How to hire people
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Transcript of How to hire people
![Page 1: How to hire people](https://reader036.fdocuments.net/reader036/viewer/2022081818/58f0a9521a28ab42628b460d/html5/thumbnails/1.jpg)
“How to Hire Great People--Every Time”
Its all about getting a perfect match of Knowledge, Skills & Employability, between the Prospective Employers & Employees.
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Problem Identified
• How to Hire Great People
• Everytime
• Solution:We need a Process
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ProcessStage 1: Planning
Identify need for recruitment (open
position)
Develop JD
Activities, sources and timelines
Select interviewers
Stage 2: Recruitment
Job posting, attract potential employees
Initial Screening
Interviews
Stage 3: Finalize
Select from interviewed pool
Reference checksNegotiation and Roll
out
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Recruiting • Always interview at least three people for a position.-The
more people you interview, the greater the selection of choices you will have, and the more likely it is that you will make the right choice.
• Interview the candidate you like in different places. It is amazing how the personality of a person can change when you move the interview setting from your office to a coffee shop across the street.
• Have the candidate interviewed by at least three different people for a Review.
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Cost of the Process vs Return on Investment (ROI)
• Now that we identified a process for hiring great people , we need to evaluate the Business Case for this to evaluate the Profit.
• The following approach is considered for the Business Case:
Cost of the Process vs Return on Investment (ROI)
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Cost of the Process vs Return on Investment (ROI)Stage Steps Involved Cost
(Man Days)
Cost (Rs)
Stage 1 - Planning
Identify need for recruitment (open position) 2
Develop JD 0.5
Activities, Sources and Timelines 0.5
Select Interviewers 0.5
Stage 2 - Recruitment
Job posting, attract potential employees 2 500
Screening Candidates 1
Interviews 4
Stage 3 – Finalize
Select from interviewed Candidates 1
Reference Checks (Outsource) 100
Negotiation and Rollout 1
Total 12.5 600
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Assumptions• Cost of Background check assumed at Rs.100/ candidate based on data from discussion forums•Portal cost assumptions• Rs. 50000 - annual subscription• 100 candidates recruited per year• Hence, cost per candidate is Rs.500
•Man days to Rupees Conversion• Average salary of employee is 10 LPA• Average salary of employee per man day is Rs.3333(10 L/300 working days)
Category Cost(Rs.)
Man days (12.5 man days) 41666(12.5*3333)
Subscription and other costs 600(100+500)
Total Rs.42266
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Cost of Recruiting wrong candidate•Entire hiring process needs to be run again (for hiring a fresh candidate as replacement) : Rs.42266•We lose a 6 month period (assumption based on research) before we realize the candidate selected is a wrong hire• 150 man days (Rs.499950)
•Probability of a candidate being a wrong hire is 0.2 (1 out of every 5 hires).
•So, total cost is :Specifications Cost
Iterating Recruitment process
42266
Lost Time due to wrong hire
499950
Total cost 542216
Net cost (probability of 0.2)
108443.2
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Business Case Evaluation
Cost of Following process for “Hiring Great People Always”
42266 Rs
Cost of “Not Hiring Great People Always” (cost of not following process and hence hiring wrong candidates)
108443.2 Rs
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• Cost of Hiring a Wrong candidate is always higher than the cost of Hiring a Right Candidate
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