EFFECTIVENESS OF HIRING IN RECRUITMENT PROCESS IN CAPGEMINI

SUBMITTED TO ANNAMALAI UNIVERSITY

Submitted by

Under the Supervision of

DEPARTMENT OF COMMERCE JUNE - 2008

EXECUTIVE SUMMARY EFFECTIVENESS OF HIRING IN RECRUITMENT PROCESS IN CAPGEMINI . This project was undertaken under the guidance of Ms., Faculty- Institute of Management as a part of PGDBM final term curriculum. is a project undertaken by me as a part of

INTRODUCTION TO THE SURVEY The principal objective of the survey was to understand the current Hiring in Recruitment process. Through the survey, I also sought to understand the various challenges CAPGEMINI are facing and the measures they are following to address these challenges. The Survey revealed that CAPGEMINI are trying to complement their hiring strategies with brand-building activities in order to increase their chances of hiring the best talent. HIRING STRATEGIES ADOPTED The Hiring Strategies adopted by the respondents includes: Employee Referrals Campus Recruitments

 Advertisements and HR Consultants For Lower Level Employees, the most widely used strategies are Referrals, Campus Recruitments and Advertisements For Middle-Level and Senior-Level Managers HR consultants are mainly used.

INTRODUCTION Poor hiring practices are both costly and time consuming and in a competitive market place it is more important than ever before to recruit effectively. Companies that can develop a seamless interviewing process, are willing and able to react quickly and can really sell the opportunity to potential employees are consistently rewarded with the best. Recruitment can be expensive management time, advertising costs and consultancy fees can mount up, and so once you have sourced the right candidate you will want to make sure that they accept your offer. Having the right recruitment processes in place will help you not only source the right candidate but secures them too.

RECRUITMENT The process of identification of different sources of personnel is known as recruitment. Recruitment is a process of searching the candidates for employment and stimulating them to apply for jobs in the organizations Recruitment is a process of searching the candidates for employment and stimulating them to apply for jobs in the organizations. It is a linking activity that brings together those offering jobs and those seeking jobs. Recruitment refers to the attempt of getting interested applicants and creating a pool of prospective employees so that the management can select the right person for the right job from this pool. Recruitment process precedes the selection process, that is, selection of right candidates for various positions in the organization. PROCESS OF RECRUITMENT It is a positive process as it attracts suitable applicants to apply for available jobs. The Process of recruitment: Identifies the different sources of labor supply Assesses their viability Chose the most suitable source or sources Invites applications from the perspective candidates for the vacant jobs.

FACTORS AFFECTING RECRUITMENT There are many factors that limit or affect the recruitment policy of an organization. The important factors are: Size of the organization and the kinds of human resources required. Effect of past recruitment efforts. Nature of Workforce market in the region. Working conditions, wages and other benefits offered by other concerns. Social and political environment. Legal obligations created by various statutes SOURCES OF RECRUITMENT The various sources of recruitment are basically grouped into two categories: Internal Recruitment (recruitment from within the enterprise) External Recruitment (recruitment from outside)

Internal Sources 1. Transfer 2. Promotion

Sources of Recruitment

External Sources Advertisements, Management Consultants, Education Institutes, Recommendations, Employment Agencies, Casual Callers, Telecasting, Contractors, Poaching/Raiding, Website/e-Recruitment

INTERNAL SOURCES There are two important sources of recruitment, namely, Transfers and Promotions:

Transfer: It involves the shifting of an employee from one job to another, one department to another or from one shift to another. Transfer is a good source of filling vacancies with employees from overstaffed departments or shifts. At the time of transfer, it should be ensured that the employee to be transferred to another job is capable of performing it. Promotion: It leads to shifting an employee to a higher position, carrying higher responsibilities, facilities, status and pay. Many co0mpanies follow the practice of filling higher jobs by promoting employees who are considered fit for such positions. Filling vacancies in higher jobs from within the organization has a benefit of motivating the existing employees. It has a great psychological impact over the employees because a promotion at the higher level may lead to a chain of promotions at lower levels in the organizations. Advantages of using Internal Sources Filling vacancies in higher jobs within the organization or through internal transfers has various advantages such as: Employees are motivated to improve their performance. Moral of the employees is increased. Industrial peace prevails in the enterprise because of promotional avenues.

 Filling of jobs internally I cheaper as compared to getting candidates from external sources. A promotion at higher levels my led to a chain of promotion at lower levels in the organization. This motivates employees to improve their performance through learning and practice. Transfer or job rotation is a tool of training the employees to prepare them for higher jobs. Transfer has the benefit of shifting workforce from the surplus departments to those where there is shortage of staff. Drawbacks of Internal Sources Internal sources of recruitment have certain drawbacks such as: When vacancies re filled through internal promotions, the scope for fresh talent is reduced. The employees may become lethargic if they are sure of time bound promotions. The spirit of competition among the employees may be hampered. Frequent transfers of employees may reduce the overall productivity of the organization.

EXTERNAL SOURCES Every enterprise has to tap external sources for various positions. Running enterprises have to recruit employees from outside for filling the positions whose specifications cannot be met by the present employees and for meeting the additional requirements of manpower. Companies commonly use the following external sources of recruitment: Media Advertisements Advertisements in newspapers or trade and professional journals are generally used. The advantage of advertising is that more information about the organization, job description and job specifications can be given in advertisements to allow self screening by the prospective candidates. Management Consultants Management consultancy firm helps the organizations to recruit technical, professional and managerial personnel. They used to specialize in middle level and top-level executive, but today thy even help firms in recruiting fresh graduates & postgraduates in the industry. Educational Institutes

Educational institutes at all levels offer opportunities for recruiting recent graduates. Most educational institutes operate placement services where prospective employers can review credentials and interview graduates. Employee Referrals/ Recommendations One of the best sources for individuals who perform effectively on the job is recommendation fro the current employee. An employee will rarely recommend someone unless he or she believes that the individual can perform adequately. The recommended often gives applicants more realistic information about the job than any other source. Casual Callers or Unsolicited Applicants The organizations that are regarded as good employers draw a steady stream of unsolicited applicants in their offices. This serves as a valuable source of manpower. The merit of this source of recruitment is that it avoids the costs of recruiting workforce from other sources. Advantages of using External Sources The merits of external sources of recruitment are:

Qualified Personnel: By using external sources of recruitment, the

management can make qualified and trained people to apply for vacant jobs in the organization.

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 Wider Choice: When vacancies are advertised widely, a large number of

applicants from outside the organization apply. The management has a wider choice while selecting the people for employment.

Fresh Talent: The insiders may have limited talents. External Sources
facilitate infusion o fresh blood with new ideas into the enterprise. This will improve the overall working of the enterprise.

Competitive Spirit: If a company can tap external sources, the existing staff
will have to compete with the outsiders. They will work harder to show better performance. Drawbacks of External Sources The demerits of filling vacancies from external sources of recruitment are: Dissatisfaction among Existing Staff: External recruitment may lead to dissatisfaction and frustration among existing employees. They may feel that their chances of promotion are reduced.

Lengthy Process: Recruitment from outside takes long time. The business has to notify the vacancies and wait for applications to initiate the selection process.

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Uncertain Response: he candidates from outside may not be suitable for the enterprise. There is no guarantee that the enterprise will be able to attract right kind of people from external sources.

Other Sources In the search for particular types of applicants, nontraditional sources should be considered. For example, Employ the Handicapped associations can be a source of highly motivated workers; a forty-plus club can be an excellent source of mature and experienced workers etc. RESEARCH METHODOLOGY Objective The principal objective of the survey was to understand the current Hiring & recruitment Procedures followed at CAPGEMINI. Through the survey, I also sought to understand the various challenges CAPGEMINI are facing and the measures they are following to address these challenges. Universe Capgemini located in Bangalore Sample Size 100 employees of capgemini

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Sample Area Bangalore Data Collection Sources of Information: Primary & secondary sources of data Primary Sources: Questionnaire Interview Schedule Secondary Sources:

Newspaper clippings (Regular Articles and journals)

The Business Today experimental guide to Managing Workforce (special fourth anniversary issue of Business Today) Reference Books on Human Resource Management Limitations: This study is confined to Bangalore only.

OBSERVATIONS and FINDINGS COMPANY OVERVIEW Background

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Capgemini is a global consultancy engaged in information technology, management consulting, outsourcing and professional services. Headquartered in Paris, it employs over 90,000 people through offices in over 30 countries. The companys clients are active in the automotive, consumer products, distribution, energy, chemicals, financial services, health care, life sciences, manufacturing, retail, media and telecom industries, as well as the public sector. Corporate Atmosphere Vault's Verdict: Consultants are generally satisfied at Capgemini, especially the inexperienced seeking responsibility and a steep learning curve. At the senior level, satisfaction levels seem to drop. Overall Satisfaction The firm has thus far been an invaluable learning environment, and has provided me a great deal of exposure to different industries and functional areas. Health care consultant Good company with a very shallow leadership structure and a lot of freedom for employees to affect the organization and impact the clients. There are plenty of opportunities to build new skills and improve your resume. middle level I have not met one senior executive from whom I learned anything, or saw true leadership. Just lots of posturing, and little know-how. The junior staff is rewarded only based on favoritism. Finance consultant
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Recruitment & Selection Process at CAPGEMINI Hiring Strategies (Sources of Recruitment) External sources 1. Print Advertisements 2. Consultants 3. Employee Referrals/ Recommendations Internal Sources 1. Transfers 2. Promotions Selection Procedure Mode of Selection Round 1: Introduction Round Round 2: Written Test (minimum Passing percentage is 80%) Round 3: Fluency Test via Telephonic interview Round 4: Voice Test Round 5: HR Round (Salary Negotiation)
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Steps Followed 1. Preliminary Interview 2. Receiving Applications 3. Screening of Applications 4. Employment Interview 5. Checking references 6. Medical examination 7. Final Selection & Appointment Letter 1. Induction Types of Employment Tests General Aptitude Tests Kind of Employment Interviews Preliminary/ Background Interview Patterned interview Non-Directed Interview Stress Interview

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Average Duration of the Probation Period 6 Months For Customer Care Executives & 1 Year for other positions. Career Path For an Entry Level Employee 1. Trainee (6 Months Probation) 2. Executive (3 Months extended probation) 3. Team Coach 4. Team leader VIEWS & REVIEWS ON THE FAST TRACK Employers in the Capgemini are recognizing the advantages of recruiting a diverse workforce including people with disabilities. Thats another silver lining to the CAPGEMINI domain an industry thats resulted in a new-world work order, where employers are fast recognizing the advantages of recruiting a diverse workforce including people with disabilities. The greatest challenge for capgemini is not merely selecting the right candidate, but also retaining them. The high rate of attrition and spiraling salaries has already had a direct impact upon billing rates. A fact that might hit a cost advantages that India offers. Capgemini are, therefore, looking at alternate sources of skilled

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professionals. In such a scenario, disabled people are an untapped source for qualified candidates. The industry is unaware of the range of skills these potential employees possess. People with disabilities are not only dedicated and fiercely loyal to the organizations, but their attrition rates are minimal. Indeed, people with disabilities are more committed to their jobs. They also have better attendance. Their productivity is not only same, but at times, its higher than others. Disabled-friendly jobs in the CAPGEMINI: Most corporate houses, which recruit people with disabilities, do not conduct any separate screening test. The recruitment process is the same for everyone. Employees are screened on the basis of their analytical skills. CONCLUSIONS The Project EFFECTIVENESS OF HIRING IN RECRUITMENT PROCESS IN CAPGEMINI basically included a survey on the Recruitment. The aim was to find out the Current Recruitment Trends in the capgemini. Also to find out the following:

Key Trends emerging in the capgemini Challenges faced by the capgemini

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The survey threw up some interesting findings about the Hiring Strategies (Sources of Recruitment) capgemini: By & large, companies have depended on three channels of Recruitment Referrals Print Advertising and Consultants

In absolute numbers, referrals and print advertising channelize the largest number of employees. 90% of capgemini are using referrals & print advertising as a source of recruitment. Other popular channels of recruitment are academic institutions, web and internal postings. For instance, referrals are expected to bring in as much as 40 percent new recruits.

capgemini hiring ads to get bigger, better

Expansion by existing capgemini players, new entrants, bigger projects, mergers and acquisitions and the setting up of R&D bases make for perfect ingredients for mammoth recruitment drives that are only set to get bigger and better. Attracting the right talent is the highest priority for capgemini.

Capgemini Hiring from Small Towns

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Recruiting is fast becoming a fine art in the capgemini. With the number of contact centers on the rise, recruiters are hard-pressed to turn to smaller towns for meeting their rising manpower needs. There is a move to fill the gap with recruitment from smaller towns. HR Banks on Referrals While traditional channels like print advertising, consultants, academic institutes, and the Web continue to play an important role in the recruitment strategies of capgemini, employee referrals have emerged as a big source of recruitment in the capgemini. Challenges before the capgemini There are several challenges faced by Capgemini but the most important of them are: Rising Attrition Rate RECOMMENDATIONS Implementation of Standardized Tests for the Recruitment Process. Standardized tests will create a certain benchmark and will help screen aspirants more effectively. For employees knowing how they fare on those tests will provide a spur to pick up skills they dont have and fine-tune

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others. It will create a better-informed pool of manpower for companies to choose from. Implementation of Proper Recruitment Management System: Recruitment is evaluated on the basis of the speed with which positions are filled the feedback from participants and the percentages of candidates who end up being employed. Organizations make big investments in recruitment. In all organizations recruitment processes needs to deliver outstanding performance, control costs, increases sales, maintain efficiency and develop the organization. Most of the organizations do not provide reports on Recruitment activities and therefore are unaccountable for the time & spend involved on it. It is important for all organizations to assess the return on investment in hiring in Recruitment processes. Recruitment Management System would help in streamlining recruitment process and calculating the return on Investments made on the Recruitment Process Stock Options. Stock options for employees can be an important way can use to retain & attract key talent to the Capgemini.

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ANNEXURE EFFECTIVENESS OF HIRING IN RECRUITMENT PROCESS IN CAPGEMINI QUESTIONNAIRE Name of the Interviewee: Designation: Department:

Q.1- How many employees does capgemini have? Less than 1000 1,001-5000 5,001-10,000 10,000-20,000 More than 20,000

Q.2- How big is your HR Department? How many people are involved in Recruitment?

directly

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Q.3- What is the scale of Operation of Your Company?

Q.4- What is the career path of the positions specified by you?

Q.5- What is the range of current salaries offered at various Executives Sr. Executives Team Leaders Asst. Managers Managers Trainers Others

levels?

Q.6- What are the various other benefits & fringes offered?

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Q.7- What are your Hiring strategies (Sources of Recruitment)? Rank in order of preference:

External Sources:

Advertisements Employment agencies Management consultants Educational institutions Recommendations Casual callers Telecasting Contractors Poaching/ Raiding Website/e-Recruitment

Internal sources:

Transfers Promotions

Q.8- Do your clients also participate in the Recruitment process? If yes, when & to What extent?

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Q.9- According to you what are the key trends emerging in the capgemini?

Q.10-What according to you are the challenges faced by the capgemini?

Q.11-What Brand building activities capgemini is carrying out to complement its hiring strategies?

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BIBLIOGRAPHY Newspaper clippings (Regular Articles on Current HR Trends in HT Power Jobs section of Hindustan Times) The Business Today experimental guide to Managing Workforce (special fourth anniversary issue of Business Today) Reference Books: DeCENZO A. DAVID & ROBBINS P. STEPHEN, Personnel/ Human Resource Management, Third Edition, Prentice-Hall India Kandula R. Srinivas, Human Resource Management in Practice (with 300 Models, techniques and tools), Prentice-Hall India

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