load or death, retirement, resignation etc of someemployee.

2) PROMOTION: - Promotion refers to advancement of an employee to a higher postcarrying greater responsibilities, higher status and better salary. Its the upward

movement of an employee in the organization hierarchy, to another job commandinggreater authority, higher status and better working conditions. It may be temporary orpermanent depending upon the needs of the organization.

3) EMPLOYEE REFERRALS: - Employee referrals can be a good source of internalrecruitment. Employees can develop good prospects for their families and friends byacquainting them with the advantages of a job with the company, furnishing cards ofintroduction, and even encouraging them to apply. It is one of the most effective methodsof recruiting as many qualified people are reached at a very low cost to the company.This approach can provide quite a large pool of potential organization members.

A major concern with employee recommendation is that the referred individuals arelikely to be similar in type (for example, race & sex) to those who are already with thecompany.

Merits: - The use of an internal source has some merits

It improves the morale of employees, for they are assured of the fact that they would bepreferred over outsiders when vacancies occur.

The employer is in a better position to evaluate those presently employed than outsidecandidates. This is because the company the record of progress, experience and service of itsemployees.

It promotes loyalty among the employees, for it gives them a sense of job security and

opportunities for advancement. As the persons in the employment of the company are fully aware of, and well acquaintedwith, its policies and know its operating procedures, they require little training, and the chancesare that they would stay longer in the employment of the organization than a new outside world.

They are tried people & can, therefore, be relied upon.

It is less costly than going outside to recruit.

Demerits: - However, this system suffers from certain defects as well.It often leads to inbreeding, and discourages new blood from entering the organization.

There are possibilities that internal sources may dry-up, no innovations worth the name can bemade. Therefore, on jobs which require original thinking (such as advertising, style, designing and

basic research and technology), this practice is not followed.As promotion is based on

security, the danger is that really capable hands may not be chosen. The likes & dislikes of the

management may also play an important role in the selection of personnel.This source is used by

many organizations, but surprisingly large number ignore this source, especially for middle

management jobs. In other words, this source is the lode that is rarely mined. It is not only

reasonable but wise to use this source, if the vacancies to be filled are within the capacity of the

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present employees, if adequate employee records have been maintained, & if opportunities are

provided in advance for them to prepare themselves for promotion from blue- collar to white-

collar jobs?

EXTERNAL SOURCES These sources are outside the organization. They include new

entrants to the labour force, i.e., young mostly inexperienced potential employees, the college

students, the unemployed with a wide range of skills and abilities. Retired experienced persons

such as mechanics, machinists, welders, accountants and others not in the labor force, such as

married women and persons from Minority groups.

External sources lie outside the organization. The most common amongst these are: -

1. PRESS ADVERTISEMENT Advertisements in newspapers and journals is a widelyused source of recruitment. Cost per person is very low. One advertisement in a leading daily can

cover millions of persons throughout the country. This method can be used for clerical, technical

and for managerial jobs. However this method may bring in a large number of applicants from

unsuitable candidates. Most experts are of the opinion that advertisements must contain the

following information

i) the job content, primary tasks & responsibilities;

ii) ii) a realistic description of working conditions, particularly if they are unusual;

iii) the location of the job;

iv) the compensation, including the fringe benefits;

v) job specification;

vi) growth prospects;

vii) to whom one applies.

2. CAMPUS RECRUITMENT Various Institutes, Colleges, Research Laboratories, Sportsfields, are fertile ground for recruiters, particularly the institutes. The Indian Institutes of

Management (IIMs), and the Indian Institutes Of Technology (IITs) are on the top Of the list of

avenues for recruiters. Campus recruitment is going global with companies like

HINDUSTANLEVER, CITI-BANK, HLL, HP, ANZ GRINLAYS, L&T,MOTOROLA and

RELIANCE looking for recruiters in global markets.

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3. RECRUITMENT AGENCIES These companies specialize wholly in recruitment &generally keep an up-to-date database of experienced potential employees. They take the time out

of advertising, interviewing and selecting candidates, & can hand a ready-made employee to fit a

job specification. These agencies are particularly suitable for recruitment of executives andspecialists. They perform all the functions of recruitment and selection so that the client is relieved

of this burden.

There are also some demerits of depending on placement agencies: -

inability of gauging the exact needs of each individual company. As the agency

interviews all candidates, they cannot detect subtle personality requirements.

if the candidate is found to be unsuitable, this means more lost time.

the cost of recruitment through these agencies is quite high.

4. EMPLOYMENT EXCHANGES Employment Exchanges have been set up all overthe country in deference to the provisions of the Employment Exchanges (Compulsory

Notifications of Vacancies) Act, 1959. The Act applies to all industrial establishments having 25

workers more each. Employment exchanges act as a link between the employers and the

Prospective Employee. These offices are particularly useful in recruiting blue-collar, white-collar

& technical workers.

Recent trends in Recruitment

OUTSOURCING: under this arrangement the company may draw the required personnel from

the outsourcing firms or agencies on commission basis rather than offering them employment. This

is also called leasingofhuman resources.

The outsourcing firms develop their human resource pools by employing people for them & make

available the personnel to various companies (called clients) as per their needs.

The outsourcing firms get payment for their services to their clients and give salary directly to the

personnel. The personnel deputed by the outsourcing agencies with the clients are not theemployees of the clients. They continue to be on the payroll of their employers, i.e., the

outsourcing agencies.

This system facilitates the organization to hire security personnel from the security agency,

computer professionals from a computer firm, or accountants from an accountancy firm.

Merits of getting human resources through the outsourcing agencies are as follows:-

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i) The companies need not plan for human resources much in advance.

ii) The companies are free from Industrial Relations problems ashuman resources taken on lease

are not their employees.

iii) The companies can dispense with this category of employees immediately after the work isover.

POACHING OR RAIDING: Poaching means employing a competent and experienced person

already working with another reputed company which might be a rival in the industry. A company

can attract talent from another firm by offering pay packages and other terms and conditions.

For instance, several executions of HMT left to join TITAN watches & several pilots of Indian

Airlines left to join private taxi operators. There are several other examples where the firms have

raided the rival firms to procure their Key personnel to enhance their competitive advantage.

Raiding has become a challenge for the human resource managers of modern organization because

poaching of a key executive by arrival firm will weaker the competitive strength of the firm.

JOB FESTIVALS: it is a meeting ground for the job seekers & Co.s in the search of talents. What

are the advantages that the job fairs offer over campus recruitment & routine job hunting?

Job fairs enable to interact with a variety of people on one platform. They supplementary provide a

mix of raw and experienced hands. Job fests are welcome in comparison to campus placements. At

job fests, there are more candidates at disposal and a wide variety of candidates to choose from.

Also, it allows interaction with other company executives who attend these fests.

Appearing for an interview in a formal setting of an office is far more unnerving than simple

walking up to a stall of your choice and holding an informal chat with the company executives.

WEBSITE OR E-RECRUITMENT: Many big organizations use Internet as a source of

recruitment. They advertise the job vacancies through the World Wide Web (www). The job

seekers send their applications or Curriculum Vitae, i.e., C.V., through e-mail using the internet.

Alternatively, job seekers place their C.V.s in the world wide web/internet, which can be drawn by

the prospective employers depending on their requirements. The MERITS of E-recruitment are as

follows:-

1. low on cost and timely recruitment, no delays.

2. Recruitment of right type of people

3. Efficiency in the process of recruitment

4. Methods or Techniques of Recruitment- Recruitment methods or techniques are the means by

which an organization establishes contact with potential candidates, provides them necessary

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information and encourages them to apply for jobs. These methods are different from the sources

of recruitment. Sources are the locations where prospective employees are available. On the other

hand, methods are ways of establishing links with the prospective employees. Various methods

employed for recruiting employees may be classified as under:-

i) DIRECT METHODS: Under direct recruitment scouting, employeeContacts, manned exhibitsand waiting lists are used. In scouting representatives of the organization are sent to educational

and training institutions. These traveling recruiters exchange information with the students, clarify

their doubts, stimulate them to apply for jobs, conduct campus interviews and short list candidates

for further screening. Manned exhibits involve sending recruiters to seminars and conventions,

setting up exhibits at fairs and using mobile offices to go to the desired centers.

ii) INDIRECT METHODS: Advertisements I newspapers, journals, on the radio and television

are used to publicize vacancies. A well thought out and clear advertisement enables candidates to

assess their suitability so that only those possessing the requisite qualification will apply.

According to Advertisement Tactics and Strategy in Personnel Recruitment, three points need tobe borne in mind before an advertisement is inserted. First, to visualize the type of applicant one is

trying to recruit. Second, to write out a list of the advantages a company offers; in other words,

why the reader should work for the company. Third, to decide where to run the advertisement, not

only in which area but in which newspaper having a local, state, or nation-wide circulation.

iii) THIRD PARTY METHODS: Various agencies can be used to recruit personnel.

Public employment exchanges, management consulting firms, professional societies,temporary

help societies, trade unions, labour contractors are the main agencies. In addition, friends,

relations of existing staff and deputation method can also be used.

5. Assessment of The Recruitment- sources for recruiting shouldbe periodically evaluated. For

this purpose, the criteria may be the cost per applicant, the applicant/hiring ratio, tenure,

performance appraisals, etc. The organization should first identify how an applicant bank a

question: How did youlearn of the job vacancy for which you have applied? The next stepis to

determine whether any one method consistently attracts betterapplicants. The last step is to use

this information to improve the recruiting process. Recruiting should take into consideration

ethicalpractices, such as use of truth in hiring, i.e., telling an applicant allabout the firm and its

position, both good and bad, to enable him todecide whether or not to join the firm, is selected.

A successful and effective recruitmentprogramme necessitates a well defined recruitment policy,

a proper organizational structure, procedures for locating sources of manpower resources, suitable

methods and techniques for utilizing these and a constant assessment and consequent

improvement.

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INTRODUCTION OF SELECTION

Selection is a process of choosing most suitable persons out of all applicants.

It is matching the qualification of applicants with job requirement.

PROCESS OF SELECTION

PRELIMINARY INTERVIEW

RECEIVING APPLICATION

SCREENING OF APPLICATION

EMPLOYEMENT TESTS

INTERVIEW

MEDICAL EXAMINATION

REFRENCE CHECKS

FINAL APPROVAL

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The process of selection is described as follow:

PRELIMINARY INTERVIEW:

It is a sorting process in which candidates are given necessary information about the nature of job

and organisation and information is also taken from candidates about their education, skills,

experience etc. If candidate is suitable then he/she is selected for further screening.

RECEIVING APPLICATIONS:

Application form is used for collecting information from candidates which includes:-name,

address, age, sex, education qualification etc.

SCREENING OF APPLICATION:

Trough screening of application those candidates are selected which suitable according to job andothers are rejected.

EMPLOYEMENT TESTS:

These tests are conduct because it provides systematic basis for comparing the behavioure,

performance, attitude etc. Some major form of tests are-intelligency test, attitude test, trade or

proficiency test, interest and personality test.

INTERVIEW:

It is face to face interaction and purposeful exchange of view between employee and candidate.

It is helpful l to verify information provided in early stage.

It is helpful to judge qualification/characteristics of employee.

MEDICAL EXAMINATION:

Applicants are now sent for the medical examination either to the companies physician or to a

medical officer approved for the purpose.

REFRENCE CHHECKS:

In it applicants mention the name and address of two or three persons who him well. the

organisation contact them by mail or telephone and requested to provide their frank opinion about

the candidate.

FINAL APPROVAL:

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Short listed candidates are approved by concerned department and candidates offered

appointment letter mentioning post, salary and other information.

After the selecting candidates there are two important processes which are described as

follow:-

PLACEMENT -It is the process of assigning a specific job to each one of the selected candidates.

It implies matching the requirements of the job with the qualification of a candidates.

INDUCTION/ORIENTATION- It is the process of receiving and welcoming an employee

when he joins an organization and giving him basic information to settle down quickly and happily

in new environment.

Difference between RECRUITMENT and SELECTION:

1.Recruitment is a positive process i.e. encouraging more and more employees to apply

WHEREAS selection is a negative process as it involves rejection of the unsuitable candidates.2. Recruitment is concerned with tapping the sources of human resources WHEREAS selection is

concerned with selecting the most suitable candidate through various interviews and tests.

3. There is no contract ofrecruitment established in recruitment WHEREAS selection results in a

contract of service between the employer and the selected employee.

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Questionnaire for knowing the process of recruitment and selection:

Companys name

Designation

Note Please tick the appropriate option;

1. Job description is very necessary so that only specific candidates apply:

a. strongly agree

b. agree

c. minimal information is sufficient

d. disagree

e. strongly disagree

2. What is the preferred source of recruitment?

a. internal

b.external

3. If external, what source you adopt to source candidates?

a. Employee referral

b. Campus recruitment

c. Advertising

d. Recruitment agencies

e. Job portals

f. Other, pls specify

4. What is the maximum lead time?

a. Less than a week b.1-2 weeks

c. any other (please specify) _________________________

5. Is there any kind of personal information form being provided to candidates to fetch their

complete details?

a. Yes b.No

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6. Employee eligibility verification is a necessary part:

a. Very important

b.important

c.doesnt matter much

d.it does matter

e.not at all important

7.Head hunters and professional recruiters should be taken along for help:

a.yes.they are very important

b.their guidance is helpfulc.we may take up their help when necessary

d.not always necessary

e.no,we have a self sufficient system

8. Do you do the Employment Eligibility Verification? Yes/No

If yes, then, what method you take up to perform it?

a. Internally

b. Through agencies

9. What kind of verifications you do?

a. Educational qualifications

b. Legal background check

c. Professional background check d. Reference check

e. Family background check

10. Do you use any of the following tests during the process of recruitment?

a. Written

b. Aptitude

c. Group Discussion

d. Personal Interview

e. Psychometric test

f. Other, please specify

11. a candidate should have types of skills:

a. very important

b.Important

c.Absence of any skill wont matter

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Recruitment process followed at SFC (Shriram Fertilizers and Chemicals) Kota.

Identify the

vacancy:

This is the first step

followed in

recruitment

process at SFC

kota where the

vacancy is being

identified by Head

of the department.

According to the

requirement of the

organization the

number of vacancy

is to be decided by

the department.

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Identify Vacancy

Prepare Job Description

Identify of prospectus candidate

Managing the Response

Short-listing

Conduct Interviews

Psychometric test

Decision Making

Negotiation

Appointment Action

Joining formalities

Induction

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The head of the department identify the reason that why the vacancy is to be created

and the fill the vacancy at the right time in the organization when it needed. This is the

main task performed by the department that to find out the reason, time, place,

requirement of the candidate needed in the organization.

The main work of the department is to identify the vacancy at the right time and this task

is performed by the department.

Head of the department identifies a vacancy for reasons that may include:

Staffing changes eg. Resignation, termination, retirement, leave.

Work requirement changes eg. Creation of a new position, temporary additional

workload.

Prepare a job description:

Once the vacancy is identified by the department the job description is prepared by the

department according to the vacant post or to according to the requirement by the

organization by the Hr department of SFC KOTA .A job description is a list of the

general task and responsibilities of a position. Job descriptions in turn provide the

necessary information about the relative worth of different jobs within the organization

The person specification is an extension of the job description. It is a profile of the type

of person needed to do a job and is produced along with a job description following

a job analysis.

Elements of a person specification include:

Attainments (experience and qualifications)

Specialized skills

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selection criteria. The assessment methods should be consistently applied to all

candidates for a vacancy and may include, but not be limited to:

Interview

Skills/aptitude test

Work samples

Psychological testing

Reference check

Following the collation of information from the various sources, including the candidates

application/resume, the selection panel will review all the information and determine a

ranking of the candidates. At the last the top ranking candidates are selected for the

further..

Psychometric test :

Psychometric testing is used in the recruitment process at SFC Kota. It is recognized as

an efficient way to gain insight into a persons personality and psychological thinking. It

can help develop team spirit in the workplace and assess an individuals priorities.

Psychometric test aim is to provide employers with a reliable method of selecting the

most suitable job applicants or candidate and aim to measure attributes like

intelligence,aptitute and personality of the candidate. How he will work with other

person, how he will handle stress and whether he will be able to cope with the

intellectual demand the job.

As an indicator of personality, preferences and abilities, psychometric test help the

manager to find the best match of the individual to occupation and working environment.

THOMAS PROFILING is the type of psychometric test which is used at SFC Kota in

recruitment process which help to measure the effective performance management.

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Decision making:

Decision making is the stage in the recruitment process where the manager and the

selection panel take a major decision against the candidate for their selection process.

After taking the overall review of the candidates performance the decision is taken by

the manager and the selection panel for the candidates.

Negotiation:

This is the stage in recruitment process where the manager and the selected candidate

negotiate for the gross salary or CTC(Cost To Company) On the basis of candidates

experience, qualification and salary metric of the organisation. Salary is not only apayment for the work performed by employee, but also a motivational tool, through

which an organisation can enhance not only the performance of the employee but also

increases its output. So this stage of recruitment is equally important as other stages n

should be taking care properly, both the parties, manager and selected candidate.

Appointment action:

This is the stage where the final decision is taken by the management for the candidate

and the appointment letter is provided to the candidate after the completion of the

negotiation stage.

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Headhunters

Awareness

towards the

growth plan

before the

Recruitment

process

Yes Yes Yes Yes

Skills that a

Company

looking for at

the time of

Recruitment

Technical,

Behavioral,

and

Functional

Technical,

Behavioral,

and

Functional

Technical,

Behavioral,

and

Functional

Technical,

Behavioral,

and

Functional

Company

having

professional

Recruiters

Yes Yes No Yes

At the time

of

Recruitment

any age

group is

preferred

Yes Yes Yes Yes

Job

description isupdated

according to

present the

requirements

Yes Yes Yes Yes

Sources that

are preferred

for job

vacancies

Internal and

External

Internal and

External

Internal and

External

External

Methods ofRecruitment

that is

followed

Direct,Indirect, and

Third party

Method


Third party

Method


Third party

Method


Third party

Method

Sources for

initial

screening of

Job

Application

Job

Application

Job

Application

Experience

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the

candidate

Sources of

test applied

for screening

the best

candidate

Written test,

GD

Walk in

interview,

Written test,

Psychometric

Test

Walk in

interview,

Written test

Walk in

interview,

Psychometric

Test

While

screening the

best

candidate

the main

focus is

Education Education,

Experience,

Overall

personality

Education,

Experience,

Overall

personality

Experience

Psychometric

Test is

applied for

the selection

of the right

candidate

Yes Yes No Yes

Process of

reference

check is

conducted

Police

verification

Not done at

all

Through in-

house

reference

check

Through in-

house

reference

check

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THE OTHER ORGANIZATIONS INCLUDED IN

BENCHMARKING STUDY

NTPC Limited

NTPC Limited (Formerly National Thermal Power Corporation) is the largest state-ownedpowergenerating company in India.Forbes Global 2000 for 2009 ranked it 317th[3] in the world.It is an Indianpublic sectorcompany listed on theBombay Stock Exchange although at presentthe Government of India holds 84.5%(after divestment the stake by Indian government on19october2009) of its equity. With a current generating capacity of 31134 MW, NTPC hasembarked on plans to become a 75,000 MW company by 2017. It was founded on November 7,1975.NTPC's core business is engineering, construction and operation of power generating plants andproviding consultancy to power utilities in India and abroad.

The total installed capacity of the company is 31134 MW (including JVs) with 15 coal based and7 gas based stations, located across the country. In addition under JVs, 3 stations are coal based& another station uses naphtha/LNG as fuel. By 2017, the power generation portfolio is expectedto have a diversified fuel mix with coal based capacity of around 53000 MW, 10000 MWthrough gas, 9000 MW through Hydro generation, about 2000 MW from nuclear sources andaround 1000 MW from Renewable Energy Sources (RES). NTPC has adopted a multi-prongedgrowth strategy which includes capacity addition through green field projects, expansion ofexisting stations, joint ventures, subsidiaries and takeover of stations.

NTPC has been operating its plants at high efficiency levels. Although the company has 18.79%of the total national capacity it contributes 28.60% of total power generation due to its focus on

high efficiency. NTPCs share at 31 Mar 2001 of the total installed capacity of the country was24.51% and it generated 29.68% of the power of the country in 2008-09. Every fourth home inIndia is lit by NTPC. 170.88BU of electricity was produced by its stations in the financial year2005-2006. The Net Profit after Tax on March 31, 2006 was INR 58,202 million. Net Profit afterTax for the quarter ended June 30, 2006 was INR 15528 million, which is 18.65% more than forthe same quarter in the previous financial year. 2005).

Pursuant to a special resolution passed by the Shareholders at the Companys Annual GeneralMeeting on September 23, 2005 and the approval of the Central Government under section 21 ofthe Companies Act, 1956, the name of the Company "National Thermal Power CorporationLimited" has been changed to "NTPC Limited" with effect from October 28, 2005. The primary

reason for this is the company's foray into hydro and nuclear based power generation along withbackward integration by coal mining.

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Samtel

From a modest beginning in 1973, Samtel is today at the forefront of the electronics industry in India asthe largest manufacturer of Picture Tubes for Televisions, Deflection Yokes and monitors. Samtel is amultifaceted enterprise, employing state-of-the-art technology for its products which is backed by an in-house R&D Centre.

The group employs more than 4500 people in nine factories across thecountry with a gross turnover of Rs. 1000 crores. The range of productsmanufactured include Color & B&W TV Picture Tubes, Display Tubes,Video Monitors, Electron Guns and B&W Glass shells.

For Samtel, the quest for excellence in all its fields of activity has been a primary objective. What hastaken Samtel to the Pinnacle, is its commitment to Quality in every sphere that determines its existence.

The success of the group can be largely credited to the Samtel Quality Movement (SQM) in which theobjective is " to create an environment where people strive from within to achieve customer satisfaction(external & internal) and business excellence with social relevance ".

Coupled with its own efforts and determination, Samtel has maintained high standards by virtue of itsalliances with world leaders like Mitsubishi Electric Corporation, Japan, Corning Incorporated,USA andSamsung Corning, Korea. The company also lays emphasis on Progressive Human ResourceManagement, with a strong focus on training and development of personnel.

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Instrumentation limited,kota

Instrumentation Limited (better known as IL) is a Government Of India Enterprise set up in 1964 with theprime objective of attaining self reliance in the field of Control and Automation for process industry. TodayIL is manufacturing and supplying state of the art control equipment on turnkey basis to various sector ofIndustry viz. Power, Steel, Fertilizer, Chemical, Petrochemical, Refineries, Pharmaceutical, Cement,Paper, Textile, Space, and Oil & Gas.

IL has its registered and corporate office at Kota in state of Rajasthan. Manufacturing facilities are basedat Kota and Palakkad in Kerala State. Flow elements, control valve and actuators are manufactured atPalakkad plant other items are manufactured at Kota plant. ILs manufacturing facilities are accreditedwith ISO 9001:2008 certification. The marketing network is widely spread all over India having Branchoffices in major cities of Delhi, Kolkata, Chennai, Mumbai, Jaipur and Secunderabad and Regional offices

at Lucknow, Vadodara for organizing installation and commissioning and related services. Site offices atmany project sites are functioning under these regional offices.

With over Forty years of experience and a competent and dedicated workforce, IL has mastered allcomplexities of control system requirement and can lead you through your project, from system design,detailed engineering, manufacturing, testing, system integration, installation, final commissioning to aftersales service and customer training. IL has further diversified in the fields of Power electronics;Telecommunications, Railway Signaling systems, Defence electronics, IT enabled Products & services,Power Distribution and Transmission, Off-shore Instrumentation, Security & Surveillance system to havecomprehensive range of product and services.

The present product handling of the company comprises of sophisticated Digital Distributed Controlsystems, High Performance Smart Electronic Pressure and Temperature Transmitters, desk/panel

mounted controllers, indicators, recorders and other hardware, liquid and gas analyzers, with samplehandling and conditioning system, annunciation system, panels, instrument cabinet and racks, Flowelements, Control valves, actuators, power cylinders in addition to Telecommunication systems, IT basedapplications, Defence electronics, Railway signaling systems, Uninterrupted Power SupplySystems(UPS), Solar Dusk Dawn System(SDDS) etc.

IL, after establishing itself as an undisputed leader has crossed the Indian borders to supply equipmenton turnkey basis in International markets. IL has supplied instrumentation on turnkey basis to two thermalpower stations in Malaysia, supplied instrumentation to Esfahan steel plant in Iran, Hima cement plant inUganda to name few. A major breakthrough was achieved in export market when IL received large ordersfrom Lisichansk Oil Refinery in the erstwhile USSR for supply of DDC system and other equipment onturnkey basis.

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THE OUTCOMES OF THE STUDY

DSCL is at par with the other organizations of the industry. All of them are following almost the

same practices and methods for the recruitment process. The selection process being followed is

same as other firms.

However we see that the organization does not prefer its internal sources for filling the vacancies.

Also we find out that for screening of best candidates only interview and psychometric tests are

being used.

During the screening the candidates only experience is being looked up at.

No campus recruitment is being done for taking up new candidates

THE SUGGESTIONS:

1. The organization should look at internal sources of recruitment also for filling up the vacancies,

this not only motivates the employees of the organization but also cuts down the recruitment and

selection costs which is beneficial for the organization also.

2. As we saw that only interview and psychometric tests are only being used, written tests should

also be introduced this helps in further screening of the candidates.However a case may arise that some candidates may perform well in the test but not in interview

or vice-versa may also happen.

So this is suggested that while screening the candidates, all kinds of methods should b given some

weightage and not only one of the methods b given consideration.

3. Not only experience but education and over all personality should also be looked after while

screening the best candidates.

4. Campus recruitment should also be started for recruiting freshers for job positions.

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Best Practices in Recruiting: 2008 ERE Award Winners

By

Dr. John Sullivan

Apr 7, 2008

One of the challenges in the fast-moving profession of recruiting is how to keep up with the

latest evolutions in best practices at the best firms. Fortunately, its a little easier to learn about

the emerging benchmark best practices as a result of ERE Medias Recruiting Excellence

Awards, which honor the most strategic and innovative global recruiting practices developed

throughout the year.

The awards banquet, which usually kicks off the Spring Expo, was an excellent start to the eventthat has become the pinnacle meeting point for the best and brightest in the profession. This year,

more than 1,100 recruiting professionals and vendors descended upon San Diego, California to

learn about organizations those are breaking new ground by becoming more businesslike and

analytical.

This years Expo added even more opportunities to learn from those organizations honored, as

the agenda included a new panel discussion featuring selected honorees discussing their

organizations award-winnings efforts. In addition, previous award winners, such as Michael

McNeal, Dan Hilbert, Michael Homula, and Expo chair Trudy Knoepke-Campbell (all of whom

have since become icons in the recruiting profession), were on-hand to chat with attendees.

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As someone who tracks HR best practices (as well as serves as a judge in the awards process), I

am privileged to be able to share my assessment of their innovative approaches and

groundbreaking results.

Best Diversity Program: Sodexo

A leading provider of food and facilities management services, Sodexo has worked hard over the

past few years to excel in all areas of recruiting and talent management, and its work with

regards to attracting, developing, and retaining diverse talent is the best Ive ever seen anywhere

in the world. Whatever you are doing to promote diversity pales in comparison to the Sodexo

approach, which combines extensive metrics with significant rewards for managers and

executives in order to produce results.

Some highlights that led Sodexo to win the diversity award this year include:

Sodexo developed the Diversity Index Scorecard.

The scorecard contains both quantitative and qualitative measures (qualitative measures look at

behaviors that lead to building diversity, while quantitative measures focus on enumerating talent

acquisition, development, and retention activities that drive diversity, including promotions).

Ninety-one percent of candidate slates included interviews with diverse individuals.

The scorecard tied 10-15% of the manager bonus to diversity scorecard outcomes, and it

embedded diversity in the performance appraisal, which determines merit increases.

The scorecard tied 25% of the executive bonus to diversity scorecard outcomes.

It set diversity and inclusion as one of the companys six strategic goals.

Sodexo coordinated diversity initiatives across hiring, development, promotion, and retention.

It created a recruiter incentive system that provides rewards for diversity results.

Sodexo established a separate diversity sourcing strategy.

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The results include a 38% increase in qualified ethnically/racially diverse candidates and a 32%

increase in qualified female candidates.

Best Retention Program: AIMCO

The work done by the recruiting team at AIMCO can only be described as breathtaking. Its

dollarization of HR results, forward-looking predictive metrics, and general businesslike

approach make even the iconic Google look like a has-been. I have researched AIMCOs

approach to HR, and I find it to be the one that everyone should emulate.

Some elements of its approach to retention that demonstrate its advanced thinking are:

The company implemented a chargeback model, in which internal HR services must be

competitive and effective in order to be utilized by managers.

It established an extensive analytical framework to identify and predict turnover trends

AIMCO correlated turnover to Controllable Operating Net Income (CNOI) in order to

demonstrate to managers that managing turnover is a significant contributor to meeting budget

goals. Related findings include:

Properties could expect to gain an average of over $16,000 in CNOI improvement per retained

employee.

Properties with less than 25% annualized turnover could expect 60% higher CNOI performance

versus those with greater turnover.

Salary waste alone can account for up to 3% of a propertys annual CNOI.

On average, for every Community Manager who exits the company, eight additional employees

will leave that property before it normalizes its operations.

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Every 1% increase in retention is equivalent to over $403,000 in recruiting and training costs,

salary waste, and operational performance.

It launched EE surveys at all stages of the employee lifecycle in order to collect information on

turnover drivers and to drive predictive modeling efforts.

For some jobs, it has reduced the time-to-fill by 10 days down to an amazing 20-day period by

anticipating future needs and starting the recruitment process before an actual requisition is

issued.

AIMCO created an online card game for employees that assesses what is important to them

individually and determines whether or not those preferences are strengths or weaknesses of their

current jobs. A report is provided at the end of the game that provides each employee with an

individualized action plan to drive engagement, productivity, and retention. (This innovative

approach for identifying what motivates each individual employee in order to improve his or her

productivity and retention is the best that Ive seen anywhere in the world.)

It developed a retention toolkit for managers.

The company-integrated retention-goal planning into each managers performance goals.

AIMCO measures turnover eight different ways, including:

Pre-productive turnover (its concept of demonstrating salary waste when losing an employee is

an excellent example of dollarization). Working with the COO, it helps determine the point in an

employees career when he or she begins to make a positive ROI. Individuals who leave before

that point cost the firm and cause salary waste.

Short-term turnover probability (predicting whos at risk and where turnover is likely to occur is

something that few firms have even attempted).

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Most Innovative Employee Referral Program: AmTrust Bank

Clearly AmTrust Bank has demonstrated that a relatively small financial institution

headquartered in Ohio can do some world-class work. Up to 78% of its hires come from

employee referrals, which has allowed the bank to both reduce agency fees from 21% of

budgeted recruiting expense down to about 3% and to avoid spending money on newspaper ads.

The bank has found that these referral hires have no negative impact on diversity while excelling

in on-the-job performance and retention.

Some compelling program features and results include:

AmTrust Bank created the LINX referral program in 2006, which deputizes all employees to

play key roles in recruiting.

Its service level agreements guarantee response to allreferrals within three business days. (I have

found that responsiveness is the number one factor in successful employer referral programs.)

It correlated turnover by department to staffing concentration by source. When ERP was

revealed to produce lower turnover, it focused the sourcing strategy on referrals, which not only

saved money, but drove company-wide turnover down by 18%. (Its also important to correlate

hiring sources with on-the-job performance in order to make your workforce more productive.)

The company created an Employee Referral Advocate position solely dedicated to managing the

program, which serves as the central point of contact for all employees and referrals.

Referrals and referring employees are updated with quality feedback following each stage of the

process. (Individual feedback to individual employees who make weak referrals is far superior to

implementing onerous program rules.)

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Every company employee is provided with employer referral cards. But its program has an

innovative element that randomly stops employees and asks them to produce a referral card. If

they do, they are given a $50 reward for carrying them around.

Leveraged monthly prize contests drive program participation.

Total recruiting program savings total more than $500,000.

AmTrust Bank established referral relationships with local diversity organizations to drive uptick

in bilingual candidates.

Program introduction is embedded in new-hire orientation.

Referral bonuses are paid within 30 days of a candidate starting. The standard bonus is $500,

although some hot jobs can receive up to $2,000.

Recruiting Department of the Year: Intuit

Once again, Michael McNeal has put together an outstanding team that continues to innovate,

especially in the areas of workforce planning and statistical modeling.

Highlights of his teams recent efforts include:

It created an analyst position to develop predictive models that have been up to 98%

accurate.

The company centralized the sourcing function with its business unit, which aligned

recruiters and program management teams with employment branding, employee referral,

diversity, early-career talent pool, internal and external networking, candidate experience,

and Internet sourcing.

The separate Talent Acquisition Logistics team owns the post-hire, pre-start timeline to ensure

new hires transition from candidates to employees smoothly. (Its broad view of the candidate

experience lifecycle is the model to follow.)

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It established a talent acquisition planning model in which unit-aligned recruiters help managers

determine what type of talent will best meet their operational needs. During this process,

managers have access to workforce information regarding compensation, talent pools, diversity,

alumni rehiring, referrals, and internal mobility.

Talent Acquisition (TA) created a customized database that they call the Bat Computer. Just as

the Bat mobile allows Batman to respond quickly and save the day, the TA Bat Computer has

drastically increased their productivity and efficiency. The tool takes information from their

Applicant Tracking System (ATS), budget forecasts and actual, hiring forecast and trend data,

and other information to address business goals. This tool allows them to monitor TA

performance, recruiter productivity, and candidate generation strategy performance, and

highlight best practices immediately.

The results are reflected in its recent employee survey, which shows that overall employee

satisfaction at Intuit is 4% higher than Sirotas best-in-class rankings. For the seventh

consecutive year, Intuit has ranked onFortune magazines list of 100 Best Companies to Work

For in the U.S. Since 2005, its revenue per employee has increased. It is also spending less

money to fill vacancies from voluntary and involuntary attrition.

Best College Recruiting Program: Ernst & Young

Ernst & Young (E&Y) once again demonstrates its leadership within its industry by updating one

of the largest college recruiting programs (over 5,000 hires per year). By treating campuses like

business clients, it has produced significant results.

Highlights of recent innovations include:

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Its program now touches over 300 business-school campuses in North America.

It leverages former interns in their senior year as campus ambassadors. (This is a best

practice that everyone should copy.)

Ernst & Young used an online video development contest to get current students to write

and produce videos starring themselves and talking about what was important to them in

a career in professional services. The winning video team won a trip with E&Ys CEO.

The company leverages a campus-centric team approach to ensure strong relationship

standards are fostered and maintained. Each campus team is comprised of:

o A campus coordinating partner, campus recruiter, campus champion (senior

manager), and a diversity champion.

o Additional professionals representing lines of service, geographies, etc also

support each team.

o On average, large schools have teams ranging between 15-20 core members.

E&Y chairman, executive board, and all vice chairs lead campus recruiting efforts by

attending faculty conferences and speaking to student groups on site.

Each business unit has five strategic goals related to campus recruiting in their balanced

scorecards; many business units have now added campus recruiting goals into managers

personal development plans.

It established a recruiting strategy that embeds brand building into all student touchpoints throughout the academic lifecycle.

E&Y is the most thorough corporate user of Face book to enable delivery of targeted

messaging to students and student groups using a channel/forum that students prefer. Its

policy requires that all posts made by students on Face book are responded to within 5

business days.

It holds numerous conferences aimed at attracting diverse college students.

Intern to full-time hire conversion rate is more than 90%.

E&Y ranked as the #3 most desirable employer among business students according to

Universum and #3 onBusiness Weeks Best Places to Launch a Career list. It has also

been named toFortunes Best Companies to Work For list 10 years in a row.

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It reengineered its campus careers website to support a segmented-by-invitation

application model (students who receive an invitation to apply are redirected to a

customized online application). Highlights of its careers site include:

o It has vanity URLs for each major campus.

o There is a Picture Yourself tool that lets students see where in E&Y their

majors and personal interests could take them, complete with real video

interviews of people in those roles.

o The E&Y 360 lets students see day-in-the-life scenarios of actual employees.

o The website was rated #8 on Universums Most Impressive Overall ranking of

employment websites among undergraduate students.

o Its careers site now accounts for 60% of all EY.com traffic.

Best Employer Brand: Ernst & Young

E&Y also won the award for the best employer brand, demonstrating once again that

organizations with a strong heritage and conservative business standards can excel at innovation

when the business demands it.

Highlights of its approach to employment branding include:

Its brand is based on three pillars: inclusiveness, flexibility, and continuous

learning/development.

There are monthly e-mail opt-in news blasts.

Its extensive Face book profile, group, and messaging allow students to dialogue with

one another and current E&Y employees about careers in professional services.

The Face book profile is refreshed weekly with new content.

There is extensive leveraging of the business press and PR to position E&Y as a

progressive employer capable of launching a phenomenal career.

It built a culture campaign featuring stories of E&Y employees that replaced stale

corporate policies. The stories were chosen to emphasize the people first culture

elements once defined by policies.

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E&Y participates in corporate recognition contests like Fortune magazines 100 Best

Companies to Work For ranking, in which E&Y is the only Big Four company and

one of a tiny handful of companies overall to be ranked consecutively for 10 years.

Notice its recruiting stats regarding boomerangs: 24% of all managers and senior

managers; 40% return within one year and 29% within 1-3 years. Plus 27% of

professional hires come from employee referrals.

Its world-class alumni program features a dedicated website, monthly newsletter, and a

series of national, regional, and local events.

Most Effective Use of Staffing Metrics: Wipro

Around the globe, Wipro is cementing its position as one of the largest and most successful IT

service and business process outsourcing companies. Once again this year, Wipro demonstrated

that when it comes to building world-class business processes, its own HR organization is not

exempt. This past year, the Bangalore, India-headquartered Company:

Leveraged risk auditors to associate the benefit/risk of recruiting performance to its

bottom line. (Risk analysis is absent from most recruiting departments analytics.)

Leveraged in-house quality analysts proficient in Six Sigma, LEAN, and TRIZ to

continuously monitor and establish business performance-oriented metrics.

Implemented a performance-management model that evaluates staffing function

performance both pre- and post-hire.

Segmented staffing metrics to focus on actives, passives, seniors, and alumni.

Migrated all HR/recruiting data to an enterprise data warehouse, enabling extensive data

modeling (predictive, associative, sequential, etc.).

Created visual dashboards for all key stakeholders, including third-party vendors.

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Best Corporate Careers Site: KPMG

KPMG is another firm that is innovating in a traditionally conservative industry. This year, it

focused on revamping its corporate careers site to allow anyone to explore how its education and

personal interests relate to opportunities at KPMG.

Some highlights of its new approach include:

Employee Career Architecture allows visitors to explore career options with an

interactive build your own career path mapping tool. (Interactivity and personalization

are critical factors in careers website development.)

A matching majors function allows college students to see what careers at KPMG

leverage their majors and vice versa in order to explore what types of courses are

required to pursue a career path that interests them at the company.

A quick poll with live results features a periodic question about candidate-job

expectations. Visitors who participate can see the results immediately.

Its Career Journey video series profiles real KPMG employees ranging in roles from

interns to partners.

Weekly Web design and content refresh meetings ensure that the site content is always

fresh.

Most Strategic Use of Recruiting Technology: TruGreen

The design of this companys process demonstrates deep insight into the future of recruiting, in

which statistics and modeling will help firms predict business problems and opportunities

utilizing people-related data. When it comes to organizations demonstrating that HR can not only

partner but contribute directly to the business, this national landscaping arm of Service Masterleads the way.

Groundbreaking efforts taken this past year include:

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It architect a Recruiting Decision Support System to enable the recruiting function to

answer several key business strategy questions related to talent, such as: Does the talent

actually exist in all markets? Within the allocated compensation levels, can the talent be

acquired? Will recruiting resources be required to support regional operations?

The system enables TruGreen to proactively and scientifically assess the probability,

risks, and strategic impact that hiring will have on planned capital expansion and growth.

The system leverages millions of records of procured data on occupations, skills,

competencies, wages, and demographics to predict using a single numerical, indexed

value for the availability/scarcity of talent pools to meet growth predictions

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