Talent related challenges for Small and Medium businesses

Indian small companies often face several talent-related challenges that can hinder their growth and competitiveness. These problems arise from structural issues in the labor market, the business environment, and organizational practices. Here are some of the key talent problems they encounter:

1. Attracting Talent

• Competition with Larger Firms: Larger corporations, multinational companies, and startups with better funding often attract top talent with better compensation, brand recognition, and growth opportunities.
• Location Disadvantages: Many small companies are located in non-metropolitan areas where the talent pool may be smaller, making it harder to find the right candidates.
• Limited Resources: Small companies often don’t have the resources for sophisticated recruitment strategies or the ability to offer competitive salaries and benefits.

2. Skill Gaps

• Mismatch between Education and Industry Needs: Many Indian graduates may not have the necessary skills or practical experience for the job market, particularly in industries like IT, engineering, and manufacturing.
• Emerging Technology Shortage: With rapid technological advancements, smaller companies may find it hard to source professionals with cutting-edge skills (AI, machine learning, blockchain, etc.).

3. High Employee Turnover

• Retention Struggles: Employees, especially young professionals, often see small companies as stepping stones, moving on to larger companies or those with better prospects after gaining some experience.
• Limited Career Growth: Small companies might offer fewer opportunities for career advancement, which makes retaining high-potential employees difficult.

4. Training and Development

• Lack of Training Programs: Many small businesses don't have the infrastructure to develop talent through formal training and upskilling programs, which limits employees' potential for growth within the company.
• Cost of Training: Investing in training and development can be financially burdensome for small companies. When employees leave soon after being trained, it compounds the problem.

5. Employer Branding

• Weak Brand Image: Small companies often struggle with employer branding, making them less appealing to potential candidates who may be unaware of their existence or their unique value propositions.
• Limited Recruitment Networks: They may not have access to the same recruitment platforms, industry networks, or placement cells that larger companies utilize.

6. Cultural Fit and Management Style

• Mismatch of Expectations: Many small businesses have more informal structures and decision-making processes, which may not appeal to all candidates, especially those with experience in larger, more structured organizations.
• Workplace Culture: The smaller workforce and lack of professional HR departments in many small companies can lead to issues with workplace culture, including unclear role definitions, inconsistent performance management, and communication breakdowns.

7. Compliance and HR Expertise

• Limited HR Support: Small companies often lack a dedicated HR team or proper policies in place for performance management, employee engagement, and legal compliance.
• Legal and Regulatory Challenges: Keeping up with labor laws, tax regulations, and employee benefits can be overwhelming for small businesses without the proper HR expertise, leading to potential compliance issues.

8. Limited Access to Specialists

• Challenges in Hiring Specialized Roles: Positions requiring specialized knowledge or high-demand skills (such as marketing strategists, data scientists, or supply chain experts) may be difficult to fill due to the limited budget and lack of visibility.

9. Work-Life Balance and Benefits

• Inadequate Benefits: Small companies might struggle to offer attractive non-salary benefits like flexible working hours, health insurance, or retirement plans, which many talented employees seek.
• High Workload: Employees in small firms often have to juggle multiple roles and responsibilities, leading to burnout or dissatisfaction over time.

Potential Solutions

While the talent problems are significant, there are ways Indian small businesses can overcome them:

1. Leverage Internships and Apprenticeships: Offering internships and apprenticeships can help build a pipeline of talent, while also allowing the company to train potential future employees.
2. Outsource Non-Core Activities: Outsourcing certain roles (HR, accounting, IT services) can allow small businesses to focus on their core operations while accessing expertise without having to hire full-time.
3. Emphasize Culture and Flexibility: Small companies can offer personalized work cultures, greater autonomy, and flexibility, which can be a strong draw for certain candidates.
4. Partner with Educational Institutions: Collaborating with universities, training institutes, or technical schools can create a sustainable talent pipeline.
5. Invest in Employee Development: Even with limited resources, offering mentorship, on-the-job learning, or partnerships with external training providers can improve employee satisfaction and retention.

By addressing these issues creatively, small businesses in India can better compete in the talent marketplace and secure the skilled employees they need to grow.

Leadership Hiring - Industry Facts & Trends

 Leadership hiring is a critical and nuanced aspect of talent acquisition, focusing on identifying and attracting individuals who can drive organizational success. Here are some industry facts and trends related to leadership hiring:

1. **Executive Search Firms**: Around 60% of leadership positions are filled through executive search firms. These firms specialize in finding high-level candidates and often have extensive networks and expertise in evaluating senior leaders.

2. **Diversity in Leadership**: Companies with diverse leadership teams are 21% more likely to experience above-average profitability. Diversity in leadership is increasingly seen as a key driver of innovation and business success.

3. **Time to Hire**: The average time to fill a senior executive position can range from 6 to 9 months. This is significantly longer than the average hiring timeline for other positions due to the complexity and strategic nature of these roles.

4. **Assessment Tools**: Approximately 70% of organizations use formal assessment tools for leadership hiring. These tools can include psychometric tests, 360-degree feedback, and simulation exercises to evaluate candidates' leadership qualities and fit.

5. **Internal vs. External Hiring**: About 30% of executive positions are filled internally, while the remaining 70% are sourced externally. Companies often balance internal promotions with external hires to bring in fresh perspectives and new skills.

6. **Candidate Experience**: In leadership hiring, candidate experience is crucial. Nearly 50% of senior candidates who have a poor experience during the hiring process will share their negative experience publicly, which can impact a company’s reputation.

7. **Cultural Fit**: For leadership roles, cultural fit is as important as technical skills. Around 60% of executives are hired based on their alignment with company values and culture, rather than just their professional qualifications.

8. **Leadership Succession Planning**: Companies with strong succession planning are 1.5 times more likely to be effective in their leadership hiring. Effective succession planning helps ensure that there is a pipeline of potential leaders ready to step into key roles.

9. **Compensation and Benefits**: Leadership roles often come with significantly higher compensation packages. In 2023, the average compensation for a CEO in the U.S. was around $350,000 base salary, with bonuses and stock options potentially doubling the total compensation.

10. **Global Talent Pool**: In today’s interconnected world, leadership hiring is increasingly global. Companies are more frequently looking beyond national borders to find the best leaders, which can introduce additional challenges related to cultural differences and relocation.

11. **Technology Integration**: Over 50% of organizations now use artificial intelligence and data analytics to assist in leadership hiring. These technologies can help in sourcing candidates, assessing fit, and even predicting leadership effectiveness.

12. **Onboarding for Leaders**: Effective onboarding is critical for leadership roles. Research shows that leaders who receive structured onboarding are 50% more likely to stay with the company for at least three years compared to those who do not.

Leadership hiring is a complex and strategic process, involving careful consideration of a candidate’s fit with both the role and the organization’s long-term goals.

Agency Recruiters Can Learn a Thing or Two From Corporate Recruiters

Agency Recruiters Can Learn a Thing or Two From Corporate Recruiters

It’s round two in the battle of who can learn what from whom. The battle continues between corporate talent acquisition and agency and executive recruiters. It’s easy to sit back and say that corporate recruiters have it easy and that agency and executive recruiters have the only legitimate experience when it comes to “hard-core recruiting”. Well, there is another point of view. If you manage an agency you may want to take note and use some of this information in your next staff training.

It is true that agency recruiters and executive headhunters are hungry and thus motivated to be better sales people when it comes to finding new clients and sourcing candidates. Their paycheck depends on their ability to sell to both candidate and employer. If they aren’t excellent at their job they just simply won’t make enough money to continue working as an agency recruiter or headhunter. Natural selection weeds out the weak, so the only ones left are necessarily pretty good at sales and negotiation. So, from the sales aspect agency recruiters will “win” for having generally higher motivation, sales techniques, and negotiation tactics.

However, there are many business skills that excellent corporate recruiters have that a lot of agency recruiters don’t.

“Easy recruiting”- Agency recruiters are often called in to fill highly complex and difficult roles, whether specialized software engineering roles or sophisticated executive positions. Corporations will rarely pay 20% of salary to find an account executive, customer service agent, administrative assistant, or accounting clerk. Agency recruiters can easily dismiss this type of recruiting as easy. However, far from being easy, hiring these types of roles (especially in volume) requires finesse, careful planning, and thoughtful technical execution.

Do agency recruiters know how to handle 50 job applicants when most of the 50 are actually qualified? Do they know how to hire 100 positions or fill 10 different jobs in 4 different locations? How about hiring jobs with zero job qualifications except for having a good work ethic? These types of jobs without a significant level of talent scarcity pose their own unique challenges. Corporate recruiters must develop workflows and hiring techniques to deal with these issues. It’s a world that most agency recruiters don’t have to worry about.

Creating Brand Identity- Corporate talent acquisition must work to create a world class recruiting brand that will ensure they receive a steady flow of candidates. They put to use their brand and marketing skills by having presence on college campuses and other outlets, succinctly creating messaging around their “employer of choice” brand, and they have to fight any sort of negative publicity that may impact a candidate wanting to accept a job with them.

Think about how difficult a recruiter’s job is if the CEO was just fired for embezzling millions of dollars? What could a recruiter say to “save” a candidate if a major lay-off had just occurred, or earnings were missed by a substantial amount, or an IP lawsuit had just been filed? Perhaps most challenging: what if the company is just kind of boring or is in a lackluster industry? A recruiter must block and tackle any negative publicity while building upon a positive brand identity and make sometimes boring positions sound exciting. They have to create sizzle, whereas agency recruiters are often recruiting on hard-to-fill and often already “sexy” positions – and corporate recruiters have to do this day-in, day-out for the same company.

Jack of All Trades- A Corporate recruiter has to learn a little about everything in their company. They must be flexible and quick to learn to a degree in order to be able to source the right candidates for those niche positions. They also need to sell positions in departments they may know nothing about and have little to no interest in. It’s only at the largest company’s where recruiters get the “luxury” of specializing in a specific type of recruiting. Any company with less than 1,000 employees a recruiter is almost certainly recruiting for anything from an hourly admin, to a software developer to another HR person. That’s not easy! It’s involves expertise in the actual process of hiring and selection and not just specific trade or industry experience.

Mavens of Cost Containment- Let’s face facts. The corporate recruiting department isn’t generating any revenue. If a company has to look to cut costs and potentially outsource, the HR staff have targets on their backs larger than most other departments. They need to prove their worth and continuously improve their processes in order to justify their costs. This may mean putting up with an archaic recruiting database, being understaffed, and not having access to today’s best recruiting tools. If a company can’t justify additional costs to assist the recruiting team, they have to overcome those challenges and make do with what they do have. In parallel, the corporate recruiter has to constantly justify their existence and fight off hiring managers whims to hire outside consultants or agencies which could drive up the costs the recruiting department is try to curtail.

Operational Expertise- Corporate recruiters need to understand not only what positions and departments do, but how this fits into budgets and overall company operations. Agency recruiters will often master what particular professions do during the day and what makes a great candidate for that position, but they won’t develop knowledge of talent mapping and forecasting, budgeting, and turnover challenges. Knowledge of these internal processes by which hiring happens is an incredible asset – it is often what distinguishes senior professionals. Corporate recruiters know everything that has to happen in order for a job to open and what happens after it is filled; agency recruiters are often knowledgeable only about what happens in between. In this way, corporate recruiters can often be said to have a better understanding of business, unless agency recruiters are involved with their own internal operations.

Compliance- Lastly, corporate recruiters are HR professionals. They must have a detailed understanding of employment law, and are furthermore often involved in employee issues outside of recruitment. In theory, agency recruiters should be experts at all things recruiting (which includes legal and compliance matters.) However, in practice, the focus on sales often takes precedence over HR issues, and many times, over ongoing education in general. If agency recruiters develop expertise in this area, they can not only impress corporate recruiters, but get more involved with positions “higher up the food chain” that involve a sophisticated level of legal and compensation understanding.

The bottom line is that both corporate and agency recruiting jobs have their challenges and nuances which others can learn from. Agency recruiters can look at some of these areas and incorporate them into their ongoing education. When agency recruiters develop some of this knowledge and competence while keeping their “killer edge,” they can go really far in the recruiting industry and experience a lasting high level of success and career progression.

Source: http://www.recruiter.com/articles/agency-recruiters-can-learn-a-thing-or-two-from-corporate-recruiters/

Hiring Talent - Finding the Best Professionals is Sometimes Best Done by Professionals

Hiring Talent - Finding the Best Professionals is Sometimes Best Done by Professionals

When it comes to hiring talent for your business, you need to make sure that you are able to go out and find the best resources available. If you aren't prepared to do this, it is often a good idea to let the professionals help you find the best professionals for your company. Talent hiring services will help to determine which people are most qualified, what skills they possess, and get a serious implication of what they have to offer without affecting your company or making you feel like you're obligated to hire them because they are good at what they do. In order for your company to succeed, you have to have the best of the best on staff. If you can't find them on your own, let talent recruiters do it for you.

The goal, of course, is not to hire some drone that can show off the perfect resume and do nothing but focus on work and accomplishing goals all day. A person who is too uptight and professional might actually be a bad thing. Therefore, when you are hiring talent, you should consider looking at their aptitude for the job as well as their attitude about the position that you have to offer. If people are very tense, stale, and don't give off a balanced personality, you might want to keep looking. You already have a team in place within your business. No matter how professional it is, there is a sense of togetherness there.

When you hire an outsider to come into the company, it is always helpful if they are able to get along with the existing team, which is why attitude even matters when it comes to hiring talent. They need to fit the mold that you have created and be able to mesh with the team that is in place so that they don't create a lot of controversy or uncomfortable situations in the workplace. Figure out things like how people work with teams, what motivates their work habits and other personality-related issues to get a sense of which applicants will fit well.

Hiring talent is a stressful enough process as it is. By taking the time to learn about how to find the best in people's qualifications as well as their attitudes, you will have a much better chance of finding the best employees for your business. If you're not able to step back and find this perfect employee, consider working with outside performance management services that can help you recruit the right person.

ref: http://ezinearticles.com/?Hiring-Talent-Finding-the-Best-Professionals-is-Sometimes-Best-Done-by-Professionals&id=3708204&utm_source=twitterfeed&utm_medium=twitter

Tapping Top Talent in a Downturn

Tapping Top Talent in a Downturn

HR leaders often are faced with the task of downsizing in one business unit and recruiting highly skilled professionals in another. They have to cope with an exponential increase in applicants for a much smaller number of open jobs, maintain morale in constantly shifting external and internal environments and help their organizations retain key employees. This must be done with reduced recruiting and HR staffs and slashed budgets, at a time when brand image is a critical success factor.

Today, more than ever, organizations must recruit and select the best talent where they have openings and upgrade talent in areas where it will advantage the business. Change in the business environment has happened so fast, many organizations have been slow to adjust and take action. In the current economic climate, it is necessary to take a step back and evaluate workforce plans, as well as talent acquisition processes and enabling technology and determine a strategy that works for the organization in the new recruiting reality.

A Fresh Approach

The biggest mistake an organization can make in this challenging environment is to let down markets drive its vision and shut down recruiting completely. Don't ignore reality. Take a well-planned, creative approach to workforce planning and talent acquisition.

When recruiting departments are faced with more work and fewer resources, build in efficiencies, maximize existing tools, eliminate waste from existing processes, innovate, manage vendor relationships and establish strategic partnerships.

Consider the following steps:

1. Re-evaluate recruitment marketing strategies.
Don't stop running ads and posting jobs, but do be strategic and take a planned approach. The market has shifted from a scarcity to an abundance of candidates in a very short time - adjust accordingly. Don't overspend or spend in the wrong areas. Now is a great time to be out in the market as the competition for talent is much lower. Take advantage of it.

Also, renegotiate existing vendor relationships; don't pay last year's rates this year. There will still be skill shortages and geographic recruiting gaps, so rewrite copy and spruce up the company's look. Speak in a genuine voice for the organization by working with the marketing department.

2. Leverage the hidden gold mine.
Arguably the most commonly overlooked tool in any organization is its existing database. A real gold mine of information, the resumes collected by recruiters and HR staff during the past few years should provide great leads on passive and active candidates. For instance, run a Boolean search on the company's internal ATS database.

3. Improve competitive insight.
Leverage candidate interviews to collect market data on competitors. Actively call leads and network to gain insight into their knowledge about competitors. As talent managers interview candidates from competitors, gather critical information to help position the company to win in the market.

4. Tap the current employee pool.
Take a fresh look at the existing employee pool. Which individuals shine in the downturn? Identify individuals who have been interested in gaining experience in other functional areas and who would be willing to wear two hats during difficult times.

For the right employees, the current climate might provide real opportunities to gain much needed and desired experience in another area. Strong employees will appreciate the opportunity for long-term career growth, and it will show them how much they are valued.

5. Maximize social networking in recruiting.
When used properly, social media networks are an effective tool. The time demand is surprisingly low. If an organization has limited time, choose one or two networks to try. One recommendation is LinkedIn, which is targeted to professionals and requires little maintenance.

6. Automate candidate contact, and employ well-designed self-service.
Tracking down candidates can be time-consuming and frustrating, not to mention costly. Be efficient. One of the easiest solutions is to work with a provider to automate the process. There are myriad tools and software options on the market. The most attractive are those that include auto-scheduling, online minimum qualification screening and telephony/video interviewing platforms. Talent leaders also will want to improve and perhaps automate selection tools to ensure they find those few best needles in the now huge haystack.

Many talent managers can relate to the challenge of responding to the growth in candidate calls to "check status" and a single candidate applying for multiple positions. Turn on auto e-mails. A recent Pinstripe survey showed that less than 20 percent of organizations use that functionality in their ATSs.

Books Are Fun Ltd., a Chicago-based subsidiary of Reader's Digest, and the world's leading display marketer of books and gifts, experienced the benefits of automation firsthand. To meet expansion goals and cover attrition rates, Books Are Fun recruits 250-300 independent sales representatives every year. Before automation, the company's six internal recruiters spent 70 percent of their time screening applicants.

"We knew that the most important part of the recruiting process is the late-stage conversation that we have with a candidate about the job as a lifestyle change rather than just another position," said David Hammond, vice president of sales recruitment. "We needed our internal folks to focus on these late-stage conversations. It was a waste of time for my staff to handle the screening process."

Books Are Fun outsourced the sourcing and screening process to an organization that was able to reduce costs and time to fill by streamlining candidate tracking; managing all recruitment marketing efforts including postings and active and passive candidate sourcing; and accessing additional resources, including community-based recruiting from libraries and organizations, franchise and sales-niche recruiting, various national and regional job boards and TRM contact searches.

7. Find the right candidates from the onset.
Many organizations put too many people through too far in their processes. Design talent acquisition, screening and selection processes carefully and stick with them. Screen people in - and out - early.

"In the past, Books Are Fun offered a contract to the first qualified candidate that appeared. Now we want to offer a contract to the most qualified candidates only," Hammond said. "Our new system generates enough volume of qualified candidates to provide us with real choices."

8. Review the funnel and revise processes.
An organization may have fewer openings, but now there will be more people applying, which will significantly increase the amount of time spent screening and responding to applicants. This can exhaust an HR team, particularly one that recently reduced staff, and could increase effective cost per hire.

Adopt a high-volume recruiting model to process a high volume of candidates in a time of low job requisitions. Technology enables the process in a candidate friendly way. Move online prequalifiers to the top of the funnel, and save the paid online screens and assessments for the spot where the funnel is slimmer.

Books Are Fun revised its process and brought about significant improvements, including a 45 percent decrease in costs, a decrease in time to fill from 52 to 42 days and clear recruiting metrics including weekly summaries, pipeline reports, hiring funnels and detailed process maps.

9. Protect the brand.
When an organization is one of a few that is hiring, and getting 500 resumes for every job posted, process change is necessary. Work with experts to ensure the company doesn't miss good people or alienate future prospects and customers. This is particularly important if an organization is a major consumer brand, and every applicant also is a consumer.

Be polite and respectful every time. Companies are not usually good at this, and HR will find it especially important to partner with marketing and hiring managers when everyone is being asked to do more with less.

Times are tough and the human resources function is on the frontlines of the battle. But remember, every downturn yields winners and losers. Some organizations will not merely weather this storm; they will seize the opportunity to emerge as a more efficient and successful.


[About the Author: Sue Marks is founder and CEO of Pinstripe Inc., an HR and recruitment process outsourcing firm serving large- and middle-market domestic clients, as well as the Global 5000.]

Improving Returns on Talent

How should companies approach and formulate a talent strategy focused on better returns.

Organisations have worked over the years towards efficiently managing and monitoring returns on capital and assets. This has been an important role for the CEO and top management in years of boom and downturns.

However, there remains a great deal of ambiguity over the idea of managing talent as an asset. While organisations commit huge investments in talent and incur heavy costs on it, rarely do CEOs have visibility on the returns on talent employed (ROTE).

Investments in talent

An organisation makes multiple investments in acquiring and utilising its talent effectively. These are:

Time and effort: The man-hours spent by HR managers and others in an organisation in recruiting and managing talent adds up to quite a lot. And this has a cost attached to it.

Operating costs: The largest human resource costs in a company are in the areas of recruitment, training, staff welfare, travel for HR-related processes and so on.

Overall employee costs: This is an aggregation of cost to the company (compensation and benefits) of all employees. These costs are a part of the profit and loss statement of companies and normally tend to increase over time.

These spends directly hit the bottom line of the company. In times of downturns, organisations look at cutting down these spends to reduce costs. Although obvious and intuitive, this approach to improve ROTE has limited benefits and could prove counterproductive in the long run. Considering that any recessionary or slow growth phase is likely to be followed by a phase of rapid growth and expansion, a reduction in talent investment has to strike a balance between short-term pressures and long-term imperatives.

An alternative approach

Companies’ top management have always, knowingly or unknowingly, strived towards improving returns from talent. Their concern and need is to find more comprehensive ways of doing so. But what comes in the way is the absence of a common understanding of what constitutes talent, what kind of returns to expect and what levers must be used to improve ROTE.

Talent constitutes not merely employee numbers but also their capabilities. Hence, ROTE may be defined as the value gained in terms of contribution to business results through effective utilisation of talent and its capabilities while optimally managing talent costs.

The concept of "talent value chain" provides a comprehensive model to view the processes through which talent is employed and utilised

An organisation’s strategic goals along with a well-defined organisational structure are the starting point of the talent value chain. Each link in the talent value chain is a talent lever. Specific actions and initiatives under these talent levers are identified and planned leading to development of a "talent strategy".

Like business strategy, talent strategy addresses the key challenges a company is facing and hence, necessitates a careful examination of business challenges and objectives. It also needs to be adapted and changed to suit changing business environments and goals. Such a talent strategy ensures optimal and appropriate utilisation of talent and hence leads to an improved ROTE.

However, an appropriate and well-articulated talent strategy is rarely found to exist in organisations and hence improved returns on talent seem to constantly elude them. Let us examine three different business scenarios to illustrate the approach that an organisation can use to develop its talent strategy.

Downturn/low growth: An organisation struggling with a downturn or slow growth in its industry is faced with the challenge of optimally managing its assets and costs. Such an organisation should, therefore, employ its talent levers in a manner such that they address this strategic challenge.

In workforce planning, the organisation’s focus should be on optimal utilisation of talent through re-deployment or reducing existing manpower. Similarly, recruitment should either be frozen or highly selective. High performing, valuable employees should be identified from the less productive ones based on performance differentiation. This would help identify both talent which the company must strive to retain and manpower which can be released without a significant impact on company productivity.

Rewards too can be selective. Only those who contribute significantly should be rewarded. Policies should be reviewed to enhance centralisation, wherever possible. Potential development and retention should be geared towards the best-performing talent. Thus, this approach helps improve ROTE through managing costs, optimal utilisation of talent and high involvement of top management.

Rapid growth: Any organisation operating in an environment of rapid growth will look to capture a large share of business. This obviously translates into a key strategic challenge — talent acquisition and development.

In such a scenario, talent strategy is not so much focused on differentiation, as in a downturn/low growth situation, but on the speed of ramp-up for building employee numbers, their skill development and retention across levels.

Rewards and benefits are liberal and aimed at retaining a large mass of the employee base to maintain high productivity levels and build capacity. High degree of delegation for decision-making is dispersed across the management hierarchy to provide control and authority at key positions in the organisation to facilitate quick turnarounds.

ROTE is enhanced through improved skill base availability, development of skills in line with business requirements, and building and maintaining talent capacity. Hence, the talent strategy and initiatives are geared towards enabling the firm to successfully meet growth targets.

Global expansion: As organisations grow and evolve, they are likely to look at global expansion for higher growth. In such a scenario, strategic objectives change dramatically. This necessitates the redesign of the organisation structure and roles and also needs a drastic shift in talent strategy.

The talent strategy in such a scenario is focused on shifting from known practices to redefining talent practices to make them relevant to a global, geographically dispersed entity. Hence, it will focus on redefining recruitment practices to successfully recruit in new geographies, establishing a new employment brand and company identity, adoption of global practices, global standardisation of policies and practices and compliance. These become the key areas to improve ROTE in an international, multicultural context.

Formulating a talent strategy

A structured and sound methodology to formulate and deploy a talent strategy is described in figure 2. The initial phase is primarily to understand the strategic objectives and ensure that there is an appropriate organisation structure, with clearly-defined roles, to support the achievement of company goals.

This is followed by an assessment of the processes in each link of the talent value chain. During this phase, a company may discover a complete absence of a process or gaps in the processes. These constitute the areas of improvement or new initiatives which are necessary to achieve company objectives.

These improvement areas/new initiatives are then prioritised depending on the strategic challenges and goals of the company and the presence of supporting systems/processes. This leads to a talent strategy defining specific steps or initiatives along each link of the talent value chain (talent levers). Based on this, a detailed implementation schedule can be developed with specific initiatives and timelines.

This approach, while simple and easily implementable, can provide disproportionate returns on talent employed. It provides a framework that can be used to ensure that an organisation’s talent is aligned towards achieving its strategic objectives. With such alignment, companies can maximise their ROTE in any industry or economic scenario and gain an advantage over their competitors.

Reference: Business Standard ( Article by: Sona Rajesh & Amit Bajpayee)

Talent Acquisition: Quality of Hire and Passive Candidates Reign Supreme

Talent Acquisition: Quality of Hire and Passive Candidates Reign Supreme

The growing shortage of desired skills is compounded by an increasingly competitive global marketplace and an uncertain economy - all of which combine to force organizations to get more from the same, or less. It's critical that organizations find and lure best-fit talent and increase workforce productivity and retention. While each of these has pre- and post-hire implications, they also can be impacted by an organization's talent acquisition strategy. However, according to recent data from Aberdeen Group, the ability to identify and attract top talent continues to challenge most organizations.

The Shortage and Misalignment of Skills

Aberdeen Group's July benchmark report, "Talent Acquisition Strategies: Employer Branding and Quality of Hire Take Center Stage," revealed the two predominant factors driving talent acquisition at more than 80 percent of organizations surveyed revolves around the competition for skills, the limited supply of skills or both.

In addition to these external pressures, organizations face internal struggles when it comes to effective talent acquisition. Some 46 percent of all organizations - including 56 percent of those that achieved Aberdeen's best-in-class designation (top 20 percent) - cited workforce planning as their top challenge.

The second-highest ranked internal talent acquisition challenge facing best-in-class organizations focuses on the organization's ability to identify, recruit and validate better hires. In fact, 41 percent of best-in-class organizations cite quality of hire as an internal talent acquisition challenge, compared to only 23 percent that rank ability to reach ideal job candidates and time to fill job vacancies as key internal challenges. Laggard organizations (bottom 30 percent) place relatively equal weight on quality of hire, reaching ideal candidates and filling vacancies in a timely fashion.

Best-in-Class Talent Acquisition Strategies

To overcome the aforementioned macro pressures and internal organizational challenges, best-in-class organizations look longer term and focus on enhancing their employer brands, engaging and attracting passive candidates and targeting those who are best fit for their organizations and available job roles.

Best-in-class organizations distinguish themselves in talent acquisition through a mix of processes and technologies that force organizational collaboration, engage existing workers and target their collective efforts on what matters most to the organization. These work collectively to enable best-in-class organizations to achieve extraordinarily average year-over-year performance gains against the key performance indicators.

Key Differentiator: Recruiting Passive Candidates

Aberdeen's research shows talent acquisition in 2009 will be as much internal as it is external to the organization. But both must focus on heightening the organization's employer brand.

Internal strategies will focus on identifying and developing high-potential workers to fill anticipated higher-level vacancies. Best-in-class organizations place greater emphasis on career development, leadership training and flexible work environments to be more attractive to potential hires and more caring of existing staff. Some 68 percent of best-in-class organizations cite promoting career development and professional growth opportunities in recruiting campaigns as a top priority.

Progress against development plans for individuals designated high potential will be measured against the organization's needs to determine if, or when, the position must be filled externally.

External strategies will focus on finding and engaging talented professionals who are not actively seeking new employment. Passive job seekers are not easy to locate, but they represent an important part of a successful talent acquisition strategy. Aberdeen's research found 62 percent of best-in-class organizations are focused on creating or improving a data repository of desirable active and passive job candidates - versus only 46 percent and 35 percent of industry average (middle 50 percent) and laggard companies, respectively.

Whether internally or externally focused, an organization's talent acquisition strategy must create or validate candidates' and employees' perceptions of the organization as a great place to work. Fifty-three percent of best-in-class organizations focus on having corporate marketing and recruiting work together to improve employment branding. An additional 30 percent of best-in-class plan to have this collaboration in place during the next year. The importance of an internal talent acquisition strategy focused on making existing employees feel positive about the organization is highlighted by the following statistics:

a) Employee referrals are cited by all organizations - and 82 percent of best in class - as the top source to find desirable talent.

b) Some 74 percent of best-in-class organizations rank employee contacts and networks in their top three ways to recruit passive candidates, followed by attending conferences, industry events or tradeshows (60 percent) and visiting social networking sites (30 percent).

Best-in-class organizations are more aggressive at communicating job openings and job-role needs to current staff, and 79 percent are more likely to use the corporate Web to showcase the company's culture and opportunities.

Key Differentiator: Collaboration Between Recruiters and Hiring Managers

Collaboration between recruiters and hiring managers is critical to ensure they get the right candidates within an agreed-to time frame. This collaboration is in place at 89 percent of best-in-class organizations, resulting in a mutual understanding of expectations around the process, skills, attributes and attitudes in a desired candidate.


Aberdeen's research revealed a significant disconnect between human resources professionals and the hiring managers they serve. Non-HR managers are more likely than their HR counterparts to rank quality of hire as a critical success metric for talent acquisition. The same data also shows HR professionals are more likely than non-HR managers to rank time to hire as a critical success metric.

While HR and non-HR managers place relatively equal weight on the importance of overall hiring manager satisfaction, the difference in priority they place on quality of hire, quality of candidate and time to fill suggests a lack of understanding on what it takes to satisfy a hiring manager.

The importance of this collaboration is more pronounced when considering that organizations plan to increase hiring managers' involvement in the recruitment process. For example, 48 percent of best-in-class organizations get line managers involved in candidate follow-up calls, but some 75 percent plan to do so within the next year. Only 32 percent of best-in-class organizations train hiring managers on passive recruiting, but an additional 41 percent plan to do so during the next 12 months.

Key Differentiator: Measuring and Validating Quality of Hire

Seventy-four percent of best-in-class organizations said they have an "understanding of which applicant sources provide the best quality job candidates," compared to only 52 percent of lagged organizations.

When asked for the top four indicators their organizations uses to determine quality of hire, best-in-class organizations' responses focused on two areas: how quickly new employees got up to a desired level of competence and how long they lasted in their role during the first 12 months of employment.

To measure the quality of recent hires, organizations need to have processes in place to determine what level of performance the new employee should be at in three-month, six-month and nine-month time frames; to measure the candidate against those milestones; and to evaluate any performance gaps that need to be addressed. How well an organization can measure new hires job performance and use that information to improve the recruiting process plays a major role in a successful talent acquisition program.

Yet, according to Aberdeen's research, organizations ability to clearly articulate what quality of hire actually is still has a long way to go. Research revealed that quality of hire at most organizations is based largely on loose definitions. In fact, establishing "clearly defined metrics pertaining to quality of hire" is the most common plan related to talent acquisition that organizations will put in place in the next 12 months.

Recommendations

1. Gain clarity on skills gaps. Clearly define the common behaviors and skills of the organization's top performers or key contributors. Use this or the organization's core values as a general competency framework to identify skills gaps. This enables an organization to ascertain where gaps can be filled internally and which require more targeted recruiting efforts.

2. Seek feedback. New hires should be interviewed after the job offer to obtain feedback on the recruiting and hiring process. Make improvements as needed.

3. Define success metrics. Clearly defined metrics should be in place to measure the success of talent acquisition efforts. These metrics should be agreed on by HR and hiring managers and should address the organization's specific business issues.

4. Involve hiring managers. Hiring managers and recruiters need to be trained to use new technologies to find passive job candidates. Such workers can be a vital source of talent and expertise but have traditionally been invisible in recruiting efforts.

5. Focus on internal and external employer brand. The entire organization should work together to collectively brand the company a best place to work. Recruiting should be seen as an enterprise-wide function, not the role of human resources.

Ref: Kevin Martin
[About the Author: Kevin Martin is vice president and principal analyst of human capital management for Aberdeen Group.]

Economic Slowdown - An Opportunity

Economic slowdown is bound to pose some major challenges for corporates, but it does provide some interesting opportunities too, especially from an HR perspective.

Post the meltdown, employee expectations with regards to salary hikes during job changes are bound to mellow down. We already have reports that the average salary jumps during job changes are lowering to levels of 20-25%, down from 35-40%. While salary used to be the key factor for job changes, post the downturn, employees are likely to become wiser and take a more long term perspective when changing jobs. One can sense that job security will hold a more premium position, in the list of priorities, than it has done in the past.

Long Term View

Another fact that the downturn has highlighted is the importance of working in a reputed, professional and values based firm. There are organisations that at the very first hint of hard-ship will retrench employees and we already have enough examples of that. However, in the past, since the economy was booming and nearly all sectors were doing extremely well, even a remote thought to downsize hardly arose in the minds of most companies. More importantly it didn’t occur in the minds of the employees or prospective employees. Hence, since the industry was too bullish, job security was never a key deciding factor for employees when they went looking out for a job.

However, the current situation has made retrenchments a real possibility and we have even had few companies showcasing the same. Hence, in future, I reckon employees are going to lay a premium on the management ethos and culture of the organisation before they make a change. Organisations which are deemed to be employee friendly and having a professional management culture will hold an advantage in hiring talent than the companies which are perceived as more cut throat having a hire and fire culture.

Employer Branding is key

The above factor is hugely advantageous to the reputed professional organisations for attracting talent and it also provides an opportunity to the rest to improve their respective employer branding by working on building a professional work culture and show-casing the same through media, industry bodies, academic institutions etc. Indeed, this provides a very exciting proposition to HR professionals across corporate India. As of now employer branding has not really taken off in corporate India but, hitherto, I do see that in the medium to long term, this aspect will gain prominence and will become a key deliverable for HR professionals.

HR taking charge

Not very long ago corporates were running from pillar to post to hire talent. A high percentage time of HR professionals was devoted to recruitment. Steep growth paths of corporates across sectors left hardly any time for management to develop leadership pipeline to sustain and manage future growth levels. However, the current scenario of lower future growth prospects does provide a good opportunity for corporates to reflect and devote more time and focus on building a healthy leadership pipeline, so come the next phase of high growth, the companies have a strong bench strength to manage the growth trajectory. Now is the time when organisations can really put their might behind developing robust talent management processes in their set-ups. The most effective talent management systems are owned by the top, ably facilitated and supported by HR. However, in the initial stages HR must take the ownership to drive the process, prepare coach and hand-hold senior leadership to lead it while HR eventually acting as a facilitator.

Another key focus area for corporates is going to be increasing employee productivity and efficiencies. The current meltdown provides an opportunity for organisations to ‘review the way they work’. In order to improve efficiencies and productivity to better their top-lines and already stretched bottom lines, companies start exploring innovative ways to improve their systems, optimise costs, decrease inventories, reduce cycle times and introduce great value innovative products. The name of the game is ‘innovation’. HR can play a key role in building an environment and culture of innovation within the organisation.

So, one can see quite a few silver linings, leave alone one, in today’s environment consumed by the dark clouds of gloom and doom. The trick is to start working on these opportunities, so when the next steep growth phase comes, you are right in front of the pack to gain competitive advantage.



Ref: Randeep Sisodia

Four Key Questions Candidates Should Ask Potential Employers

Four Key Questions Candidates Should Ask Potential Employers

Employer-employee compatibility must be a two-way street for an appointment to be successful over the long-term. To gauge compatibility, candidates should ask potential employers four critical questions during a selection process.

A significantly shrinking talent pool worldwide means that competition is often stiff for organizations trying to identify and retain peak performers. Organizations often invest in testing and assessment programs to ensure that new hires and internal promotions have the right "fit" with the company culture. However, candidates do not always think about whether a company culture is compatible with their own values and professional needs. Employer-employee compatibility must be a two-way street for an appointment to be successful over the long term.

As such, during the selection process candidates should ask potential employers, managers, and peers the following four critical questions:

1. How does this organization listen to employee feedback?

Unfortunately many organizations treat employees as nothing more than numbers -- and subservient numbers at that. Consequently, the answer to this question will reveal whether the organization values the wisdom and contributions of its talent pool, engages the employees, and/or instills a sense of company ownership.

2. How does your employee performance evaluation process work?

It may surprise you to learn that many companies do not have a `systematic employee appraisal process in place. Therefore, the answer to this question will reveal whether the organization is structured and consistent in its performance expectations. By understanding how your work will be appraised helps to identify clear expectations, which directly feeds the notion of job security, which is a crucial factor to all employees.

3. What opportunities are there for development?

Human resource is a concept that does not always have a succinct definition of renewable. By asking this question you are delving into the culture to understand if employees are viewed as investments or merely as replaceable resources. The answer to this question will help you determine if this company will provide you with the necessary tools to progress along your desired career path.

4. How does this organization reward talent?

Believe it or not, some companies reward employees who simply maintain the status quo and penalize employees who show initiative and talent. For example, we know of an episode whereby an employee took much time to provide unsolicited but constructive feedback on a piece of marketing material that was full of factual and grammatical errors. Instead of appreciating the employee's efforts in trying to spare the company considerable embarrassment and potential business, the organization largely reacted defensively and stopped including this employee in key interactions. Therefore, this is a potentially challenging question to an interviewer who is also a manager at the hiring company. You will also be able to ascertain how prevalent recognition is within the organization's culture, for example does recognition occur on a weekly, monthly or annual basis. The answer will reveal whether the organization is organized and committed about employee retention and professional development, as well as how it goes about it.

It is also important to note a fifth question for possible consideration: Can employees be themselves at this organization? Sometimes organizations demand that employees conform to management's skewed - or even downright counterproductive - definition of an "ideal employee." With this in mind, the answer to this pointed question will help to reveal management's expectations for employee behavior - that is, whether employees are encouraged to act as company "drones" versus act as individuals with unique personalities and perspectives to be shared and strategically leveraged.

Again, issues with skill set and lack of fit with the company culture are among the top reasons organizations disqualify candidates. Likewise, lack of recognition, advancement and fit with a candidate's value system are among the top reasons why candidates disqualify employers. For this reason, we encourage candidates to conduct due diligence on companies just like employers do with applicants during the recruitment phase.Come to think of it, all organizations should contemplate the four questions above if increasing morale, productivity and profitability are top priorities. A shrinking talent pool means that the onus is now often on companies to convince talented individuals why their time, devotion and energies should be invested in their organization versus their competitors.

Ref: Jim Houran and Whitney Harper

IT firms hike referral bonuses

IT firms hike referral bonuses

Though recession goes on worsening, some U.S. firms in India are on a hiring mode for outsourcing jobs and they are increasingly hiking referral bonuses for existing employees. Referral bonuses are supposed to be given to employees who refer talented people to the company. U.S. Firms like Deloitte, ADP, Pegasystems and Broadridge in India have hiked the referral bonuses already, reported The Economic Times.

Deloitte, which employs over 6,000 people in India, has doubled its referral bonus to employees last week. The employees will now get Rs. 10,000-50,000 for every person who they refer, depending on the level at which they will be joining the firm. The company has also increased its campus hiring by 20-30 percent this year.

An industry analyst said, "This is the right time to hire as salary expectations of people have become realistic and referral system helps identify suitable people. Besides, expansion of India operations will help the firm cut cost significantly and mitigate the risk of the U.S. slowdown."

"Most firms in the West are trimming down workforce there to cut cost. This is expected to bring more offshore work to India. This could lead to an increased demand for people especially the high-end talent pool," said, Prashant Srivastava, HR expert & managing partner (India), The Gallup Organization.

He also mentioned that firms are under pressure to scale up faster and the referral system provides a cost-effective way to get people with right-skill and attitude. Compared to the recruitment process through executive search firms referral will be at least 10-15 percent cheaper.

Pegasystems, a U.S. based business process management (BPM) software provider is looking to hire 60-80 high-end talent-pool for its R&D center in Hyderabad in six months. "Our referral bonus ranges from Rs 25,000-75,000 per person. As we want to scale up our operations at a faster pace, we have increased this bonus by Rs 50,000 for referring a person at certain positions like tech lead. Hence, if a candidate is selected, an existing employee can earn up to Rs 1.25 lakh, which will be beyond his salary. We will give this extra benefit for the next six months," said Suman Reddy Eadunuri, MD, Pegasystems Worldwide India.

Similarly, ADP, the $9 billion business outsourcing solutions firm, is looking at recruiting 400 people in the next six months at its Hyderabad and Pune centers. This year (June-December), the company added 400 people. Of this, about 52 percent were selected through referral process as against 45 percent last fiscal.

Ref: http://www.siliconindia.com/shownews/49984

Talent Intelligence During the Onboarding Process

It is widely accepted that, in small pockets around the world, the second iteration of the war for talent is well underway. Emerging companies in China, for example, are invading small rural villages in an effort to convert agrarian citizens into knowledge workers, and professional service firms are eagerly grasping at once undesired college new grads.

It would be logical to assume that growth-oriented firms would be devising new methods to uncover hidden sources of talent and fend off poachers from other organizations, but in reality few are. At a time when most organizations should be abandoning the conservative approach of continuous improvement and embracing innovation, too many are still focused on miniscule efficiency gains.

At no time since the final years of the Roman Empire has the world population mimicked its current state. With a huge population of aged workers and a significantly smaller influx of youthful workers, it is well known that something will have to change. Innovation will take place.

The world is full of people who look back and say, "If only I had thought of that," or, "If only I had leveraged that missed opportunity, where would I be today?" It is also full of people who routinely try to reinvent the wheel.

Unfortunately, the recruiting profession seems to be a magnet for these types of people. For years now, thought leaders have been advising organizations to embed formal competitive-intelligence-gathering activities into their onboarding processes, yet few actually have. When a recruiter learns of actions in a competitor, rarely do the managers who could leverage such information hear of it. What is even more disappointing is the lack of talent intelligence gathering that takes place during the onboarding process, and the shear volume of missed opportunities that go unnoticed.

The Problem With Most Onboarding Approaches

Like many programs in human resources, onboarding programs suffer from narrow perspective design. Quite frankly, they are designed by people who truly have no idea what value talent provides or how to maximize the value of that talent.

The most common evidence of this design flaw is the scope and direction of information flow during the onboarding process. In most organizations, information flows only one way, with the exception of benefits enrollment data. Few organizations look at the onboarding process as an opportunity for both parties to exchange in a dialogue where both parties learn something of value.

In short, we add another element to the list of missed opportunities in HR.

The New Perspective

The first week on the job can play a crucial role in motivating and retaining new employees, helping them contribute not only to their own success, but their new employer's as well. Organizations often spend lots of time and money recruiting and wooing new employees, but as soon as they start they turn around and treat them like barely welcome strangers.

In the new perspective, recruiting is viewed as only half of the task of hiring. Orientation is the other, often ignored element.

The new hire's first week on the job is too important to delegate to human resources or to devote to "reading the manual." Managers need to take control of the process of bringing a new employee on board and engage in what we call "talent intelligence gathering." Just like a parent adopting a new child, the role a manager plays during the first week is of critical importance if the value of the new hire is to be maximized.

Talent Intelligence Onboarding Areas

The following is a short list of areas for which managers interested in performance should take responsibility and for which they should make use of intelligence that is gained:

· Accelerating time to productivity. Coming into a new environment can be stressful for even the most adept change seekers. Any delay in providing new hires with the guidance, equipment, and training they need to get started on what they will be held accountable for can slow the time it takes for a new employee to reach a minimum expected level of productivity. Each day of delay can frustrate the employee and may also mean the loss of thousands of dollars in revenue if product development or sales are impacted. During the intelligence-gathering process, managers should engage with the new hire to uncover his or her desired management style, perceptions of company processes (good and bad), and insight about how other organizations may have approached the new hire's role differently.

· Continuous recruiting. Having recently changed teams, the new hire has an innate interest in helping their new team succeed — and that gives both managers and recruiters a perfect opportunity to discover leads for other potential hires. By asking new hires on their first day who else is good at their former firm, managers can easily increase their supply of talent. New hires can also be asked (when appropriate) to directly help in recruiting their former colleagues.

· Competitive intelligence. By asking new hires about the best practices of their last firm, their new managers can gather some new benchmark.

· Setting a manager's expectations. On the first day, it is important for the manager to make sure that the new employee knows the manager's expectations, the departmental goals, and what important contributions the employee can make to the product and the firm.

· Understanding the employee's expectations. It is equally important for the manager to find out what expectations the new employee has in the areas of training, promotion, and preferred management and communication styles.

Conclusion

Innovation is an activity without boundaries, so there truly are no limits as to what opportunities can be created and leveraged during the onboarding process. But organizations must abandon the useless activities that most onboarding programs consist of, and instead embrace programs that immediate create value for both parties.

Gone are the days when an organization could afford to wait six months or longer for a new hire to become productive, or when they could pay recruiters to spend months researching potential hires when the information could have been mined in a matter of hours from existing employees. Take advantage of the opportunities before you to map the competitive landscape, using the expatriates you have just recruited. A war is underway, and you need to adopt warrior-like approaches.

Ref: Dr. John Sullivan and Master Burnett.

Recent Trends in Recruitment

The following trends are being seen in recruitment:

· OUTSOURCING

In India, the HR processes are being outsourced from more than a decade now. A company may draw required personnel from outsourcing firms. The outsourcing firms help the organisation by the initial screening of the candidates according to the needs of the organisation and creating a suitable pool of talent for the final selection by the organisation. Outsourcing firms develop their human resource pool by employing people for them and make available personnel to various companies as per their needs. In turn, the outsourcing firms or the intermediaries charge the organisations for their services.

Advantages of outsourcing are:

1. Company need not plan for human resources much in advance.
2. Value creation, operational flexibility and competitive advantage
3. turning the management's focus to strategic level processes of HRM
4. Company is free from salary negotiations, weeding the unsuitable resumes/candidates.
5. Company can save a lot of its resources and time

POACHING/RAIDING

“Buying talent” (rather than developing it) is the latest mantra being followed by the organisations today. Poaching means employing a competent and experienced person already working with another reputed company in the same or different industry; the organisation might be a competitor in the industry. A company can attract talent from another firm by offering attractive pay packages and other terms and conditions, better than the current employer of the candidate. But it is seen as an unethical practice and not openly talked about. Indian software and the retail sector are the sectors facing the most severe brunt of poaching today. It has become a challenge for human resource managers to face and tackle poaching, as it weakens the competitive strength of the firm.

E-RECRUITMENT

Many big organizations use Internet as a source of recruitment. E- recruitment is the use of technology to assist the recruitment process. They advertise job vacancies through worldwide web. The job seekers send their applications or curriculum vitae i.e. CV through e mail using the Internet. Alternatively job seekers place their CV’s in worldwide web, which can be drawn by prospective employees depending upon their requirements.

Advantages of recruitment are:

Low cost.
No intermediaries
Reduction in time for recruitment.
Recruitment of right type of people.
Efficiency of recruitment process.

Key Steps to an effective recruitment process

.
Is there a need to recruit?

. The need for any recruitment activities should be evaluations in the context to the business overall resource requirements;

. This should include both short, mid and long term plans and requirements for your business and consider both likely resource level requirements (numbers of staff) and business skill requirements (capability of staff) in order to best decide first if recruitment is required at all, and if so what skills and experience you need to bring into the business.

Carefully defining the vacancy pays dividends
. Start with a description of the job - its responsibilities and deliverables;
. the necessary skills, experience and competencies required by the job holder to fulfill the required responsibilities;
. Plus the ideal qualities to be a successful contribution to the business.

Creating a talent pool by attracting the right candidates

. Think carefully about your internal sources of candidates: seek candidates from inside the business via internal job boards, succession plans etc; identify staff for whom it would be a sensible career development move;

. Think about the different sources of external sources of candidates: Advertise the vacancy (online or print); your internet career page; search generalist and specialist job boards; speak to the local job centre; encourage existing employees to make contacts for you; make contact with universities and colleges; use a recruitment agency or head hunter;

Focus on collecting all relevant information on candidates

Collect the information necessary to make a selection decision

. Applications form;
. CVs;
. Interview data (including behavioral interviews);
. psychometrics;
. references.

Create a short list and then arrange interviews and other selection processes

. Review applications and short list;
. your shortlist down to a small number for interview;
. Consider telephone interviews as an effective way to screen applicants;

Making the decision to appoint

. Consider relative importance of the different requirements before trying to evaluate the candidates so that you do not get caught up in the moment;
. When judging the importance of a shortfall in the candidate think about what can be learned as opposed to what comes more naturally or key competencies;
. Consider both the risks and the benefits of appointing a particular candidate;
. Make simple notes of your decisions in terms of why you selected and why you did not select � these will not only help you remember but can be useful for giving feedback;
. Agree terms and conditions of employment;
. Make the offer.

Giving feedback

This needs to be considered for three groups:

. successful candidates;
. unsuccessful internal candidates;
. unsuccessful external candidates.

Producing an induction plan

This is a critical step and should include both induction and early development needs. It can make the difference between a successful hire and an unsuccessful one.

. the new recruit quickly getting up to speed and making a valued contribution;
. reducing the disruption to the work of the other members of the team;
. ensuring a safe working environment;
. demonstration to the new recruit that they are valued;
. increasing your ability to keep the employee.

And finally, you need to review the recruitment process

. A review of the process itself should be undertaken - this will lead to process improvement and greater efficiency;
. A review of the hiring decision should also be undertaken - this will lead to greater recruitment effectiveness;
. The recruiters corner on HireScores.com gives some great feedback to employers on what to do and what not to do when recruiting..

Oldest Executive Search Firm

The executive search business began in the United States in 1926 when Thorndike Deland launched a business that charged a $200 retainer to find expert buyers for New York department stores. However, it was not until after the second world war that executive search gathered speed as part of the rapidly growing management consultancy business. It soon became evident to search consultants at McKinsey and Booz Allen Hamilton that the service might best be provided as a separate business. McKinsy moved out of the executive search business in 1951.

McKinsey left the search sector in 1951. H. Wardwell Howell, head of the McKinsey search practice at that time, left to found Ward Howell, which became one of the biggest global search firms (until 1998 when its American division was acquired and the rest of the company rebranded itself as Signium). Handy Associates also broke away from McKinsey. Booz Allen Hamilton, which maintained its search activities until the late 1970s, groomed many of today’s top search consultants. Among firms launched by its former management consultants are Boyden (1946), Heidrick & Struggles (1953), Spencer Stuart (1956) and Amrop Hever (1967).

Is Talent Acquisition function alike Sales function?

There was a discussion on a very interesting topic last week on LinkedIn.

Human Resource (Talent Acquistion fuction) is alike sales fuction,Do you agree?If yes, then how will you contrive fixed or variable % in compensation structure?

Below is the answer to the above question and my feeling on how this interesting matter be addressed.

This is a very interesting topic to discuss. I believe that the major KRA of the Talent Acquisition Function is to hire the best talent at affordable rates from the competitive markets. It’s all about having the best talent at the right place at the right time. So, the Fixed and the variable structure should be planned out keeping in mind two major factors – Retention of the existing talent and New Talent Acquisition.

Accordingly, Fixed part should be paid for the retention of the existing talent and the variable to paid for hiring the best talent as per the job requirement, SLA adherence, and the hiring cost saved. Now dividing the compensation structure into percentage is an organisation call.

Your suggestions are always welcome.

Right people at the right time at the right place

The business success is about taking right people to the right place on right time. So what is the problem? Actually, if you need to manage not one, but five employees or better five groups of employees, then you face the problem of measuring and control. It's hard to tell whether one group is performing better or not, it becoming hard to compare one employees success against other one, it's hard to see the unique features of people. So what the solution is? The key metrics and key indicators, which will tell you how to manage your stuff right.

There are two approaches I suggest to take into account when thinking about human resources (HR) at your company. First, you can think in terms of process, second you can think it terms of how do employees affect the whole business.

The processes of working with employees include: hire, education, management, retire. All the stages must be processes carefully, as they could fully change your business. For instance, if you will have the best system to hire stuff, but it will be working slowly, then you will fail. If your education system will allow to train everyone, but will not allow to check the actual performance generated by training processed, then you will fail. If your best people will retire, then you will lose.

So, that's why it's really important to measure and control all processes involved into employees relationship. People who you work with, should understand what your goals are and how they will help to achieve these goals. This is the key idea of manage and control in employees management processes.

Another approach is focusing on how someone's job affect the company. It's obvious that even if someone works in a Sales then he or she will affect not only the financial part of the business by generating sales, but also all other parts.

For instance, sales person will be involved in entire company processes, such as education and knowledge sharing. This person will also work directly with customers, so he or she might not just sale, but get a valuable feedback from end users of your product. These people will also help your company to grow not just in terms of sales, but in terms of better business processes and business efficiency.

So how to measure and control HR department at your company. The answer is very simple - you should develop some key indicators that will represent company business and then pay attention to what is working good and what should be changed. There are many names for this system, for instance KPI (Key Performance Indicators) or Balanced Scorecard. The result is having the clear view of what is going to happen in company and how it will steam-line your business.

What should be the first step? Actually, I think you have already had some important information for scorecard. For instance, you have document called "mission", this is a general definition of your principles, you can some business goals, you have business processes described and formalized. What you need now is to gather all this important information into a easy to manage system, which will take in account the importance of each metrics. This system (Balanced Scorecard or KPI) will help to manage and control the performance of your HR department.

Distinction between Headhunting and Talent Poaching

Head Hunting (Also called as "Body Shopping")

There is this bread or group of talent, which are highly experienced, competent with great leadership skills but very passive in job market. They are very experienced in their domain and industry. Sometimes, they are also the founder member of the organization. Generally these are the people working in the capacity of Senior Managers, General Managers, CFO's, CTO's, CEO's, Vice-Presidents, Directors, and Managing Directors etc in their present roles. They do not post their profiles on jobsites. They do not even read job-sections of newspapers. They do not apply for any jobs opportunity. Only very few of their friends and close associates are in procession of their profiles. They need to be challenged by an opportunity. Such people need to be head-hunted. Generally, recruitment consultancies are EXPECTED to do this job. This is a way to get the talent when you are looking for rare and distinct talent that is when you are looking to fill positions like CFO, CEO etc. Here, numbers are not important but quality is. In a year, you might be able to head-hunt 15-20 people but they will be of high worth and value. Not everyone can be a "Head Hunter", you need to have "special" type of skills to be a "Head Hunter". Every type of sourcing is not called as head-hunting. For a sourcing to be called as "Head-hunting", this should involve "rare profiles"; profiles and skill sets not readily available in the market.

Talent-Poaching

This, according to some section in the industry, is considered as unethical mode of sourcing and hiring. For this, you need to understand the business of your company and also should be aware of the competitor companies in your industry. Just target those companies and hire in masses from those companies right from the entry level to senior level. This tactic is usually used to kill the competition. This is like a big fish eating the small fish. People across the globe are discussing and debating to ascertain, if the "Talent Poaching" is ethical or unethical. No doubt, this is one of the easiest ways to source trained and talented people within the industry when you have infrastructure and money.

Distinction between Headhunting and Talent Poaching

Some talent acquisition managers as well as hiring and recruitment professionals are confused and are not able to discriminate between the two. Here are few differences between the two:

1) Headhunting is associated with senior and rare profiles. Talent Poaching is just sweeping and running through talent-wealth of your competitor.

2) Headhunting is planned. Talent Poaching is targeted.

3) In headhunting, the intention is to get the BEST person for your organization but in Talent Poaching, the intention is to kill your competitor and the competition.

4) Headhunting is about getting a person with "Leadership" skills with "Global Exposure". Talent Poaching is about "saving the training cost".