Retention Strategies in ITES-BPO Industry

Introduction: HR professionals all over the world, working is Call-Center or Contact Center or BPO industry are breaking
their heads to formulate Retention Strategies but nothing is working in their favor. The average attrition rate in this sector is
still 35-40%. No perks, no rewards…just nothing is working.

Before proceeding further, lets see why people are leaving? Why there is high attrition rate.

Why people are moving?

When there are so many benefits associated with BPO industry…. when there are so many privileges for the BPO
employees than what makes them to change the company/industry?? Is it only MONEY that matters or anything else as
well?? After taking exit-interviews and analyzing the trend I am able to list out following reasons for a BPO professional to
change his/her job.

• No growth opportunity/lack of promotion

• For higher Salary

• For Higher education

• Misguidance by the company

• Policies and procedures are not conducive

• No personal life

• Physical strains

• Uneasy relationship with peers or managers

Lets also see as what are the various benefits…that have been extended to people working in this sector.

Employee Benefits Provided By Majority Of the BPO Companies

A part from the legal and mandatory benefits such as provident-fund and gratuity, below is a list of other benefits…BPO
professionals are entitled to the following:

1. Group Medi-claim Insurance Scheme: This insurance scheme is to provide adequate insurance coverage of
employees for expenses related to hospitalization due to illness, disease or injury or pregnancy in case of female
employees or spouse of male employees. All employees and their dependent family members are eligible.
Dependent family members include spouse, non-earning parents and children above three months

2. Personal Accident Insurance Scheme: This scheme is to provide adequate insurance coverage for
Hospitalization expenses arising out of injuries sustained in an accident. This covers total / partial disablement /
death due to accident and due to accidents.

3. Subsidized Food and Transportation: The organizations provide transportation facility to all the employees from
home till office at subsidized rates. The lunch provided is also subsidized.

4. Company Leased Accommodation: Some of the companies provides shared accommodation for all the out
station employees, in fact some of the BPO companies also undertakes to pay electricity/water bills as well as the
Society charges for the shared accommodation. The purpose is to provide to the employees to lead a more
comfortable work life balance.

5. Recreation, Cafeteria, ATM and Concierge facilities: The recreation facilities include pool tables, chess tables
and coffee bars. Companies also have well equipped gyms, personal trainers and showers at facilities.

6. Corporate Credit Card: The main purpose of the corporate credit card is enable the timely and efficient payment
of official expenses which the employees undertake for purposes such as travel related expenses like Hotel bills,
Air tickets etc

7. Cellular Phone / Laptop: Cellular phone and / or Laptop are provided to the employees on the basis of business
need. The employee is responsible for the maintenance and safeguarding of the asset.
 8. Personal Health Care (Regular medical check-ups): Some of the BPO'S provides the facility for extensive
health check-up. For employees

1. Loans: Many BPO companies provide loan facility on three different occasions: Employees are provided with
financial assistance in case of a medical emergency. Employees are also provided with financial assistance at the
time of their wedding. And, The new recruits are provided with interest free loans to assist them in their initial
settlement at the work location.

2. Educational Benefits: Many BPO companies have this policy to develop the personality and knowledge level of
their employees and hence reimburses the expenses incurred towards tuition fees, examination fees, and
purchase of books subject, for pursuing MBA, and/or other management qualification at India's top most Business
Schools.

3. Performance based incentives: In many BPO companies they have plans for, performance based incentive
scheme. The parameters for calculation are process performance i.e. speed, accuracy and productivity of each
process. The Pay for Performance can be as much as 22% of the salary.

4. Flexi-time: The main objective of the flextime policy is to provide opportunity to employees to work with flexible
work schedules and set out conditions for availing this provision. Flexible work schedules are initiated by
employees and approved by management to meet business commitments while supporting employee personal life
needs .The factors on which Flexi time is allowed to an employee include: Child or Parent care, Health situation,
Maternity, Formal education program

5. Flexible Salary Benefits: Its main objective is to provide flexibility to the employees to plan a tax-effective
compensation structure by balancing the monthly net income, yearly benefits and income tax payable. It is
applicable of all the employees of the organization. The Salary consists of Basic, DA and Conveyance Allowance.
The Flexible Benefit Plan consists of: House Rent Allowance, Leave Travel Assistance, Medical Reimbursement,
Special Allowance

6. Regular Get together and other cultural programs: The companies organizes cultural program as and when
possible but most of the times, once in a quarter, in which all the employees are given an opportunity to display
their talents in dramatics, singing, acting, dancing etc. Apart from that the organizations also conduct various
sports programs such as Cricket, football, etc and regularly play matches with the teams of other organizations and
colleges.

7. Wedding Day Gift: Employee is given a gift voucher of Rs. 2000/- to Rs. 7000/- based on their level in the
organization.

8. Employee Referral Scheme: In several companies employee referral scheme is implemented to encourage
employees to refer friends and relatives for employment in the organization.

9. Employee Stock Option Plan

Now, the actual question, why people are leaving? What types of retention strategies are required? What is
expected from HR Professional and how they can address this issue?

Retention - A Big Challenge

Fundamental changes are taking place in the work force and the workplace that promise to radically alter the way
companies relate to their employees. Hiring and retaining good employees have become the chief concerns of nearly every
company in every industry. Companies that understand what their employees want and need in the workplace and make a
strategic decision to proactively fulfill those needs will become the dominant players in their respective markets.

The fierce competition for qualified workers results from a number of workplace trends, including:

• A robust economy

• Shift in how people view their careers

• Changes in the unspoken "contract" between employer and employee

 • Corporate cocooning

• A new generation of workers

• Changes in social mores

• Life balance

Concurrent with these trends, the emerging work force is developing very different attitudes about their role the workplace.
Today's employees place a high priority on the following:

• Family orientation

• Quality of life issues

• Autonomy

To hold onto your people, you have to work counter to prevailing trends causing the job churning. Smart employers make it
a strategic initiative to understand what their people want and need -- then give it to them.

Retention Strategies

This is not an exhaustive list, one can add or delete any of the below mentioned strategies. Secondly, the need of the hour is
to have "right basics". Every individual is different, his needs are different, and his emotions, his problems are different. So,
dear HR-Professionals…sit down and concentrate on your basics. I have classified retention strategies into two parts: Main
and Ancillary.

Main retention strategies

This is not an exhaustive list, one can add or delete any of the below mentioned strategies. Secondly, the need of the hour is
to have "right basics". Every individual is different, his needs are different, and his emotions, his problems are different. So,
dear HR-Professionals…sit down and concentrate on your basics.

1. Communications - Getting Your People to Care

Communication is the first step toward creating the kind of environment that people care about, and if they care,
they just may stay. I'm not talking about a lot of New Age stroking designed to bring out the inner person or false
praise that creates a misplaced sense of security. Instead, keep your people in the loop about what's happening
with the company. At any time, all of your employees should have a pretty good idea of how business has been,
and they should be aware of what issues the company is attempting to address.

That means that you regularly keep your people up to date with important events affecting the company. If
November was good, let them know, and while you're at it, tell them what you expect to happen in December.
Share good news, as well as points of concern. If you've got "issues," talk about them before they start making you
crazy. And if they don't get resolved, figure out whether the problem stems from a couple of individuals or from
your system.

The point here is that you want to treat these people as your partners, which they are. They may not have to worry
about covering the payroll this week, but they do have worries of their own. Treat them with at least as much
respect as they give you. As the store's owner or manager, you set the tone for the entire organization. If your
salespeople, for instance, enjoy their encounters with you, they are much more likely to greet customers with a
positive attitude. They are also much more likely to enjoy their work when they don't have a fire-breathing dragon
looking to singe their butts.

Listen to your employees when they have ideas for improvement. Again, the benefits extend beyond just making
people feel appreciated for their contributions. These are, after all, the people who do the work every day. They
may have some ideas to improve productivity, and when they do come up with one, let everybody know where it
came from. Post a "brag board" in your break room, or circulate an internal newsletter that touts these
contributions. The pay-off is a contagious feeling of pride and, perhaps, some new efficiency that saves the
company money.

2. Set Clear Expectations

 ○ How often do you appraise your employees/team-members?

○ What are your expectations from your employees/team-members? What are the parameters to measure
their performance? Have you communicated to them?
○ What will be the consequences, if they fail?

○ What will be the rewards, if they exceed the expected level?

If you are not having any expectations, how you are going to appraise, your employees? Yes, you are going to be
biased, because you don't have set standards.

The role of a CEO, HR Manager is like a director of a movie; choreographer of a stage show, where there is a
defined role for each character, each participant.

Setting expectations initiates the process. Managers need to sit down with each employee and clearly define
what's expected of them. Management consultant, Kenneth Philips, states that when expectations are not clear,
employees may not be in sync with their job's current demands and priorities. Setting expectations is not a once
and done activity. Jobs change. Priorities change. Resources change. Managers need to revise and set new
expectations throughout the year. Setting expectations revolves around the following three areas:
○ Key job responsibilities

○ Performance factors and standards

○ Goals

Why is a setting expectation important? Quite simply, this process can be the cornerstone of improving the
motivational climate within your sphere of responsibility. If your employees know what is expected of them, it
allows them to focus on results and to monitor themselves against the set standards. Environments in which
expectations are not clear, or change from week to week, seldom create high-performing work groups.

The three principles that should drive expectations are clarity, relevance, and simplicity.

Clarity. Expectations should focus on outcomes, not activities. In other words, you achieve clarity when you
identify the expected results rather than the method for achieving them. Managers often make the mistake of
attempting to direct the process that an employee will use rather than being clear about results. The advantage of
identifying the outcome is that you, the manager, focus only on the goal; after all, the employee will develop the
method for achieving the desired results.

Defining the objective often requires some thought on the part of the manager because it is easy to fall into the
"activities trap." While developing a strategic plan for a department or division is a worthy activity, it does not
represent an outcome. In the activities trap, developing a plan is the goal, rather than increasing your market
share.

Relevance. The principle of relevance helps define the "why" of the assignment. If your employees have a full
understanding of the project's importance, they can make adjustments as unanticipated factors crop up within the
process. They probably also will be more committed to the result because they can see more easily how it fits into
the big picture and how their efforts impact the company.

This understanding typically is accomplished through dialogue between the manager and subordinate, which
allows for a more thorough review of the situation and for feedback and discussion. This process builds good will
with the employee and sets the stage for additional responsibilities.

Simplicity. Simplicity creates a sense of grounding for employees as they endeavor to carry out assignments. If
managers identify the work in simple, straightforward terms, employees will find it much easier to follow through on
managers' wishes. To accomplish this, a manager must identify the key message in a fashion that the employee
can embrace.

3. Proper Rewarding

A research reports says that in today's scenario,

 ○ 70% of your employees are less motivated today than they used to be.

○ 80% of your employees could perform significantly better if they wanted to.

○ 50% of your employees only put enough effort into their work to keep their job.

As you might be aware of Employee Reward covers how people are rewarded in accordance with their value to an
organization. It is about both financial and non-financial rewards and embraces the strategies, policies, structures
and processes used to develop and maintain reward systems. The ways in which people are valued can make a
considerable impact on the effectiveness of the organization, and is at the heart of the employment relationship.

The aim of employee reward policies and practices, if any in your organization is to help attract, retain and
motivate high-quality people. Getting it wrong can have a significant negative effect on the motivation, commitment
and morale of employees. Personnel and development professionals will be involved frequently in reward issues,
whether they are generalists or specialize in people resourcing, learning and development or employee relations.
Keep following parameters in mind, while designing a reward policy:

Build a high degree of recognition value into every reward you offer.

Recognition is the most cost-effective motivator there is. While the high cost of other rewards forces us to give
them sparingly, recognition can be given any time, at very little cost.

Some very ordinary items and events can be imbued with extraordinary motivational significance, far in excess of
their monetary value. I am constantly amazed at how motivating a pizza or movie tickets can be if is given with
sufficient appreciation. A sincere thank you can be delivered at any place and at any time, costs absolutely nothing
and can be more motivationally powerful than a substantial monetary bonus. Organizations can provide innovative
recognition in an infinite number of ways.

For example, (A Hypothetical Incident) a small manufacturing company made its employees feel like heroes when
they attained a major safety milestone - 100 days without a single accident. On the morning of day 100, it was
announced that a catered lunch would be served the next day, if they made it to the 5:30 shift without an accident.
At 5:15 anticipating was building. Managers took confetti and streamers to the balcony overlooking the shop floor.
When the 5:30 whistle blew, there were congratulations all around, confetti flew through the air and banners were
unfurled. It was a great moment for everyone - and one that was not soon forgotten. The recognition value of this
celebration was extremely high, while the monetary cost was relatively low.

Highly motivating organizations even celebrate small successes. A health-conscious company distributes fruit
bowls to employees' work areas when key personal milestones are attained. Another company uses a more
fattening approach: fresh-baked chocolate-chip cookies to say thank you.

Reduce entitlements and link as many rewards as possible to performance.

Clearly the traditional "pay for loyalty" systems in most organizations need to be changed. Don't let attendance be
your major criterion for rewards. Most employees resent those who only put in their time and yet receive the same
reward as those who go the extra mile. Today's employees have higher expectations for what work can and should
be, and they want to receive rewards that reflect their personal efforts and contributions.

1. This is why so many companies are moving toward performance-based rewards, including performance bonuses,
gain-sharing and non-monetary recognition. Although not a panacea, companies are finding that these new reward
systems do allow them to give substantial rewards to those who really deserve them. Smart organizations are
looking for opportunities to reduce across-the-board entitlements, and thereby find more resources for
discretionary performance-based rewards, without increasing the total cost of rewards.

Troubleshoot your reward system to make sure that what it is rewarding is what you really want to happen.

The Law of Rewards - "What you reward is what you get" - Is extremely powerful. No matter what your orientation
materials or job description might say, it is the rewards your organization gives that communicate the real
expectations. The most important question to ask in evaluating the reward system in your organization is, do the
rewards we are giving elicit the performance we want? Start with the results you want to achieve and then pinpoint
the types of behaviors needed to achieve them. For example:
 ○ If you believe teamwork is going to get you the results you want, make sure you reward teamwork, and
not internal competition between departments.
○ If you want quality, make sure that productivity isn't over emphasized. And,

○ If you want long-term solutions, don't reward quick fixes

Also, don't confuse employees with too many rewards. It is better to focus rewards on the critical few behaviors
and results, rather than diluting them by rewarding the trivial many.

Reward promptly. Rewards should be given as soon as possible after the performance has taken place. This is
why the most successful gain-sharing programs pay employees monthly, rather than quarterly or annually as in the
past.

There is a well-accepted law of behavioral psychology, that if you want someone to repeat a behavior, you should
positively recognize it immediately. From this law, smart supervisors and managers can learn a vital lesson: Look
for any employee doing something right, right now, and recognizes it.

A support to this, here is my favorite reward story:

"When a senior manager in one organization was trying to figure out a way to recognize an employee who had just
done a great job, he spontaneously picked up a banana (which his wife had packed in his lunch), and handed it to
the astonished employee with hearty congratulations. Now, one of the highest honors in that company has been
dubbed the "Golden Banana Award"."

Give employees a choice of rewards. Rewards are as different as the people who receive them and it doesn't
make sense to give rewards that recipients don't find rewarding. For example, some people prefer more pay, while
others prefer more time off. A promotion might be more rewarding to one person, while a job-sharing arrangement
might be more rewarding for another. Some people are excited about sports events, others about movies. Some
employees would love a dinner in a romantic restaurant, others a book by their favorite author. Food, fun,
education, improved work environment, gifts, travel, family-oriented activities - the options are endless.

How do you know what will be rewarding to employees? Ask them. Smart organizations are also letting employees
choose their own rewards from reward menus and catalogs. Personalizing rewards shows that a company cares
enough to discover what "interests" each employee, rather than just distributing generic items. It also reduces the
following danger: In one organization I was visiting, an employee opened a big drawer in his desk and disdainfully
showed me all the "worthless trinkets" he had collected over the years.

Increase the longevity of your rewards. This can be done in a number of ways: One of the keys to reward
longevity is symbolism. The more symbolic an item is of the accomplishment, the more likely it is to continue
reminding the employee of why it was given. For instance, a T-shirt of coffee mug with a meaningful inscription will
continue rewarding those who wear it, or use it, long after its initial receipt. There are many tokens of appreciation I
still keep on or near my desk that remind me of the joy of past accomplishments, while the monetary rewards I
have received are long spent and long forgotten.

Another way to increase the longevity of rewards in your organization is by using some kind of point system.
Rather than rewarding each individual behavior or accomplishment, points can be awarded, which employees can
accumulate and eventually trade for items from a reward menu or gift catalog. This keeps the anticipation of
rewards fresh for longer periods of time. It also addresses the need for reward individualization.

One company that designs motivational systems offers an electronic debit-card system to help larger clients cope
with the complexity of distributing, tracking and redeeming employees' points. Employees can use their points to
purchase virtually anything they want, from sports equipment and clothing to automobiles and overseas vacations.
They only caveat for such programs is to make sure that the recognition value of the rewards isn't lost because of
the impersonal nature of the technology.

One company uses a game it Call Safety Bingo. All employees receive a weekly bingo card. When an employee is
observed working safely, a number is presented (immediate recognition). When they get "bingo", they receive a
safety jacket (along with appropriate verbal reinforcement). The rewards escalate for subsequent wins. This type of
program keeps employees interested for long periods of time, even though there might be weeks or months
between rewards, and makes routine work more fun overall.

Interestingly, when researchers have investigated the motivational dynamics of these workplace games, they have
found that the major motivator is the playing, not the prize.

Be continually vigilant of demotivators that may undermine your organization's best efforts to provide
power rewards, and reduce them promptly.

Most demotivators can be dramatically reduced by soliciting employee involvement in identifying highest-priority
demotivators and by enlisting top-management commitment to support their reduction.

It is probably self-evident that considerable sensitivity is needed in the administration of any reward system. One
demotivator that is probably endemic in any reward system modification (especially as an organization moves from
entitlements to more performance-based rewards) is a sense that something is being taken away. Employees
need to be educated about the reasons that this is being done, understand the ultimate benefits to them and the
organization, and should probably have some input into the change process.

To avoid the perception of unfairness, it is important, first and foremost, that the process for allocating rewards is
viewed by employees as being impartial. This requires an objective measurement system that few organizations
have. Without such objective measurement, any reward system is probably destined to failure.

Ancillary Retention Strategies

1. The quality of the supervision an employee receives is critical to employee retention. People leave
managers and supervisors more often than they leave companies or jobs. It is not enough that the
supervisor is well liked or a nice person, starting with clear expectations of the employee, the supervisor
has a critical role to play in retention. Anything the supervisor does to make an employee feel unvalued
will contribute to turnover. Frequent employee complaints center on these areas.

 Lack of clarity about expectations,

 Lack of clarity about earning potential,

 Lack of feedback about performance,

 Failure to hold scheduled meetings, and

 Failure to provide a framework within which the employee perceives he can succeed.

2. The ability of the employee to speak his or her mind freely within the organization is another key factor in
employee retention. Does your organization solicit ideas and provide an environment in which people are
comfortable providing feedback? If so, employees offer ideas, feel free to criticize and commit to
continuous improvement. If not, they bite their tongues or find themselves constantly "in trouble" - until
they leave.

3. Talent and skill utilization is another environmental factor your key employees seek in your workplace. A
motivated employee wants to contribute to work areas outside of his specific job description. How many
people could contribute far more than they currently do? You just need to know their skills, talent and
experience, and take the time to tap into it. As an example, in a small company, a manager pursued a
new marketing plan and logo with the help of external consultants. An internal sales rep, with seven
years of ad agency and logo development experience, repeatedly offered to help. His offer was ignored
and he cited this as one reason why he quit his job. In fact, the recognition that the company didn't want
to take advantage of his knowledge and capabilities helped precipitate his job search.

4. The perception of fairness and equitable treatment is important in employee retention. In one company, a
new sales rep was given the most potentially successful, commission-producing accounts. Current staff
viewed these decisions as taking food off their tables. You can bet a number of them are looking for their
next opportunity.
 In another instance, a staff person, just a year or two out of college, was given 20,000 in raises over a six
month time period. Information of this type never stays secret in companies so you know, beyond any
shadow of a doubt; the morale of several other employees will be affected.

For example, you have a staff person who views her role as important and she brings ten years of
experience, an M.B.A. and a great contribution record to the table. When she finds she is making less
money than this employee, she is likely to look for a new job. Minimally, her morale and motivation will
take a big hit. Did the staff person deserve the raises? Yes. But, recognize that there will be impact on
others.

5. Your best employees, those employees you want to retain, seek frequent opportunities to learn and grow
in their careers, knowledge and skill. Without the opportunity to try new opportunities, sit on challenging
committees, attend seminars and read and discuss books, they feel they will stagnate. A career-
oriented, valued employee must experience growth opportunities within your organization.

6. A commonplace complaint or lament I hear during an exit interview is that the employee never felt senior
managers knew he existed. By senior managers I refer to the president of a small company or a
department or division head in a larger company. Take time to meet with new employees to learn
about their talents, abilities and skills. Meet with each employee periodically. You'll have more
useful information and keep your fingers on the pulse of your organization. It's a critical tool to help
employees feel welcomed, acknowledged and loyal.

7. No matter what the circumstances are but never, never, ever threaten an employee's job or income.
Even if you know layoffs loom if you fail to meet production or sales goals, it is a mistake to foreshadow
this information with employees. It makes them nervous; no matter how you phrase the information; no
matter how you explain the information, even if you're absolutely correct, your best staff members will
update their resumes. I'm not advocating keeping solid information away from people; however, think
before you say anything that makes people feel they need to search for another job.

Conclusion

Take a look at your organization Are you doing your best to retain your top talent? Employ these ten factors in your
organization to retain your desired employees and attract the best talent, too.

This report is not exhaustive, you can innovate many new strategies to retain your people. These are just the
basics and if implemented in a proper way can give good results.

By: Sanjeev Sharma

(E-mail: ss_himachali@yahoo.com; s070976@yahoo.co.in)

(Blog: http://sanjeevhimachali.blogspot.com/)
(You can read my BPO/Call-Center and ITES Sector related articles at http://www.bpoindia.org/research)
(You can read my motivational and inspirational articles at http://www.ezinearticles.com/)

(About Author: Sanjeev Sharma, is a 29 yrs of age from India, having six years of experience in "Human
Resource Development". By qualification, he is Bachelor of Science and Masters in Business Administration. He is
also a Motivational and Inspirational writer and speaker.)

I did mention in my previous write-up that recruitment is a challenging job in KNOWLEDGE based industry, whether it is IT
or ITES/BPO or Service Industry. Also, in one of my earlier mails I mentioned about "Performance Management System",
this time round, it is "Recruitment Management System". Did you ever felt the need of it? Every year, a company spends
millions on recruitment, but what is the result?

"According to the Corporate Advisory Board of Washington DC, the cost of replacing staff can be anything between
50% and 175% of that persons annual salary and, as we are all aware, employees in the new millennium do not stay
with a company for life as perhaps their grandparents did."

Before proceeding further, I like to share some facts about recruitment, probably known to you, in a survey it has been found
that -
 1. 38% of organizations produce no reports on recruitment activity whatsoever and are therefore unaccountable for
the time and spend involved.

2. 77% measure Cost per Hire (CPH) in some way or the other. The largest number favored the Staffing/Cost Ratio
52% of those that measure CPH make no differential between discipline or role rendering the CPH figure relatively
meaningless Easily measured hard costs were most usually tracked (e.g. agency fees) Measurement of soft costs
(e.g. management time) was rare

3. 66% measure Speed to Hire (STH) in some manner Most common start point was vacancy sign off Most common
stop point was start date - potentially very misleading due to different notice periods or other factors which
determine the actual start date. Very few track the whole process consistently making it very difficult to pinpoint
bottlenecks This lack of tracking exposes organizations to potential legal challenge

4. 58% have some Customer Satisfaction measurement Of these, 77% measure only 'overall satisfaction', again
making it difficult to address specific issues Only 10% use Service Level Agreements (SLA)

5. Only 54% have some measure of Quality of Hire, potentially the most important metric of all The most common
measurement was the appraisal process - unfortunately whilst this is entirely appropriate for specific organisations
it does not help promote standardisation across industries Most analysis is made against people at the same level
leaving no room for an assessment of speed of progress to that role

6. Only 8% have any form of competitor benchmark Process measurements, which focuses on quantity (number of
CVs) rather than quality (shortlist, initial CV rating against the job specification, hire ratios to CVs). Again lack of
logging of critical process details leaves organizations potentially exposed in any legal action and indicates
widespread non-compliance with Data Protection Act requirements.

Lets start with existing recruitment sequence/procedure:

1. Identify vacancy

2. Prepare job description and person specification

3. Advertise

4. Managing the response

5. Short-listing

6. Visits

7. References

8. Arrange interviews

9. Conduct the interview

10. Decision making

11. Convey the decision

12. Appointment action

The recruitment process for most organizations is designed along the same path; applications are received, either via an
online application form, a postal form or a CV. Candidate are short-listed and invited for interview. The interview format can
vary considerably, as we discuss later, and can include assessment centers. The number of interviews also varies. Some
companies are satisfied after just one interview whereas others will want to bring back a further shortlist of candidates for
one or more interviews. If you are successful at the interview stage you will receive an official letter offering you the job. This
information describes what you can expect at interviews and assessment centers, and takes you through to making a
decision about any offers that may result.

When considering whether or not to invest, most of us ask perfectly sensible questions like: "What will the return be?",
"What's the risk?" and "How quickly will I get the returns?" Would you put your hard-earned money into high-risk investment
schemes without knowing about their past performance? Would you invest with professionals who are very thorough, but
who can't prove that their methods deliver business results? At the end of the day, the organization is interested in knowing
the return on recruitment investments and HR Manager/Recruitment Manager is responsible for it and hence can be
questionable. I remember, once someone asked me, how HR department can become "Earning Department", it is only by
saving costs and saving expenses.

As organizations, one of the biggest investments we will ever make is in recruitment. Fortunately, as HR professionals, we
can all prove that the business is getting outstanding returns on this investment. We can point at the money spent, and put
intelligent estimates on the financial and human benefits accrued. We can show that our recruitment processes deliver
outstanding performance, control costs, increase sales, maintain efficiency and develop the organization. We do not employ
poor performers. The confidence of the business in what we do is exceptional, and we are perceived as being directly pivotal
to the performance of the whole organization. Our credibility is beyond doubt.

That would be a wonderful position to be in, wouldn't it?

How many organizations expect sensible questions about the return on recruitment investment to be answered? The truth is
that very few really do. Recruitment is evaluated on the basis of the speed with which positions are filled the feedback from
participants and the percentages of candidates who end up being employed. Very few organizations expect that the true
impact on business performance can ever be proven, or recruitment processes fine-tuned to deliver precisely the business
benefits required. Instead, recruitment is allowed to carry on without anyone ever knowing if it is delivering the goods, or if
opportunities are being missed.

Because recruitment is not an exact science, it is allowed to continue (often very thoroughly) without proving its true value.

But is it really so unrealistic to believe that we can measure the business impact of different approaches to recruitment?
More and more organizations are asking these questions, and the ones who can respond effectively are achieving surprising
business results through their HR functions. A wide range of organizations in western countries, have invested in examining
the business success of their recruitment practices, and achieved clear returns. Organizations are starting to find that, with
some skill, it is possible to assess the return on investment. It is possible to define the business benefits required, and track
the results. This is not just a bean-counting exercise aimed at proving that we are right - it points the way to improve results,
and deliver business performance through HR.

What should a Recruitment/Hiring Manager do to calculate the return on investments on recruitment?

A. Start off with a clear analysis of the organizational and commercial outcomes required from recruitment. What is
the business trying to achieve, and what part will successful candidates need to play?

B. Develop clear ways of tracking and measuring these outcomes

C. Carry out an objective and open-minded analysis of the qualities people need to perform. Ruthlessly avoid your
judgement being colored by past practice or "knowing what works from experience". if doing this well seems
expensive in the short run, it's never as expensive as doing it badly in the long run!

D. Ensure that you assess the full range of qualities needed for success - include personality, motivation and aptitude
as well as experience

E. Ensure that everyone involved in recruitment is trained to the highest possible standards

F. Carefully connect recruitment to induction, training, management and performance management - to ensure that
the business does not just get the right people, but nurtures and capitalizes in them as well

These approaches deliver returns of investment because

• They identify people who perform,

• Reduce the risk of employing people who cannot (or will not) perform,

• Cut the costs of recruitment and development, and

• Play a major part in driving forwards organizational change.

In common with all people processes, recruitment is there to deliver tangible human and business benefits. Devoting a little
time to considering the return on investment is not a nebulous luxury - it is essential to delivering the results the organization
needs. It is also a powerful way of positioning HR at the heart of the business. You will not regret

The need to have RECRUITMENT MANAGEMENT SYSTEM, its importance in streamlining recruitment process and
calculating the RETURN ON INVESTMENT.

As we are in 21st century, which is being governed by INFORMANTION MANAGEMENT SYSTEM and wherein we are
talking about SYSTEMS, be it Performance Management System, Compensation and Benefits Management Systems etc,
we also have RECRUITMENT MANAGEMENT SYSTEM, hope you all knows about it.

Technology has ushered in new ways of thinking about and executing on talent attraction, selection, and acquisition.

• Applicants can be processed more efficiently and with greater care.

• Candidate relationship management, once reserved for top-tier professional applicants, can be realized across
every level of job seeker.

• Proprietary talent communities provide companies with opportunities for targeted marketing and can ultimately
reduce time-to-fill and cost-per-hire while increasing the value of the employment brand.

These benefits provide a foundation for talent management to be in play at a broad and individual level.

Don't be mistaken. If the biggest pain point in your recruiting process today is that you have no way to track applicants
electronically.

For most recruiters, a basic applicant tracking system, even if it starts as an Excel spreadsheet or Access database, is a key
to survival and certainly to efficiency. If anything, the urgency to implement even a basic system has only increased in the
past few years, as the Internet has made it so easy for candidates to apply for jobs. If you don't have an automated way to
capture and search for candidate information, your job is going to be defined by performing administrative tasks that
consume a significant portion of your available time-time that could almost certainly be better spent on higher-level activities.
The good news is that if you're just getting started with applicant tracking, there are many good systems available today to fit
almost any budget.

Recruitment Management picks up where applicant tracking left off. Tracking your applicants efficiently is no longer a self-
sustaining hiring process and you will inevitably start focusing on the following areas to raise your recruiting process to the
next level:

• Tight integration between the hiring management system and corporate recruitment site. This is key because it is
the basis for ensuring a consistent and positive job seeker experience, and the most visible aspect of the online
employment brand interface. The hiring management system needs to support the integrity of the company's brand
first and foremost - which, depending on the company, plays out at varying levels of complexity. An intuitive,
flexible interface, supported by data capture, provides insight into the job seeker and drives the overall
effectiveness of the system.

• Engaging above-average talent by providing a streamlined and user-friendly online application process-one that
candidates tell you is better than your competitors'.

• The ability to seamlessly pre-screen candidates by asking job-specific questions in addition to collecting their
resumes. This component should also add value to the applicant's experience while supporting recruiter
productivity. If done well, a well-thought-out approach integrated in to your Hiring Management System can serve
as a self-screen or job preview.

• The ability, at a glance, to see how a candidate fits with the job he or she has applied for, individually and in
comparison with all other applicants.

• Making it easy for your recruiters to communicate and build relationships with candidates throughout the recruiting
process.

• Additional recruiter productivity enhancement tools.

 • The ability to extract data from your system to make decisions that support continuously improving your recruiting
and talent attraction process.

Conclusion:

At the end, I like to say that HR professional is having a big responsibility to hire a best person from the available talent pool.
At the same time, one needs to be cost conscious. It is a good practice in recruitment to be objective and seek to identify the
candidates' abilities. Judge on individual merits and set the same standards for all. Whereas generalized assumptions made
about ability or ambition, based on applicant's sex, caste, age, religious belief, sexual orientation or any disability, is a bad
practice. One need to use the technology, to get the best results from recruitment process.

Sanjeev Sharma
(+91-98852 00259)
(Secunderabad-India)

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