“How to Hire Great People--Every Time”

Its all about getting a perfect match of Knowledge, Skills & Employability, between the Prospective Employers & Employees.

Problem Identified

• How to Hire Great People

• Everytime

• Solution:We need a Process

ProcessStage 1: Planning

Identify need for recruitment (open

position)

Develop JD

Activities, sources and timelines

Select interviewers

Stage 2: Recruitment

Job posting, attract potential employees

Initial Screening

Interviews

Stage 3: Finalize

Select from interviewed pool

Reference checksNegotiation and Roll

out

Recruiting • Always interview at least three people for a position.-The

more people you interview, the greater the selection of choices you will have, and the more likely it is that you will make the right choice.

• Interview the candidate you like in different places. It is amazing how the personality of a person can change when you move the interview setting from your office to a coffee shop across the street.

• Have the candidate interviewed by at least three different people for a Review.

Cost of the Process vs Return on Investment (ROI)

• Now that we identified a process for hiring great people , we need to evaluate the Business Case for this to evaluate the Profit.

• The following approach is considered for the Business Case:

Cost of the Process vs Return on Investment (ROI)

Cost of the Process vs Return on Investment (ROI)Stage Steps Involved Cost

(Man Days)

Cost (Rs)

Stage 1 - Planning

Identify need for recruitment (open position) 2

Develop JD 0.5

Activities, Sources and Timelines 0.5

Select Interviewers 0.5

Stage 2 - Recruitment

Job posting, attract potential employees 2 500

Screening Candidates 1

Interviews 4

Stage 3 – Finalize

Select from interviewed Candidates 1

Reference Checks (Outsource) 100

Negotiation and Rollout 1

Total 12.5 600

Assumptions• Cost of Background check assumed at Rs.100/ candidate based on data from discussion forums•Portal cost assumptions• Rs. 50000 - annual subscription• 100 candidates recruited per year• Hence, cost per candidate is Rs.500

•Man days to Rupees Conversion• Average salary of employee is 10 LPA• Average salary of employee per man day is Rs.3333(10 L/300 working days)

Category Cost(Rs.)

Man days (12.5 man days) 41666(12.5*3333)

Subscription and other costs 600(100+500)

Total Rs.42266

Cost of Recruiting wrong candidate•Entire hiring process needs to be run again (for hiring a fresh candidate as replacement) : Rs.42266•We lose a 6 month period (assumption based on research) before we realize the candidate selected is a wrong hire• 150 man days (Rs.499950)

•Probability of a candidate being a wrong hire is 0.2 (1 out of every 5 hires).

•So, total cost is :Specifications Cost

Iterating Recruitment process

42266

Lost Time due to wrong hire

499950

Total cost 542216

Net cost (probability of 0.2)

108443.2

Business Case Evaluation

Cost of Following process for “Hiring Great People Always”

42266 Rs

Cost of “Not Hiring Great People Always” (cost of not following process and hence hiring wrong candidates)

108443.2 Rs

• Cost of Hiring a Wrong candidate is always higher than the cost of Hiring a Right Candidate