Recruitment of a Star

Case Analysis:

Recruitment of a Star

PROBLEM STATEMENT

To recruit a suitable replacement for RSH’s star analyst Peter Thompson

PESTC Analysis

Political – Nil

Economic:-

Increased shuffling of jobs.

Social:-

The environment required rigid competencies, high stamina, great communication skills,

and frequent client interaction.

The industry average retirement age was approximately 45 to 50.

Technological:-

Intensive use of technologies in research.

Due to high competition, staying updated with latest technology provided the edge for

firms against its competitors.

Many analysts were expected to provide prompt response to clients’ needs and come up

with latest financial instruments benefitting both company and clients.

SWOT of RSH:

Strengths:-

1. Work culture- Many analyst and industry experts believed that RSH work culture was

one of the main competitive advantages. This is so as the company gave space to its

analysts to work and allowed and encouraged team work. This ensured the employees felt

secured about their job thereby addressing the employees need for safety and social

needs.

2. Working in team helped to co-ordinate and achieve more. The employees felt that being

part of a team served them well. The company hence satisfied their need for affiliation.

3. The interpersonal relations among employees were good and ensured harmony among

them.

4. With seniors helping juniors learn about the industry the work culture was informal and

the development process addressed employees need for achievement and self-

actualization.

5. Both the company and the employees believed that the quality of the research and success

of the department depended on team work. The employees displayed OCB and there was

a high employee engagement. This ensured that the productivity of the department was

high and also the employee turnover was low.

6. The awards at RSH were on performance of individual and team’s performance. Hence

the employees experienced equity at RSH. This led to loyalty of employees towards the

company.

Weaknesses:-

1. They don’t have any back up options for their semi-conductor senior analyst. As the

employee turnover is low the company takes long time to fill the vacant position.

2. Being a big firm and to avoid attention of other companies towards a vacant position they

have to rely on third party recruiters. This is time consuming.

3. The company finds it difficult to find people who can match the talent requirement and

also fit into company’s team culture.

Opportunity:-

1. Upcoming deal with Power Chip Company

Threats:-

1. Rival companies poaching talent pool of RSH.

2. Heavy dependence on one analyst for the semi-conductor.

SWOT for Peter:-

Strengths:-

1. High analytical skills and a sharp mind for stocks.

2. Go getter, dependable to assign work.

3. Proactive. Took lead in taking projects.

4. Star performer both with clients and at II.

5. Attracted many clients owing to his intelligence.

Weaknesses:-

1. Lone worker. Other team members grew uncomfortable working with him.

2. Very competitive nature that made team members feeling unsecured in his presence.

Threats:-

1. Peter’s departure from the firm might cause RSH to lose some customers.

2. With a big deal coming up with Power Chip Company, loosing Peter at this time can

harm the prospects of the deal.

3. The market being very competitive will try to lure other analysts and assistants from RSH

causing further problems for RSH.

Factors:-

Ability to build relations with Sales force, traders and buy side Willingness to work in teams and guide junior analysts Access to upper management in companies Achieving, go getting attitude Analytical Skills Communication skills Industry knowledge Institutional Investor rankings Writing of reports

Client oriented service (accessibility and responsiveness) Stock selection Industry connections

Critical Factors:-

Ability to build relations with Sales force, traders and buy side Willingness to work in teams and guide junior analysts Access to upper management in companies Industry knowledge Institutional Investor rankings Client oriented service (accessibility and responsiveness) Writing of reports Stock selection Industry connections

Constraints – Company cannot commit to give anyone fixed salary as Semi conductor industry is a very volatile industry. It experiences different amount of growth year by year.

SWOT of Individual candidates:-

David Hughes

STRENGTHS WEAKNESSES

Celebrity in Wall Street

Ranked 1st four times, 2nd five times

and 3rd or runner-up for six times

Vast industry knowledge and rare

interpersonal skills

Close relations with client

Team player and excellent mentor

Growing old

Unable to fully use technology

Relies heavily on assistants

OPPORTUNITIES THREATS

Expand the client base on his

reputation

Better guidance of junior members in

the firm

Change of his personal priorities

Might retire soon

Lacks stamina to do work

Takes the work as a new challenge

which can get the best out of him

Gerald Baum


Highly enthusiastic in semiconductor

industry

Ranked 11th within 18 months of

joining as per II.

Exceptional work and client service

Great skill set as what industry needs

Maintains active travel schedules and

replies promptly

Changed companies before landing at

Gotz and Loeb

Negative attitude towards employer

and co-workers.

Mistreats his subordinates

Compensation as reward and source

of motivation


Already a star and expected to rise in

ratings in future.

Enjoys working at large institutions,

hence can leverage the resources

provided by the company.

Will switch company if paid higher

Spoil the existing team building

process

Less respect for organization culture.

Sonia Meetha


Recognized as “up-and-comer” by II

Technical and sales background

Excellent writer

Emphasizes on global markets

Dedicated towards career

More emphasis on culture which is a

key feature of RSH

Worked for a small company (WSH)

Needs lot of flexibility

Not willing to travel


High potential to become high ranked May not be able to cope up with fast

Can get many clients with her

connections

track work

Changes her priority to parenthood

Seth Horkum


Rated as runner up in II

Close contact with Buy side

Loyal to firm

Experienced in networking with sales

and trading.

Dedication towards work

Highly confident to grow up in

rankings

Needs to improve on report writing

Got ranked for the first time


Right platform to achieve star status

in II.

Makes maximum use of resources

available at the firm

Could be misused

Could be attracted other firms

Reena Shea


Good technological expertise

Well versed with organization culture

Continuous improvement

demonstrated in work

Relies on senior analyst in technology

group

Introvert and less assertive

Not recognised by II


Fast adaptability to changing

atmosphere.

Growing experience in industry.

Mistake prone

Higher management not willing to

accept her as a replacement.

Analysis of Critical Factors:-

Critical Factor Gerald Baum David Hughes

Sonia Meetha Seth Horkum

Reena Shea

Ability to build relations with Sales force, traders and buy side

Moderate

High (regarded as star in industry, which makes this easy)

Moderate High Moderate

Willingness to work in teams and guide junior analysts

Low Moderate High Moderate High

Access to upper management in

companiesLow High Low Moderate

Moderate (as higher mgmt. did not want her to be Senior Analyst but she had good rapport with middle mgmt.)

Industry knowledge

High Very High Moderate Moderate High

Institutional Investor rankings

Low High Moderate Moderate Low

Client orientation (sales skills, willingness to travel, accessibility)

Low ModerateModerate (Not willing to travel)

Very High

Moderate

Writing of Reports

High High Very High High Moderate

Stock Selection High High Moderate High ModerateIndustry Connections

Moderate High Moderate High Low

Options:-

Replace Peter by another candidate from the 4 external candidates available.

Retain Reena as a senior analyst permanently

Recommendation:-

After weighing in the pros & cons of hiring various candidates, we feel that David Hughes &

Seth Horkum are the most appropriate candidates for the position of Senior Analyst.

Gerald could have been a good choice but he doesn’t fit well with the culture of RSH.

Reena Shea seems to be inexperienced for the position. Stephen is right in considering her for the

senior analyst position of a smaller industry. This will give her the exposure & the confidence to

take on future leadership roles in the organization.

Out of Seth & David, Seth seems to be a better choice, though David’s experience cannot be

discounted. But if long term prospects of the organization are to be taken into consideration then

hiring a younger talent would prove to be more beneficial. RSH’s platform could propel Seth to

star rankings & make him a loyal asset for the company. Thus in our view Seth should be offered

the Senior Analyst position for the semiconductor industry.

Recruitment of a Star

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