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July 31st, 2008
Bangalore: It is bad time for young graduates who are scouting to get placed in MNCs before they leave their college. The major financial companies are reducing their hiring number to beat the economic slowdown and uncertainty in the operation. While the prominent institutes like Indian Institutes of Management (IIMs), are expected to continue getting offers as usual, other B-schools are believed to have 25-30 percent drop in placements this academic year.
According to a study conducted by SP Jain Institute of Management and Research (SPJIMR), although 60 percent of the companies have committed to recruiting the regular numbers, 30 percent said they are not sure if they would recruit in regular numbers and eight percent said they would freeze recruitment for the time being.
As measures to recover the problem, most of the B-schools are planning to expand its company base. They are now approaching new companies like smaller private equity players and wealth management firms.
Prof. Subir Verma, chairperson, placements, Management Development Institute, Gurgaon, said that the number of offers on B-school campuses by the financial sector could come down with some companies even opting out of placements this year.
However, small companies who once found it difficult in getting talents from good B-schools due to their small salary scale now may able to achieve young graduates by offering the same package.
T N Radhakrishna, HR Head, UTI MF said that it helps us in the sales and marketing scenario. It’s a win-win situation for the company as well as the students because they will find growth and we will get the best of talent from second rung B-schools. “Given the ambition and expectations, one cannot afford an IIM or an FMS student,” he added.
July 31st, 2008
The volumes of hiring, and the modus operandi is an unique ’source mix’ relevant to India.
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almost accounts for 10-40% of the hiring in most industries. While campus hiring is in bulk, the walk-in are novel way to ramp up numbers over the weekends. I recall a company in Mumbai even resorting to ‘a mobile bus carrying interview panel’ to reach potential candidates at their bus stop :-)!!
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while the contingency hiring model has increased over the past few years, they still aren’t as popular in India. There is a sense of lesser respect for ‘contractual’ employees as of now, and with a large number of MNC employers in the fray, most aspirants would prefer a ‘permanent ‘ hire on most days!
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Experienced hiring is a mechanism where most corporates are focused on-to keep the cost of hiring in control. Most companies in India have a strong ’staffing department’ -and so, most companies hire about 60 to 70 % of their hires -directly or thru internal referrals. ie only 30-40% of hires happen thru recruitment firms (abroad the figure could go up to 60%!)
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Leadership hiring is perhaps an area of concern for most Indian corporates- especially as they seem to be looking for organic and inorganic growth at rates historically unmatched-as there isn’t enough pipeline of senior management talent available within the company. Here the demand has been primarily for persons of international experience- like returning Indians and expats. And this sector is typically an area where executive search consultants have had a significance role to play with.
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Yes- the percentage of offer to joinee ratio seen in India presently..is very unique with most good candidates walking around with multiple offers –and being wooed at different stages by competition –and even counter offers by present employers as part of exit interviews!!The areas where things could change in future?
July 31st, 2008
Washington: Managers seeking to prise star performers away from competitors might rue their decision later and the star is likely to be as unhappy, finds a new study.
In their study, the authors addressed questions like whether switching firms have an effect on the short-term and long-term performance of stars? And is hiring a star a value-enhancing or value-destroying activity for a firm?
From an empirical analysis over eight years (1988-1996), they found hiring stars is neither advantageous to stars themselves, in terms of performance, nor to hiring companies in terms of their market value.
The performance of a talented worker depends in part on firm-specific human capital embedded in colleague relationships and firm capabilities.
The issue of whether workers’ performance is portable across firms is relevant for firms that seek to build a sustainable competitive advantage on star talent.
The authors find that stars are imperfectly mobile resources that can represent a potential source of sustained competitive advantage for firms.
The findings suggest that managers hiring stars and the stars themselves should be wary of decline in performance following moves to a new firm.
Authored by Boris Groysberg, Linda-Eling Lee of Harvard Business School and Ashish Nanda of Harvard Law School, the study has been published in the current issue of Management Science.
(Source: Silicon India)
July 31st, 2008
