Human Resource is the back bone of every industry, a company with all modern technologies, well equipped infrastructure might fail to achieve success without skilled labor but a company with skilled manpower will definitely reach to greater heights. Recruitment and Selection form an important part in getting right and adequate manpower. An apt candidate would add to benefit of the company helping in reaching the company to its goal where as recruiting a wrong person is a loss for company as hiring and recruiting bears huge cost on company. Human Resource is the building block of any company's consistency and growth.
There are various tools for recruitment and selection, some of them are- Job Portals, Personal References, Advertisement in newspapers, journals, radio and television, consultancies etc. But these are all traditional and more importantly reactive methods of recruitment. There's a new way to find staff these days. Businesses have embraced the concept of talent mapping to find the right candidates, especially for senior positions.
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Talent mapping is the solution to today's recruitment crisis and turns the way the recruitment industry currently works on its head. Talent mapping works like a retained talent scout; it is like having an internal recruitment and search capability, with the flexibility of an external brand representing you. This is particularly important if the candidate works for a competitor.
This project basically deals with mapping all the branches of the competitor organisations and doing a primary research of senior people who are working in those organisations. We do not know whether they would like too join our organisation but at least we are a step ahead by doing talent mapping. Talent mapping addresses candidate quality issues too through a comprehensive map of the market and creates a pipeline to reduce time to hire.
TABLE OF CONTENTS
RECRUITMENT NEEDS 2
PURPOSE AND IMPORTANCE OF RECRUITMENT 2
DIFFERENT SOURCES OF RECRUITMENT 3
COMPANY PROFILE 4
RECRUITMENT SOURCES USED IN HDFC BANK 10
GENERAL HIRING PROCESS 14
HIRING PROCESS USED IN HDFC BANK 15
TYPES OF RECRUITMENT 17
REACTIVE RECRUITING 17
PROACTIVE RECRUITING 17
PROACTIVE RECRUITING FOR 18 SENIOR POSITIONS
TALENT MAPPING 19
DIFFERENCE BETWEEN TALENT MAPPING AND TRADITIONAL RECRUITMENT 20
ADVANTAGES OF TALENT MAPPING 20
HOW IS IT HELPFUL FOR HDFC BANK 21
QUANTITATIVE EXAMPLE OF REDUCTION OF COST TO HIRE BY TALENT MAPPING 22
REDUCTION IN TIME TO FILL 23
TALENT MAPPING IS DIFFERENT FROM POACHING 23
Recruitment forms the first stage in the process, which continues with selection and ceases with the placement of the candidate. It is the next step in the procurement function, the first being the manpower planning. Recruitment makes it possible to acquire the number and types of people necessary to ensure the continued operation of the organization. An agile HR function is the capability of contributing to the bottom line of a company by not letting go opportunities for lack of resources, by constantly re-energising its human resources in response to unpredictably changing market opportunities. The objective of Human Resources is to maximize the return on investment from the organization's human capital and minimize financial risk.
Every business knows that talented individuals are key to an organisation's ongoing success. Availability of quality candidates is decreasing and the time it now takes to hire is increasing. Also, when margins are tight, companies will naturally be reluctant to invest in major recruitment drives. Talent mapping is challenging traditional recruiting tools and saving recruiters money and time. The process, although time consuming, could be just the ideal retention tool for business who struggle with the recruitment process. Essentially the talent mapping process starts even before the position becomes vacant. It helps organisations to pinpoint exactly where the best talent is working. So, whatever the future demands of a business, whether significant growth or organisational change, they can be met with a pipeline of exceptional candidates.
Recruitment of candidates is the function preceding the selection, which helps create a pool of prospective employees for the organisation so that the management can select the right candidate for the right job from this pool. The main objective of the recruitment process is to expedite the selection process. Recruitment is a continuous process whereby the firm attempts to develop a pool of qualified applicants for the future human resources needs even though specific vacancies do not exist. Usually, the recruitment process starts when a mandate is given by the manager for a specific vacancy or an anticipated vacancy.
RECRUITMENT NEEDS ARE OF THREE TYPES:
Always on Time
Marked to Standard
i.e. when the organization plans to go for an expansion.
Anticipated needs are those movements in personnel, which an organization can predict by studying trends in internal and external environment.
Resignation, deaths, accidents, illness give rise to unexpected needs.
PURPOSE AND IMPORTANCE OF RECRUITMENT:
Attract and encourage more and more candidates to apply in the organisation.
Create a talent pool of candidates to enable the selection of best candidates for the organisation.
Determine present and future requirements of the organization in conjunction with its personnel planning and job analysis activities.
Increase the pool of job candidates at minimum cost.
Help increase the success rate of selection process by decreasing number of visibly under qualified or overqualified job applicants.
Help reduce the probability that job applicants once recruited and selected will leave the organization only after a short period of time.
Meet the organizations legal and social obligations regarding the composition of its workforce.
Begin identifying and preparing potential job applicants who will be appropriate candidates.
Increase organization and individual effectiveness of various recruiting techniques and sources for all types of job applicants.
DIFFERENT SOURCES OF RECRUITMENT:
The Recruitment Sources in the recruitment process are the sources of candidates. Generally, the HRM Function recognizes two main sources of candidates for the job positions: internal and external sources of candidates.
The internal recruitment sources are very important, but they cannot be used to fill every vacancy in the organization. It is very important to realize, that in many organization, the internal recruitment is divided into two separate processes: internal recruitment and promotions. The promotion is the move of the employee when the organization initiates the whole process. The internal recruitment is considered to be the cheapest as the candidate is already a cultural fit and also is knowledgeable about the industry in which they work.
The external recruitment sources bring job candidates from the external environment using different techniques. The oldest, but still pretty efficient is a newspaper job advertisement. Many HRM Professionals do not believe in the power of the newspaper advertising, but for many jobs it is still one of the best techniques with the best cost/income ratio.
The modern recruitment source fully managed by the organization is the web job advertisement. It is cheaper compared to the newspaper job advertisements, but it can flood the organization with many useless job resumes. This can make the final decision almost impossible as then a lot of resumes have to be screened most of which may not fit the job role. The cost/income ratio is always attractive, but the success rate can be really low.
The other external recruitment sources are the recruitment agencies and executive search companies. They charge the companies on a fixed percentage basis depending on the salary of the candidates but the advantage is that the organization does not have to handle all useless resumes.
A very special kind of the recruitment source is the referral recruitment, when the employees are paid to provide the organization with their friends as potential employees. This can look strange, but it can provide the organization with many interesting candidates, who are not reachable via any other recruitment source.
INTRODUCTION OF THE COMPANY
The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle'approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.
HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment.
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HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the bank's risk appetite. The bank is committed to maintain the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance. HDFC Bank's business philosophy is based on four core values - Operational Excellence, Customer Focus, Product Leadership and People.
As on 30th June, 2010 the authorized share capital of the Bank is Rs.550 crore. The paid-up capital as on said date is Rs. 459,69,07,030/- (45,96,90,703 equity shares of Rs. 10/- each). The HDFC Group holds 23.63 % of the Bank's equity and about 17.05 % of the equity is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). 27.45% of the equity is held by Foreign Institutional Investors (FIIs) and the Bank has about 4,33,078 shareholders.
CBoP AND TIMES BANK AMALGAMATION
On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC Bank was formally approved by Reserve Bank of India to complete the statutory and regulatory approval process. As per the scheme of amalgamation, shareholders of CBoP received 1 share of HDFC Bank for every 29 shares of CBoP.
The merged entity will have a strong deposit base of around Rs. 1,22,000 crore and net advances of around Rs. 89,000 crore. The balance sheet size of the combined entity would be over Rs. 1,63,000 crore. The amalgamation added significant value to HDFC Bank in terms of increased branch network, geographic reach, and customer base, and a bigger pool of skilled manpower.
In a milestone transaction in the Indian banking industry, Times Bank Limited (another new private sector bank promoted by Bennett, Coleman &Co. / Times Group) was merged with HDFC Bank Ltd., effective February 26, 2000. This was the first merger of two private banks in the New Generation Private Sector Banks. As per the scheme of amalgamation approved by the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank.
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of 2000 branches spread in 996 cities across India.All branches are linked on an online real-time basis. Customers in over 500 locations are also serviced through Telephone Banking. The Bank's expansion plans take into account the need to have a presence in all major industrial and commercial centres where its corporate customers are located as well as the need to build a strong retail customer base for both deposits and loan products. Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in the centres where the NSE/BSE have a strong and active member base.
The Bank also has 5,471 networked ATMs across these cities. Moreover, HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.
HDFC Bank operates in a highly automated environment in terms of information technology and communication systems. All the bank's branches have online connectivity, which enables the bank to offer speedy funds transfer facilities to its customers. Multi-branch access is also provided to retail customers through the branch network and Automated Teller Machines (ATMs).
The Bank has made substantial efforts and investments in acquiring the best technology available internationally, to build the infrastructure for a world class bank. The Bank's business is supported by scalable and robust systems which ensure that our clients always get the finest services we offer.
The Bank has prioritised its engagement in technology and the internet as one of its key goals and has already made significant progress in web-enabling its core businesses. In each of its businesses, the Bank has succeeded in leveraging its market position, expertise and technology to create a competitive advantage and build market share.
HDFC Bank offers a wide range of commercial and transactional banking services and treasury products to wholesale and retail customers. The bank has three key business segments:
Wholesale Banking Services
The Bank's target market ranges from large, blue-chip manufacturing companies in the Indian corporate to small &mid-sized corporates and agri-based businesses. For these customers, the Bank provides a wide range of commercial and transactional banking services, including working capital finance, trade services, transactional services, cash management, etc. The bank is also a leading provider of structured solutions, which combine cash management services with vendor and distributor finance for facilitating superior supply chain management for its corporate customers. Based on its superior product delivery / service levels and strong customer orientation, the Bank has made significant inroads into the banking consortia of a number of leading Indian corporates including multinationals, companies from the domestic business houses and prime public sector companies. It is recognised as a leading provider of cash management and transactional banking solutions to corporate customers, mutual funds, stock exchange members and banks.
Retail Banking Services
The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-stop window for all his/her banking requirements. The products are backed by world-class service and delivered to customers through the growing branch network, as well as through alternative delivery channels like ATMs, Phone Banking, NetBanking and Mobile Banking.
The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and the Investment Advisory Services programs have been designed keeping in mind needs of customers who seek distinct financial solutions, information and advice on various investment avenues. The Bank also has a wide array of retail loan products including Auto Loans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers. It is also a leading provider of Depository Participant (DP) services for retail customers, providing customers the facility to hold their investments in electronic form.
HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the Mastercard Maestro debit card as well. The Bank launched its credit card business in late 2001. By March 2010, the bank had a total card base (debit and credit cards) of over 14 million. The Bank is also one of the leading players in the "merchant acquiring" business with over 90,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant establishments. The Bank is well positioned as a leader in various net based B2C opportunities including a wide range of internet banking services for Fixed Deposits, Loans, Bill Payments, etc.
Within this business, the bank has three main product areas - Foreign Exchange and Derivatives, Local Currency Money Market &Debt Securities, and Equities. With the liberalisation of the financial markets in India, corporates need more sophisticated risk management information, advice and product structures. These and fine pricing on various treasury products are provided through the bank's Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits in government securities. The Treasury business is responsible for managing the returns and market risk on this investment portfolio.
Mr. C.M. Vasudev has been appointed as the Chairman of the Bank with effect from 6th July 2010 subject to the approval of the Reserve Bank of India and the shareholders. Mr. Vasudev has been a Director of the Bank since October 2006. A retired IAS officer, Mr. Vasudev has had an illustrious career in the civil services and has held several key positions in India and overseas, including Finance Secretary, Government of India, Executive Director, World Bank and Government nominee on the Boards of many companies in the financial sector.
The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25 years, and before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia.
The Bank's Board of Directors is composed of eminent individuals with a wealth of experience in public policy, administration, industry and commercial banking. Senior executives representing HDFC are also on the Board.
Senior banking professionals with substantial experience in India and abroad head various businesses and functions and report to the Managing Director. Given the professional expertise of the management team and the overall focus on recruiting and retaining the best talent in the industry, the bank believes that its people are a significant competitive strength.
RECRUITMENT SOURCES USED IN HDFC BANK
Although the number of candidates a company gets through internal reference is less but they are reliable. Here they have a portal called KaroSifarish for this purpose. If the hiring manager open the vacancies for references from the employees, the employees can refer their own friends as candidates. If their referred candidates get selected they get an incentive.The downside is that this system tends to create nepotism and allows cliques of friends and relatives to form in an organization. Many organizations have structured system where the current employees of the organization can refer their friends and relatives for some position in their organization.
ADVANTAGES OF INTERNAL REFERENCE-
Incurs a less cost
Proper and good quality candidates come from internal reference
Almost 70% of the selected candidates join finally
Boosts up the energy of the employees.
Provides a high employee commitment
DISADVANTAGES OF INTERNAL REFERENCE-
Size of prospective applicants is considerably reduced.
Can negatively affect morale and commitment of the employees if his/her referral is not selected
The Bank is empanelled with few placement firms pan India. They provide quality resource to the bank. Placement agencies maintain a database of resumes of prospective candidates. Companies in need of personnel, contact these agencies with their requirements and they source suitable profiles for the respective openings. External sources of recruitment have many advantages. They enable fresh talent and new ideas to enter the organization. Since the selection is to be made from a wider list of candidates , the company can extract the best possible candidates out of them. When the candidate gets selected the agencies send an invoice which is calculated on a fixed charge basis or on the specified percentage of the CTC of the candidates.
ADVANTAGES OF CONSULTANCY-
Good quality candidates come from the consultancy houses
Joining rate is also comparatively higher
Saves company's time
DISADVANTAGES OF CONSULTANCY-
Incurs a huge cost
Comparatively less number of potential candidates come from consultancy firms
External job site-
The job site commonly used at HDFC Bank is www.naukri.com. By using this popular job site the company can reach to a large number of candidates. So it is easier for the HR Department to short list the candidates for different positions according to the job criteria. With the advent of the Internet, searching for candidates has acquired a whole new dimension. Web portals dedicated to finding jobs have been setup. The candidates key in their details and post their resumes. Employers have to just browse through these resumes or use the site search engine to list out people with specific skills.
The buzzword and the latest trends in recruitment is the "E-Recruitment". Also known as "Online recruitment", it is the use of technology or the web based tools to assist the recruitment processes. The tool can be either a job website like naukri.com, the organization's corporate web site or its own intranet. Many big and small organizations are using Internet as a source of recruitment.
E-recruitment is the process of personnel recruitment using electronic resources, in particular the internet. Companies and recruitment agents have moved much of their recruitment process online so as to improve the speed by which job candidates can be matched with live vacancies. Using database technologies, and online job advertising boards and search engines, employers can now fill posts in a fraction of the time previously possible.
ADVANTAGES OF EXTERNAL JOB SITE-
Better pool of candidates
Saves cost and time
DISADVANTAGES OF EXTERNAL JOB SITE-
Too many irrelevant resumes are there so screening has to be done
On-campus Recruitment is a term used to describe the process through which employers recruit students from the college campus, utilizing the services offered by the placement department. This is done every year. Through this source the company usually takes for Assistant Managers (AM). This source is used to take up the fresher's for the sales profile. Every year the company visits few B Schools and take candidates from there. The candidates from B Schools are usually given the designation of Assistant Manager. As this is not costly so the company uses this source of recruitment every year.
ADVANTAGES OF MANAGEMENT INSTITUTE-
Companies get the opportunity to choose from and select the best talent in a short span of time.
Companies end up saving a lot of time and efforts that go in advertising vacancies, screening and eventually selecting applicants for employment.
College students who are just passing out get the opportunity to present themselves to some of the best Companies within their industry of interest. Landing a job offer while still in college and joining just after completion of the course is definitely what all students dream of!
DISADVANTAGES OF MANAGEMENT INSTITUTE-
The joining rate can be less if the candidate gets a better offer
If the desired number of candidates is not selected then it would not be of much use to the company.
GENERAL HIRING PROCESS:
HIRING PROCESS FOLLOWED IN HDFC BANK LTD. :
The line manager or Head of the Department shares the open positions with the Hiring Managers along with the job description if present to the hiring team.
The Hiring Manager lists out the critical factors of the open position like job responsibilities, years of work experience and educational qualification from the Job description provided by the Head of the Department / Line Manager.
The line manager gives the open positions to the HR department who in turn starts sourcing for positions through different channels.
The following sources of recruitment are considered :
External Job postings
Internal job posting (Karo Sifarish)
Once the CV's are procured then there is first level screening done by the hiring team
Basic profile match
CTC (cost to company)
If the above criterion matches the requirement then the candidate is lined up for an HR round of interview followed by functional round of interview. Once the candidate is shortlisted the candidate is asked to fill up an application form in which he has to mention the name and contact details of two referees. The candidate is also asked to submit his last 3 months salary slips.
The documents are then checked and placed in order which is as followed:
IRS or the interview record sheet
Application Blank and photo
Approval mail from line manager
If the work experience of the candidates is less than 3 years then the candidate has to appear for a written test. If he fails in the test then the candidate is rejected. Also if the candidate is a previous employee of HDFC Bank he is asked to submit the relieving letter.
The documents are then arranged in order. Once the hiring decision is finalised, HR now prepares a fitment as per the compensation structure and grade.
Past credit history of the candidate is then checked. If the candidate has some pending dues then he is asked to clear that failing which his offer stands cancelled.
All the details pertaining to a candidate is maintained in a database which is regularly updated.
Applicant number of the candidate is generated from Mumbai.
The candidates are then asked to go for a medical test. If they are found fit to join the company the offer letter is then handed over to them. One copy of the offer letter is signed by the candidate and returned to formally accept employment from the organisation.
TYPES OF RECRUITMENT:
There are two ways that a human resources department can approach staffing, either by reactive recruiting or by proactive recruiting.
REACTIVE RECRUITING, or simply recruiting when a position is vacant, is the approach most commonly used. Reactive hiring involves waiting until positions become vacant before recruiting. They wait until it's time to have new candidates in place and then hastily recruit the next available person (s) in order to fill the position.
The traditional recruitment model, which can be defined as a somewhat passive model, typically follows this pattern:Â one waits for a requirement to arrive, the job is posted according to the specifications given by the hiring manager and only in those sources mentioned by the hiring manager. The recruiter then checks and screens responses that may be a few or hundreds depending on the position. The resumes are then sent off to the hiring leader who is quick to find what is wrong with the candidates to interview, and decisions are made on offers (that may or may not be accepted).Â This approach is a result of a changing marketplace as it relates to both the recruitment and business processes.Â
PROACTIVE RECRUITING involves networking and identifying candidates before a position is available. Proactive recruiting helps companies to stay ahead of their competitors. It may seem confusing at first glance, but the theory behind it is that it reduces impulsive hiring practices and prevents prolonged vacancies in the company. Recruiting needs are difficult to forecast. However, there are generic skill sets which are traditionally in demand, making a proactive approach to recruiting is highly desirable. Because of increasing competition for executives, it makes sense to move forward with a reasonable prediction of the future requirement of the manpower.
PROACTIVE RECRUITING FOR SENIOR POSITIONS:
Proactive recruiting works better for certain positions . At senior levels in industry, the best professionals are not actively seeking a change. They will not respond to an ad, email, or other passive solicitation nor put their CVs on-line. Many of such candidates are the ones who are extremely successful in their respective fields and can prove to be an asset to the organizations of which they are a part.
Reactive recruiting for critical positions can prove to be costly for the organizations as it becomes difficult to hire the senior candidates as quickly as the positions become vacant. In order to be proactive, the groundwork of recruiting candidates has to be started well before the actual need becomes urgent.
Sourcing is basically identifying talent through proactive recruiting methods. Sourcing is used in a wider sense in organisations but it needs to be clearly distinguished from screening. Sourcing ends once the initial contact details of the candidates have been found out. After the sourcing is done the companies may have another team to pre-screen the candidates against the job requirements and also assessing their interest in hearing about new job opportunities. This activity however is called candidate profiling. Sourcing may be regarded as a name gathering exercise.
In some situations a person that "sources" candidates can and will perform both 'primary' and 'secondary' sourcing techniques to identify candidates as well as the candidate profiling to further pre-screen candidates but there is a growing market for experts solely focused on "telephone sourcing", "internet sourcing/researching" and candidate profiling. The actual act to source candidates can usually be split out into two clearly defined techniques: primary sourcing and secondary sourcing.
Primary sourcing/phone sourcing
In recruiting and sourcing, this means the leveraging of techniques (primarily the phone) to identify candidates with limited to no presence of these individuals in any easily accessible public forum (the Internet, published list, etc). It requires the uncovering of candidate information via a primary means of calling directly into organizations to uncover data on people, their role, title and responsibilities.
Secondary sourcing/Internet sourcing
In recruiting and sourcing, this means the using of techniques (primarily the Internet and utilizing advanced Boolean operators) to identify candidates. Individuals in the recruiting industry that have deep expertise in uncovering talent in the harder to reach places on the internet (forums, blogs, alumni groups, conference attendee lists, personal home pages, etc).
Talent simply defined is aptitude and capacity for achievement. Organisations are keen to attract leaders with this capacity to influence. Talent mapping involves plotting the commercial landscape for competitive advantage, to identify and track high-calibre individuals and organisations. Competitor Talent Mapping is arguably one of the most important strategies in recruitment today. It delivers to you the information of knowing where to find the best of your competitor's high-performing talent. It is important to maintain a talent pipeline of the competitor's high performers to be on the front foot.
Why is it used?
Talent Mapping is an exceptional process for companies in both times of expansion and growth, and also during a downturn. The reason for investing in such research is that it assesses whether the talent needed is recruitable internally orÂ externally. Though it is a lengthy process it is an advantageous one.
DIFFERENCE BETWEEN TALENT MAPPING AND TRADITIONAL RECRUITMENT:
Talent mapping is a real alternative to ensure businesses are on the front foot. Instead of waiting for someone to resign and then scrambling to fill their vacancy, talent mapping offers employers peace of mind. In contrast to traditional recruitment which is a reactive approach, talent mapping is a proactive technique. In most organisations a position becomes vacant and the company initiates a recruitment exercise, using methods such as advertising, referrals and recruitment agencies. It takes typically two to four months to close the position requirements. Talent mapping starts much before the requirement arises. So in that respect it is a lengthy approach but once the mandate is given it reduces the time-to-hire which is one of the important metrics to determine the efficiency of the recruitment process.
Talent mapping is the solution to today's recruitment crisis and turns the way the recruitment industry currently works on its head. It works like a retained talent scout. It is like having an internal recruitment and search capability, with the flexibility of an external brand representing you. This is particularly important if the candidate works for a competitor.
ADVANTAGES OF USING TALENT MAPPING :
Having the full picture on industry trends and competitor insight allows organisations to effectively manage their talent pipeline. By tracking high-calibre individuals, succession planning and leadership development are the focus of a planned approach rather than a reactive, last-minute solution. At the appropriate time, the organisation will be able to react quickly and move to actively approach individuals within organisations and industries which they have mapped for talent.
HOW WILL IT HELP HDFC BANK:
First and most importantly it will save both time and money.Â It is very costly for a company to take on a new employee that needs extensive training but with this approach minimal training is necessary.Â Because the candidate has already been managing the same position in the competitor organization, he is knowledgeable about the industry. Also training costs are minimal as they would require no or minimal training. Hence it saves an organization enormous amount of money and they can devote the time on more pressing matters other than training. When these people shift from the competitor to our organization they also bring along the rich vein of customers and hence the ROI of these candidates becomes very high. It is a great snapshot of competitor and market activity. It also helps to benchmark compensation and benefits packages.
Also it helps to reduce the cost to hire the employees. I was involved in mapping all branch managers of the private banks in the eastern region. These people are generally "passive candidates". Passive candidates are defined as candidates that are currently employed and not actively seeking new job opportunities. These are the "hidden" gems whose names will not be found on online databases or resume banks at Internet job sites. They are very satisfied with their jobs and have to be convinced a lot to shift from their current organizations.
If the sourcing of these passive candidates is outsourced to the consultancies they will charge a huge amount of fee based on the salary of the candidates. So if we have a database of these candidates it is easier for us as it helps to reduces the spikes in cash flow arising from expensive recruitment fees.
Another advantage is that since we have a pipepline of candidates who meet the requirements it also helps to reduce the time-to-fill the critical positions and hence increases the reputation of the Bank.
QUANTITATIVE EXAMPLE OF REDUCTION OF COST-TO HIRE BY USING TALENT MAPPING:
Cost is the component about which collecting data is relatively harder, but its impact and necessity is significantly so obvious. As can be seen from the researches that it has many other subcomponents on which HR professionals must be agreed. A typical recruitment cost may be calculated by taking the sum of :
Source cost (advertising, agency, consultancy fees),
Screening and Selection cost (salary, benefit and overhead cost of HR people for reviewing resumes, tracking data, interviewing applicants),
Management cost (salary, benefit and overhead cost of requesting department for interviewing),
Travel and Relocation cost (travel and lodging costs for staff in case they have to travel to other locations to conduct the interviews),
Orientation cost (new hire training/orientation costs).
In addition to all these pertinent costs, if we take the help of consultancies then the recruitment expenses increase. The consultancies work on the basis of a percentage based model.
Let us suppose that the consultancies are charging 9% of the annual salary of the candidates. Now the senior profiles generally have a salary in the range of Rs.500,000 - Rs. 600,000(although a lot of other factors determine the salary of the candidates).
So, the consultant's fees = 9% of Rs. 500,000(suppose)
= Rs. 45000
(Rs. 45000 * 5) = Rs. 225,000.
Now , if the company recruits even 5 candidates the total cost of recruitment comes to
In contrast, if we have a database of these candidates ready with us we can avoid the additional costs of recruitment. Also since these candidates are managing the roles and are experienced in their fields, the training costs will be minimal or may be averted too. So this approach seems to be cost effective.
REDUCTION IN TIME-TO-FILL
It is the measurement of the total number of days between the approved job requisition and the date on which an applicant accepts the job offer. It is an important indicator of hiring efficiency but should be balanced with cost and quality hiring measures. Time to fill can provide valuable feedback in determining which sourcing methods and recruitment strategies can most quickly produce the required potential candidates. Since the critical positions directly impact the business and hence keeping those positions vacant may prove to be very costly for the organizations, so time to fill must be minimum for these positions.
Though it is an useful recruiting measure, it may not be a sufficient measure as it does not take into account other important factors , such as labor market conditions that are outside of a recruiter's control.
TALENT MAPPING IS DIFFERENT FROM POACHING:
Talent mapping is usually done for candidates which are highly experienced, competent with great leadership skills but very passive in the job market. They do not apply for any jobs opportunity. They need to be challenged by an opportunity. Such people need to be head-hunted.
Poaching is different from headhunting or mapping. Poaching is considered to be unethical. In this method the competitors are targeted . An entry level candidate is targeted and then convinced to give the names of all people whom he is reporting to. They are then called up for hiring purposes.This strategy is usually done to kill the competition. It is still not ascertained whether it is ethical to do it. No doubt, this is one of the easiest ways to source trained and talented people within the industry when you have infrastructure and money.
The companies who practise talent mapping are definitely way ahead of their competitors. Talent mapping charts every individual in a market according to their skills, competencies, and capabilities, and displays where they sit in terms of their talent within the company on a map. It analyses their talent and potential - where they can add value now and where they could deliver value in the future. It enables to make key decisions. A good quality talent map helps you focus on short-term goals without losing sight of the bigger picture. It helps you to plan a long-term strategy and determine whether internal or indeed external talent will be needed to ensure success. The advantages of it are that you can tap into the 'hidden' market of candidates, who are not really candidates until you approach them, who come from direct competitors in many instances and thus can add value immediately.
The companies should have a dedicated team for doing talent mapping of the competitors. Since it is a lengthy approach if the companies have a team who devote in mapping the passive candidates and knowing their activity , they can always have a pipeline of the high-flyers of the industry. This may prove to be beneficial for the companies as the companies then do not have to outsource these requirements to the placement firms. Hence they can save the enormous amount of costs of recruiting these candidates. It thus brings down the cost per hire of the candidates. They can channelize this money on more important matters which will help to succeed in this age of competition.
The second reason is since they come from the same industry , they already have an experience of the same. So these candidates can be a great asset for the organizations. They will bring along their customers and hence the ROI on these candidates will be very high. They also don't require any sort of training except knowing about the organizational culture.
If the sourcing for senior positions is outsourced to the placement agencies it is not always that they will provide the organizations with suitable candidates. They may push candidates who are not experienced or not the right fit for the position. But since they have to fulfill targets they push those candidates. Also the cash benefits that they get may lure them to give a wrong candidate which may not be the right fit. Hence if the organizations have an internal team dedicated for the purpose of mapping talent in the industry , then we do not have to depend on the placement firms.
Talent mapping is a new trend which is less practiced here but it should be welcomed with grace. This method of recruiting is not only an innovative one but it will prove to be extremely beneficial for the organizations. There is a war for talent in today's age as potential candidates are very rare to find. The people are the assets of the organization and they can make or break a business. Their skills, competencies, talent adds value to the business of the organization. So it is important for the organizations to realize that they recruit the best talent and talent mapping is surely the method to help them in this purpose. This will open a new horizon and will help the organizations to be ahead in the industry.