aon hewitt study decoding hiring trends in india...
TRANSCRIPT
Harnessing the power of ‘Talent Centric’ economy
Aon Hewitt StudyDecoding Hiring Trends in India 2016
Solicitation Partner
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Table of Contents
Foreword
About the Study
Executive Summary
The Big Picture
Looking Ahead
Hiring Practices
Hiring Metrics
Annexure
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04
05
13
19
24
30
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Nitin is a Partner and Aon Hewitt’s Chief Commercial Officer for India.
He has extensive advisory experience with clients across the globe in the areas of HR Strategy, Performance & Rewards, Leadership Development and M&A.
In addition to working with clients, Nitin also leads the innovation and New Business Incubation agenda for the firm in India.
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Nitin SethiPartner and CCOAon Hewitt | India
Foreword
Favorable prognosis of the Indian economy, supporting government initiatives and sustained focus on innovation have fuelled sustained growth for India Inc. Aligned with the national sentiment, 79% organizations project increased hiring in the year 2016-17. As fundamentals of the economy further improve, India Inc. will see further increase in talent demand across sectors. HR and TA teams will come under significant pressure to attract and retain the best talent that business needs to drive organizational performance.
Talent acquisition roles are fast changing. TA professionals now need to don the hat of strategic business partners and align organization’s priorities to their recruitment strategies. In the last years study, we spoke of competencies that will drive a successful TA professional of the future. Positioning the employer brand, candidate experience and RoI on selected candidates are some of the some new measures that TA teams will now be judged by.
In the world of digitization, employers are leaning towards smarter and more innovative means of attracting key talent. Social media and technology innovation are being leveraged ferociously to enable the last mile candidate reach as well as deliver robust hiring solutions. Employers are refining the mix of sourcing channels and implementing a variety of assessment tools for talent selection. Unlike in the past, professional networks have made sourcing easy at the click of a button, giving employers the freedom to create a talent pipeline without heavy reliance on external factors. The use of talent analytics has created quite a stir in the marketplace, albeit, the reality is that most organizations fall well short of mastering capabilities to use these tools, thus effecting cost-per-hire – an ongoing priority for HR.
The 2016 study brings deeper insights on what drives key decisions and talent acquisition imperatives. This report draws characteristics that are shaping up the hiring space in India Inc. This study highlights trends that will be most relevant as organizations evolve and what this means for – businesses, workforce and the HR alike.
My sincere thanks to the participants who shared their knowledge and insights with us. Their thoughtful and candid inputs have made the second edition of the Decoding Hiring Trends in India Study truly valuable and one which I hope becomes a part of the strategic toolkit of HR leaders.
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Foreword
Ester MartinezCEO and Editor-in-ChiefPeople Matters
Ester, an HR professional turned entrepreneur and alumnus from ISB, founded People Matters in 2009
Ester has more than 14 years of experience in HR, with a wealth of knowledge in areas of talent and human resources management. Unt i l 2008, she worked as a professional manager with a host of blue chip companies in different countries within Europe, UK and India.
After the astounding success of its first edition, Decoding Hiring Trends in India 2015 Study which captured distinctive insights and created a unique position in the market; this year the research focuses on the insights and trends on talent acquisition on four different parameters – Hiring Drivers, Hiring Outlook, Hiring Practices, and Hiring Metrics.
Many factors play a role in the hiring ecosystem, both macro and micro. This study makes an attempt to understand the nuances of a majority of these contributing factors. It is interesting to note that employer branding, a very important factor, is yet to become an area of focus among a majority of organizations. The study also emphasizes on an important trend, the emergence of video interviews, which have begun to replace the more traditional in-person processes.
Social Media hiring also finds more takers and has become the driving force in the hiring process, an important trend that is clear from the study. Since both efficiency and effectiveness continue to be critical, cost-per-hire remains a top priority as revealed by the study. Optimizing cost-per-hire has emerged as one of the top trends and the top priority for recruitment and business alike. The recruitment leaders have also put an emphasis on feedback mechanism as a part of candidate experience. To add value to the study and include a practical perspective, this year’s research also includes short case studies from leading organizations in the major areas covered in the study.
Overall, the Aon Hewitt in partnership with People Matters Decoding Hiring Trends in India 2016 study will provide you with valuable insights that can help you shape the recruitment strategy for the coming year for your organization. As always, we would also love to hear from you regarding the study and its findings. Do write back to us at the contact details provided at the end of the report.
Aon Hewitt surveyed 160 organizations covering more than 12 industries to understand talent acquisition priorities and best practices as a part of this research.
Aon Hewitt in partnership with People Matters conducted the second annual ‘Decoding Hiring Trends in India 2016 Study’.
The study provides comprehensive inputs on the following four parameters:
• Hiring Drivers: Talent acquisition priorities, challenges and competitive threats
• Hiring Outlook: Forecast of employment outlook and budget allocation in 2016
• Hiring Practices: Best practices in attracting, sourcing, assessing, and selecting talent
• Hiring Metrics: Critical hiring metrics tracked as per prevalence, and industry benchmarks
Learn how the hiring space is undergoing evolution across different sources of hiring, changing priorities and adopting techniques of digital economy to attract key talent in 2016 and beyond.
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About the Study Participant Profile
160 Companies 12+ Industries
46% Indian54% MNCs
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�e Big Picture: Employer branding and talent engagement keep recruiters up at night!
Leveraging proactive strategies to engage with talent consistently keeps recruiters awake at night
The next big shift in recruitment is the ability to maintain consistent engagement and relationship with candidates, rather than sourcing candidates based on requisitions.
48% of organizations report that ‘Engagement with passive talent’ when done well by competitor is a top threat to attract talent. Further, 45% of organizations report that if their competitor were to communicate their employer brand effectively, then it will be a competitive threat.
With 64% of organizations reeling under the pressure of losing talent to ‘Competition’, having a well defined and consistently communicated employer brand is a clear competitive advantage. The Next Generation recruiter thwarts competition by nurturing a strong pool of candidates.
Shift from process to people based recruitment prioritiesCompanies increasingly identify two key areas of focus – recruitment priorities that are all about having a well formed strategy to attract active and passive talent, and relentless focus on communicating a distinguished employer brand.
Leveraging social networks for sourcing active and passive talent (43%) and communicating the employer brand effectively (29%) emerge as top 2 recruitment priorities. Being a trusted talent advisor to business (28%) closely follows in the list of top recruitment priorities for the year.
Recruitment in today’s digitally connected economy is maturing, with employer brand strategy changing talent sourcing from push to pull based methods.
Candidate Engagement: The Winning Strategy
Talent acquisition leaders for tomorrow will be brand evangelists, mastering the art and science of candidate engagement and relationship management. Organization perception metrics will soon be key effectiveness metrics for hiring teams.
79% of organizations report ‘Increase in hiring’ over the last year, with two-thirds of the hiring being done at junior and entry levels.
67% of organizations also plan to ‘Increase the recruitment budget’ over last year. However, 12% of companies do not plan to increase recruitment budget from the coming year, hence talent acquisition teams are expected to deliver more with a similar amount of money as previous year.
Further, only 21% of companies report wallet share increase for ‘recruitment team cost’, thereby adding to margin pressures. With evolving recruitment practices, organizations are clearly betting on components that drive recruitment efficiencies rather than increase headcount to deliver on business needs.
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Looking Ahead: Budget allocation aligned to drive efficiency to meet increased hiring demand
Recruitment budgets increase in close proportion with hiring intake
Efficiency components witness increased wallet share, employees are the new brand ambassadors
HR Technology/Platforms witness maximum wallet share, as 42% of organizations report an increase for this component. A close second is witnessed for ‘branding and marketing’ as 39% of organizations will increase wallet share in this category, aligned with the recruitment priority to communicate the brand effectively. Investments in social media (37%) and talent assessments (34%) follow closely.
Referrals emerge as a preferred sourcing channel, as 33% of companies plan to increase spend in this area. Organizations are ‘turning in’ with referrals and employees becoming the new brand ambassadors. This helps decrease external dependencies for sourcing and helps leverage the employer brand through employees themselves.
Branding: Recruiter’s Mindset, not an Activity
Rising margin pressures and branding woes will give rise to alternative methods such as social sourcing and referrals. Components that amplify the employer brand will witness increased investments.
With a stated priority to deliver on ‘Quality of Hire’ and advent of dynamic talent assessments, hiring manager capability to sift the best from the rest is a key enabler. It has become so important that hiring managers are equipped to select talent that is the best fit; looking beyond skill and knowledge fitment.
Aligned with this, 50% of organizations invest in building the interviewing capabilities of hiring managers. Further, organizations are going the last mile with 54% seeking hiring manager feedback on the hiring process and effectiveness.
Recruitment function' partnership with business becomes holistic with capability building for hiring managers and integration of data in the hiring cycle to drive talent decisions.
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Enabling the business and hiring manager is more critical than ever before
New age recruiter is data and technology savvy
Recruitment as Trusted Talent Advisor
With the advent of behavioral and culture fitment assessments, hiring manager capability and integration of talent analytics into decision making will become the litmus test for an effective recruitment team partnership with business.
As digital connectedness matures, recruitment teams build in-house capability to drive data based hiring and aid decision making. With a stated priority to drive technology based recruitment processes, 50% of organizations have digitized at least one process of the entire recruitment cycle. A further 30% are planning to digitize the entire recruitment cycle by the end of 2016.
65% of companies have dedicated team members for talent assessments, data analytics and technology.
As hiring numbers increase and the millennial population increasingly enters workforce, organizations have to take the final leap with mobile platforms and immersive candidate experience to stay relevant and deliver on the employer brand.
Hiring Practices: Consolidation of practices and internal capability building
55% of organizations track ‘Time to fill’, to measure hiring effectiveness, followed by ‘Cost per Hire’, which is tracked by 44% of organizations. ‘Time to Offer’ is a close third as 37% organizations track this metric.
Though heavily tracked, ‘Cost per Hire’ as a metric is broken since the component varies across organizations and industries. Vendor costs (70%), background verification (66%), referral cost (65%) and assessments (50%) account for the Top 4 contributors to the hiring cost across levels.
As organizations look forward to optimize this metric, innovative methods of moving employee referral expense from monetary outcomes to experiences and benefits emerge to offset the pricing.
29% of organizations believe that ‘Quality of Hire’ is the most important metric to track hiring effectiveness over speed and cost of hire. Further, 30% of organizations want to track ‘Quality of Hire’ consistently in the coming year.
However, 90% of these organizations track ‘Quality of Hire’ differently. ‘Early attrition’ (30%) and ‘Manager feedback’ (20%) are the most commonly encountered metric to measure Quality of Hire.
As organizations strive to make hiring efficient and effective, ‘Quality of Hire’ will increasingly become the most important metric – effectively the magic metric that will define the health of talent pool. Hiring manager effectiveness in identifying the best talent will be a key determiner in optimizing this metric.
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Hiring Metrics: Cost and Speed of hire remain critical, Quality of Hire on the rise
Cost and speed of hiring are the most prevalent hiring metrics
Rise of Quality of Hire: The ultimate effectiveness metric
Quality of Hire: Rise of Effectiveness Metric
Consistent parameters that relate to high potential, cultural fitment and retention will be integral elements when qualifying this metric.
Hiring practices that will optimize outcomes on these parameters will witness increased investment in the coming years.
Organizations want to adopt targeted strategies to engage with ‘passive talent’ as 45% employers report that the lack of this is a competitive threat.
Sourcing moves from requisition filling to maintaining an ongoing relationship and recall with key talent.
Recruitment teams partner with business end to end: as the trusted talent advisor, build hiring manager capability and enable data based decision making.
50% employers today actively build hiring manager interview capability to ensure recruitment is effective.
Speed of hiring and cost remain critical however organizations increasingly consider ‘Quality of Hire’ as the most critical effectiveness metric.
‘Early Attrition’ is the most encountered measure for Quality of Hire, tracked by 30% employers across
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Recruitment Trends: What changes!
Passive Talent Engagement
Recruiters as Strategic Talent Advisors
Rise of ‘Quality of Hire’
In l ine with the positive hir ing sentiment, 67% organizations are increasing their recruiting budgets over last year.
Components that improve candidate experience and enable efficiency (technology, branding, referrals, assessments) have higher wallet share.
Employees are the new talent scouts, as organizations are increasing wallet share for recruitment through employee referrals (35%).
Touted as the preferred sourcing c h a n n e l , e m p l o y e e r e f e r r a l s increasingly play the dual role in sourcing and brand building.
With less than 20% of organizations reporting mobile enablement of recruitment processes, employers are inadequately positioned for the mobile wave.
To optimize ‘Offer to Join’ ratios, last mile solutions at the ‘Post offer stages’ remain a key opportunity area
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Recruitment Trends: What changes!
Wallet Share: Evolving Apportionment
Referrals: Advent of The Dual Model
Mobile Enablement
With the naked feedback economy, employers struggle to differentiate themselves from the competition.
39% of organizations plan to increase wallet share for branding and marketing this year.
Pre hiring assessments remain more important than ever before. 65% of organizations have dedicated capability for assessments, technology and data analytics.
However, leveraging big data for effective hiring decisions is still at a nascent stage.
50% of organizations use social network for sourcing talent at mid and senior levels.
Organizations consistently leverage social networks to source as well as engage with passive talent.
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Recruitment Trends: What sustains!
Employer brand: The Winner
Talent Analytics and Assessments
Duality of Social Media
To have a “seat at the table”, the holy grail is to link role understanding with talent dynamics; and align talent acquisition strategies with business goals
With 4 out of every 10 organization reporting use of social media, professional network usage emerges as the sourcing tool of choice
Every 3 out of 10 organizations report focus on ‘employer brand’ to attract fresh talent and at the same time deliver brand aligned experience for existing employees
2016 Priorities of Talent Acquisition Trends Scanner
Top Priorities for Talent Acquisition
Professional Networks for Sourcing
Managing Brand and People
TA as Trusted Advisors
Shifting priorities of talent acquisition teams
Sourcing through social media and leveraging the power of employer brand have emerged as top priorities coupled with being trusted advisors to business.
26%organizations
want to consistently
measure ‘Quality of Hire’
16% prioritize scientific
assessments: clearly far from being the norm
20% organizations have
stated priority to source and engage with passive talent
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Challenges to Attract Talent Trends Scanner
Challenges Impacting Organization’s Ability to Attract Talent
Organizations continue to report losing talent to the competition as a primary challenge; thereby catapulting the relevance of a well articulated and implemented ‘Employer Brand’ that will act as a differentiator and not just a branding tool
Talent Drain
Despite the plaudits, changing the entrepreneurial mindset of talent in India, pose an indirect threat in the form of “idea replication”
Embedding an Entrepreneurial Mindset
With 10.3x salary increase projection, organizations need to effectively position ‘Employer Brand’ with a compelling message around total rewards programs to differentiate from competition
Rethinking Total Rewards
Building a game-changing talent strategy
The war for talent, skill shortage and a bleeding pipeline have made it absolutely necessary for companies to relentlessly drive a well articulated hiring message and differentiate from competition
64% organizations are clearly plagued with growing
skills shortages
10.3% projected pay
increase in India; the 4th highest
salary increase in the world
37% impending workforce shortage
Use of big data to hire the right talent and optimize ‘Quality of Hire’ is a potential threat from competitors if done well, and is an emerging challenge area for companies
4 out of 10 organizations feel that having a ‘pull based’ talent strategy is the need of the hour especially when the focus on speed of hire is strong as ever
Losing talent to organizations that are actively prioritizing a strategic partnership with business is an emerging threat: An action area for recruitment teams that already have this as a stated priority.
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�reat from Competitors Trends Scanner
Recruitment Practices that when done well are competitive threats
Predictive Hiring
‘Just in Time’Talent Pool
Business Partnership
Candidate centric hiring practices are competitive threats
Sourcing and engaging proactively with active and passive talent emerges as top competitive threats. These will be touted as emerging best practices in recruitment.
48% organizations view a well articulated and
communicated employer brand as a potential threat
45% organizations are
anxious about competition
engaging with passive talent
27% say leverage of
social media; if done well (for sourcing
and branding both), is a threat
Organizations are luring talent by appealing to talented aspiring entrepreneurs, especially when millennials are likely to drive and impact organizational growth in future
Organizations are moving away from traditional engagement approaches and focusing on employee well being; at the same time the focus on ‘Corporate Social Responsibility’ as an integral
With skills shortage emerging as a key challenge, organizations are building a strong promise around learning and development initiatives to both potential and existing employees
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Employer BrandTrends Scanner
What Organizations Seek to Offer to �eir Employees
Learning and Careers
Entrepreneurs Beehive
Socially Responsible Workforce
Employer Brand, a key component for galvanizing talent
Organizations are investing in building and communicating a brand that is aligned with changing talent aspirations of
15% increase over last year in ‘Learning and Careers’ as
the stated employer brand
18% organizations offer
‘Well-being’ to deliver on a holistic
workplace as the employer brand
24% organizations
promise ‘Inspirational
Leadership’ as the significant employer
proposition
– ‘Best Social hiring and Best Employer B r a n d i n g ’ i n t h e P e o p l e M a t t e r s TA League Awards 2015
– ‘Brand Development’ at the Asia Recruitment Awards 2016
– InMobians became talent scouts, referred the finest talent, helping recruitment team close open positions at lesser turnaround time and improved quality of hire
– Referrals rose by over 100%
– Recruitment costs reduced by 95%
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Success Story Effectively Harness Social Media and Enhance Organization’s Brand in Job Market
About the OrganizationInMobi, a mobile advertising and discovery platform, enables over 100 billion discovery sessions on mobile across a billion users every month, becoming the largest discovery platform in the world
ObjectiveThe objective was to effectively harness social media and create a sustainable model to enhance the organization’s brand in the job market
Approach Retract from any engagements with recruiting agencies
Leveraged employees on social media to become the organization’s
ambassadors
Started drawing in more referrals, moved from cash to experience based
referral rewards
Long term approach to employer branding that would let people take
pride in working at InMobi
– Created a well-defined culture with a name – YaWiO.
– Invested in people development
– Encouraged people to pursue careers of choice internally
– People caring policies
– Talent branding Initiatives (startup.inmobi.com, Facebook and Twitter
career handles)
Improvements in attrition and referral rates
Increased followership on social media
Branding programs evoked positive response from its employees
Recognition at leading HR awards
‘‘Our culture is our brand. InMobians take pride in speaking positively about our culture and sharing it with
the world everyday”
- Kevin FreitasInMobi, HR Leader
Results:
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Hiring Outlook 2016Trends Scanner
In line with stabilizing macro-economic conditions, the overall hiring outlook of India Inc. shows positive sentiment
Given the aggressive hiring strategy of organizations in the coming year, 7 out of every 10 organizations have increased their recruitment budget.
20% hiring at mid and senior levels will be for backfilling positions. Two thirds of hiring will be done at junior levels; aligned with rising job creation across industries.
79% organizations
showing increasedhiring projection for
2016
+7% increase in the overall hiring outlook from
last year
67% organizations
increasing budgets for recruitment
Robust Hiring
IncreasedWallet Share
Hiring Health
Forecast for Hiring 2016 Recruitment Budget for 2016
Contrary to the global economic weakening, India Inc. shows spurt of positive hiring sentiment. Recruitment budgets also align with hiring numbers
Positive hiring outlook
Even with ‘Make in India’ in action, the hiring outlook for the engineering / manufacturing industry is not as high as expected; lower than India Inc.
With pharma sector expected to reach USD 14 billion by 2020, the hiring forecast for 2016 too shows upswing
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Hiring Outlook 2016Trends Scanner
Industry v/s India Inc. Hiring Forecast – Hiring Projections for 2016
Movers and Shakers in the hiring industryMaximum increase reported in Pharma and Healthcare and lowest increase for Engineering/Manufacturing vis-à-vis India Inc.
Pharma on Rise
Engineering / ManufacturingDip
relative decrease in hiring outlook for
Engineering/manufacturing
vis-à-visIndia Inc.
14%
relative increase in hiring outlook for
IT/ITeS vis-à-visIndia Inc.
relative increase in hiring outlook for Pharma vis-à-vis
India Inc.
9%
7%
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Increase in Budget Allocation for Hiring Components
Top 4 areas that will see increase in wallet share across most companies remain the same as last year: Technology, Social media, Branding and Assessments
UndeviatingFocus
Employee Referrals on Rise
With the increase in wallet share for ‘Employee referral cost’; companies clearly want to align their sourcing practices with their hiring priorities. Referrals weren’t amongst top priorities until last year.
Optimise Cost
Cash outflow components witness reduction in spending viz travelling, verification and vendor.
39% organizations
want to increase spend in
social media
13%employers will
increase spend in RPO cost
Budget allocation increaseTrends Scanner
Poised for growth on an upward swing the recruitment budgets percolates to increased budget share across components that enable outreach and quality
Managing an organization's largest cost
21%employers will
increase spend in recruitment team
cost: low prevalence
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Success StoryHiring Stakeholder Engagement Program using Technology and Talent Analytics
About the OrganizationSapient, a global marketing and consulting company providing business, marketing, and technology services to clients
ObjectiveSapient faced the burst in business demand, increased hiring numbers, unhappy clients (project delivery leads) due to inability to fill the needs at the pace required by the business and potential revenue loss
ApproachSapient leveraged technology and talent analytics to foster collaboration with hiring managers Helped business understands the need for technology and increased budget
using hiring analytics Leveraged hiring and collaboration tools like Catalyst, Box, Vox Use differentiated rewards and internal recognition for contributing
interviewers Interviewer skills using the STAR interviewer approach and psychometric
assessment to bring in consistency in recruiting outcomes Enable stakeholder partnership and capability building to reduce interviewer
time
Results:
Reduced time to fill open positions by ~15% 40% reduction in time to deploy new hires in
project teams Increase ability to recruit Quarter over Quarter
by over 15% 50% increase in interviewers participation
enabled due to transparency brought in by the data based reporting
Utilization of interviewer pool increased from 50% - 75%
‘‘‘‘‘‘
The analytics tool has enabled me to have a dialogue with other interviewers from my project and ensuring their availability to support the growing hiring demands
- Sachin MengiSapient, Director (Tech)
Structuring hiring teams by business units remains to be the norm across organizations, thereby reiterating the need of a strategic partnership between TA teams and business
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Team Structure Trends Scanner
TA Team Structure Dedicated Team (By Business only)
84%organizations have dedicated teams for onboarding and feedback management
With everything remaining constant, recruiters are increasingly building in house capability with teams that is best friend with data and technology
Rise of the data masters in the TA teams
70%organizations
structure TA team by Business
90% organizations
outsource ‘Background
verification’ as a process
End-to-end Hiring Needs of Business
Tech EnabledHiring Team
Dedicated Focus on Campus Hiring
Increasingly, organizations have dedicated teams that drive the technology and data based hiring agenda for the firm: Assessment, technology and talent analytics teams
Focus on campus recruitments has risen with dedicated teams working towards sourcing and managing candidates who join the firm from campus
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Sourcing Channel MixTrends Scanner
Sourcing Channel Mix by Levels
As companies experiment with sourcing channels and newer sources become the norm, soon companies that track ROI by sourcing channels will be at the driver’s seat
Shifting paradigms for sourcing: Who is talking ROI on sourcing?
64%organizations use employee referrals
at mid level as a dominant sourcing
channel
67%organizations use direct sourcing at
senior level: Dominant sourcing
channel
56%organizations use campus hiring for
junior level recruitment
Employee referrals emerge as a key sourcing channel at junior and mid levels as a disproportionate number of organizations leverage this medium
Employee Referrals
Sourcing is witnessing a paradigm shift from traditional channels of corporate websites to newer means of social networks and referrals
Transforming Recruitment
Vendor Based Sourcing
Relying on recruitment firms for talent remains to be a key sourcing channel for mid and senior levels. While social media usage has increased for sourcing, there is still a gap to beat recruitment partners for mid and senior levels.
Organizations deploy a mix of selection tools, viz functional interviews in conjunction with psychometric and aptitude assessments to enable a robust hiring process across levels
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Prevalence of Hiring ToolsTrends Scanner
Sourcing Channel Prevalence by Levels
Increasingly, organizations are focusing on candidate's behavioral and cultural fitment, especially for hiring at mid and senior levels
53%organizations
screen potential hires for culture fit across levels
24% organizations do
not use functional interviews at any
level for hiring
35%group discussions are prevalent as
pre hiring assessments across
levels
Given the impact of hiring decisions, organizations are choosing a mix of knowledge, skills and fitment based selection tools. However, what remains to be seen is how these drives the objective of improved ‘Quality of Hire’.
Recruiting for cultural fit
Mix of Tools for Successful Hiring
Determining Role and Culture Fitment
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Digitization of Hiring Tools and ActivitiesTrends Scanner
Mobile Enabled Recruitment Practices for Candidates
Professional networks enable recruiters to evaluate credentials at touch of a button; innovative methods like video interviewing have begun to replace more traditional, in-person procedures
Digital Waves in Recruitment
1 BnIndia Crossed
Mobile Subscribers Milestone
3%organizations
have the entire recruitment cycle
digitized
15%organizations have mobile
enabled assessments
Recruitment landscape is evolving at rapid space, having platforms that enable and empower candidates to interact with the company on-demand is critical for a lasting impact
Catching the mobile wave is critical for candidate experience
Talent in Digital World
While the digital world is fueling hiring space, interviews, application process and other activities still take place in the traditional, physical world
ScalableAssessments
As organizations look to increase hiring across levels and with a focus on junior and entry levels; managing scale while optimizing cost and quality remains a key focus. With less than 15% companies reporting tech enabled selection assessments, the evolution is a long distance
TA experts are increasingly investing in building interviewing skills of hiring managers to drive consistency in the process and enable better talent selection to deliver on the agenda of ‘Quality of Hire’
Nearly, 50% organizations reach out to candidates as well as hiring managers for feedback on the recruitment process indicating the rise of a feedback driven economy
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56%TA experts seek feedback from
hiring managers
30%organizations are looking at using tech - enabled
recruitment tools
54%organization
invest in manager’s
interviewing skills
Feedback Driven Economy
Managerial Capability Building
Recruitment Best PracticesTrends Scanner
Best Practices used During Recruitment Best Practices Quotient
Companies are increasingly tracking feedback from key stakeholders – business and candidates alike to manage the feedback loop, take corrective measures
Advent of the feedback economy
Early turnover can drastically affect an organization's bottom line. 3 out of every 10 organizations are establishing measures to track early attrition.
Prevalence of measuring quality of hire via feedback from managers, employee engagement scores of new joiners, performance rating and competency assessment is on the rise
Track ‘time to offer’ across
levels
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In the tight labor market, organizations are using efficiency metrics (time to hire and time to offer) as most prevalent efficiency metrics to measure hiring team effectiveness
Metrics to Track Recruiting Team’s EffectivenessTrends Scanner A company is only as good as its talent, so having
a recruitment team who can master this balance is fundamental for success. Measuring it’s effectiveness is critical in order to assess and improve the recruitment process.
Evaluating recruitment efforts
Track time to fill: most prevalent
metric
track candidate satisfaction score
Metrics to Track Recruiting Team’s Effectiveness
Prolonged Time of Hire
Hard to Retain Talent
Measuring Quality of Hire
55%
37%
14%
There is a constant struggle to maintain a healthy balance of dependence on external and internal agents for sourcing. Vendors and referrals have similar prevalence as a key component of Cost per Hire by levels.
Low prevalence of branding on ‘Cost per Hire’ is indicative of recruitment practices where the wallet share is for platforms that enable branding as an outcome: moving away from traditional means of a dedicated cost component for branding
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Prevalence of Cost per Hire componentsTrends Scanner
Prevalence of Cost per Hire components
Vendor BackgroundVerification
Employeereferral cost
Recruitmentteam cost
Talentassessment/
selection tools
HRTechnology/
Platforms
Branding &Marketing
RPO
Branding and Marketing
External v/s Internal Sourcing Channels
The variegated yardstick for Cost per HireWhile organizations continue to optimize ‘Cost per hire’, there is increasing need to arrive at a singular stack up for components of this metric.
organizations report ‘Vendor’ as a key component in ‘Cost per Hire’
70%
organizations report ‘Branding and Marketing’ as a key component
in ‘Cost per Hire’
28%
organizations report ‘Referral cost’ as a key component in 'Cost per Hire'
55%
Organizations are considering multiple metrics that could be usefully applied to help create a fuller picture of an individual’s performance at work
Organizations are increasingly measuring engagement scores for new joiners to track the quality of hire and understand the impact of the company on the individual’s engagement and vice-verse
organizations track manager
feedback for early joiners to
measure ‘Quality of Hire’
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Decoding Quality of HireTrends Scanner
Components of Quality of Hire
Manager Feedback on new joiners
Performance Rating
Engagement score for new joiners
Early Attnition
Competency Assessments
Inputs from hiring manager remains to be a critical metric to track and define quality of hire in organizations across industries
Feedback Loop
Mix of Performance Measures
Engagement as a Lag Indicator
Quality of hire positively impacts business Measuring the quality of hire is the most strategic action organization can take in to understand the effectiveness of its recruitment process and its impact one’s business
20%
organizations track early
attrition: most prevalent metric
for ‘Quality of Hire’
30%
track performance rating of new
joiners for ‘Quality of Hire’
18%
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Average Time to Fill an Open Position
Recruitment Period Trends Scanner
Offer to Join
Average Time to Offer
Average Retention Duration
15 days 45 days 1 Month 2 Months 3 Months More than 3 Months
100%
80%
60%
40%
20%
0%
100%
80%
60%
40%
20%
0%
Junior Level Mid Level Senior Level
Junior Level Mid Level Senior Level
Junior Level Mid Level Senior Level
Junior Level Mid Level Senior Level
100%
80%
60%
40%
20%
0%
100%
80%
60%
40%
20%
0%
‘‘‘‘
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Success StoryRecruitment Reengineering: Interest Based Candidates and Hiring
About the OrganizationCapitalVia is a renowned financial market research and consulting organization. It is a pure play research firm which provides live trading recommendations in Equities, Commodities & Forex markets based on high quality technical research to its clients
ObjectiveThe opportunity costs from a vacant position was going up and the vacancies at middle management had a cascading impact throughout the organization. Also, being based out of Indore, a tier II city, CapitalVia were facing difficulty in attracting top talent.The objective was to hire interest based candidates and reduce two crucial costs: recruitment and hiring costs, and opportunity cost of vacant position because of attrition.
Approach CapitalVia identified the existing employees to be the best people to resolve
this problem through their social media presence They analyzed tools like Glassdoor, LinkedIn and other social handles and
encouraged employees to share their testimonial, reviews and openings through their social media handles which attracted their peers to apply
The approach was based on the principle that employee referrals are very cost effective as well as sustaining
The model was tested as a pilot run and delivered 360 degree ROI The basic of model remained the same i.e., ‘Recognition: Refer and Reward’,
for effective pull hiring
Results:
10% reduction in cost per recruitment 20% reduction in TAT of Vacancy to
Onboarding Cycle A significant drop of 3 percentage points in
the attrition rate in a quarter thereby reducing opportunity cost of vacant position
Increased monthly revenue by 40% and improved client retention
Interest based hiring
executed by our own
and existing employees
have significantly
reduced cost of hiring, TAT and attrition
- Gaurav Garg
CapitalVia, Head - HCM
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Glossary
• Top Executive/Senior Management: Senior management plays a key role in both short-term and long-term decision-making of a major functional area or business unit, direct, or coordinate activities within two or more major departments, establish policy and have a major impact on the achievement of the business unit or function goal
• Middle Management: Middle management is experienced managers, who manage the activities of one major department and set up standard procedure and policy or lead projects or programs which have broad effect on overall policy and achievement of organization-wide objectives
• Junior Level: Provide day-to-day management of a team, has knowledge of a specialized field of technical or administrative function and resolve problems of some difficulty, could be supervising a team or individual contributor or be an entry level professional
Employee Groups Hiring Metrics• Cost per Hire: The total cost incurred to hire an employee in the
organization. The cost is inclusive of the entire hiring cycle starting at talent sourcing to the onboarding of the candidate
• Speed of Hire: The time taken to fill up a position to offer the position to the selected candidate the organization from the day of its vacancy being created
• Quality of Hire: The quality of hiring candidate being measured by scores of competency assessments, manager’s feedback on performance, performance rating of new joinee, engagement scores and early attrition
• Offer to Join Percentage: Number of candidates who join the organization as a percentage of the number of people who are extended an offer for a particular position
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About Selection and Assessment About Aon Hewitt
Aon Hewitt has been a world leader in the design and implementation of reliable and valid assessments for over 30 years. Our global staff of Industrial-Organizational Psychologists partner with clients to implement Selection & Assessment Solutions, covering virtually all industries and job categories.We offer the broadest portfolio of innovative, scientifically proven assessments for talent acquisition and development. Our tests are taken by over 12 million candidates annually across all organizational levels and our solutions range from simple off-the-shelf selection tools through to fully customized assessment frameworks that objectively measure the competencies, skills, abilities and personal characteristics that predict job performance, behavior and retention.
For more information on Selection an Assessment solutions, please visit www.aonhewitt.com/india/selectionandassessment
Aon Hewitt empowers organizations and individuals to secure a better future through innovative talent, retirement and health solutions. We advise, design and execute a wide range of solutions that enable clients to cultivate talent to drive organizational and personal performance and growth, navigate retirement risk while providing new levels of financial security, and redefine health solutions for greater choice, affordability and wellness. Aon Hewitt is the global leader in human resource solutions, with over 30,000 professionals in 90 countries serving more than 20,000 clients worldwide. In India we partner with organizations across industries; multinationals, Indian companies and government bodies. We have strong client impact stories from our work with Family Owned Enterprises in India.
For more information on Aon Hewitt in India, please visit www.aonhewitt.com/india
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About Aon About People Matters
Aon plc (NYSE:AON) is the leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 66,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative and effective risk and people solutions and through industry-leading global resources and technical expertise. Aon has been named repeatedly as the world’s best broker, best insurance intermediary, best reinsurance intermediary, best captives manager, and best employee benefits consulting firm by multiple industry sources.
Visit aon.com for more information on Aon and aon.com/manchesterunited to learn about Aon’s global partnership with Manchester United.
People Matters is a leading knowledge and media platform in the Human Resources space. We strive to create an HR community of practice and excellence that fosters amalgamation of new ideas between HR managers, HR service providers and CXOs, leading to the growth of HR as a business critical function. People Matters’ print, online, digital and events platforms provide thousands of HR stakeholders with information, best practices, trends and industry news. In a short span of 6 years, it has emerged as India’s single point of reference for knowledge in the HR industry. As HR steps up to its new role as business partner and becomes indispensable to business, our vision is to become an indispensable source of knowledge, information and inspiration for the community.
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Contact Us
Research Architects: Research Team: Solicitation Partner:
Nitin Sethi
Partner and CCOAon Hewitt, India
Shivanker Singh
Senior ConsultantSelection and Assessment Aon Hewitt, [email protected]
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ConsultantSelection and AssessmentAon Hewitt, [email protected]
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ConsultantAon Hewitt Knowledge CenterAon Hewitt, [email protected]
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Associate ConsultantAon Hewitt Knowledge CenterAon Hewitt, [email protected]
Ester Martinez
CEO and Editor-in-ChiefPeople Matters, India
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Assistant ManagerMarketing & CommunicationsPeople Matters, [email protected]
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