“A Study on Lead Time in Recruitment & Selection Process” CMR Institute of Technology-Department of Management Studies 1 Executive Summary Manpower forms an integral part of the organisation. The efficiency and quality of the manpower leads to the success of the organisation. Hence ensuring that right person is placed for right job at a right time is very essential. The recruitment comes into picture at this point of time as it is the strategic function of the human resource department. L&T Infotech is a global IT services and solutions provider. They provide the winning edge to their clients by leveraging their Business-to-IT Connect and Deeply Committed People. The clients of L&T Infotech have found them as a right-size partner who combines scale, stability and customer-centricity. L&T Infotech is based in Mumbai, India. In the year 2012-2013 L&T was Ranked 8 in Indian IT Companies. L&T has 39 registered offices in 22 countries. Larsen & Toubro Ltd. (L&T) is the parent company for L&T Infotech, a technology, engineering, manufacturing and construction conglomerate, with global operations. This rich corporate heritage has given them many inherent advantages that translate into tangible benefits for their clients. The Project Report is all about “A Study on Lead Time in Recruitment & Selection Process” This study will be helpful for the organization in understanding the strengths and weakness of Recruitment and Selection process in terms of lead time taken in hiring a candidate and the course of action need to be taken to overcome the issues related to recruitment so that the process can effectively and efficiently cater to the recruitment related needs of the individuals and the organization. To effectively collet the data a well-structured questionnaire will be used to get response from the employees directly. For the study a sample size of 100 respondents who are the main recruiters and subordinate workers of Talent acquisition team will be considered
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“A Study on Lead Time in Recruitment & Selection Process”
CMR Institute of Technology-Department of Management Studies 1
Executive Summary
Manpower forms an integral part of the organisation. The efficiency and quality of the
manpower leads to the success of the organisation. Hence ensuring that right person is placed
for right job at a right time is very essential. The recruitment comes into picture at this point of
time as it is the strategic function of the human resource department.
L&T Infotech is a global IT services and solutions provider. They provide the winning edge to
their clients by leveraging their Business-to-IT Connect and Deeply Committed People. The
clients of L&T Infotech have found them as a right-size partner who combines scale, stability
and customer-centricity.
L&T Infotech is based in Mumbai, India. In the year 2012-2013 L&T was Ranked 8 in Indian
IT Companies. L&T has 39 registered offices in 22 countries.
Larsen & Toubro Ltd. (L&T) is the parent company for L&T Infotech, a technology,
engineering, manufacturing and construction conglomerate, with global operations. This rich
corporate heritage has given them many inherent advantages that translate into tangible
benefits for their clients.
The Project Report is all about “A Study on Lead Time in Recruitment & Selection
Process” This study will be helpful for the organization in understanding the strengths and
weakness of Recruitment and Selection process in terms of lead time taken in hiring a
candidate and the course of action need to be taken to overcome the issues related to
recruitment so that the process can effectively and efficiently cater to the recruitment related
needs of the individuals and the organization.
To effectively collet the data a well-structured questionnaire will be used to get response from
the employees directly. For the study a sample size of 100 respondents who are the main
recruiters and subordinate workers of Talent acquisition team will be considered
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CMR Institute of Technology-Department of Management Studies 2
Analysis and interpretation of response was done using Microsoft Excel which was used to
tabulate and interpret the data via charts, questionnaire and statistical analysis with the help of
hypothesis.
Descriptive Research Methodology is used. This type of research is a combination of various
research methodologies and procedures, such as survey, observations and reports. Chi-square
test will be used for testing of hypothesis and to analyze the response given by different
respondents and their opinion about lead time in recruitment and selection process.
From the research it can be concluded that Lead Time in recruitment is a very critical part of
Information Technology (IT) organizations such as L&T Infotech. Thus Reducing the Lead
time in recruitment and selection will lead to increasing the manpower of the organization
which further leads to achieving the targets on time which enables the employees to be
profitable by being productive and generating revenue to the company.
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Chapter 1
Introduction to Internship
Title for the Study: “Lead Time in Recruitment & Selection Process”
As a part of my academic requirement I have completed 10 weeks internship in “Talent
Acquisition” team. During the tenure of 10 weeks i undertook a survey on” Lead Time in
Recruitment & Selection @ L&T Infotech.”
The internship in Talent Acquisition team helped me to understand the operations of
Recruitment & Selection functions, role of Recruitment & Selection in the context of strategic
objectives of the organization and exposure to the best practices. The internship also helped in
gaining experience of working in the HR function in industry. The opportunity to work in my
area of specialization and the experience was helpful to the growth of my professional career.
1.1. INTRODUCTION
Recruitment is a process of searching for suitable candidates and asking them to apply for
jobs. Receiving large number of applications to make selection from the most effective
recruitment and selection system is very important function of recruitment. Choosing the best
pool of candidates quickly and in cost effective manner will help to increase the competitive
advantage for this an effective recruitment and selection approach must be followed, but
successful recruitment and selection can be time-consuming and costly. The manpower of any
organization is the key factor for the organization success. As the companies functions starts
with recruitment and selection the recruiters must ensure that the recruitment and selection is
done effectively without any duplicate candidates involved in it if not all other functions will
get affected. The overall mission of the recruitment is to get the right people in the right place
at the right time. The strategies that organizations can apply to recruit the best pool of
candidates from which they can fill vacancies. It will identify the lead time taken to fill a
vacancy and offer suggestions for reduction of lead time in recruitment and selection process.
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CMR Institute of Technology-Department of Management Studies 4
1.2. Topic chosen for the study:
“Lead Time in Recruitment & Selection Process”
Recruitment Lead time can be calculated from the time the position is opened to the recruiters
till the position closed by offering the offer letter to the candidate.
Usually the time is more due to the following reasons:
Late feedback from the line manager / functional head;
Non availability of the panel members,
Requirement is for very rare skill.
Recruiting out location candidates.
Delay in scheduling interviews due to unavailability of candidates in job portals.
Salary negotiations and Notice period.
Competitors may hire the same candidate paying higher CTC.
Position to go slow and other external factors.
The same can be traced by highlighting the following:
Date of profiles shared,
Date of interview done.(Technical, HR and Client Interviews)
Date of feedback shared
Date of candidate details sent for approval.
Date of candidate accepting the offer.
Date of position closed.
Date of Joining of candidate.
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1.3. IDENTIFIED PROBLEM:
Recruiters may not be following up with candidates in a timely manner.
Hiring managers may not be reviewing candidates as quickly as necessary.
Getting Counter offer from competitors with higher CTC’s.
Few cases are not getting approved by C&B team due to high expectation
3 month’s Notice Period(most of the resources working with Tier 1 company)
All candidates CTC’s are on higher side when compare to company standards.
Unavailability of resources in job portals.
1.4. NEED FOR STUDY:
A rapidly growing software company faced a problem of not being able to recruit and fill up
positions in all sections of its operation.
The causes were:
o Huge resource crunch
o Serious impact on project deliveries,
o Resulting in client dissatisfaction
o Employee stress
Lead-time to recruit candidates for all functions was approximately taking more than 3
Months. Reducing the lead time in recruiting was very important for the smooth flow of the
organization for achieving the targets on time which further helps in the growth of the
organization.
This study will be beneficial for the organisation in understanding the strengths and weakness
of Recruitment and selection process and the course of action need to be taken to enable the
process to work effectively and efficiently which leads to fulfillment of recruitment related
needs for individuals and organisation.
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1.5. Objective of the Study:
To identify the actual lead time taken to recruit a candidate in L&T Infotech.
To understand how important it is to close the requirement within the SLA.
To understand how the reduction of lead time in recruitment and selection contributes
to the organization growth.
To show difference between adopted procedures and actual practices and resultant
consequences.
To show how important it is to have HR professionals and thereby adopt best HR
practices for organizational advantages especially in the area of talent acquisition
manpower planning.
1.6. Scope of the study:
The study was conducted with specific reference to the employees of L&T Infotech Bangalore
based on responses of survey from the members of Talent Acquisition team which involves
managers, team leads, HR executives and trainees.
Understanding the relevance of recruitment in IT industry.
Understanding how staffing helps in getting outcomes at multiple levels of analysis.
Understanding the staffing needs which impact on organizational effectiveness.
To recognize that staffing needs to reduce that gap for lead time in effective
recruitment.
1.7. RESEARCH METHODOLOGY:
It is based on primary and secondary data available through various tools such as
questionnaire, website portals, e-articles and books. The analysis of the information is used to
suggest ways and means to face the arising challenges due to increase in lead time in
recruitment and selection process. Research methodology is used to systematically outline the
approach that will be used to solve the research problem.
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RESEARCH DESIGN
Descriptive Research Methodology is used. This type of research is a combination of various
research methodologies and procedures, such as survey, observations and reports.
SAMPLING SIZE
The sampling size for the study was 100 employees from various organizational roles –
namely Members of the Talent acquisition team, Managers, Trainers and Trainees.
QUESTIONNAIRE DESIGN
A structured questionnaire will be used because it would be convenient and an efficient way of
gathering response from the target audience. It is cost effective as well.
A structured questionnaire will be used to interview a respondents belonging to talent
acquisition team– namely Members of the TA team, Managers, Trainers and Trainees.
Where responses are expected to have clear options Yes-No option will be provided to the
respondents. In case some amount of ambiguity is expected in the responses, 3 response
options e.g. Yes- Maybe-No will be provided to the respondents.
In case there could be difference in view of the respondent’s 5-response options e.g. Strongly
Agree-Agree-Neutral-Disagree-Strongly Disagree will be provided.
METHOD OF DATA COLLECTION
The source of information is generally divided into primary and secondary sources:
PRIMARY DATA
The questionnaire will be handed over to the respondents with an explanation of the questions
and method of response. In case of non-availability of a respondent, the questionnaire will be
sent to them via email or telephonic interview will be conducted. Questionnaires for various
categories of respondents will also be used to gain insight on the following aspects:
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SECONDARY DATA
Secondary research will be carried out to understand the nature of the industry and to gather
details about Recruitment and Selection and the best practices in context to the IT & ITes
industry. The insight from secondary research was useful to build the framework and the
structure of the questionnaire. The secondary data collected includes company website,
business magazines, E-articles, books.
DATA ANALYSIS TECHNIQUE:
The number of respondents will be tabulated in an excel file which will be used to generate the
charts and visual reports. The responses will be collected, analyzed and represented visually
using various charts such as bar charts, column charts and pie-charts.
Based on responses received, analysis will be carried out to measure the contribution of lead
time in recruitment and selection process towards business growth.
A statistical hypothesis will be carried out using the testing of hypothesis method to analyze
the response given by different respondents and their opinion about lead time in recruitment
and selection process. The statistical test used was chi-square test
Chi-Square Test:
Formulae:
O = Observed frequency
E = Expected frequency
Based on the relationship between calculated value and table value x2 we either accept or
reject our original hypothesis.
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1.8. Literature review
“According to Lauren weber and Rachel Feintzeig” at the point when there's a bigger pool out
there you can commit errors and there's another remaining in the line," he says. Presently,
"when you hire somebody you need to ensure they're the right one. It's getting harder for
organizations to say "You're recruited.
Open Text Corp., a product organization situated in Ontario, diminished its opportunity to
procure by around 30% in the course of the last a few years by bringing recruiting in-house for
most positions and cutting the quantity of approvals expected to secure another contract.
(Source: An article “Why companies are taking longer to hire” Published on Sept 1st 2014)
“According to Ruth Mantell” Longer opportunity spans are an indication that labor markets
are getting to be more tightly, making it harder for managers to fill the vacancies.
The compotator understood that the company is taking more than week to respond to resume
which was sent for a general manager position and he was dropped out from the quest.
Dislike I require their employment. On the off chance that it takes them more than seven days
to respond for a profile like mine for the requirement in this significance, I feel that this
organisation is not the one which I am looking to work. I do things quickly and I feel that my
style of working will not fit their way of life. –Wind River Associates
(Source: An article “Employers take record time to fill job openings” Published on Oct 8th
2014)
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“According to Dr. John Sullivan” The reasons for delay in recruiting which damages the
organization growth:
Losing of candidates who are in high demand during the late stages of recruitment.
No improvement in the quality of employees as new candidate is not hired.
Losing revenue and productivity as the position remain vacant for a long time.
Paying high CTC’s for new candidate as they are in demand.
Decision making process must be faster which leads to both individual and organisation
growth.
Delay in decision making will lead to loosing of more number of candidates.
Delay in hiring reduces hiring manager and recruiters interest.
Delay in hiring creates a negative impact on customers and employees.
Delay in recruiting has impact on the external employer brand image and the candidate’s
experience.
If you are focusing on "passive prospects," understand that delay in recruiting may result
rather in recruiting of actives
Delay in recruiting can lead to hidden recruiting costs.
Keeping the prescribed time for recruiting will help to reduce lead time.
(Source: An article “reasons for delay in recruiting which damages the organisation growth”
Published on April 21 2014)
1.9. Limitations to study:
The study was conducted within a limited geographical area; a larger sample size
would have made the study more effective.
The study was also conducted within a limited timeframe, more time and resources
would have made the data more comprehensive.
The main limitation was to get the response from the employees in the organization. It
was a challenge to get questionnaire filled by the employees on time.
Another major limitation was of the basis response given by the employees.
Lack of interest from the employees in filling the questionnaire
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Chapter 2
Industry Profile & Company Profile
2.1. Industry Profile
The fastest growing sector in the country is IT sector. It was in the year 1990’s. Most of
the Software companies offered only limited services such as banking and engineering
software. The organization is forced to cut down the cost of product Due to the market
competition. GDP has gone up significantly from 1.8% in FY 2000 to around 5.4% in
FY 2007 in India due to its leadership in IT and business outsourcing.
IT is becoming expensive day by day. The availability of manpower and quality of
service has been higher in Indian IT companies which are globally established. The
captive centers of Microsoft, oracle, SAP, Lenovo has already been established in India.
India is the fastest growing IT markets in Asia pacific region.
Introduction
The greatest sourcing area in the world for IT sector is India. Around 67% of the US$
124-130 billion industry segment. The industry uses around ten million workforces; the
business has driven the money related change of the nation & balancing perspective of
our country in the overall economy. Our countries cost forcefulness in giving
information technology organizations, as it is around 3-4 times less costly compare to
US, continues being the mainstay of its extraordinary offering proposal (USP) in the
overall sourcing market. Regardless, Our country is moreover grabbing unmistakable
quality in regards to academic capital with a couple of overall IT firms setting up their
headway centers in India.
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The IT-BPM part in our country created at CAGR of 15% more than 2010-2015, as it is
three to four times higher compare to overall IT-BPM spend, and is assessed to reach
out at a compound annual growth rate of 9.5% to US$ 300 billion by 2020. 10 million
Indians are utilized by the business and consequently, it has essentially contributed to
the nation’s social change. Our country is one of the fastest developing information
technology administrations markets on the world.
Destination, representing around 52% of the US$ 124-130 billion business sector. The
nation's cost intensity in giving IT administrations keeps on being its USP in the global
sourcing market. India can possibly construct a US$ 100 billion programming item
industry by 2025, as indicated by Indian Software Product Industry Roundtable
(iSPIRT). The product items market in India, which incorporates bookkeeping
programming and distributed computing based telephony administrations, is relied upon
to develop at 14% in 2014.
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2.2. IT INDUSTRY IN INDIA -HISTORY
In 1965, movement laws in USA were adjusted and the limitations on workers were
decreased significantly. Thus a considerable measure of Indian experts moved for
exploration opportunities in USA. The IT upheaval in USA and the tremendously
fancied Silicon Valley in the US amid the 80s and 90s couldn't have been conceivable
without the work of these relocated Indians. This movement enabled the Indian IT
sector to get into USA IT industry. As the USA IT was growing quickly the need of IT
people outside USA raised. As India had good number of individuals with very good
talent and skills and mainly Indian were trained to speak in English. This period was
totally controlled by Indian government and they formed strict rules and regulations for
private business in India, as a result the Indian IT was not so well developed till 1991
Indian talent pool:
The major reason for India’s development in global outsourcing is availability of
workforce and their ability to speak English.
From the year 2008 to 2015 the number of graduates coming out every year
made our county grow at the compounded annual growth rate of 9.4%
In the year 2015 our county has added 5.8 million graduates to the talent pool.
The Research and development, innovation in the IT-BPM depends upon the