MAHARISHI DAYANAND SARASWATI UNIVERSITY, AJMER

A PROJECT ON
BENCHMARKING OF
RECRUITMENT AND SELECTION
PROCESSES
(CONDUCTED AT DSCL,KOTA)

SUBMITTED BY:
AKANKSHA RUSTAGI
DMS-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 for
permitting 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 be
completed

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Contents:
1. Acknowledgement 2
2. The overview:
project title 4
objective of the project
scope of the project
deliverables of the project
3. Executive summary 5-6
4. Company profile 7-10
5. Recruitment process 12-26
6. Selection 27-29
7. The questionnaire 30-32
8. Process followed at SFC 33-38
9. Benchmarking overview 39-42
10. Profile of other organizations 43-45
11.Outcomes of the study 46
12.Suggestions 46
13.Best practices in the industry 47-58
14.Bibliography 59

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PROJECT TITLE:
A DETAILED STUDY OF EFFECTIVENESS OF RECRUITMENT AND SELECTION
PROCESS AT SFC (SHRIRAM FRTILIZERS & CHEMICALS) AND CONDUCT A
BENCHMARKING 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.
We’ll 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 JOB
ANALYSIS 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 lack
practical 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 enduring
relationships 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
RECRUITEMEN
AND
SELECTION

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 INTRODUCTION OF RECRUITMENT

WHAT IS RECRUITMENT?

RECRUITMENT may be defined as: -

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.

DALE S. 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 organization’s job. The individual makes this decision on usually 3
different bases: the objective factor, critical contact & subjective factor.

The objective factor theory 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 organization’s 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

12
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.

A RECRUITER 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 all
their 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

13
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. Retained
recruiting 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.

 It’s 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

 Planned needs arise from changes in organization and retirement policy.

 Anticipated needs 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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16
 FACTORS AFFECTING RECRUITMENT PROCESS

External Forces
. Supply & Demand
Internal Forces
. Recruitment Policy
.Unemployment Rate

. HRP
. Labour Market

RECRUITMENT . Size Of the Firm

. Political- Social

. Cost
. Sons Of Soil

. Growth & Expansion

. Image Of Co.

 Image of the organization.

 Nature of the jobs offered.

 Organizational policies.

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 Working conditions.
SELECTIN
 Compensation
HUMAN levels in the organization. G PLACING
RESOURC RECRUITING
 Rate of growth of the organization. QUALIFIE
E REQUIRED SELECTED
D
 Past recruitment record.PERSONNEL
PLANNING PERSONN
PERSONN EL ON
 Employment conditions in the community. EL JOB

 Trade union attitudes.

 Labour laws.

 Culture
Finding and environment (sons
Searchoffor
the soil).
Evaluating
and prospective
 Government policies (reservation for SC/ST).
effectivene
Developin Employees: ss
g
Developing of
PROCESS
Sources of OF RECRUITMENT
techniques recruiting
Potential
employ Attracting
ees

candidates

Personnel
Transferring to new job
Internal research

Sources
Job Upgrading in same
posting position

Experience Promoting to higher job

Employee
Providing information
referrals

External
Advertisi
Sources ng
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Clarifying doubts

Scouting
 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

21. Conduct the interviews

22. Decision making

23. Convey the decision

24. Appointment action

25. Conduct the interviews

26. Decision making

27. Convey the decision

28. Appointment action

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
organization’s 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 Employer’s 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 employment
Relationship.

2. provide employees with job security and continuous employment.

3. Integrate organizational needs and employee needs.

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4. Provide each employee with freedom and opportunity to utilize 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. Under centralized recruitment personnel department at the head office performs all
the 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 of decentralized recruitment.

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 likely
source of the type of employee it needs. some companies try to develop new sources, while most
only try to tackle the existing sources they have. these sources, accordingly, may be termed as
internal and external.

SOURCES OF RECRUITMENT

Internal External
i) Transfers i) Press Advertisement
ii) Promotions ii) Educational institutions
iii) Employee Referrals iii) Placement agencies
iv) Employment exchange
v) Labour contractors
vi) Unsolicited application
vii) Recommendations
viii) Factory gates

INTERNAL SOURCES Being the most obvious sources the Internal sources includes personnel
already on the pay roll of an organization e.i., its present working force. Whenever any vacancy
occurs, somebody from within the organization is upgraded, transferred, promoted or
sometimes demoted. This source also includes personnel who were once on the pay roll of the
company but who plan to like to retire, such as those on leave of absence, those who quit
voluntarily, 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 employee

from 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 from
one 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 may
initiate a transfer to place employees in positions where they are likely to be more
effective. Similarly, employees may initiate transfers to locations where they are likely to
get greater satisfaction. Transfers may be within the same department or across
department, 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 some
employee.

2) PROMOTION: - Promotion refers to advancement of an employee to a higher post

carrying greater responsibilities, higher status and better salary. It’s the upward
movement of an employee in the organization hierarchy, to another job commanding
greater authority, higher status and better working conditions. It may be temporary or
permanent depending upon the needs of the organization.

3) EMPLOYEE REFERRALS: - Employee referrals can be a good source of internal

recruitment. Employees can develop good prospects for their families and friends by
acquainting them with the advantages of a job with the company, furnishing cards of
introduction, and even encouraging them to apply. It is one of the most effective methods
of 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 are
likely to be similar in type (for example, race & sex) to those who are already with the
company.

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 be
preferred over outsiders when vacancies occur.
 The employer is in a better position to evaluate those presently employed than outside
candidates. This is because the company the record of progress, experience and service of its
employees.
 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 acquainted
with, its policies and know its operating procedures, they require little training, and the chances
are 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 be
made. 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

24
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 widely

used 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, Sports

fields, 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 and
specialists. 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 over

the 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 leasing of human 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 the
employees 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:-

26
i) The companies need not plan for human resources much in advance.

ii) The companies are free from Industrial Relations problems as human resources taken on lease
are not their employees.

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

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

27
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, employee Contacts, manned exhibits
and 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 to
be 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 should be 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 you learn of the job vacancy for which you have applied?” The next step is to
determine whether any one method consistently attracts better applicants. The last step is to use
this information to improve the recruiting process. Recruiting should take into consideration
ethical practices, such as use of “truth in hiring,” i.e., telling an applicant all about the firm and its
position, both good and bad, to enable him to decide whether or not to join the firm, is selected.

A successful and effective recruitment programme 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.

28
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

29
 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 and
others 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:

30
 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 of recruitment established in recruitment WHEREAS selection results in a
contract of service between the employer and the selected employee.

31
Questionnaire for knowing the process of recruitment and selection:

Company’s 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

32
6. Employee eligibility verification is a necessary part:

a. Very important
b.important
c.doesn’t 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 helpful
c.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 won’t matter

33
 d.Not so important
e.Only requisite skills that help in job matter

12. What kind of interview is generally conducted? [Choose one from each cater.]
a. (1) panel (2) one to one
b. (1) Formal (2) informal

13. Do you take any technological support for the process of recruiting?
a. Telephone
b. Video conferencing
c. Online support
d. Other, pls specify –

14.Are there alternatives for recruitment being acquired?

a.Over-time b.Outsourcing
c.Temporary employees d.Any other [pls specify]

15. In how much time does the whole process generates results?
(Time taken in the whole process i.e. from tests, personal interviews to final list of
selected candidates)

16. Age groups matter during recruitment and selection of employees:

a.Strongly agree
b.Agree
c.Age group doesn’t matter
d.Disagree
e.Strongly disagree

17. ARE YOU SATISFIED WITH EXISTING RECRUITMENT AND SELECTION POLICY
WHAT MEASURES YOU SUGGEST TO IMPROVE IT?

-----------------------------------------------------------------------------------------------------------
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34
Recruitment process followed at SFC (Shriram Fertilizer’s and Chemicals) Kota.

Identify Vacancy
↓
↓
Induction
Prepare Job Description

↓
↓
Identify of prospectus candidate
Hand over the department
↓

Managing the Response

Identify the
vacancy: ↓

Short-listing

↓
This is the first step
followed in Conduct Interviews

recruitment ↓
process at SFC
Psychometric test
kota where the
↓
vacancy is being
identified by Head Decision Making

of the department. ↓

According to the Negotiation

requirement of the ↓
organization the
Appointment Action
number of vacancy
↓
is to be decided by
the department. Joining formalities

35
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

36
  Interests
 Personality

Identify of prospectus candidate:

This is the stage in the recruitment process where the candidate is identify by the
department by placing advertisement or through data base search according to the
requirement of post by the organization. This task is performed by the HRD. This is a
process where the eligible candidates are identify by the department for the required
post in the organization.

Managing the response:

This is the stage where the manager has to identify the suitable applications which is
received against the vacant post by the candidates. The selection panel will ensure that
all members or a representative sub-group have access to the applications, consider
the information and facilitate a short listing process to identify the most competitive
candidates. The selection panel will compile a summary assessment and ranking of the
candidates against the selection criteria for inclusion in the selection report.
After this the selection panel or the manager will select the best suitable candidate for
the further recruitment process. At this stage the most competitive applications are
selected by the manager for the available post where the manager has to identify those
applications which are perfect for the vacancy.

Short listing and conduct an interview:

This is the process where the most competitive candidates are selected by
the manager for the required post in the organization. HR manager and the
selection panel has to select the candidate on the basis of norms mentioned
in the vacancy. Only the selected candidates are short listed for the further
process of the recruitment process at SFC Kota. After the short listing of the
suitable candidate the interview is conducted by the department. HR manager
selection panel will conduct interviews or apply other relevant assessment methods to
acquire information relevant to business needs, position role & accountabilities and
37
 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 candidate’s
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 person’s personality and psychological thinking. It
can help develop team spirit in the workplace and assess an individual’s 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.

38
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 candidate’s
experience, qualification and salary metric of the organisation. Salary is not only a
payment 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.

39
BENCHMARKING OVERVIEW
Parameters NTPC Samtel Instrument DSCL
Glass al Limited

Job Job Job Point Method Job

Evaluating classification classification classification
Method Method Method Method

Is the Yes Yes Yes Yes

Recruitment
process
efficient one

Recruitment Yes Yes Yes Yes

policy is
placed

Recruitment Expansion, To Fulfill the When New posts

is done only New posts replacement project work are
when are vacancy is received introduced,
introduced, Employees
Employees retire
retire, New
technology
introduced

Use of No Yes No Yes

40
Headhunters

Awareness Yes Yes Yes Yes

towards the
growth plan
before the
Recruitment
process

Skills that a Technical, Technical, Technical, Technical,

Company Behavioral, Behavioral, Behavioral, Behavioral,
looking for at and and and and
the time of Functional Functional Functional Functional
Recruitment

Company Yes Yes No Yes

having
professional
Recruiters

At the time Yes Yes Yes Yes

of
Recruitment
any age
group is
preferred

Job Yes Yes Yes Yes

description is
updated
according to
present the
requirements

Sources that Internal and Internal and Internal and External

are preferred External External External
for job
vacancies

Methods of Direct, Direct, Direct, Direct,

Recruitment Indirect, and Indirect, and Indirect, and Indirect, and
that is Third party Third party Third party Third party
followed Method Method Method Method

Sources for Job Job Job Experience

initial Application Application Application
screening of

41
the
candidate

Sources of Written test, Walk in Walk in Walk in

test applied GD interview, interview, interview,
for screening Written test, Written test Psychometric
the best Psychometric Test
candidate Test

While Education Education, Education, Experience

screening the Experience, Experience,
best Overall Overall
candidate personality personality
the main
focus is

Psychometric Yes Yes No Yes

Test is
applied for
the selection
of the right
candidate

Process of Police Not done at Through in- Through in-

reference verification all house house
check is reference reference
conducted check check

42
43
THE OTHER ORGANIZATIONS INCLUDED IN
BENCHMARKING STUDY

NTPC Limited
NTPC Limited (Formerly National Thermal Power Corporation) is the largest state-owned
power generating company in India. Forbes Global 2000 for 2009 ranked it 317th [3] in the world.
It is an Indian public sector company listed on the Bombay Stock Exchange although at present
the Government of India holds 84.5%(after divestment the stake by Indian government on
19october2009) of its equity. With a current generating capacity of 31134 MW, NTPC has
embarked 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 and
providing consultancy to power utilities in India and abroad.

The total installed capacity of the company is 31134 MW (including JVs) with 15 coal based and
7 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 expected
to have a diversified fuel mix with coal based capacity of around 53000 MW, 10000 MW
through gas, 9000 MW through Hydro generation, about 2000 MW from nuclear sources and
around 1000 MW from Renewable Energy Sources (RES). NTPC has adopted a multi-pronged
growth strategy which includes capacity addition through green field projects, expansion of
existing 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. NTPC’s share at 31 Mar 2001 of the total installed capacity of the country was
24.51% and it generated 29.68% of the power of the country in 2008-09. Every fourth home in
India is lit by NTPC. 170.88BU of electricity was produced by its stations in the financial year
2005-2006. The Net Profit after Tax on March 31, 2006 was INR 58,202 million. Net Profit after
Tax for the quarter ended June 30, 2006 was INR 15528 million, which is 18.65% more than for
the same quarter in the previous financial year. 2005).

Pursuant to a special resolution passed by the Shareholders at the Company’s Annual General
Meeting on September 23, 2005 and the approval of the Central Government under section 21 of
the Companies Act, 1956, the name of the Company "National Thermal Power Corporation
Limited" 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 with
backward integration by coal mining.

44
Samtel

From a modest beginning in 1973, Samtel is today at the forefront of the electronics industry in India as
the largest manufacturer of Picture Tubes for Televisions, Deflection Yokes and monitors. Samtel is a
multifaceted 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 the
country with a gross turnover of Rs. 1000 crores. The range of products
manufactured 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 has
taken 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 the
objective 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 its
alliances with world leaders like Mitsubishi Electric Corporation, Japan, Corning Incorporated,USA and
Samsung Corning, Korea. The company also lays emphasis on Progressive Human Resource
Management, with a strong focus on training and development of personnel.

45
Instrumentation limited,kota

Instrumentation Limited (better known as IL) is a Government Of India Enterprise set up in 1964 with the
prime objective of attaining self reliance in the field of Control and Automation for process industry. Today
IL is manufacturing and supplying state of the art control equipment on turnkey basis to various sector of
Industry 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 based
at Kota and Palakkad in Kerala State. Flow elements, control valve and actuators are manufactured at
Palakkad plant other items are manufactured at Kota plant. IL’s manufacturing facilities are accredited
with ISO 9001:2008 certification. The marketing network is widely spread all over India having Branch
offices 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 at
many project sites are functioning under these regional offices.

With over Forty years of experience and a competent and dedicated workforce, IL has mastered all
complexities of control system requirement and can lead you through your project, from system design,
detailed engineering, manufacturing, testing, system integration, installation, final commissioning to after
sales 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 have
comprehensive range of product and services.

The present product handling of the company comprises of sophisticated Digital Distributed Control
systems, High Performance Smart Electronic Pressure and Temperature Transmitters, desk/panel
mounted controllers, indicators, recorders and other hardware, liquid and gas analyzers, with sample
handling and conditioning system, annunciation system, panels, instrument cabinet and racks, Flow
elements, Control valves, actuators, power cylinders in addition to Telecommunication systems, IT based
applications, Defence electronics, Railway signaling systems, Uninterrupted Power Supply
Systems(UPS), Solar Dusk Dawn System(SDDS) etc.

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

46
 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.

47
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, it’s a little easier to learn about
the emerging benchmark best practices as a result of ERE Media’s 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 event
that 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 year’s 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.

48
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 I’ve 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 company’s 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.

49
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 AIMCO’s
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 property’s annual CNOI.

On average, for every Community Manager who exits the company, eight additional employees
will leave that property before it normalizes its operations.

50
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 I’ve seen anywhere in the world.)

It developed a retention toolkit for managers.

The company-integrated retention-goal planning into each manager’s 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
employee’s 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 who’s 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 all referrals 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%. (It’s 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 team’s 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 Sirota’s best-in-class rankings. For the seventh
consecutive year, Intuit has ranked on Fortune magazine’s 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&Y’s 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 touch
points 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 on Business Week‘s “Best Places to Launch a Career” list. It has also
been named to Fortune‘s “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 Universum’s “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 magazine’s “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 company’s 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 Master
leads 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 in 229
defined expansion markets.
• The predictive model is used to drive all elements of a geographically segmented
recruiting strategy.

Final Thoughts

The award recipients highlighted here deserve to be congratulated, and I would like to thank
them for pushing the envelope in recruiting and HR. It should be obvious from both the record
attendance and the tone of this year’s Expo that the war for talent is still going strong.

Everyone should also take note that the rate of innovation in recruiting is increasing and that the
one overriding trend is that recruiting is becoming more businesslike. More and more recruiting
functions are leveraging statistical modeling and heuristics to anticipate and manage future
events. This trend means that more and more decisions in recruiting will be made based on data
and facts, rather than on intuition and tradition. If you’re behind in developing advanced metrics,
you will soon be non-competitive.

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BIBLIOGRAPHY
WWW.WIKIPEDIA.COM

WWW.DSCL.COM

MATERIAL AVAILABLE WITH THE GUIDE

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