Hiring Employment has undergone a transformational change post recession. Trends and
Issues in recruitment and selection have taken paradigm shift with market gradually
recovering from slowdown .The effect of recession has brought new challenges for the
companies as well as job aspirants. The phase marked by lay offs and pink slips, now seems
to be getting over, opening new opportunities for the job seekers. At the same time, taking
advantage of an improving economy, employers are planning to recruit new employees in
their organization in near future while maintaining their talent pool.
Key words: Hiring, recession, recruitment, selection, talent.
Introduction
Recruitment, selection theory is based on an organization's accomplishment of hiring
valuable employees, constituting a major function of human resource department.
Recruitment process involves a systematic procedure from sourcing the candidates to
arranging and conducting the interviews and requires many resources and time. The
recruitment process is immediately followed by the selection process i.e. the final interviews
and the decision making, conveying the decision and the appointment formalities.
Hiring activities need to be responsive to the ever-increasingly competitive market to secure
suitably qualified and capable recruits at all levels.
Changing Hiring Patterns post recession: An Employers perspective
Companies are open for great talent; thereby employees with specialized skills and an
experience in the respective domain have better options to choose as compared to
generalist's .The candidates scoring high on experience, technical skills, along with good
command of domain knowledge and excellent communication skills are the ones the
companies are looking for in the recovery phase .Moreover companies have a preference for
candidates that are working, reasoning that they must be the best of the best, if they
survived cuts.
This to be a "reliable channel" to reach out to its potential employees Employers need to
use their extensive contacts as companies are relying on referrals as compared to walk in
interviews. When it comes to hiring, companies aren't putting ads for the vacancies for
senior levels rather using the referrals of their existing employees for vacancies.
3. Social networking sites:
Social networking websites are no longer used for personal purposes but also for hiring,
business marketing and promotions. This primarily includes much of senior-level hiring, and
makes it easier for the hiring managers to target candidates with niche skills or for roles
based in alien geographies.
During and post the recession the role of Human Resources during is to save money for the
organization. The traditional methods of recruitment of on campus as well as walk in are
time consuming and costly procedure , instead companies are preferring reputed institutes
and on line job sites for recruitment.
5. Rehiring of ex-employees;
The employees that were laid off or shown pink slip during recession as company were
downsizing due to slowdown are now being reconsidered and preferred upon new fresh
recruits , as they are aware of company culture and policies.
Strategic initiatives on the part of the employer to increase the productivity and efficiency of
the whole organization and redesign of the compensation scheme
Changing Hiring Patterns post recession: An Employee's perspective
Many existing employees are waiting for the market to recover, in order to change
employers, careers or industries. This is the time when they can come up to new
challenging roles which they always desired, a shift from their previous roles which they
opted due to lack of options during the slow down of the market. The present job in which
they have working might be a compromise wherein they don't foresee growth, can now
benefit from the post recession scenario and can go ahead with changing career path..
2. Raise or Promotion:
Employees plan to ask their bosses for a raise or promotion once the recovery is underway.
As employers need to ensure their best employees remain with their firm when they're
presented with other opportunities, the better salary packages and other benefits and perks
will play a critical role in retaining their employees.
Job seekers are opting for strong and stable brands rather than those who are offering quick
money. Companies with stable track record of growth and market share is being preferred
over new establishments.
The job seekers need to ensure that they are adequately skilled and are abreast with the
latest changes in the market. They job seekers need to acquire knowledge and special traits
necessary to be successful. The innovation along with planning and problem solving skills is
what they the need for their survival.
5. Increased competition :
Job seekers are facing competition not only from the fresh recruits but at the same time
experienced workforce who is looking for change and those who have been laid off in the
past due to recession. So job seekers need to face competition as result of more availability
of candidates and less opportunities.
Conclusion:
India represents a wonderful opportunity for employment as has shown rapid growth across
all sectors .The workforce in India is as competent and as capable as their international
counter parts. In this phase of recovery, employees with mindset of innovation, passion to
excel, with relevant experience & expertise, ability to work in team and adaptability are
some of the attributes they need to focus as companies are changing their hiring patterns to
suit the current environment for survival.
http://www.indianmba.com/Faculty_Column/FC1112/fc1112.html
Also Read
Employment increases in unorganised sector
Infrastructure cos see hike of 40-50%, but not so good for IT cos
India likely to offer top salary hikes in Asia for 5th year
Cisco sees role in expanding networking professionals base
Hindustan Unilever cuts 50 managerial jobs
Jet Airways largest employer of foreigners
Internet most preferred option for job seekers
TCS asked 500 staffs to leave for poor performance
Ad Astra Consultants managing director Nirupama V G said: "Small and mid-sized companies are not hiring as
many people at junior and mid level as they did earlier. They are, however, hiring at senior levels with quality
becoming very stringent."
At the same time, companies are increasingly utilizing their bench strength to shore up their active resources, unlike
in the past. This, in a way, could have bought down the hiring momentum a tad.
Sources said another trend being noticed is that many people on the bench in large companies are opting for mid-
sized companies for the same level of salary or even taking a cut in packages, instead of sitting on the bench for six
months or more.
The slowdown pattern in the industry has had its impact on the salary levels. TVA Infotech CEO Gautam Sinha said
compensation hikes are likely to decrease this year especially for those with generic skill sets, but it may not be the
case for those with niche capabilities.
This has also impacted people who make movement across companies. According to Nirupama, the hikes in many
cases in junior and mid levels are nil while maximum is 15% over earlier packages. The normal norm for such
compensation hikes are generally in the 20-30% range with 50% in exceptional cases.
http://articles.economictimes.indiatimes.com/2008-03-14/news/27722906_1_recruitment-
ibm-and-accenture-companies
6 Feb, 2008, 02.11PM IST, Kalyan Parbat & Sutanuka Ghosal,TNN
Last week, TCS was in the news for cutting down the variable pay of employees for slippages in internal growth
targets - a move that will save it about Rs 83 crore. However, the TCS management denied the move was linked to
any slowdown worries. "This manner of forced attrition is only linked to the appraisal process. It is not linked to any
other factor," a TCS spokesperson told ET.
An official statement from the company termed it a routine exercise carried out bi-annually to weed out non-
performers. "The number of employees impacted during this year till date is 500 which constitutes about 0.5% of the
company's employee strength of 1,08,000," the statement by the spokesperson said.
Also Read
According to the statement, if an employee gets a grade of 2 or below during the first appraisal cycle, the company
puts the employee on a performance improvement plan that includes additional training and assignments on new
projects.
At the end of the second appraisal if the employee's ratings do not improve to a grade better than 2, the employee is
asked to resign. TCS arranges for placement agencies to help the employees get placed in other organisations, the
statement said. The grades are on a scale from 1 to 5, with 1 being the lowest and 5 being the highest.
A centre-wise or business-wise break-up of the 500 employees was not available. "The actual numbers are 500 as of
date. It may rise to 600 by end-March. I am not in a position to give a centre-wise break-up of those who have left the
company. In Kolkata, 50 people have been asked to resign out of nearly 6,500 working there," a spokesperson said
in response to an ET query. Analysts said the move did not signal any major concerns as yet.
"It seems to be the outcome of a routine annual performance appraisal exercise. It would be of concern only if the
joining dates of new recruits were staggered," said Jayendran Rajappa, IT analyst with Prabhudas Lilladher. A TCS
employee also confirmed that a few employees were asked to leave every year for performance-related issues.
"A 0.5% cut is minor considering leading global corporates lose anywhere between 5-10% every year," Suveer
Chainani, an analyst with Macquarie Research, said. The TCS scrip, however, reacted falling 2.7% on the BSE to Rs
949.45 on Tuesday. The BSE IT index also lost 1.4% to close at 4039.82 on a day the Sensex ended flat.
Recruitment Trends in India - What Employers and Job Seekers are Looking For
Like any other industry, the recruitment "industry" is cyclical. IT follows the cycles of other industries to a
large extent. But the recruitment industry has a significant advantage because of the "products" it promotes
- skilled manpower. For any organization, in any kind of economy, skilled manpower is absolutely essential.
In a booming economy, companies in India were offering high salaries and attractive incentive packages to
attract the best talent to their payroll. However, as the economic downturn hit countries around the world,
Indian companies suffered too. Lay-offs, salary cuts and deferred payments became commonplace. A vast
pool of skilled, un-employed candidates was created during this recession.During this period, hiring was
extremely limited and companies could cherry-pick from the cream of the crop.
Now that the economy, atleast in India, seems to have stabilised and started clawing back to what is was in
2008, some striking trends are being observed in the recruitment industry. These trends have their roots in
the recession and it's effects on job seekers and recruiters. Some of the key trends have been discussed
below.
Contract Hiring
Many companies that cut back to bare bones staff during the worst of the recession are now beginning to
hire contract workers. Contract hiring makes sense when the economic situation is still volatile and a
company does not want to commit its financial resources to a full-time permanent hire. Also, contract
employees are usually brought on board with the idea of handling one set project or providing a select skill
set. So the process of hiring a contract employee is usually a little more streamlined as well.
Just-In-Time Hiring
Today, the key focus of talent acquisition teams has changed from hiring generic skilled resources as
strategic buffers to meet future ramp-ups to hiring just-in-time based on business demand. This ensures
that lead times are reduced for new employees and costs are reduced for the company since they are not
maintaining a bench. Just-in-time hiring is fast becoming the watch word in many companies and is a
beneficial trend that is set to embed itself firmly into the recruitment industry.
Consulting / Freelancing
Becoming a freelancer requires a great deal of domain experience, commitment, integrity, flexibility and
confidence. Though the going might be tough initially, returns can be very good provided a freelancer is
good at the job and enterprising enough. To become and independent consultant, a person has to have a
command over his field of experience and a relatively good network in the industry. Freelancing and
consulting may form a small percentage of the recruitments in India, but recent trends show more
professionals inclined towards them
Not every recruiter has been in business during serious “down times.” But there are a
few lessons to be learned from those who have. Lessons that will help you weather the bad times.
Lesson No. 1: Employers are more cost conscious. Expect more pressure to reduce your fee. As
more recruiters fight over fewer jobs, look to distinguish yourself from your competition –
bringing value-added to your services – and keep your fee where it should be.
Lesson No. 2: Pay attention to your personal ROI. You’re likely not to have as many positions to
work on. So become more selective about which assignments you take. Go with those that will
give you’re the greatest return on your investment – of time and effort.
Lesson No. 3: Thoroughly understand a client’s hiring priorities. Put resources (both time and
money) into filling the highest priorities first, the less important positions second, the least
important last. Be wary of the employer who says, “They’re all top priorities.” Some positions
are more important than others.
Lesson No. 4: Cash flow matters. Learn to make cuts in your budget or control your business
spending. Otherwise, you can become the proverbial gerbil on an exercise wheel: running,
running, running – and getting nowhere except more stressed about making financial ends meet.
Lesson No. 5: The silver lining. When times get tough, the weak get washed out. It’s a matter of
workplace evolution. So if you’re a dedicated, professional recruiter, realize that during down
times you can actually find ways to enhance your reputation and build market-share. When the
economy returns to normal, you’ll be positioned to excel.
No question, tough economic times aren’t a lot of fun. However, they can be a powerful teacher.
You’ll learn more about your strengths and more about your weaknesses. You’ll learn how to
work not only harder, but smarter. Best of all, you’ll be prepared to minimize the impact when
the economy next hits the skids.
Good Days Are Here Again, IT Biggies Vroom Back On Job Street
"IT biggies are stocking up skills and training them in advance in anticipation of new
contracts they are expected to bag in the near future," said Pradeep Udhas, executive
director and head of IT advisory, KPMG. "Some of them are also expecting attrition, and
hence a preventive measure. All major companies like TCS, Infosys, and Cognizant have
exceeded their expected earnings levels," he added. He expects the renewed hiring
momentum to continue for another year.
MphasiS, which declared a manpower base of 38,275 in its last quarterly results when it
added 1,156 employees, says there are currently more than 2,000 vacant positions within
the company. "We never stopped hiring even during the downturn. What is encouraging is
that some of the other companies that ceased recruitment have again started hiring," says
MphasiS chief human resource officer Elango R. Headhunters say recruitment in tier-I
companies are at pre-recession levels, but they say it will still take some time to pick up in
the mid-level as the market landscape has changed. However, they say specialist companies
like those in product development, analytics and testing are still growing and so has
recruitment in tandem. "Recruitment may be back, but there is much more sanctity now,"
says Ikya Human Capital Solutions MD Ajit Isaac. "Recruitment is much more planned now
with a small bench. Companies are also much more disciplined and avoiding employees who
frequently change jobs," he says.
Interestingly, Mahindra Satyam, which is on a comeback trail, plans to recruit some 3,000
by February next year. The company, with some 27,000 employees on rolls, has been hiring
fresh talent for the past few months now and has already added 3,000 people during May-
July.
"Recruitment in the IT sector had started to peak off from April-May. This is driven by
entry-level and mid-level positions or those with up to eight years of experience. The
demand for senior-level talent or those with 8-18 years of experience is very little. The
sector is expected to continue similar hiring momentum for at least another six months,"
says Mahindra Satyam chief people officer T Hari.
Another driver for more tech hiring is demand from large e-governance projects like Aadhar,
or the unique identity project.
"The IT industry has been recovering over the period and has seen significant improvement
in hiring trends with not just international business picking up but also large reformist
projects that are being rolled out in sectors like power, e-governance, telecom etc. Aadhar
is expected to generate employment with specialists required across levels for implementing
the complete solution," said Vivek Puneikar, chief human resource officer at HCL
Infosystems. Meanwhile, job indices tracking the IT sector reflect renewed momentum too.
"As per TimesJobs.com data, the recruitment scenario is expected to maintain steady and
balanced growth, with skills and experience levels driving the demand," R Sundar, CEO,
Times Business Solutions, said. According to the Naukri job index, hiring in the IT sector has
reached pre-recession levels during September and is at least 45% higher than the previous
corresponding period. Similarly, the Monster index reveals that the IT sector has seen
significant rise in online recruitment activity for the second consecutive month. The sector
registered a robust 52% six-month growth. "This rising trend is expected to stay at least for
the next six months to a year," said Hitesh Oberoi, managing director at recruitment firm
Info Edge.
http://www.delhiscoop.com/story/2010/10/12/15232/803