17-12-2012, 02:53 PM
A STUDY ON RECRUITMENT AND SELECTION FOR TEMP STAFFING
A CASE STUDY AT ADDECCO FLEXIONE WORKFORCE SOLUTIONS LTD
A STUDY ON RECRUITMENT.doc (Size: 167 KB / Downloads: 107)
INTRODUCTION
A “temp” is a temporary worker with an organization who is on a third-party (staffing company) payroll. A well-accepted norm in global companies, many large Indian organizations are now hiring a part of their workforce from employee leasing firms.
Temping in India has never been a lifestyle choice unlike the markets in the US. Since temping is used more as a stepping stone to permanent jobs in India, conversion from a temp to perm is in the higher range. In the US, it is anywhere between 4% and 5%. In Adecco Peopleone, the conversion is anywhere between 25% and 33% with the company providing liquidity support. “I would encourage this conversion to go up to 40% as it will generate greater demand,”
says Ajit Isaac, MD, Adecco Peopleone.
Recently, Bharti announced its intent to absorb 14,000 temps and make them permanent employees. While the high number with Bharti is an anomaly, most companies in India maintain a temp-perm mix and convert some good temporary staffers into permanent employees. On one hand, companies can gauge employees before absorbing them and first-timers in the employment market can gain a richer repertoire of experience having worked with a few MNCs.
Meanwhile in the US, where temping is more established with 10m temps in the market, certain specialized jobs have also seen temps earn 17% more than permanent employees. For temping companies in India, it is about addressing frictional unemployment and providing jobs to first-timers in the employment market. “Of course, temping companies manage both service fees and absorption fees when this conversion happens,” Over a period of time, the temping industry will see penetration into Tier II towns due to higher levels of absorption. Temping companies will look at value additions in competency testing and certification of temps. “It cannot be about simply payrolling; we have to look at value addition along the entire chain,” says Soumen Basu, executive chairman, Manpower India. “The high rate of absorption is a good sign for our industry, it just shows that the market is maturing,” says Achal Khanna, country-head, Kelly Services. According to ASSOCHAM (Associated Chambers of Commerce and Industry) the size of the retail market would go up from Rs 5, 88,000 crore to 1,479,000 crore in 2008. Currently, of the Rs 5, 88, 000 crore market, the organized sector is only Rs 5,000 crore, but is expected to shoot up
to 1,60,000 crore by 2008.
LITERATURE REVIEW
India is a growing market. While the advanced world is seeing decline in growth, India, china and other emerging countries will continue to experience boom time for almost the next 20-30 years. These possess a unique challenge for the corporates who are interested in quality recruitment. Understanding requirements is the first most important step towards effective recruitment. Despite knowing it well both organizations and Recruitment Service Providers (RSPs) do not spend time either in defining requirements or in understanding them. Organizations must “recruit” recruiters carefully, insist on good measures of value – add, define and communicate requirements, build and enlist high performing RSPs to work for them as brand promoters. Similarly, RSPs must provide services appropriate to the need of the organization , learn to say no when they cannot, improve their match making abilities and not merely push CVs.outsourcing recruitment to external RSPs should not be purely on cost considerations. Cost saving is only an initial excitement. RSPs those who provide guaranteed service levels will be more effective and would be sort after as partners for companies finding right-fit will be the key focus. Cost of wrong hires will be measured while refining the act of recruitment says S. Chandra Sekhar who works with CAP GEMINI CONSULTING INDIA at Mumbai in his article published in HRD newsletter.
THEORETICAL FRAMEWORK
Recruitment has been regarded as the most important function of personnel administration, because unless the right type of people are hired the organization cannot achieve its objectives. This is the second step in the process of procurement of the employee the first being the manpower planning. Recruiting makes it possible to acquire the number and types of people necessary to ensure the contained operation of the organization. This is a linking activity bringing together those with jobs and those seeking jobs.
RECRUITMENT AND SELECTION
Recruitment refers to the process of finding possible candidates for a job or function, usually undertaken by recruiters. It also may be undertaken by an employment agency or a member of staff at the business or organization looking for recruits. Advertising is commonly part of the recruiting process, and can occur through several means: through online, newspapers, using newspaper dedicated to job advertisement, through professional publication, using advertisements placed in windows, through a job center, through campus interviews, etc.Suitability for a job is typically assessed by looking for skills, e.g. communication skills, typing skills, computer skills. Evidence for skills required for a job may be provided in the form of qualifications (educational or professional), experience in a job requiring the relevant skills or the testimony of references. Employment agencies may also give computerized tests to assess an individual's "off-hand" knowledge of software packages or typing skills.
RECRUITING INTERNALLY OR EXTERNALLY
Internal Recruiting
Recruiting from among the existing workforce offers many advantages. Seeing your employees at work on a day-to-day basis will enable you to evaluate their particular strengths and weakness accurately and choose the most suitable person for the position. When the company recruits from within the organization the employees will feel important and highly valued since it appears that the organization immediately turns to them whenever a vacancy occurs. Their work rate and performance should improve as well as they will realize that increasing job opportunities are available to them if they are industrious and successful at their jobs. However any method has its own merits and demerits.
External Recruiting
When a company is involved in large expansions and is more oriented towards achieving high growth and high market share, with more focus on quality of the product and high customer satisfaction then it is inevitable for any organization to go for external recruiting. External recruiting is nothing but recruiting the people in your organization from outside the company. It will help the company to make best use of other sources that are lying outside the organization like for example campus recruits is an effective and efficient way of recruiting when a company wants new minds that are more creative and go-getters for any task. If a company wants to concentrate only on its core activities and wants to relieve the burden of the task of recruitment then the more feasible option would be third party recruiting or recruitment process outsourcing RPO. The experienced persons but unemployed can be recruited into the company which may reduce the training cost if they are from same industry. Retired and experienced people can yield more by enhancing their prior experience in new business situations.