SCHOOL OF ADVANCED MANAGEMENT

“A CASE STUDY
ON
RECRUITMENT ISSUES”

This Assignment is submitted for the partial fulfillment of

Internal Assessment for the Course Paper titled

PGDM VI-9
Compensation Management
Batch: 2008-2010

Submitted to: Submitted by:

Dr. Rishu Roy Ankita Sharma
Garima Bhatia
 PGDM VI Trimester

CASE STUDY ON RECRUITMENT ISSUES 2

 TABLE OF CONTENTS

A.

INTRODUCTION.....................................................................................................................3
TOP TEN IDEAS FOR RECRUITING GREAT CANDIDATES............................................4
MAJOR ISSUES IN RECRUITMENT.....................................................................................6
A CASE STUDY ON RECRUITMENT DILEMMA...............................................................8

INTRODUCTION

Recruitment refers to the process of attracting, screening, and selecting qualified people for
a job at an organization or firm. For some components of the recruitment process, mid- and

CASE STUDY ON RECRUITMENT ISSUES 3

large-size organizations often retain professional recruiters or outsource some of the process
to recruitment agencies.

The recruitment industry has five main types of agencies: employment agencies, recruitment
websites and job search engines, "headhunters" for executive and professional recruitment,
niche agencies which specialize in a particular area of staffing and in-house recruitment. The
stages in recruitment include sourcing candidates by advertising or other methods, and
screening and selecting potential candidates using tests or interviews. Recruitment is the
process of finding candidates, reviewing applicant credentials, screening potential
employees, and selecting employees for an organization. Effective recruitment results in an
organization hiring employees who are skilled, experienced, and good fits with your
corporate culture.

Recruitment methods should ensure engaged competent, productive employees who are loyal
to your organization.

TOP TEN IDEAS FOR RECRUITING GREAT CANDIDATES

The smartest employers, who hire the best people, recruit a pre-qualified candidate pool of
potential employees before they need to fill a job.

You can develop relationships with potential candidates long before you need them. These
ideas will also help you in recruiting a large pool of candidates when you have a current
position available.

1. Recruiting Your Ideal Candidate:- A job description that tells potential

employees the exact requirements of the position is useful. Even more useful is the
process you use to develop the job description internally and the behavioral
characteristics of your ideal candidate. Assemble a team of people who represent the
best qualities of the people who currently hold the same or a similar position. Include
the hiring manager. Develop a job description that delineates the key
responsibilities and outputs of the position. Then, define the behavioral
characteristics of the person you feel is your ideal candidate. Finally, list your five -
ten key responsibilities and characteristics you will use to screen resumes, perform
phone screens and eventually, establish the questions for the candidates you
interview.

2. Tap Your Employee Networks in Recruiting Candidates: Spread word-of-

mouth information about the position availability, or eventual availability, to each
employee so they can constantly look for superior candidates in their networks of
friends and associates. In this age of online social and professional networking, the
chances are, you and your employees are instantly connected to hundreds, and even
thousands, of potential candidates. Tap into this potential audience on Facebook,
LinkedIn, and Twitter, to name just a few.

CASE STUDY ON RECRUITMENT ISSUES 4

 3. Take Advantage of Your Industry Contacts, Association Memberships and
Trade Groups for Recruiting Candidates. Pay for employees to participate in and
network in industry groups, conferences and trade shows. Periodically, create master
lists of industry leaders and other potential employees from customers, colleagues,
coworkers and friends. Develop a plan for contacting these people systematically and
regularly. Be prepared to share your job description with them through mail, email,
on the Internet and by fax. Follow up on every good lead.

4. Use Your Web Site for Recruiting Candidates: Does your "Join Our Team"
section of your company Web site tell and even, "sell” potential employees about the
vision, mission, values and culture of your company? Do you present a message
about how people are valued? Do you express your commitment to quality and to
your customers? If not, you are missing out on one of the most important recruiting
tools you have to appeal to prospective high-potential employees. Recruit Using the
Internet: The Internet, in addition to your own organization Web site, is in its
infancy in terms of its usefulness to employers, potential employees and society, in
general. Learn how to use the Internet to find and attract great candidates.

5. Maintain Frequent Contact With Interested Candidates. Don't let these

potential employees submit their resumes and never hear from you again either.
You'd lose all the momentum you just spent time developing with the favored few.
Just as recommended, with employee networks and professional contacts, continue
and nurture the relationship.

6. Become an Employer of Choice for Recruiting Candidates: Think about

what a potential employee considers before agreeing to join your organization or
business. Are you stable, making money and growing? Are you employee-friendly?
Does your mission catch the mindshare and/or the heartstrings of the people you most
want to recruit? Will a new employee feel part of something bigger than themselves
if they join you? Will your organization nurture their talent and provide exciting
opportunities for challenge and professional growth.

7. Use Headhunters and Recruiters: Sometimes, it is worth your time to use

headhunters, recruiters, and employment placement firms. The best firms have done
much of this homework and candidate pool development for you. Expect to pay 20-
35 percent of the cost of the new recruit's annual salary. But, for some positions, and
in some industries, the cost in your department's time and the time invested in a
possible failed search, are worth it.

8. Use Temporary Agencies and Firms for Recruitment: Consider using

temporary staff as a solution to "try a person out in a position" or to staff a position
you are not sure you need for the long haul. Temporary employees can also provide a
useful buffer for the ups and downs of the business cycle so that you do not have to
affect your core staff during down times.

Temp firms will recruit and screen to your specifications and guarantee your
satisfaction. They save your staff immense amounts of time as they provide testing,
drug screening, reference checking, background checks, and anything else you'd like,
for a nominal fee. By the time I meet the selected group of candidates, most of the
work, other than a personal job interview, has been completed for me.

CASE STUDY ON RECRUITMENT ISSUES 5

 9. Find Out Where Your Ideal Candidates Live: Identify what your needed
candidates read; notice the Web sites they visit; study the lists on which they
participate; determine the industry magazines and newspapers they read. Identify
their favorite news sources, forums, discussion groups, and places to practice social
networking. In other words, find out everything you can about the types of people
who make up the top ten percent of your current employees and the best of your
talent pool.

10. Just One More Thought about Recruiting Employees – Publicity: Here's a
bonus thought about recruiting great employees: The publicity your organization
receives in the news media, in print, on television, on the radio and online is
tremendously important for recruiting. A few good words, an interesting article or a
piece about your mission that reflects your organization in a favorable light, will
result in potential employees coming to you. And that, in my way of thinking, is the
best way of all to find great potential employees for your candidate pool.

MAJOR ISSUES IN RECRUITMENT

1. Candidate in Demands: With the recruitment market expected to remain

buoyant skills shortage relief is unlikely to occur. A major component of business
success in the future will be the ability to source suitably qualified and experienced staff,
particularly in areas where demand is strongest.

2. Sector Flexibility: Flexibility surrounding candidate potential is critical to

successful employment. Yet employer expectations regarding specific sector experience
remain high and this limits the number of potential suitable candidates. A candidate who
has the desired “fit”, attributes and skills but lacks experience within a certain sector is
still more than capable of fulfilling a job function.

3. Retention: As the war for talent continues to intensify, retention will become an
increasingly important priority for employers. Some employers are already utilizing a
range of retention strategies, predominantly based around non-financial incentives, but
while those strategies differ from business to business, their aim is the same – to combat
the increasing skills shortage and ensure future business success.

4. Generation Y: Generation Y are the young recruits of today who are the future
of our skilled candidate base. But this generation differs from the remainder of today’s
workforce in many ways. Many of the old rules of recruiting will not work for
Generation Y and employers need to understand how to mange, motivate and retain these
candidates to compete for them in the future.

5. Recruitment process duration: Candidates with a strong skills base and

experience are employed very quickly. Consequently employers are disappointed when
delays in their recruitment process result in losing quality candidates to a company with a
more timely recruitment campaign. Employers therefore need to ensure their recruitment
process is smooth and timely in order to secure the strongest candidates.

CASE STUDY ON RECRUITMENT ISSUES 6

6. Salaries: While there were individual hotspots, in 2005 the skills shortage
predominately had less impact on salaries than in previous cycles and the focus was
instead on benefits. However as the supply of skilled and unskilled labor remains limited
and the impact of those shortages is more widely felt, pressure on salaries is likely to
occur during 2006.

7. Counter offers: Company knowledge (and a likely higher replacement cost) is

an asset employers cannot afford to lose and we therefore expect an increase in counter
offers for resigning staff, despite the fact their success is rare. If a counter offer is
accepted we still caution concern as the original motivation for looking for another role
will remain unless addressed.

8. Flexibility: A notable number of potential employees prefer or need employment

with flexible options to balance work and personal commitments. Consequently, for
those jobs where flexible approaches can be incorporated, employers are able to access
the widest possible talent pool. Common flexible staffing approaches include the
employment of part-time and casual staff, job sharing and flexible working hours.

9. Aging workforce: There is an ongoing increase in the levels of jobseekers aged

over 45. In previous years many of these candidates were absorbed into the temporary
recruitment market, however in the permanent market these candidates remain an
underutilized resource. Hopefully 2006 will see a reversal of this trend as it currently
remains a significant issue in the recruitment landscape.

10. Employment branding: The pressure is now increasingly on employers and

recruiters alike to adjust their approach to potential candidates and be more proactive in
their recruitment efforts. This includes re-examining their employment branding which is
a critical feature in attracting the right people to an organization.

11. Off-shoring: With some major Australian companies looking to offshore large
portions of their banking operations, there will be a significant impact on the local
market with a reduction in demand for banking operational skills such as transaction
processing and call centre functions in particular. This may also impact the opportunities
for entry-level banking candidates.

12. Training & development: In the recruitment market of 2006, not only is
attracting, recruiting and retaining the best possible talent for an organisations short term
needs more important than ever, but far sighted organisations recognise they need to
recruit for the future by investing in the training and development of individuals who fit
the culture of the company and can develop the skills needed to meet the organisations
needs in the longer term.

CASE STUDY ON RECRUITMENT ISSUES 7

 A CASE STUDY ON RECRUITMENT DILEMMA

The case is about A&G Ltd., which is a leading company in energy sector. The company
follows a vertical organization structure to deal with varied customer oriented demands. It
operates in foreign countries also in order to serve maximum number of customers. They
believe in “customer is god”, kind of philosophy and for the same they always choose best
talent and policies to retain them with the organization.

The company follows quarter system. At the end of second quarter it realized need of a
Supply Chain Manager for its Mumbai branch. They released a job description with the help
of tools of recruitment.

Finally they got an interested candidate who is meeting all the needs of job description and
job specification. That person is currently working with another competent organization in
the same sector. The company released a joining date for the candidate in order to minimize
its recruitment conversion cycle. While on the other hand, the current boss of the candidate is
not relieving him so as to join A&G Ltd. on given date.

The candidate have discussed the problem with the HR and requested him to extend the date
of joining to 15 days. In reply the HR has not given any conformed answer. On the next day
A&G Ltd. have appointed a new person on the place of that candidate without any
information to him while knowing the rule of relieving that if a company do not relieves am
employee on his request, he/she will be relieved automatically after three months(notice
period) without having any experience certificate.

In this condition becoming non-flexible in the recruitment process, the A&G Ltd may loose a
deserving candidate and the perspective growth too.

“One should realize the dilemma which goes deeper than shortage of time; it is basically a
problem of priorities. One should confess, that they have left undone those things that ought
to be done; and they have done those things which they ought not to be done.”

CASE STUDY ON RECRUITMENT ISSUES 8