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Success of every business enterprise depends on its human resource. Finding the right man for the job and developing him into a valuable resource is an indispensable requirement of every organization. Proper recruitment helps the line managers to work most effectively in accomplishing the primary objective of the enterprise. In order to harness the human energies in the service or organizational goals, every HR manager is expected to pay proper attention to recruitment and selection activities in an organization. Thus, personnel functions, recruitment and selection, when carried out properly, would enable the organization to hire and retain the services of the best brains in the market. The world's best companies have established their strength with their people. The employees identify themselves with the company they are working for. This also helps in building up their spirit, morale and espirit-de-cops which becomes strength of the company. There are certain ways that are to be followed by every organization, which ensures that it has right number and kind of people, at the right place and right time, so that organization can achieve its planned objective. The project covers introduction of Recruitment and Selection, Purpose and Importance of Recruitment, Sources of Recruitment, Steps in the Recruitment & Selection Process, and Suggestions to make the Recruitment Process more effective. It also includes the challenges faced by HR in recruitment process and the recent trends in recruitment process.
CONSTRUCTION EQUIPMENT INDUSTRY IN INDIA
Construction and mining equipment cover a variety of machinery such as hydraulic excavators, wheel loaders, backhoe loaders, bull dozers, dump trucks, tippers, graders, pavers, asphalt drum / wet mix plants, breakers, vibratory compactors, cranes, fork lifts, dozers, off-highway dumpers (20T to 170T), drills, scrapers, motor graders, rope shovels etc. They perform a variety of functions like preparation of ground, excavation, haulage of material, dumping/laying in specified manner, material handling, road construction etc. These equipments are required for both construction and mining activity. Construction equipment industry is fast growing in India. As per a report on construction equipment industry in India, jointly prepared by India Brand Equity Foundation (IBEF) and KPMG Advisory Services, the size of the Indian construction industry is more than Rs 8,000 crores as on 2007 and it is growing at the rate of 30 per cent. The Indian mining and construction equipment industry has evolved primarily on the basis of domestic demand generated over the various plan periods, essentially on the basis of investments which have gone into mining, infrastructure development and the building and construction sector. Today it is still focused largely on the domestic market and exports are marginal at a level of around Rs.300 crores for an industry approaching a market size of Rs.7, 000 crores. There is a huge growth potential in construction equipment industry and that is the reason why many leading players have entered the space. Some of the known construction equipment companies include names
such as BEML, Ashok Leyland, Caterpillar, Hindustan Motors, Ingersoll Rand, L&T, Komatsu, Telco Construction Company, Volvo India. Construction Equipment Industry in India: Overview
Size about US $ 2.4-2.64 Billion for the year 2007
Span a range of equipment for all construction/ infrastructure needs
India’s Construction Equipment Industry
Highly fragmented top 6 of about 200 domestic manufacturers contributes 60% output
Exports growing at 30%-expected to be US $ 100-200 million by
Growth of over 30%
Indian Earthmoving and Construction Equipment Industry (ECE), is at a watershed in its evolution and set to experience strong growth, spurred by the nation’s rapid economic development. According to the study, ECE Vision 2015: Scaling new heights
in the Indian Earth Moving and Construction Equipment Industry, conducted by leading management consulting firm, McKinsey & Company, for CII, IECIAL, released today at the CII Excon 2007 in Bangalore, the Indian ECE industry has the potential to grow fivefold from its current size of US$2.3 billion to approximately US$12–13 billion by 2015, growing at 24% CAGR. The following indicates the market position for certain broad categories of equipment: Hydraulic Excavators Telcon (Hitachi) L&T Komatsu Dozers & Wheel Dumpers Loaders BEML Caterpilla r India Ltd Udyog (Tata) Voltas (Unit Rig) Telcon BEML Caterpillar India Ltd. Backhoe Loaders JCB India Caterpilla r India Ltd Telcon (John Deere) L&T Case BEML L&T Case Greaves Ltd (Bomag) Gujarat Apollo Equipment Wirtgen Volvo India Pvt. Ltd ECEL Voltas (P&H) ECEL Telcon Voltas Ingers oll Rand TIL McNei ll Engg. Road Compactors Ingersoll Rand Fork Lifts ECEL
Cranes TIL (Grove)
JCB India Caterpillar India Ltd
VARIOUS PRODUCT RANGE
Earth Moving Equipment Backhoe Loaders
Concrete Equipment Concrete Breaker
Material Handling Equipment Telescopic Handlers Crawler Crane
Material Preparation Crushing Plants Jaw Crusher
Road Construction Equipment Compaction Equipment Vibratory Rollers
Construction Vehicle Dumpers
Excavators Paver Finisher Loaders Bull Dozers SkidSteers Loaders Wheel Loaders Wheel Dozers Shovels Motor Graders Concrete Batching Plant
Slew Crane Concrete Pumps Concrete Mixers Pick & Carry Crane Forklifts
JCB India JCB came to India in 1979. The company has a turnover of US $ 335 million. The company is growing by 25-30% annually. JCB India is a subsidiary of JC Bamford Excavators Ltd. (JCB) The product range from Backhoe Loaders, Wheeled Loaders to Excavators. The Company has a 70% market share in the backhoe loader segment and around 13% market share in the overall Indian CE industry Bharat Earth Movers Limited (BEHL) BEHL is its largest player in earthmoving equipment sector The company turnover is around US $ 484 million. The mining and construction equipment segment is around US $ 306.6 million; defense segment is about US $ 154.2 million; and railway around US $ 23 million. The company is the largest public sector undertaking in the industry. It has a 70% market share in the domestic earthmover industry and 12% in the overall construction equipment industry L & T Case, L & T Komatsu The companies together have a turnover of US $ 156 million, with majority coming from L & T Komatsu. L & T Case manufactures’ loaders backhoes and vibratory compactors; while L & T Komatsu manufactures’ hydraulic excavators. L&T Case hold 21% market share in vibratory compactors
L&T Komatsu holds 20% market share in excavators Ingersoll-Rand India Ltd. A public limited company (majority owned by Ingersoll Rand), is a market leader in compactors with a turnover of US$ 104.5 million The company operates in construction and compact vehicle technologies, air solutions and climate control technologies, with each of these contributing US$ 50.8 million, US$ 62 million and US$ 0.9 million, respectively It has a 39% market share in the compactor segment Its major products are compaction equipment, pavers, loaders, light towers, air compressors, etc. Telco Construction Equipment Company Limited (Telcon) The company is a market leader in excavators It is a subsidiary of Tata Motors and has a turnover of US$ 283 million Its major products are excavators, loaders, mechanical shovels, high tonnage crawler cranes, etc. It has a 50% market share in the excavator segment and an overall market share in the construction equipment segment of 11%. Voltas The public limited company – a part of the Tata group is the second largest player in the forklifts segment. The customers are engineering industries Its products are: industrial air conditioning and refrigeration equipment, air conditioners, water coolers, freezers, commercial refrigerators, forklift trucks and large water supply pumps The company has a turnover of US$ 260 million, of which less than 7% is accounted for by the material handling division 7
It has a 31% share in the forklifts segment.
ESCORTS CONSTRUCTION EQUIPMENT LIMITED
The Escorts Group is among India's leading engineering conglomerates operating in the high growth sectors of Agri-machinery, construction & material handling equipment, railway equipment and auto components. Escorts Construction Equipment Limited (ECEL) is multi product construction equipment Manufacturer Company under Escorts Group. It has defined the evolution of India’s Earthmoving & Construction Equipment Industry over the past 38 years. In 1971, ECEL introduced Pick n Carry Hydraulic Cranes Mobile Cranes and continues to be the World's No.1 manufacturer of this Product. The World Class range of Vibratory Compactors that was first introduced in the late 80’s is still one of the most effective compaction solutions to the industry.
With over 30 years experience in Construction Equipment Industry, Escorts has a proven track record in: o Hydraulic Mobile Cranes o Loaders o Forklifts o Vibratory Compactors While recording a rapid growth in Crane Industry ECEL has also been able to steadily increase its presence in the field of Vibratory, Soil & Tandem Compactors. ECEL was the first to bring the concept of Vibratory Compactors in India in a big way, back in 80’s. Subsequently more models in Tandem Vibratory Compactors and heavy duty Soil Compactor range were added in technical collaboration with HAMM Germany. Recently, ECEL has further strengthened the range with a 3T Shoulder Compactor. Along with Cranes and Compactors, ECEL also manufacture Frontend loaders with payload capacity of 700kgs. Suitable for narrow lanes and confined spaces, these loaders are compact in design and are ideal for garbage handling, handing of chemicals, sands, small chips, etc. ECEL also offers other material handing solutions like Forklifts from Daewoo Doosan Infracore Ltd., Korea and Articulated boom cranes from Fassi, Italy. In LPG Forklift category, the company enjoys a market share in excess of 85%. This single-minded pursuit of precision and customer satisfaction has made us the 3rd largest in terms of Construction Equipment Sales unit per annum. At the recently held EXCON 2007 (Asia’s 3 rd Largest Expo on Construction Equipment Industry) at Bengaluru, the construction equipment-
manufacturing arm of Escorts, ECEL unveiled its largest TRX Series of Pick-nCarry Cranes in the 23 T, 20 T and 17 T categories, combining lifting powers with boom height advantage. ECEL at a Glance: 1970 - YELLOW LINE" Construction Equipment Department (predecessor of Escorts Construction Equipment Limited) formed. 1971 - ECEL introduces Pick n Carry Cranes and Front End Loaders 1983 - Rough Terrain Hydraulic Mobile Crane 1987 - Vibratory Roller 10T Class 1995 - Escorts Fassi Articulated Boom Cranes (1.72 Tm – 78 Tm) Escorts Daewoo Fork Lift Trucks (2T to 15T) 1997 - Escorts Franna All Terrain PNC crane 1999 - ESCORTS K10, the Next Generation Pick-N-Carry Crane. Introduced LPG Forklifts in India 2001 - HD-85 – Tandem Vibratory Roller was launched 2002 - MAC 1214 – a wreckage recovery crane was designed, launched and Record 280 machines were sold in launch year 2005 - 2420 – a 12 T Soil Vibratory Roller and ED -30 a 3 T Mini Tandem Vibratory Roller were Launched during EXCON 2005 2006 - Training Facility at Started at Bangalore HP 216, a new generation Pick n Carry Crane Came into existence 2007 - Construction of new manufacturing facility started at Ballabhgarh and Rudrapur
ECEL receives the Awards in two categories at 5th Construction World – NICMAR Award- the Second fastest Growing Construction Equipment Company and Third largest Construction equipment Company TRX Series of Pick-n- Carry cranes launched in the category of 23 T, 17 T and 16 T at EXCON -2007. TRX 2319, a 23 T Crane being the Largest Crane in this category in the world 2008 - ECEL to market the world renowned 'LeeBoy' brand of equipment for road Construction and maintenance purposes, complementing its existing Range. ECEL launches Fully Hydraulic Crawler Cranes. ECEL launches Escorts Heli Forklifts Range. 2009 - ECEL has recently commissioned its state-of-art manufacturing plantrolling out pick-n-carry cranes and vibratory compactors. The new facility located at Ballabhgarh in Faridabad District is equipped with inbuilt hi-tech technology, housing all the modern facilities under one roof.
ORGANIZATIONAL MANPOWER STRUCTURE:
JOB SIZE / FUNCTIONAL BAND TM-3 TM-2 TM-1
• • •
TYPICAL ROLES (ILLUSTRATIVE ONLY)
Heads of subsidiary companies of ECEL Divisional Heads Functional Heads of “Areas” with relatively larger bandwidth, impact, role & responsibility Heads of Functional Areas Departmental Heads Planning & Supervisory roles
SM-3 SM-2 SM-1
• • •
OM-3 OM-2 OM-1
• • •
Operational Management & Executory roles Section / Cell Heads, Front- Line Team Leaders Principal Team Member
HR / ER/ Administration
Sales & Marketing
Finance & IT
Human Resource Department Hierarchy
Head Personnel & ER
Human Resource Operations
Industrial Relations & Employee Welfare
Environment, Health & Safety
OBJECTIVE OF THE PROJECT
Every task is undertaken with an objective. Without any objective a task is rendered meaningless. The main objectives for undertaking this project are: 1. To understand the Recruitment and Selection Process at Escorts Construction Equipment Limited. 2. To give suitable recommendations to streamline the hiring process. 3. To Study the Challenges faced by HR in recruitment. 4. To Study recent trends in Recruitment Process.
Research methodology is a way to systematically solve the research problem. In it, we study the various steps that are generally adapted by a researcher in studying research problem along with logic behind them. It includes the formulating of research problem, study of literature, collecting the data, analyzing that data and making interpretations of that data. Research methodology used: Study of Recruitment and Selection at Escorts Construction Equipment Limited by the manual provided by the HR department. Web sites. Books. TYPE OF DATA COLLECTED There are mainly two sources of data collection which are:
1. Primary Data 2. Secondary Data
DATA COLLECTION METHODS
PRIMARY DATA COLLECTION
SECONDARY DATA COLLECTION
STUDY OF RECRUITMENT POLICY
Primary data is defined as data that is collected from original sources for a specific purpose. Secondary data is defined as data collected from indirect sources.
INTRODUCTION TO RECRUITMENT AND SELECTION:
Recruitment is the process by which organizations locate and attract individuals to fill job vacancies. Most organizations have a continuing need to recruit new employees to replace those who leave or are promoted in order to acquire new skills and promote organizational growth. Recruitment is defined as, “a process to discover the sources of manpower to meet the requirements of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient workforce.” Recruitment is a ‘linking function’, joining together those with jobs to fill and those seeking jobs. It is a ‘joining process’ in that it tries to bring together job seekers and employer with a view to encourage the former to apply for a job with the latter. In order to attract people for the jobs, the organization must communicate the position in such a way that job seekers respond. To be cost effective, the recruitment process should attract qualified applicants and provide enough information for unqualified persons to self-select themselves out. Thus, the recruitment process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of applicants from which new employees are selected. Selection refers to the task of choosing or picking the suitable candidates by first asking for and gaining access to useful information about the candidate. Through the process of recruitment the company tries to locate prospective employees and encourages them to apply for vacancies at various levels. Recruiting, thus, provides a pool of applicants for selection.
Selection is the process of picking individuals who have relevant qualifications to fill jobs in an organization. The basic purpose is to choose the individual who can most successfully perform the job from the pool of qualified candidates. The purpose of selection is to pick up the most suitable candidate who would meet the requirements of the job in an organization best, to find out which job applicant will be successful, if hired. To meet this goal, the company obtains and assesses information about the applicants in terms of age, qualifications, skills, experience, etc. the needs of the job are matched with the profile of candidates. The most suitable person is then picked up after eliminating the unsuitable applicants through successive stages of selection process. How well an employee is matched to a job is very important because it is directly affects the amount and quality of employee’s work. Any mismatched in this regard can cost an organization a great deal of money, time and trouble, especially, in terms of training and operating costs. In course of time, the employee may find the job distasteful and leave in frustration. He may even circulate ‘hot news’ and juicy bits of negative information about the company, causing incalculable harm to the company in the long run.
NEED FOR RECRUITMENT AND SELECTION:
The need for recruitment may be due to the following reasons / situation: • Vacancies due to promotions, transfer, retirement, termination, permanent disability, death and labor turnover.
Creation of new vacancies due to the growth, expansion and diversification of business activities of an enterprise. In addition, new vacancies are possible due to job specification.
PURPOSE OF RECRUITMENT AND SELECTION:
The general purpose of recruitment is to provide a pool of potentially qualified job candidates. Specifically, the purposes are to: Determine the present and future requirements of the organization on conjunction with its personnel-planning and job analysis activities. Increase the pool of job candidates at minimum cost. Help increase the success rate of the selection process by reducing the 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 organization’s legal and social obligations regarding the composition of its work force. Begin identifying and preparing potential job applicants who will be appropriate candidates. Increase organizational and individual effectiveness in the short term and long term. Evaluate the effectiveness of various recruiting techniques and sources for all types of job applicants.
SOURCES OF RECRUITMENT:
The following are the most commonly used methods of recruiting people. INTERNAL METHODS: This refers to the filling of job vacancies from within the business - where existing employees are selected rather than employing someone from outside. A business might decide that it already has the right people with the right skills to do the job, particularly if its training and development programme has been effective. Promotions and Transfers This is a method of filling vacancies from within through transfers and promotions. A transfer is a lateral movement within the same grade, from one job to another. It may lead to changes in duties and responsibilities, working conditions, etc., but not necessarily salary. Promotion involves movement of employee from a lower level position to a higher level position accompanied by changes in duties, responsibilities, status and value. Job Posting Job posting is another way of hiring people from within. In this method, the organization publicizes job opening on bulletin boards, electronic method and similar outlets. One of the important advantages of this method is that it offers a chance to highly qualified applicants working within the company to look for growth opportunities within the company. Employee Referrals
Employee referral means using personal contacts to locate job opportunities. It is a recommendation from a current employee regarding a job applicant. Employees working in the organization are encouraged to recommend the names of their friends, working in other organizations for a possible vacancy in the near future. In fact, this has become a popular way of
recruiting people in the highly competitive industry nowadays. Companies offer rich rewards also to employees whose recommendations are accepted. EXTERNAL METHODS: This refers to the filling of job vacancies from outside the business. Most businesses engage in external recruitment fairly frequently, particularly those that are growing strongly, or that operate in industries with high staff turnover Campus Recruitment It is a method of recruiting by visiting and participating in college campuses and their placement centers. Here the recruiters visit reputed
educational institutions with a view to pick up job aspirants having requisite technical or professional skills. Job seekers are provided information about the jobs and the recruiters. A preliminary screening is done within the campus and the short listed students selection process. are then subjected to the remainder of the
If campus recruitment is used, steps should be taken by
human resource department to ensure that recruiters are knowledgeable concerning the jobs that are to be filled in the organizations and employ effective interviewing skills. Advertisements
These include advertisements in newspapers; trade, professional and technical journals; radio and television; etc. The ads generally give a brief outline of the job responsibilities, compensation package, prospects in organizations, etc. This method is appropriate when (a) the organization intends to reach a large target group and (b) the organizations wants a fairly good number of talented people – who are geographically spread out. Employment Agencies These businesses specialize in recruitment and selection. They often specialize in recruitment for specific sectors (e.g., finance, travel, secretarial). They usually provide a shortlist of candidates based on the people registered with the agency. They also supply temporary or interim employees. Recruitment Consultancies Companies give their manpower requirements to Placement & Recruitment Consultants who undertake the job of identifying suitable candidates for the Company. Unsolicited Applicants / Walk-ins Companies generally receive unsolicited applications from job seekers at various points of time; the number of such applications depends on economic conditions, the image of the company and the job seeker’s perception of the types of jobs that might be available etc. Such applications are
generally kept in a data bank and whenever a suitable vacancy arises, the company would intimate the candidates to apply through a formal channel.
STEPS IN RECRUITMENT & SELECTION PROCESS
STEP 1: MANPOWER PLANNING Manpower planning is done to identify the vacancies arising out of business needs. Each department undertakes manpower planning every year. Manpower planning may be necessitated due to separation in the form of resignation, termination, transfers etc., expansion / reorganization, time bound jobs of temporary nature / leave vacancies, retirements (premature or on attaining the 58 years of age). Annual manpower budget, including current staff strength, is prepared by the Business Head and approved by the Budget Committee comprising of Business Heads / Corporate Heads / JMD and the Chairman. STEP 2: IDENTIFICATION OF A VACANCY The department head identifies the need for hiring based on Manpower Hiring Plan (Manpower Budget). The vacancies can be arising due to resignations, terminations and retirement of employees. STEP 3: REVIEW THE NEED FOR THE POSITION OR VACANCY The department head review the requirement for the position and the need to fill the vacancy. He checks whether the requirement is as per Manpower Hiring Plan (Manpower Budget). Then, Head of the Department raise a Manpower Requisition Form in a standardized format and forward the copy of MRF to the CEO for approval. The Department Head along with HR Manager check whether the hiring requirement is for an existing role or a new role. If the requirement is for existing role then the Department Head forward the MRF to the HR Department. If the requirement is for a new role, then the Department Head create Job
Description for the role in a standard format and forward it with the MRF to the HR Department to start the recruitment process. STEP 4: SOURCING OF SUITABLE CANDIDATES The HR Executive considers and assesses the best way of attracting a pool of suitably qualified candidates, who will meet the needs of the business. Depending on the nature of the position/grade, volumes of recruitment and any other relevant factors, the Regional HR would use any one or multiple sources such as: o Existing database o Employee referral as per any company scheme that may be approved from time to time o Advertisement in the internet/newspapers/magazines/company’s sites/job sites or any other media o Placement Agencies / Consultants o Direct recruitment from campuses/academic institutes; A list of resourceful / quality consultants with agreed rate of commission is prepared by the HR Executive based on specialization in the manufacturing Industry, past history, market reputation and ability to deliver. STEP 5: COLLECT THE RESUMES The HR Executive forward the JD’s to the placement consultants and collect the resumes or profiles from all the consultants.
STEP 6: SCREENING OF RESUMES The HR Executive screen the resumes as per JDs and MRF and shortlist profile fit. He verifies whether the candidate has appeared for an interview with the company previously from the application database. If the candidate has appeared for an interview previously, then review the feedback from the Interview Assessment Form (IAF) and other documents filled. STEP 7: SHORTLISTING OF CANDIDATES The HR Executive forward all the HR-Short listed resumes to concerned HOD with resume snapshot attached in mail with a copy to VP function, Head HR and Manager HR. The Concerned HOD shortlists the candidates to be called for an interview as per requirement for the Job and forwards the list to HR Department. The HR Executive prepares the Interview Calendar and forwards it to the Concerned HOD and HR Manager with copy to HR Head and VP function. STEP 8: SCHEDULE INTERVIEWS The HR Executive obtains a tentative schedule from Concerned HOD and Head HR for interviewing the candidates. He asks the consultants to line up the short listed candidates on scheduled interview date. Regular follow up is to be done with candidates by the HR Executive to ensure 100% participation. STEP 9: CONDUCT INTERVIEWS The HR Executive in consultation with the concerned department will set up an interview panel consisting of HR Head / Manager and Department Head / Manager. On the date of Interview, the HR Executive circulates the Application Blank and Travel Reimbursement Form to the candidates for procuring 24
information about the candidate. The HR Executive forwards the Interview Assessment Sheet to the Interview Panel. The interview panel assesses the candidate based on the factors mentioned below, in a prescribed format and gives its recommendations for approval. Attitude Knowledge Communication Experience Team spirit Loyalty expectation Initiative
The HR Executive coordinates the interview process. The HR Executive collects all filled TRF’s with Original bills (Tickets) from the candidates and gets those forms approved by HR Head and forward the approved TR list along with the filled Travel Reimbursement Forms and original bills to the Finance and Accounts for processing. If the candidate is rejected, the HR Executive communicates the same to the candidate and files the Interview Assessment Sheet, application blank along with resume of candidate in the Application Database. STEP 10: MAKE OFFER OF EMPLOYMENT
The Concerned HOD and Head HR make verbal offer to the shortlisted candidate and discuss other terms and conditions of employment. If the candidate accepts the offer then conduct reference check for the prospective employee (Via telephone, Mail). STEP 11: RENEGOTIATE OFFER If the shortlisted candidate rejects the offer due to salary reasons, the HR Head renegotiate salary with the candidate, if suitable, along with other terms and conditions. STEP 12: REFERENCE CHECK Reference checks of the final short listed candidate are conducted by Head-HR. The candidate is asked to mention in his application blank, the names and addresses of two or more persons who know him well. These may be his previous employers, heads of education institutions or public figures. These people are requested to provide their frank opinion about the candidate without incurring any liability. The opinion of referees can be useful in judging the future behavior and performance of candidate. If the result of reference check is positive then continue with the induction process. If the result of reference check is negative, then withdraw the offer and send rejection letter to the candidate. STEP 13: LETTER OF INTENT The selected candidate will be given an intent letter with prescribed details as given below: • Functional Band Position for which selected.
• • • •
Place of initial Posting Expected Date of Joining. Advise for medical examination. Details of the testimonials and other documents to be submitted at the time of joining.
Acceptance by the selected candidate
STEP 14: MEDICAL CHECK UP The selected candidate is sent for a medical check up at reputed hospitals before final selection / issuance of letter of intent or after final selection / issuance of letter of intent. In case the candidate is declared unfit for employment the offer / intent letter will stand cancelled. STEP 15: ON BOARDING & INDUCTION On the date of joining the employee is issued an appointment letter by the HR Head. The appointment letter include all the terms and conditions governing employment including Designation, Department, Salary & Scale of Pay, Date of appointment, Probation, Medical Fitness, Retirement, Termination of Services, Secrecy, Transfer etc. All new joinees undergo an induction program as per requirement soon after joining the organization. Induction program is done by HR Department in consultation and involvement of concerned department / other departments. During the process of induction, the new member is briefed about the following: 1. Company Profile & Products 27
2. Geographical familiarization 3. Organizational Policy & Procedures 4. Socialization with department rituals. 5. Employee Involvement activities The induction process shall begin by verification of the following original merit certificates wherever applicable subject to the level of hiring: • • • • Educational certificates Proof of date of birth Four passport sized photographs of self One passport sized photographs (each) of spouse, dependent children (if applicable) for medical insurance purpose. • Relieving letter from the previous employer (If the relieving letter is not available, declaration regarding resignation shall be obtained from the candidate) • Copy of experience certificates for all the previous employments (if applicable) • • Salary slips certificate from the previous employer TDS certificate and Form 16 from previous employer (or Salary certificate)
Copies of certificates and testimonials Nomination and other documents pertaining to provident fund, gratuity
RECOMMENDATIONS & SUGGESTIONS
Compress the "white space" in your hiring process White Spaces are delays in hiring process that are unproductive, waste time, and virtually assure you'll lose talented candidates. Often the longest delays occur between critical selection events. For example, a recruiter may need several weeks to screen a few resumes from the Web job boards, or candidates who make it through screening may wait weeks to interview with a hiring manager. Here at Escorts Construction Equipment Limited, the delays occur when the outstation candidates are called for interviews at Regional branches like Delhi and Faridabad. Sometimes, because of busy schedule of senior managers and sometimes because of tight schedule of candidate, the interview has to be postponed. This delay could be minimized by scheduling interviews in the regional locations. It is recommended to reduce the turnaround time for the recruitment and selection process. It must be made mandatory for the candidates to take the test, filling up forms etc within the stipulated time, this will make sure that the candidates do not hold casual attitude and take the recruitment process more seriously. Additionally it will send across a positive image about the company. Tie up with more & more consultants from multiple segments Since the limited placement agencies are sourcing candidates to all construction companies, there often comes the problem of duplication of data. Therefore it is
recommended that more and more consultants should be tied up from multiple segments to attract large pool of new and fresh talent.
Know what you're looking for in candidates It is observed that the candidates sourced by placement agencies and send for further rounds of interviews are rarely found suitable by the hiring managers. Therefore it is recommended that these placement agencies be given a well drafted job description and job specification. This can also be circulated to internal employees under the employee referral scheme. This will help people to get a clearer picture and provide for most suitable candidates. Reduce the pre offer formalities Pre-offer documentation includes filling of a lengthy Application Blank which includes all personal, educational and professional details of candidate. This is very time consuming and even after taking these details from candidate its not sure that offer will be made or not. This also becomes frustrating for the candidate sometimes. So, it is recommended that unnecessary details should not be asked before we make the final offer to the candidate. Application Blank form should be made concise.
CHALLENGES FACED BY HR IN RECRUITMENT PROCESS
The major challenges faced by the HR in recruitment are: Adaptability to Globalization The HR professionals are expected and required to keep in tune with the changing times, i.e. the changes taking place across the globe. HR should maintain the timeliness of the process Lack of Motivation Recruitment is considered to be a thankless job. Even if the organization is achieving results, HR department or professionals are not thanked for recruiting the right employees and performers. Process Analysis The immediacy and speed of the recruitment process are the main concerns of the HR in recruitment. The process should be flexible, adaptive and responsive to the immediate requirements. The recruitment process should also be cost effective. Strategic Prioritization The emerging new systems are both an opportunity as well as a challenge for the HR professionals. Therefore, reviewing staffing needs and prioritizing the tasks to meet the changes in the market has become a challenge for the recruitment professionals.
Attracting Highly Talented Ones The number of highly talented professionals is less. All the big MNC's are trying to attract these people with high salaries, perks, incentives etc. There is a tough competition among these companies to get these candidates on their roles. These days, its not just salaries which will pull the candidate in but various factors like brand, culture, location, job security, reputation of the company etc play a major role in recruiting a talented professional.
RECENT TRENDS IN RECRUITMENT PROCESS
The following trends are being seen in recruitment process: RECRUITMENT PROCESS OUTSOURCING The recruitment is one of the leading functions that organization outsourced. The outsourcing firms help the organization by the initial screening of the candidates according to the needs of the organization and creating a suitable pool of talent for the final selection by the organization. Outsourcing firms develop their human resource pool by employing people for them and make available personnel to various companies as per their needs. This practice helps the organization in reducing time and costs in recruitment. POACHING AND HEAD HUNTING “Buying talent” (Rather than developing it) is the latest mantra being followed by the organizations today. Poaching means employing a competent and experienced person already working with another reputed company in the same or different industry; the organization might be a competitor in the industry. Head Hunting means you attract the employ of your choice from competitors by the way offering lucrative packages for beginning the work for your organization. A
company can attract talent from another firm by offering attractive pay packages and other terms and conditions, better than the current employer of the candidate. Indian software and the retail sector are the facing the most severe brunt of poaching today. It has become a challenge for human resource managers to face and tackle poaching, as it weakens the competitive strength of the firm. E- RECRUITMENT Internet has created revolution in recruitment and selection process. ERecruitment is the use of technology to assist the recruitment process. Today aspirants having global mindset and information on opening are available online with placement consultant website, companies website, city line websites and other portal. The job seekers send their applications through mail using the Internet. Organizations are collecting database whole of the year through this and exercising this to its level best. This will help in time and money cost for the companies and for aspirants it is easier to access it on 24/7. SUMMER INTERNSHIP PROGRAMME: This programme bridges the gap between concepts reinforced in class room and real corporate and environmental situation. Corporate having opportunity to evaluate students for long term perspectives. Internship programme is undertaken in the discipline concerned. TALENT STRATEGY Talent strategy means examining the kinds of competencies that will be needed in the next few years, and then comparing those needs with the current competencies. Based on the types of gaps, an organization then decides whether to promote, transfer, terminate, and so forth.
LEARNINGS & EXPERIENCES
Every endeavor undertaken to accomplish challenging goals, can only be successful under the experienced and encouraging guidance. I am privileged to have undergone training at Escorts Construction Equipment Limited. As learning never stops, my learning at ECEL has come from a lot of exposure, on the job training and close interaction with the HR department. In brief my learning’s and achievements can be summarized as under: o Observed the Interview Process for Product Support & Sales vacancy. o Understanding of profiles. o Following up with the candidates during the recruitment process. o Communicating with the HR Manager regarding the process. o Help in the coordination of training for workers and managers. o Learnt the effective use of communication tools.
Success of every business enterprise depends on its human resource. Recruiting and selecting the right people for your business is a challenge. Finding the right man for the job and developing him into a valuable resource is an indispensable requirement of every organization. Proper recruitment helps the line managers to work most effectively in accomplishing the primary objective of the enterprise. In order to harness the human energies in the service or organizational goals, every HR manager is expected to pay proper attention to recruitment and selection activities in an organization. Thus, personnel functions recruitment and selection, when carried out properly, would enable the organization to hire and retain the services of the best brains in the market. The recruitment process inform qualified individuals about employment opportunities, create a positive image of the company, provide enough information about the jobs so that applicants can make comparisons with their qualifications and interests, and generate enthusiasm among the best candidates so that they will apply for the vacant positions. Recruitment represents the first contact that a company makes with potential
employees. It is through recruitment that many individuals will come to know a company, and eventually decide whether they wish to work for it.
QUESTIONNAIRE Name of the company Industry Type Name of Respondent Escorts Construction Equipment Limited Earthmoving and Construction Equipment Animesh Osta – Manager HR
Instruction : Kindly underline / highlight your choice 1. Do you have a clearly stated Recruitment & Selection Policy? -- Yes -- To some extent 2. Which recruitment source do you use for recruitment? -- Internal -- Both 3. What are the external sources you use for the recruitment? -- Advertisement -- Job Portals -- Direct Applicants -- Employee Referrals -- Placement Consultants -- Campus Recruitments -- External -- No
4. Does ECEL adopts Internal Recruitment Source i.e. Transfer, promotion or employee referrals?
-- Yes If Yes, then for which type of post
5. Potential Candidates in the organization are generated through the following recruitment sources: (Rank them based on the number and quality of candidates generated and also roughly specify the percentage mix of each of the following sources adopted. For e.g. If the organization get maximum quality candidates from Job Portals, then put ranking 1 and percentage say for e.g. 40%.) S No. 1. 2. 3. 4. 5. 6. 7. please specify 6. Rank the Qualities in the order of your preference on the basis of which you select the candidate. S No. 1. 2. 3. 4. 5. Attitude Experience Knowledge Communication Loyalty Expectation Qualities Ranking 1 3 2 5 6 Sources Advertisements Employee Referrals Job Portals Placement Consultants Direct Applicants Campus Recruitments Any other sources, Ranking Percentage
1 3 2
6. 7. 8.
Present Ability Initiative Team Spirit
8 4 7
7. Is the estimation of Recruitment Process cost is done? -- Yes -- No 8. What are the challenges you face while managing your manpower? -- Attrition -- Replacement -- Trade union -- Recruitment -- Absenteeism -- Cost of non performance
9. What is the range of Attrition rate in the organization? -- 1% - 5% -- 10% - 15% -- More than 20% 10. Rank the following reasons for attrition rate. (1- Topmost Important Reason, 2, 3, 4, ….6- Least Important Reason) S No. Reasons 1. Market Condition 2. 3. 4. Insufficient Salary Package Inefficient Supervisor Inappropriate Training & Development Ranking 2 4 3 5 -- 5% - 10% -- 15% - 20%
5. 6. 7. 8.
Lack of Motivation Higher studies and reasons Inept work environment Others if any
6 1 7
11. Out of total recruitment in a year, what is the percentage of internal recruitment? -- 0% - 5% -- 10% - 15% -- 20% - 25% -- 5% - 10% -- 15% - 20% -- More than 25%
12. What is the percentage of NO SHOWS? (Shortlisted candidates not turning up for joining job) -- 0% - 5% -- 5% - 10% -- 10% - 15% -- More than 15% -- Not at all
1. www.ecel.com 2. www.escortsgroup.com 3. www.citehr.com 4. www.google.co.in 5. www.docstoc.com 6. HR Policy Manual of ECEL