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Recruitment Process at Nucleus Software Export

Ltd.

A Report Submitted in Partial Fulfillment of the requirements of the


MBA (HR) Degree Course 2008 of Amity University.

With special reference to


Nucleus Software Export Limited, Noida.

Submitted By:
Swetha V
A01023016113
MBA-HR, Class of 2008

2nd July, 2007

Amity University

UTTAR PRADESH
AMITY BUSINESS SCHOOL- AU

Sector-44, Noida, UP
ACKNOWLEDGEMENT

The Project titled Recruitment Process at Nucleus Software has been conducted by
me during 08th May 2007 and 29th June, 2007 at Nucleus Software Export Ltd. I
have completed this project, based on the Primary research, under the guidance of
Ms.Shalini Bishnoi and Dr. R. Sujatha .

I owe enormous intellectual debt towards my guides Ms.Shalini Bishnoi and Dr.
R.Sujatha, who have augmented my knowledge in the field of Recruitment. They
have helped me learn about the process and given me valuable insight into the
analyzing the sources of recruitment process and to study the reasons for the
candidates backing out and findings the suggestions to minimize the same.

I am obliged to Ms.Chitra Chhabra for cooperation during the Internship. My


increased spectrum of knowledge in this field is the result of her constant
supervision and direction that has helped me to absorb relevant and high quality
information.

I would like to thank all the respondents without whose cooperation my study/
project would not have been possible/ complete.

Last but not the least, I feel indebted to all those persons and organizations who
have provided helped directly or indirectly in successful completion of this study.

Swetha V

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This is to certify that Ms Pallavi Srivastava a student of Post Graduate
Degree in HR/ MARKETING , Amity Global Buisness School, Noida has
worked in the Mr. Shatrughan Singh HR Manager Indiamart Intermesh.The
period for which she was for training was for “EIGHT” weeks, starting from
7th june to 7thAugust.This Summer Intership report has the requisite standard
for the partial fulfillment the Post Graduate Degree International Buisness.
To the best of our knowledge no part of this report has been reproduced
from any other report and the contents are based on original research.

INDUSTRY GUIDE’S CERTIFICATE

This is to certify that Ms. Swetha V, a student of Master of Business Administration


(MBA-HR), class of 2008, Amity Business School, Amity University (Bearing AU
UP Enrol. No. A01023016010), has undertaken the Summer Internship Training at
Nucleus Software Export Ltd during 08th May 2007 and 29th June 2007. She has

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worked under my guidance for the Project Title Recruitment Process at Nucleus
Software.

This project is prepared in partial fulfillment of Master of Business Administration


(MBA-HR) to be awarded by Amity University, Uttar Pradesh.

To the best of my knowledge, this piece of work is original and no part of this report
has been submitted to any other Institute/ University earlier.

Date:29th June 2007

Ms.Shalini Bishnoi
Associate Manager-
HR
Nucleus Software
Exports Ltd.

EXECUTIVE SUMMARY

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The main objective of my research project is to study the Recruitment process of
Nucleus Software Exports Limited, a leading software product based company in
the banking and financial domain. The project has been divided into parts, part one
included a detailed study of the process of recruitment and analyzing the various
sources of recruitment and suggesting an optimum one.

The DATA used for this objective is secondary in nature, as it has been taken from
the records of Nucleus Software. The data used is only limited to the recruitment
department of NSEL, Noida. The data that has been used is of the last financial year
April’06- march’07.

The Procedure was to identify the sources of recruitment adopted by Nucleus


And to pull out the data of the new joinees of the financial year and categorize them
on the source of recruitment. To find out the cost involved in different types of
sources of recruitment and o collate the cost and the number of recruits and find the
optimum source using simple statistical tools such as division and ratios. (Min
cost/recruit cost).

Second was to carry out an analysis on the backing out of candidates.

The task was to find out the reasons for backing out; it was a long process for which
i used different methods. The first step was to arrange the backed out list for the last
financial year April’06- march’07.

I used 2 methods for this purpose that included making calls and e-mails.

This procedure was followed by taking out the files of all those employees who
were on the backed out list. This helped me to create a small database of these
candidates and a questionnaire was developed which I got it filled by the candidates.

The questionnaires were administered and major reasons were found and a trend
was also found which is discussed in the trend analysis.

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After analyzing the reasons for the candidates backing out, I was able to give some
recommendations

TABLE OF CONTENTS:

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1. Acknowledgement 2
2. Faculty Guide’s Certificate 3
3. Industry Guide’s Certificate 4
4. Executive Summary 5
5. Introduction
5.1 Introduction to Recruitment & Selection 8
5.2 Introduction to Nucleus software
14
5.3 HR@ Nucleus
18
6. Recruitment & Selection
6.1 Objective
24
6.2 Methodology
24
6.3 Recruitment process at Nucleus
25
6.4 Findings based on Recruitment Survey
56
6.5 Interpretation based on Findings
64
6.6 Recommendations
65
7. Analysis of Back out
7.1 Objective
67
7.2 Methodology
68
7.3 Introduction to back out
69

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7.4 Interpretation based on Findings
71
7.5 Limitations
79
7.6 Recommandations
80
8. Conclusion
83
9. Bibliography
84
10. Annexure
85

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INTRODUCTION TO RECRUITMENT & SELECTION

MEANING OF RECRUITMENT

Recruitment refers to the process of finding possible candidates for a job or


function, usually undertaken by recruiters. It also may be undertaken by an
employment agency or a member of staff at the business or organization looking for
recruits. Advertising is commonly part of the recruiting process, and can occur
through several means: through online, newspapers, using newspaper dedicated to
job advertisement, through professional publication, using advertisements placed in
windows, through a job center, through campus graduate recruitment programs, etc.

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Suitability for a job is typically assessed by looking for skills, e.g. communication
skills, typing skills, computer skills. Evidence for skills required for a job
may be provided in the form of qualifications (educational or professional),
experience in a job requiring the relevant skills or the testimony of
references. Employment agencies may also give computerized tests to assess
an individual's "off-hand" knowledge of software packages or typing skills.
At a more basic level written tests may be given to assess numeracy and
literacy. A candidate may also be assessed on the basis of an interview.

The process of identification of different sources of personnel is known as


recruitment. According to Edwin B. Flippo “recruitment is the process of searching
for candidates for employment & stimulating them to apply for jobs in the
organization”. It is a linking activity that brings together those offering jobs & those
seeking jobs.

Dale S. Beach observed, “Recruitment is the development & maintenance of


adequate manpower resources. It involves the creation of a pool of available labour
upon whom the organization can draw when it needs additional employees.”
recruitment refers to the attempt of getting interested applications & providing a
pool of prospective employees so that the management can select the right person
for the right job from this pool. Recruitment precedes the selection process, i.e.,
selection of right candidates for various positions in the organization.

Recruitment is a positive process as it attracts suitable applicants to apply for


available jobs. The process of recruitment:

• identifies the different sources of labour supply


• assesses their validity
• chooses the most suitable sources or sources
• Invites applications from the prospective candidates for the vacant jobs.

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The objective of a recruitment procedure is to attach generally all the candidates and
to carefully examine their credentials in order to produce a short list for further
investigation in the selection procedures. In short, efficient recruitment of staff may
be described as knowing what resources you want, what resources are available, and
where and how they may be found. For this task, the following headings are
examined:

• Determining the vacancies.


• Sourcing strategy.
• Preparing and publishing information.
• Processing and assessing applications.
• Notifying applicants.

SOURCES OF RECRUITMENT.

The various sources of recruitment may be grouped into the following two
categories:
1. Internal sources (recruitment from within the enterprise)
2. External sources (recruitment from outside)

INTERNAL SOURCES.

Internal source is one of the important sources of recruitment. The employees


already working the organization may be more suitable for higher jobs than those
recruited from outside. The present employees may help in the recruitment of new
persons also. Internal sources are discussed as follows:

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• Transfers: It involves the shifting of an employee from one job to
Another, one department to another or from is good source of filling vacancies with
departments or shifts. At the time of transfer employee to be transferred to another
job fact, transfer does not involve any drastic pay & status of the employee.
Transfers or training of employees in learning different jobs. One shift to another.
Transfer employees from overstaffed it should be ensured that the is capable of
performing it.

• Promotions: It leads to shifting an employee to a higher position,


Carrying higher responsibilities, facilities, status & pay. Many companies follow the
practice of filling higher jobs by promoting employees who are considered fit for
such positions. Filling vacancies in higher jobs from within the organizations has the
benefit of motivating the existing employees. It has a great psychological impact
over the employees because a promotion at the higher level may lead to a chain of
promotions at lower levels in the organization.

EXTERNAL SOURCES.
Every enterprise has to tap external sources for various positions. Running
enterprises have to recruit employees from outside for filling the positions whose
applications cannot be met by the present employees, & for meeting the additional
requirements of manpower. The following external sources of recruitment are
commonly used by the big enterprises:

• Advertisement: Advertisement is the best method of recruiting persons for


higher & experienced jobs. The advertisements are given in local or national
press, trade or professional journals, newspapers & magazines. The
requirements of jobs are given in the advertisement. The prospective
candidates evaluate themselves against the requirements of jobs before

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sending their applications. Management gets a wider range of candidates for
selection.

• Employment Exchanges: Employment exchanges run by government are


also a good source of recruitment. Unemployed persons get themselves
registered with these exchanges. The vacancies may be notified with the
exchanges, whenever there is need. The exchange supplies a list of
candidates fulfilling required qualifications. Exchanges are a suitable source
of recruitment for filling unskilled, semi-skilled, skilled, and operative
posts. The job — seekers & job givers are brought into contact by the
employment exchanges.

• Management Consultants: Management consultancy firms help the


organizations to recruit technical, professional & managerial personnel.
They specialize in middle level & top level executive placements. They
maintain data bank of persons with different qualifications & skills & even
advertise the jobs on behalf their clients to recruit right type of personnel.
These days, professional bodies of accountants, engineers, etc. also help
their members to get suitable placements in industrial organizations.

• Educational Institutions or Campus Recruitments: The jobs in trade &


industries are becoming technical & complex. These jobs require certain
amount of technical & educational qualifications. The employees maintain
close liaisons with universities & technical & other educational institutions.
The students are spotted during the course of their studies. Junior level
executives or managerial trainees may be recruited in this way. Unsolicited
Applications: Persons in search of employment may contact employers
through telephone, by post or in person. Generally, employers with good
reputation get more & unsolicited applications. If an opening is there or is
likely to be there then these persons are considered for such jobs. Personnel

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department may maintain a record of unsolicited applications. When jobs
suitable for those persons are available those are considered for
employment.

• Casual Callers: Management may appoint persons who casually call on


them for meeting short-term demands. This will avoid following a regular
procedure of selection. These persons are appointed for short periods only.
They need not be paid retrenchment or lay off allowance. This method of
recruitment is economical because management does not incur a liability in
pensions, insurance & fringe benefits

Nucleus Software – A Snapshot

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NUCLEUS SOFTWARE

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Nucleus Software Exports Limited provides software solutions to the Banking and
Financial Services Industry. For over 20 years, we have developed solutions
spanning from Retail Banking to Corporate Banking, Cash Management, Trade
Finance, Internet Banking and Credit Cards. FinnOne, the Flagship product of
Nucleus Software is a comprehensive suite for Retail Banking applications
comprising of modules like Customer Acquisition System, Loan Management,
Delinquency and Recovery Management, Deposits and Finance Against Securities.

Cash@Will, TRAde facto, BankONet and PowerCARD® are the offerings from
Nucleus Software in the area of Cash Management, Trade Finance, Internet Banking
and Credit Cards respectively. Complementary solutions like Rewards, Credit Card
Application Processing System ccAPS & Fraud Management System, FMS also
forms a part of product offering from Nucleus Software.

Taking the power of Indian software beyond the nation's shores, Nucleus is one of
those software consultants in India that is today a universally respected entity with a
wide global network. This Indian software company's solutions have been
successfully implemented across the globe. This software consultant in India
addresses the needs of global customers though a branch office in London, wholly
owned subsidiaries in USA, Singapore, Australia, Hong Kong and Japan and
through well networked channel partners in several other countries. This software
company in India with a global presence has full-fledged Development Centers in
Singapore, New Delhi, Chennai, Bangalore, where the constant endeavor to develop
newer and better products and solutions for the banking and financial sectors is
always on. From consultancy and services to innovative products and software
solutions, this software company in India has steadily moved up the value chain to
be a truly complete financial services software provider. With its ability to evolve
customized solutions to meet all clients' local needs anywhere across the world, the
company has also been emerging as the partner of choice for the who's who in
global financial services.

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VISION OF NUCLEUS SOFTWARE

As a committed team, we shall strive for-

- Being a trustworthy, customer oriented organization

- An open and warm environment where everyone is respected, listened to and


encouraged to excel

- Actively creating and exploring opportunity for the growth of our customers and
our organization

MISSION OF NUCLEUS SOFTWARE

Nucleus wants to be dependable world-class organization. We shall foster the spirit


of entrepreneurship within the organization through individual development. Our
endeavor is to provide our national and international customers with competitive
Information Technology solutions. We shall achieve this Quality Service by
comprehending their need through close interaction and by creating global network.

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ABOUT NUCLEUS HR:

HR VISION
STATEMENT
“Cascade learning across the
organization by sharing
knowledge;
listen, understand and
respond to people;
continuously define and re-define
quality services,
set standards and
measure performance;
recognize and reward learning”.

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HR MISSION
STATEMENT

"We will facilitate a high


performance,
seamless and empowered
organization where the potential
of all employees is realized
to add value to self
and the organization".

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HR POLICIES-THE
GUIDING PHILOSOPHY

“EVOLVING AN ORGANIZATION
STRUCTURE WITH CLEARLY
ENUNCIATED OBJECTIVES AND
POLICIES WHERE FREEDOM AND
FLEXIBILITY TO PERFORM IS
ENSURED FOR ALL, IN
ACCORDANCE WITH THEIR
ABILITIES,
CAPACITIES, RESOURCEFULNESS

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AND INITIATIVE.”

HR @ Nucleus:

• People Oriented Approach


• Multidimensional Learning & Development
• Highly Motivating Rewards & Recognition System
• High Family & Social Values
• Frequent Events & Celebrations
• Nuc-Club Activities for excellence in sports, performing arts,
social welfare, music, literature
• 360 Degree Performance Appraisal Process
• Accelerated Growth Path
• Learning Resource Center
• Skip Level Meetings
• Employee Satisfaction Surveys
• Open House

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HR POLICIES - SUMMARY GUIDELINES

• Keep the organizational structure fairly lean and thin.


• Delegate authority as closely as possible to the point of
responsibility and decentralize the operations.
• Recruit right candidates with positive attitudes and growth potential
willing to have a career with the company. Besides individual capabilities,
ability to work in a team is essential.
• Specifications of qualifications and experience to be determined on
the basis of the job specifications.
• Wherever possible, fill the vacancies from within, subject to
availability of right candidates.
• Opportunities for employment to be given to all irrespective of
caste, religion, region or any other criteria.
• Emoluments as per the compensation policy guidelines.
• To provide proper induction and orientation to all levels and share
the group vision for early integration in the group.
• Inculcate a sense of pride, belongingness, pleasure and social
fulfillment in being a member of Nucleus family.

Full opportunity to all at every level to participate in the company's decision making
process

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The study carried out is purely EXPLORATORY in nature to
understand the Recruitment process of Nucleus Software.

The project has been divided into 2 distinct sections:-

Objective 1:

To study the recruitment process and analyze the sources of recruitment to


suggest the optimum source.

The DATA used for this objective is secondary in nature, as it has been
taken from the records of Nucleus Software.

The data used is only limited to the recruitment department of NSEL,


Noida.
The data that has been used is of the last financial year April’06- march’07.

METHODOLOGY:

a. To study the recruitment process in detail.


b. To identify the sources of recruitment adopted by Nucleus
c. To pull out the data of the new joinees of the financial year
(Secondary data)
d. Categorize them on the source of recruitment.
e. To find out the cost involved in different types of sources of
recruitment.
f. To collate the cost and the number of recruits and find the optimum
source using simple statistical tools such as division and ratios. (Min
cost/recruit cost).

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The Recruitment Process at NUCLEUS:
 The IBU Head submits Manpower Requisition Form (Ref: NSEL/MPR) to
the HR Department with the requisite details which confirms:
• Details of the post
• Job description and specification
• Details of the Reviewing Officer (RO)Interview Panel
• Final approval from the IBU Head or

 The HR personnel identifies suitable and available candidates matching the


specified criteria from various sources like jobsites, employee reference and
other database. It is ensured that the candidate has not appeared for the
assessment in the last three months with the help of the Database Tracking
System, which is maintained on a daily basis.

 The candidates are required to fill in the Candidate Detail Sheet (Ref:
NSEL/CDS) and Employment Application Form after which they appear for
a technical written assessment on the skill set they have been considered for.
On clearing the test the HR personnel would interview the candidates.(HR
Assessment form is given in References-NSEL/HRA)

 At each stage of the assessment process the Time In and Time Out are to be
recorded on the candidate sheet

 Upon clearing the first HR evaluation the candidates are evaluated by a


technical interview panel. Depending on the feedback, the candidate is either
forwarded to the next level of technical interview or his profile is kept in the

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database for any future reference. (Technical Assessment form is given in
References-NSEL/TA)

 On qualifying the technical interviews the final HR interview is conducted


which would involve discussions on salary and availability for joining.

 To validate the details given by the candidate, a reference check process is


followed where the HR person gathers information from his previous
employer/ employers & professional acquaintances. (Reference Check Form
is given in References- NSEL/RFC)

 Subsequent to all successful discussions the candidate is extended an offer


on terms and conditions mutually agreed upon. (Offer Letter is given in
References-NSEL-HR-OAL)

 After the offer is made the docket complete with all the above records is to
be submitted to the HR Operations team. (Final docket checklist is given in
References-NSEL-HR-OC)

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3.3.Flowchart

Nucleus Software Expo

Start

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Nucleus Software Expo

Start

Manpower
Requisition raised

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Nucleus processes and procedures aim at meeting the manpower requirements of the
organization by recruiting resources with the necessary qualifications, skills,
aptitude and experience.

We try to attract and retain the best of professionals available in each of the areas of
functioning and provide career and succession plans while meeting the growth needs
of our business, as well as meet the aspiration levels of employees.

We focus on the placement of employees in jobs to which they are best fitted
physically, mentally and temperamentally; where they can be well adjusted to their
work and to the working environment.

Eligibility

The policy laid down covers all manpower positions except the Managing Director,
whose selection is governed by Board of Directors.

Equal Opportunity

Nucleus believes in extending equal opportunity to all individuals without regard for
race, religion, color, sex, national origin, age, disability, handicaps or veterans
status. Nucleus is committed to the principles of fair employment and we encourage
all employees to take advantage of opportunities for promotion as they occur.

Policy

 In determining the manpower requirements, assessment of work-load of


different business, competitive bench mark, staffing norms, present strength
and manpower apart from analysis should be taken into consideration to

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prepare the vacancies statement with job description, age, qualification and
experience.

 All selections made to the company will not only take into account the
technical aspects of the job, but will also pay special emphasis to concepts
such as team working, creativity and energy level.

 Recruitments can only be undertaken against overall sanctioned strength to


be approved by MD, irrespective of sanctions from any heads of
IBU/functions/locations.

 Recruitment activity will be usually done at entry level in order to meet


manpower projections or manpower requirements occurring due to:

a. Replacement vacancies (due to separation / reallocation/ transfer etc.)


b. Additional vacancies (due to new assignment/project or company’s
expansion plans)

 In all circumstances, the IBU/Functional Head will send their manpower


requirement & a job description and job specifications, to HR duly approved.
(As per Manpower Requisition Format annexed herewith).

Job Description

This will involve enlisting the various tasks, duties and responsibilities that will
constitute the job. The job description will help to provide the job objective, scope,
reporting relationship and also the contents and tasks within the IBU/Division.

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Job Specifications

 This will include qualifications, skills, knowledge, aptitude and other


relevant attributes which will be required in performing the job. It also helps
to segregate the desirable attributes from the essential
ones. This process will help in identifying the qualities which will enable a
candidate to perform the job efficiently.

 The first priority will be given to fill the vacancy through internal source of
recruitment, that is, within the company. If any Nucleite possesses the
required skill, knowledge and meets the criteria for selection, the vacancy
will be filled up through internal selection process, which is by
Reallocation / Transfer / Promotion / Up-gradation etc. Otherwise, the
vacancy will be filled through external sources of recruitment.

 In order to ensure the selection of the best from a wider choice, proper
scrutiny of profiles has to be undertaken. (Candidates being considered for
recruitment would fill an Employment Application Form and Candidate
Details Form as per Annexure).

Role Based Evaluation

Keeping in view the role for which the candidate is being recruited and his
qualification, experience & results of the test, the interview panel will evaluate
candidates on any or the entire following basis as applicable (as per Role vs. Tests
list, and Candidate Assessment Form):

 Academic / Professional attainments


 Technical / Managerial ability
 Family background

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 Personality, Communication etc.
 Motivation / Drive
 Professional interests & depth of knowledge in the field.

Unselected Candidates

Meritorious candidates, who cannot be accommodated immediately, must be kept in


the data bank, which shall be valid for a period of one year.

Salary Fixation

Salary fixation should be based on the package where total annual cost to the
company should be counted for comparison. The deserving candidate, as per merit
and specific experience, would be offered a matching package as per prevailing
Salary Grid maintained by HR. The package would be finalized as per details given
in the candidate fitment document.

Reimbursement of Travel Expenses to Candidates

No reimbursement will be made in case of local candidates. Outstation candidates


called through Advertisement / Management Consultant or head hunters for critical
positions can be reimbursed travel expenses (as per the format). However, this must
be approved and recorded on the selection

papers by HR Head/ Recruiter/ IBU Head. Mode of such travel will be decided in
the specific case itself and intimated to the candidate before interview. Candidates
will be only reimbursed travel expenses.

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Appointments

Normally a person who has been issued an Offer cum Appointment Letter is
expected to join the services of the company within the time frame agreed at the
time of issue of the same. However, extension in this period may be granted in
consultation with the respective IBU/Functional Head depending upon exigencies of
work, urgency with which the post is to be filled up, etc. If the appointee does not
report for duty within the stipulated time, the offer letter/LOI shall be deemed to
have been withdrawn.

Issuance of Letter of Offer cum Appointment Letter

All Offer Letters cum Appointment Letters would be issued as per the hiring matrix
in the candidate fitment document.

Reimbursement of Notice Pay

Reimbursement of notice pay at actuals would be provided such that it is supported


by the requisite proof. Adjustment of privilege leave towards notice, where such
leave would have been otherwise encashable will qualify for reimbursement under
this head. The notice pay will be reimbursed (subject to production of
receipt/supporting documents) only where the company has insisted on a joining,
which is earlier than the date he/she would have been normally relieved from his/her
previous employer and such employer has not agreed to waive off the notice pay.

The reimbursement of the notice pay will be agreed in writing at the time of the
offer.

However, in general we should give reasonable time for joining to the candidates so
that he/she is relieved from the previous employer in an amicable manner.

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Separate Employment Agreement / Contract

The terms and conditions of HR Policy Manual are generic and apply to all
employees.

If an employee has a separate employment Agreement with any of the Nucleus


group companies, then the terms and conditions of the Agreement override those of
the HR manual.
However, the terms and conditions of the HR Manual apply to all those in Nucleus
group companies, and those with a separate employment agreement with Nucleus in
situations where the Employment Agreement does not have a specific provision for
it.

Engineer/Management Trainees/Contract employees may in addition be asked to


sign an Employment Confidentiality Agreement

Reference Check
 Reference check is normally done on the candidates to test the validity of
their statement, position etc. & to know about the person’s general attitude,
capability & past record from his previous employer/ employers, friends &
professional personnel.

 In the reference check if the candidate is suitable against the criteria (as per
the Reference Check Questionnaire attached herewith), he/she will be
selected and terms and conditions of employment will be agreed upon and
salary finalization would be done. A fitment will be worked out for the
candidate in accordance with Nucleus Salary Grid, his/her existing pay
package and expectations. The fitment will include a comparative analysis of

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the packages of employees at similar level and functions within the company
and the industry.

 Complete Background Verification of the candidate will be conducted by an


external agency once the candidate joins Nucleus Software.
TYPES OF EMPLOYMENT
1. Permanent (An employee becomes permanent once he is assessed for his
performance during the probation period & confirmed)

2. Probation (The probation period is generally six months. During the probation
period, the Company and the new employee have been given an opportunity to
evaluate whether the employment relationship should continue).

3. Trainee (The trainee employee is prepared during the period of internship for the
role for which he has been recruited).

4. Contract (Contractual resources are those resources who are recruited for a fixed
role and for a fixed period of time as per the terms of the contract).
EXISTING GRADE STRUCTURE

CATEGORY NUCLEITE

‘AA’ Chairman, Managing Director, President, CEO

‘A’ IBU / Functional Head, VP, AVP, Country Manager

‘B’ Senior Manager/Manager

‘C’ Senior System Analyst, Assistant Manager


System Analyst, Senior Software Engineer, Senior Executive
‘D’

‘E’ Software Engineer, Officers-including Accounts, Admin, HR,


Trainee, Secretaries, Assistants

‘F’ Helpers, Office Boys, etc.

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PROBATION & CONFIRMATION

DEFINITION

Probation: Newly appointed Nucleites (defined here as Nucleus


employees who are on regular rolls), will be on probation for a certain
period as per Company rules. This period is to understand the Nucleite as
to his/her performance, attitude and behavior. In the same way, the
Nucleite also understands about the Company, its people, his own work
profile and the purpose of his role in the Company.

Confirmation: Confirmation is usually given to those employees in the


Company whose performance is rated as satisfactory & above (as per
Appraisal Form annexed herewith). After confirmation, the Nucleite is
entitled to perks as per terms of his/her appointment.\

PROCEDURE

For confirmation, appraisal of performance is not a one time activity to be


taken at the end of six (6) months. It is a continuous process and should
cover the total past period. Only the recent events should not be allowed to
influence the assessment decisions. Normal performance standards expected
of the job position as well as the facilitating and inhibiting factors that

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affected the contribution of the concerned Nucleite must be taken into
consideration.

Confirmation appraisal must necessarily be done by the Initiating Officer


and should not be done by a Nucleite placed in the same grade.

Of those Nucleites whose confirmation is due on 1st day of the next month
the Confirmation Appraisal Form (as per Annexure ‘A’) will be sent by
HR Deptt. to the IBU Head / Functional Head on the second week of the
current month to decide upon his/her review.

The status of the review will be given by the concerned IBU Head /
Functional Head to HR Manager in the same month or positively in the
first week of the next month. For this HRD, will contact the concerned
Initiating Officer if the response is not received within this period.

After the review is done by the concerned IBU Head / Functional Head,
HRD will take the feedback from the Initiating Officer/Reviewing Officer
and discuss about the case of the Nucleite & thereafter it will be decided
whether the Nucleite is to be confirmed or his/her probation is to be
extended.

HRD will issue confirmation / probation extension letters on the 1st / 2nd
day as and when the review of the Nucleite is completed.

A Nucleite whose probation is extended will be informed about his period


of extension in writing and the same procedure will be followed as and
when his review becomes due.
The documents related to the review will be filed in the Nucleite’s
personal file along with confidential reports.

38
The Managing Director/Chairman reserves the right to amend, modify and
withdraw any of the rules written above.
The Confirmation Appraisal Form is available with HR Department.
HRD will be the process owner and will ensure the procedures laid down
in the policy are implemented.

JOINING FORMALITIES

According to the terms of the appointment offer, the employee


should join the company in the Corporate HR Department at Head
Office, Noida or any other office specified, and on the date as
specified in the Appointment offer.
Before the new joinee is assigned to the department, and
responsibilities the following formalities are completed:

Fill up and sign the following :

1. History and Employment Data Form.


2. Joining Form.
3. Provident Fund Transfer Form.
4. Provident Fund Nominees/Beneficiary Form
5. Accident Insurance Nominee/Beneficiary Form.
6. Gratuity Nomination Form.
7. Bank Account documents for opening an account for salary
deposit.

Submit to the Personnel Department:

39
1. Experience certificate
2. Two Reference Letters
3. Five passport size photographs
The Original of the following is to be verified by the HR Department and
photocopies to be
handed over to them:
4. Copy of the Date of Birth Certificate
5. All examinations taken and marks received
(Degree/Diploma/Marksheets).
6. Last Earning certificate with Tax dedication.

Normally, the Nucleite joins at the Head Office and then proceeds to his
place of posting. In the event of a Nucleite directly joining at an office other
than Head Office, the above documents may be processed by the Officer-in-
charge and forwarded to Head Office Human Resources Department
immediately.

The Nucleite may be required to undergo a medical test at any point of


time.

If a Nucleite has a business interest or another job elsewhere, the same is to


be declared in writing and permission taken from the Management that he
can continue the same. The Management’s decision whether or not he can
continue or be required to give up the job, is final and binding.

All documents as mentioned above will be maintained in the Personal File


of the Nucleite by the HR Department.

40
The Nucleites are required to fill in their personal details alongwith
professional details in Nucleus Power Pack (NPP). The HR personnel will
guide the Nucleite to fill the information.

The Nucleite will be acquainted of various processes with respect to


marking of attendance, timesheet etc.

Besides, the new joinee will be given an employee hand book covering
almost every important current policies and practices of the organization to
enable him/her to induct into the organization as early as possible.

It is the responsibility of HR Department to inform the respective


departments about the new joinees.

HR Department will also inform Reception and Security about the new
joinees.

APPOINTMENT AND INDUCTION

DEFINITION

Appointment confirms the selection of the candidate as an employee of


Nucleus. Induction is concerned with introducing or orienting the new
joinee to the organization.

POLICY

An appointment of an employee is a planned activity. It starts with the


Recruitment plan of the company and ends with the induction of the
employee. The process upto confirmation is covered through this policy.

41
The appointment of an employee is an act of faith. Therefore, care should
be taken that commitments are not made to the employee, which are not in
line with company policies. Where commitments are made they should be
recorded to ensure compliance. Unrecorded and unsigned commitments
will not be considered.

All employees on the first day of their joining duty should report to the HR
department for completion of the necessary joining formalities.

An appointment may be withdrawn in the event of finding that the personal


details of the incumbent are false, including false declaration of
qualifications, experience etc, and general misrepresentation of facts.

PROCEDURE

All appointments should be against approved vacancies duly sanctioned and


supported by a Manpower Requisition in the proper format.

i. An employee will be deemed to be appointed if he/she fulfils


the following conditions :

ii. He / She has been issued a valid Letter of Officer /


Appointment Letter duly signed by the competent authority.

iii. He / she has recorded his acceptance of the terms and


conditions and handed over such acceptance to the HR
department.

42
iv. He / She has submitted the certificates/testimonials etc.
which certify his/her age, qualifications, experience etc. on
the basis of which he/she has been appointed.

v. He / She has reported for duty and filled in correctly the


joining report and other forms required for joining.

vi. If the candidate fails to join duty on the stipulated date


without any other communication to the company, the HR
Department may send a reminder asking for a valid reason
for not joining after which if there is no response, the
appointment stands withdrawn and cancelled without further
communication.

vii. The company, if it so desires, may ask the selected candidate


to undergo a medical test by a company approved doctor.

INDUCTION

On joining the employee will be advised on his induction program in the


company. This will include familiarity with the organization, the scope of
its services, its offices, its organization structure, HR policies & practices
and Nucleus Values.

An Employee Handbook would be given to the new employee. This book


would provide an introduction about the Nucleus vision, mission and
values. This book would also include HR policies as applicable to the
employees.

43
The new joinee will be introduced after proper introductions to his superior
in his department who will thereafter take over the induction formalities.

SEPARATION POLICY

OBJECTIVE

♦ To ensure that the separation takes place with mutual goodwill on


both sides.

♦ To establish guidelines for processing an employee's separation and


ensure that information is given to the concerned departments for
appropriate action.

44
NOTICE PERIOD

The Purpose of notice period is to provide time (i) to the employee to


finish his assigned task and (ii) to the company to make alternative
arrangements.

Employees who wish to resign are required to given notice as specified in


appointment letter.

The Company, at its sole discretion, may permit early release in


exceptional circumstances like :

a) Employee's continued employment proving detrimental to


Company's interest (e.g. employee joining a competitor).
b) Employee's position becoming surplus.
c) Extenuating circumstances (e.g. employee going abroad),
provided (i) employee has finished present/new task assigned to
him and (ii) company has had time to make alternative
arrangements.

PROCESSING AND FEEDBACK ON RESIGNATION

The separation procedures and feedback mechanism have been put into
place so as to (i) provide time to the employee to analyze his separation
decision and (ii) the company to inform different functions to make
suitable plans.

STRUCTURED EXIT INTERVIEW

45
All executives will be interviewed and the feedback recorded in the Exit
Interview format before they are formally relieved as per Exit Interview
Policy.

VOLUNTARY ABANDONMENT / DESERTION :

• When an employee deserts the services of the Company, the


HR Head will ascertain from within or outside the company the
reasons for the same and take suitable action.

• In other cases, communication describing circumstances of


desertion is to be sent to the employee's residence by Registered A/D
and Under Certificate of Posting by HR Head in other locations (as
per annexures).

• All IBU / Functional Heads / HR Heads should be informed


so that the employee is not re-employed in the company in future.

• Settlement of dues of such an employee should be done with


the prior approval of the HR Head.

EXIT INTERVIEWS

These are conducted by the Company to elicit frank discussion as to why


he/she wants to leave and to investigate whether something needs to be
changed to make Nucleus even better place to work. HR Deptt. shall
conduct the exist interview.

46
EXIT INTERVIEW GUIDELINES

OBJECTIVE

* To enable the Company to understand reasons for separation;


identify areas of dissatisfaction and take corrective measures

* To ensure that the separation takes place with mutual


goodwill on both sides.

POLICY
The enclosed "Exit Interview" questionnaire is to be completed by the
employee who has resigned from the services of the company.

PROCEDURE

1. After welcoming the employee, the interviewer will


explain purpose of the exit interview. He/She will tell the
employee that it is his parting gift to the company.

2. The interviewer will discuss with employee about his


new job.

3. The interviewer will ensure that the environment is


relaxed, friendly, non-threatening, non-interfering and quiet.

4. The interviewer will assure the employee of


confidentiality.

47
5. The interviewer will get the Exit Interview Form
filled in by the employee in front of him by building a good
rapport with the employee.

6. Conducting Exit Interview and completion of the


form by the employee leaving the organisation will be a pre-
requisite for Full & Final Settlement.

7. The IBU/Functional Heads can contact the HRD


department for any other information or clarification
regarding the know-how of conducting the
questionnaire/interview.
ANALYSIS

After receipt of Exit Interview Formats HR Department at Head Office will


identify areas for improvement and take corrective measures on regular
intervals.

Methods of Recruitment and Selection adopted by Nucleus


Software

48
The methods adopted by Nucleus Software are:

1. Job Portals
2. Employee Referrals
3. Campus Recruitment
4. Head Hunters/Consultants
5. Advertisement
6. Job Fairs

Job Portals available to recruitment and selection team are:

1. Naukri.com
2. Monster.com

They are on the subscription of one year each

The internet is becoming a more widely used tool for recruitment, and is fast
becoming a dominant force in bringing candidates and employers together in an
effective way. The role of web for recruiting, in general, is pervasive, accounting for
the lion’s share of location postings today. Solutions range from resume listing to
actual matching and recruiting, with the more sophisticated of these solutions
providing support for pre-hire activities, such as background checks, interview
arrangements, and reference checking. In general, use of the internet in locating staff
can reduce sourcing costs by 50% to as much as 95% by reducing the traditional
costs of print-based recruiting. The internet offers a unique opportunity to shortlist
candidates on hard skills from a wide geographical area. At a minimal cost and
fractional time, when compared to traditional recruitment mediums.

49
e-recruitment is not just limited to approaching a jobsite and tying up with them, a
company’s own website also plays a critical role in this endeavor. Corporate have
realized the value of branding through their websites while attracting job seekers. A
company’s website is one of the most prolific and critical sources of the talent for
the organization.

Based on the survey conducted, it can be seen that most of the companies deploy
online recruitment. HCL does not depend on the same as regular source of meeting
their recruitment needs. The company services from job portals like naukri.com,
monster.com or jobsahead.com. These services include collecting of potential
candidates, deploying online advertisement to attract potential applicants, etc.

Employee Referral policy adopted by Nucleus Software is as follows:

Nucleus Software wants to increase and encourage employees to refer high quality
personnel. And Nucleus Software rewards them for the contribution in attracting
new staff to the organization.

In this some of the candidates are not eligible:


1. Human Resource Personnel
2. Employees who are involved in anyway in the selection process.
3. Associate Vice President Levels and above.
4. Candidates below 2 years experience
5. Former Nucleus employees
6. Temporary appointments
7. Contractual employment
8. Software Engineer Trainees or Project Interns

50
The amount of award are divided into levels

Level Amount

Grade 3 Rs 20,000
Grade 4-5 Rs 30,000
Grade 6-7 Rs 40,000
Grade 8& above Rs 50,000

If the referred candidate is selected then the reward is awarded to the respective
nucleus employee. The reward is awarded after the referred candidate has completed
all the formalities. The reward is directly credited to respective employee by the
finance department.

The referral process is a less expensive way of recruiting experienced professionals.


It has emerged as a strong and very stable medium of recruitment. The employees
can refer people they know to their employer for consideration. Most companies
expect this channel to provide stronger yields in future. Almost everyone has
branded the internal referral system and focused on developing targeted campaigns
to tap this channel. This is a very effective job applicant source; especially those
making the referral are good performers. People usually make friends with people
similar to themselves. Applicants referred through this process will tend to have a
more realistic picture of an organization. Stability is inherent in the selection of the
candidates by the employees. Being grounded in the company’s culture, the
employee usually zeros in on candidates that best fit the job requirement and
company culture. HR managers have observed that employees coming through the
referral route have demonstrated more stickiness. Employees understanding of job
requirements and results in more qualified reffals. Moreover, qualified people may
be reached at practically no cost. Hence, employees currently working for an
employer are a valuable source for finding job applicants.

51
There are disadvantages, however.

People might expect that all referred applicants should receive job offers, when
hiring all referrals is likely to be impossible. Employee referral program may be
perceived as discriminatory in practice; therefore, caution should also be ensuring
that a referral program does not result in discriminatory hiring practices.

Employee referral program sometimes fail to work because current employees lack
the motivation or ability to make referrals. Employees sometimes do not realize the
importance of recruitment to the organization. As a result, the organization may
need to encourage employee participation by providing special awards and public
recognition along with bonuses for successful referrals.

Employees may not able to match people with jobs because they do not know about
open vacancies and the requirements needed to fill them. Hence, communications
regarding job vacancies and the requirements needed to fill these vacancies need to
be constantly provided to employees.

The above findings also emphasize the fact that employee referrals is set to emerge
really big in the years to come. As seen above, all the companies surveyed deploy
employee referral as a recruitment channel. It is the main source of recruitment for
innodata, HCL Technologies and TCS. When asked about the most effective
channel, 55% of the companies surveyed agreed on employee referral. There are a
couple of likely explanations why referrals seems to make such an impact.

First, a lot of companies have reached a critical mass of over 1000 employees,
which makes this option a viable channel. Even if 60% of the employee refer at least
one person, out of 50% get converted (conversion rates in referrals are highest at

52
about 65%) the company potentially has 300 new hires per month. As the number of
existing employees increases, the chances of success also become higher.

Second, the industry has now stabilized and established its credibility. The odd
working hours are not perceived as a stigma and therefore people are more willing
to experiment and get convinces by existing employees.

Third, a satisfied employee can become a strong brand ambassador and will go the
extra mile to convince a friend or a relative. The informal discussions before the
hiring are good grounding sessions about the company’s positioning, its culture,
nature of work etc; which help produce a stable workforce. In the process, it has the
intangible benefit of the kindling a sense of pride and belongingness to the
organization in an industry that has become notorious for its fickle employees.

Campus Recruitment

The campus recruitment is more rigid than any process because of the following
steps:

The candidate has to give the aptitude test and they should get at least 90% right
then only are they selected for the second round.
Now they have to give a technical test that also follows the same rule as above.
After this there is a group discussion, the candidates who are short listed in this
round are forwarded for the interview and if they are selected then the candidates are
asked to report to Nucleus Software for last and final interview.

Colleges are a source of people with specialized skills for professional position.
Most colleges have a placement office or officer who is in charge of ensuring that a
match is made between the employer’s interests and the student’s interest.

53
Recruitment at college is usually performed at no cost to the employer. It is essential
that appropriate college and universities be selected for a visit. After selecting
colleges/campuses to visit, attention must be devoted to a developing a college
recruitment program for each college/campus selected. A unique college recruitment
program is destined to fail. The organization must target its efforts to the specific
characteristics of each college.

There is a general procedure, which is followed by almost all the companies that
come for campus recruitment. It is as follows.

 Pre-placement talk
 Written test(aptitude, English, reasoning, puzzles and technical)
 Group discussion
 Technical interview
 HR interview

Some companies also conduct a written tests and interview (technical and HR both
combined). Some do not prefer for GD.

Based on the above findings, it can be seen that 4 out of 6 companies surveyed (55%
of the companies) visit colleges for the purpose of recruitment. The need for the
same is witnessed among companies for whom experience is not an essential
consideration while recruiting employees. The reason for campus hiring could be
based on the need to recruit dynamic, forward-thinking, action-oriented people, and
colleges provide an excellent platform for recruiting people with the desired
characteristics.

Head Hunters/ Agencies;

54
Nucleus Software has some specific head hunters. They are classified into three
categories. The bases for the categories are the position and the fees they charge.

Category A

They would be working on project lead and above positions.


They would be charging professional fees starting from 8.33% to 32%.

Category B

They would be working on software engineer and senior software engineer


positions.
They would be charging professional fees starting from 8.33% to 12.50%

Category C

They would be working on contract/third party placement for software engineer and
software engineer trainees.
They would be charging monthly fees ranging from Rs.20,000 to Rs.60,000.

Recruitment through consultants:

Recruitment consultants are another good external recruiting source. Use of a


private employment agency may be useful when the employer has a critical need to
fill a position quickly. These agencies are established to match job openings with
listings of job applicants. These agencies also classify and screen applicant. Most
agencies administer work-sample tests, such as typing exams, to applicants.
Consultants are typically paid a fee for their services if they refer a candidate who is
subsequently hired. The fee is contingent upon successful placement of a candidate
with an employer. Businesses that use recruitment consultants should attempt to

55
have agree to minimum employment period during which the fee will be refunded if
the candidate hired does not work out; typically three months.

As can be observed from the above findings, hiring of consultants seems to be the
most preferred of recruitment as is evident by the fact 100% of the companies
surveyed are deploying the same. Although it is an expensive source as far as entry-
level employees are conducted, consultant hiring seems to be a viable option. These
consultants do the initial screening of the potential candidates, leading to further
assessment only for applicants in line with the company’s requirements. This
simplifies the task of the HR managers to a considerable extent.

Advertisements

Nucleus Software gives their advertisement only in Newspapers. The newspaper


which they have short listed is Times of India.

A convenient way to attract job applicants is to write an ad that can be placed in


newspaper, journals, and the like. Advertisements can also be recorded and placed
on radio or television is very important in teams of brand building as well as
communicating the company’s culture and value proposition. It should be from the
viewpoint of the applicant and his o her motivations. Though advertising, you can
be selective and indicate clearly the nature of the job and required qualification.

Advertisements can be very costly and to be monitored closely for yield. By


carefully monitoring the results of the each ad, the organization can then make a
more informed decision as to which ads should be un time a position is vacant. To
track ads, each ad should be coded to assess the yield. Then, as resumes come into
the organization in response to the ad, they can be recorded, and the yield for that ad
can be calculated. However, being an expensive channel, recruitment through

56
advertisements is preferred if number to be recruited is large. Some companies
deploy this channel to maintain visibility in the market.

As seen in the above findings some companies surveyed recruit through


advertisement. As a matter of fact, when these companies resort to advertising, it is
primarily to combine it with the corporate brand building exercise rather than solely
seeking to fill the vacancies. Advertisements include print media in most all case, as
it seems to channelize the largest number of employees. However in case of network
programming and innodata, advertising is done through online search engines.
Online job ads require and demand the same kind of attention that newspaper ads
do. And one has to be as creative to make the ad work. For these are more jobs
online than there are in print and similarly, there are more people out there who are
looking at the ads. A good job description not only gets the right resumes but also
keeps the junk resumes to a minimum. As job seekers today are a more informed lot,
they do a backgrounder check on the company before joining. Hence more the
information provided in the advertisement, more will be the applications or response
the clients would receive. The language words and website design, all play a role in
the advertisement online, apart from the content itself.

Recruitment advertising by IT companies has been substantial in the last year and
these mammoth recruiting drives are only set to get bigger and better in the coming
year, as attracting the right talent in the big numbers continues to be high on the
priority list of these companies. This sentiment seems to be echoed across the
industry with the action only getting hotter. Expansion by existing players, new
entrants, bigger projects, mergers and acquisitions and the setting up of R & D bases
make for the perfect ingredients for this growing pie.

Direct Sources:

Recruitment through direct walk-in:

57
It is a common practice for employers to accept applications from job applicants
who physically walk into the organization to apply for or who send in resumes.
Organizations that rely upon unsolicited walk-ins and resumes senders must be
prepared to deal with the physical demands created by this process. In order for
walk-ins not disrupt the normal work flow in an organization; a contact person is
responsible for processing walk-ins to complete application blanks and pre
employment tests. Hours need to be establishing when applicants can apply for the
jobs. Procedures must be put in place to ensure that data from walk-ins and resume
senders are entered into the applicant flow process. If these steps are not taken, not
only the organization workflow be disrupted, but also the image of the organization
may be tarnished.

In the survey conducted all companies recruit though the walk-ins channel. The
most probable reason for the same is that the company does not have open vacancies
throughout the year and does not have very large recruitment requirements. It has
been able to meet its recruitment needs though advertisements, consultants, and
employee referral.

This source is relatively inexpensive, and applicants may be filed and processed
whenever vacancies occur. Walk-ins provide an excellent public relations
opportunity because well-treated applicants are likely to inform others. Word-of-
mouth applicants are likely to stay longer and may be more suitable than recruits
obtained by advertising. Also, this channel seems to be the most cost-effective
channel.

58
Manpower Distribution:
Total joinees for the financial year April’06-March’07- 395
The break up on the basis of the source of recruit is as follows

%age Total
Parameter Distribution Requirements Q1 Q2 Q3 Q4
Total
Manpower
Requirements 100% 395 63 154 9 60
Campus
Recruits 37% 143 32 77 5 30

Consultants 11% 43 9 23 1 9

Jobsites 7% 29 6 15 1 6

Advertisements 11% 43 9 23 1 9

Referrals 27% 108 38 30 26 24

Direct 7% 29 6 15 1 6

59
R ecru tm en t ch art

Referrals Cam pus Rec ruits


27% Cam pus Rec ruits
Cons ultants
37%
Jobs ites
A dvertis em ents
Direc t
7% em ents Direc t
A dvertis Jobs ites Cons ultants
11% 11% Referrals
7%

It was found as per the numbers that campus placements constituted to 37% of total
recruits, where as consultants was 11 % compared to 7 % from Job sites.
Advertisements constituted to 11 %, referrals scheme contributed to 27% of
manpower planning. Only 7 % were direct recruits.

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Cost Involved in Recruitment- Source wise

Campus Recruitment Expenses

Nature of Expenses Cost

Total cost 850000

Travel cost per panel for the Campus Event 800000

No. of Campus visited 25


Campus Team Size 4

Travel p/p 6000

Boarding and lodging p/p 2000


Total cost p/p 8000

Material Cost (Promotion/ Question Papers and


stationary) 2000

Total Material Cost 50000

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Jobsite Expenses

Nature of Expenses Cost Total Cost

Naukri subscription 250000 250000

Jobsahead subscription 250000 250000

No. of Jobsite events(per year) 9

Cost per event 150000

Total cost(Events) 1350000

Total Cost 1850000

62
Advertisements Expenses

Nature of Expenses Cost Total Cost

Cost per Advertisement 300000

No. of Advertisements 6

Total cost 1800000

Consultants Expenses
Nature of
Expenses Cost Q1 Q2 Q3 Q4

Average Salary 400000


Average
Consultant fee 12.50%

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Cost p/p 50000

No of positions 43 9 23 1 9
115500
Cost per Quarter 472500 0 67500 450000
2145000
Total Cost

Referral Expenses
Nature of
Expenses Cost Total Cost
Referral
Amount 20000/30000/40000/50000

No 108

Total cost 2700000

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Using simple statistical tools such as ratio and division, the cost per
recruit has been found as follows

Parameter Total Number Cost Involved Cost Per Recruit

Campus Recruits 143 850000 5944.055944

Consultants 43 2145000 49883.72093

Jobsites 29 1850000 63793.10345

Advertisements 43 1800000 41860.46512

Referrals 108 2700000 25000

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70000 Jo b s ite s

60000
C o n s u lt a n t s
50000
A d ve rtis e m e n t s
40000

30000 R e fe rra ls

20000

1 0 0 0 0 C a m p u s R e c ru it s

0
C a m p u s C o n s u lt a n t s Jo b s ite s A d ve rtis e m e n tRs e fe rra ls
R e c ru it s

66
INTERPRETATION:

• Cost per Recruit found out using the data from the company suggests that
Employee referral is the best source to hire people, followed by
Advertisements.
• Consulatnts being the third best source and
• Postings on Job sites being the ineffective and the costliest one.
• The cost per recruit for campus placements is also very low compared as to
other sources, but in campus placements we only hire SET’s (Software
Engineer Trainees) and MT’s (Management Trainees) which is at the
bottom of the hierarchy and are hired in bulk once a year.

67
RECOMMENDATIONS:

• Employee referral scheme must be made more attractive so that employees


get more motivated to send in more references to HR.
• Goodies must be given to every employee who refers a candidate barring the
result of the interview.
• The policy that states that no employee below 2 years of experience is not
eligible for referring someone should be mended as we may be losing on
good candidates
• Job postings on Portals must be reduced and instead can focus on
Advertisements.

68
69
Objective 2:

I. To find out the reasons for higher rate of back outs in the
company .

II. To study the trend, if any, existing while doing the Analysis.

The SAMPLING TECHNIQUE used for this objective is PURPOSIVE


SAMPLING because only those individuals have been taken into consideration
who have joined or backed in the current financial year so that the findings are
fruitful and better result oriented.

The RESPONDENTS of the sample were from different functional areas and
also from different hierarchical levels.

The SAMPLE SIZE of the research is 30 individuals across different functional


areas.

TOOL FOR DATA COLLECTION

For the purpose of collecting data and carrying out the analysis a Self-Administered
Questionnaire had been prepared keeping the following parameters in mind :-
1. The years of experience the individuals posses

2. The current employer they are associated with

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3. The expertise they posses etc

The questionnaire consisted of only objective based questions that were simple to
understand and answer. However not many individuals were interested to giving out
the reasons for not being interested to answer the questions. The candidates were
contacted thru mails as well as through phone.

Methodology-

a. To pull out the data for the backed out candidates for the financial year
April ’06- March’07

b. To contact the candidates and get the questionnaire filled.

c. To suggest some solutions to minimize the same after finding out the
reasons.

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BACK OUT:
1. To withdraw from something before completion.
2. To fail to keep a commitment or promise.

Recruiting is a very exciting and challenging profession and even more so when it
comes to recruit IT consultants. The challenges for an IT recruiter in today’s job
market are in convincing and managing IT job seekers to remain committed and not
back out during the hiring process. With the current IT market boom, good IT
consultant can find himself with multiple job offers at any given point of time and
will get approached and head hunted by head hunters and recruiters alike constantly.
And because he has multiple offers at hand he is bound to remain true to himself and
not being loyal to anyone consultant, after all he can only take up one offer at one
time. This will also means that to the other recruiter he is bound to be another case
of a back out candidate.

The most frustrating aspect of an IT Recruiter’s job is to have in hand a candidate


backing out – during or after the selection process. For most of them, the stress that
they go through as a recruiter is not so much from the targets and the deadlines but
the uneasy feeling of not knowing if your selected/short listed candidate(s) will
remain committed to your offer and take up the job.

Backing out of job offers is a big issue especially in country like India because of
the bullish job market. I believe the situation is not so bad for organizations which

72
are of repute and are well established such as Infosys, TCS, Wipro, etc but those
second and third tier organization are the one facing the brunt of most of the back
out cases. This could be attributed mainly due to the fact that the big boys do not
have difficulty in attracting job applicants because of their good brand image and
willingness to shell out above average market compensation.

Types of back out:

Let’s look at what stages of the recruitment process a back out can possibly happen.

1. Candidate backing out before the interview


2. Candidate backing out after interview
3. Candidate backing out after accepting the offer
4. Candidate backing out before joining
5. Candidate backing out just after joining

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INTERPRETATION:

I. Analysis based on the reasons given by the candidates for back


out

This analysis is based on the responses received after speaking to people who
backed out during the last financial Year (April ’06- March ’07). The following
reasons were identified after analyzing the responses collected from 30
respondents.

The percentages have been calculated from the total number of people contacted.

Reasons for Back Out

Lenghty Interview
Process
Others
10%
27%
Delay in Feedback
23%

Brand issues
13% Better Offer
27%

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This pie chart depicts that the maximum number of people are backing out as they
have better offers in hand, followed by 23 % who backed out due to delay in giving
feedback.
13 % of them backed out as they were not happy to get associated with a Growing
brand.
Lengthy Interview process contributed t 10% of the back outs and the remaining 27
% had other reasons to back out.

Most common reasons for back outs:

Varied reasons can be attributed as to why a candidate back out, below are some of
the common ones –

* Have in hand several offers and will decide on the one best offer
* Developing cold feet at the last moment before submitting his/her resignation letter
* HR/Line Manager convinced him/her to stay back
* Was given a very good counter offer by employer so decided to stay back
* Not serious about leaving current job, and attending interviews just because the
opportunity was presented to him/her.
* Learnt of the project which was not to his liking/preference/expectation and is not
keen on joining
* The final offer not up to his/her expectation
* Did not agree with some of the clause(s) in the offer letter/appointment letter
* His/her friends/contacts gave negative feedback about the organisation so decided
not to join
* Required joining time not reasonable

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* See what offer he/she can get from the market to negotiate a better salary with
existing employer
* Selection process took too long and has already accepted another offer
* Tried re-negotiating for more salary after selection
* Genuinely have personal/family issue because of which he/she cannot take up the
offer

II. Trend Analysis

a) On The basis of their Source of recruitment

From this analysis we will get to know about the source which had maximum
number of backouts

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Ads/Job sites Employee Referrals
13% 13%

Consultants
Direct 33%
41%

The Source of recruitments that had maximum number of back outs is Direct with
41 % followed by consultants which is 33 %. Advertisements and Employee
Referrals are 13 % each.

b) On the basis of their Grades (Hierarchy levels)

This analysis would help in knowing that from which hierarchical level candidates
are backing out the most.

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9
8
7
6
5 9
4
7
3
5 5
2
1 2
1 1
0
SE SSE SA SSA APM PM SPM

It was found that lower and middle level candidates back out the most and middle
hierarchical levels exceeding the lower levels. Senior levels are the least in number.

c) On the basis of their Job Category:

This analysis would help in knowing candidates of which type of category are
backing out the most.

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Non Delivery
33%

Delivery
67%

Delivery Category refers to the individuals from Software industry where as Non
delivery refers to individuals from support departments such as HR, Finance,
Admin, Business Development etc.

The Analysis shows that individuals from Software background back out the most as
compared to individuals from other support departments.

d) On the basis of their area of expertise.

We are trying to find to find out the area of expertise from which most of the
software professionals have backed out.

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Others
15%
DBA
4% Java
Testing 44%
10%

.Net
12%
Oracle
15%

It was found that 44 % of the software professionals who backed are Java
Professionals as the demand for them is very high in the market.15 % of the backed
out candidates are Oracle Professionals, DBA’s being the least.

e) On the basis of their area of Stay:

This analysis would help in knowing that from which region maximum number
of

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people are backing out as there could be a possibility that outstation candidates
are

more prone to backing out.

Local candidates
40%

Out Station
Candidates
60%

As expected out station candidates contributed to the maximum percentage as


compared to local candidates.

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Repercussions & affects of backing out:
- Recruitment is an expensive activity. Every time a candidate backs out the
recruitment process has to be initiated all over again.
- Good amount of time and effort is wasted to find a new replacement and projects
can and do get delayed and all these translates to revenue lost
- But most important of all is the lost of client’s trust. This is non tangible and will
have long term adverse affect vis-à-vis client-vendor relationship.

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LIMITATIONS:

Since project included the back out analysis. The major


limitations that I faced are as follows:

 The responses of the people contacted may not be genuine as people are
often reluctant to share their views.

 There are many such cases when we were not able to contact the concerned
persons so this limited the scope of our study in a way.

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RECOMMENDATIONS:

How to avoid & reduce candidates backing out:

• If you and your candidates are in the same area it is always advisable to meet face-
to-face.
• Be it on the phone or in person spent as much time as you can and dig for
information – what motivates him to look for a change, professional and personal
reasons, what are his expectations in terms of money and roles, etc.
• It is important to be in control when it comes to recruiter-candidate relationship.
To achieve that it is important that you conduct a thorough pre-qualifying. Get all
the low-down about his background and aspiration, et al.
• Always insist on obtaining either verbally and/or in writing his/her response and
commitment to the job offer. You may do this with a direct approach or with great
subtlety. Which approach you resort to will depend on each individual or their level
of seniority – you need to make the right judgment.
• Constantly update him/her on the process and try keeping-in-touch on a frequent
basis.
• Pay close attention while talking to him/her and listen for those tones and
expressed/unexpressed concerns and look for those signs that might indicate his
intentions.
• If any of his/her words, expressions, actions gives you a sense of doubt and
concern, then drop him/her and move on. It is better to drop him/her now than later
have a back out in your hand.
• Have a set of questionnaire that you can run through with him/her before
proceeding to qualify him - questionnaire that will test his seriousness and sincerity
to look for a change.
• Do not hesitate to ask them if they have discussed with his/her family members

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about this plan to look for a job change. Especially for those who are married, please
confirm with them if they have consulted their other half.
• Try and get inside your candidate’s mind, understand his needs and his aspiration.
• Pro-actively try to cover all areas that you possibly think will be a likely point of
concern (reason for a back out) for him at a later stage and addressed them
immediately.

Some of the more counter measures that organizations can apply. These fall under
defensive and offensive tactics.

Defensive tactics

Provisional offers: Peeved by the fact that employees use their offer letter to
negotiate a higher pay elsewhere, organisations make only a provisional offer to the
candidate. They may only indicate the pay and wait for the employee to arrive on
the chosen day before they issue the formal letter. This is very common at junior
levels.

Hold consultants responsible: It is quite common for organisations to hold their


recruitment consultants responsible for the employee joining or staying on for a
reasonable tenure. Many do not get paid until this happens.

Hire through referrals: Organisations believe that if the candidate is chosen


through an internal referral process, the chances of his honoring the offer are higher
given the emotional pressures. For this reason, a referral source is quite often the
first choice today.

Create back ups: More risk-averse organisations are beginning to build back-up
plans. Realizing the futility of crying over spilt milk, these organisations just get on
with life and go after the next best find.

Offensive tactics

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Emotional connect: Most employees tend to go through a certain amount of "post-
purchase guilt", especially at senior levels. This is where the organisations can step
in and do a lot. And many do it quite elegantly.

Most important, their selection processes tend to be so compelling and executed


with such suave that it blows the mind of the prospective employee. The most senior
executives engage with the candidate, give time, and address every perceivable
concern. They start involving the employee in important decisions, invite him to key
events, meetings and even get-togethers much before he comes on board. They
introduce the employee to his prospective team. They start sending him mails and
business related information regularly.

In other words, they start occupying his mind. They make him feel special and never
let him think back on his decision. Most have nowadays even begun announcing to
the media.

Life altering offer: Organisations making very strategically important hiring


decisions do not want to take even the most slender chance. They want it signed,
sealed and delivered. Not only is their process savvy. Their offer has the power to
alter the life of the prospective employee.

When you do that, you derisk the hiring process so significantly. You are capable of
taking the employee completely out of the race and eliminate even the most remote
form of competition. On the other hand, when you leave a bit of after-taste in
closing the deal, there is always a risk that the employee can look beyond you.

Make it snappy: Nothing succeeds like speed. When the organisation does its
homework and then takes the leap of faith with lightning speed, the employee has
very little time to think. Sometimes the length of the process tends to increase the
anxiety for the employee, forcing him to reconsider his decision.

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In the days to come, it is will be hard to find good people and harder still to secure
their commitment to join. It can be most frustrating to say the least. You will need to
adopt a combination of defensive and offensive tactics to win the game. But before
you get there, you will need to certainly decipher the psychology of prospective
employees. Knowing what makes candidates accept or reject job offers would help
organisations take appropriate measures to increase the joining rate, just as digging
into the matter got Ike more than just the knowledge of why Maggie ran away from
commitment.

CONCLUSION:

As discussed earlier, the project was divided into two parts where the first part was
to study the recruitment process at Nucleus Software Exports Limited, Noida and to
analyze the different sources of recruitment to find out the optimum one.

The analysis proved that Employee Referral’s to be the optimum source of


recruitment.

Secondly was to find out the reasons for candidates back outs and suggest some
solutions to it. One of the major issues that Hr faces after attrition is back outs (the
candidates who do not accept the offer after being offered), so it becomes very
important for the company to know the reasons for the same. The most common
reasons were lengthy interview process, delay in giving feedback, better offers,
branding issues etc.

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BIBLIOGRAPHY

Books/Texts

 Handbook of successful recruitment & selection by Margaret dale


 ‘Staffing organization’ by Herbert G.Heneman III, Robert L.Heneman and
Timothy A. Judge

HR & Business Magazines


 Human capital ( May’07- June ’07)
 Indian management ( March ’07 Issue)

Responses in the survey


 Collection of data through e-mailed & personal responses to questionnaires
 Primary data of the recruitment department- Manpower planning costs and
new joinees list.

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Web references
• www.nucleussoftware.com

• www.nhrd.com

89
90
MANPOWER REQUISITION FORM
(DOMESTIC REQUIREMENT)

Requisition Date: _______________ Requisition Rec. On: _______________

Name of the Stream: ____________ Name of the Project: _______________

Candidate’s Detail:
No. of Experience Qualifications Position & Reporting Person to Salary Package
Vacancies for which to Join By (Range)
Team
Total Relevant Exp.
Exp.

Job Description

Skills/Expertise:

MANDATORY

DESIRABLE

Available Interviewers for the Technical Round: 1. ______________ 2. _____________________

Requisition Made by: ______________________ Stream Head Signature:


_____________________

HR Remarks:

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Candidate Detail Sheet

Position Applied For

Name

Primary Skills

Secondary Skills

Contact Numbers Email ID

Total Experience Relevant IT Experience

Qualification Institute & Grade

Current Organization Designation

Current CTC (p.a.) Expected CTC (p.a.)


Earliest Joining Time

Source Direct / Reference / Consultant

Passport
Marital Status Single / Married / Separated

Career Plan & Ambition


(minimum 200 words, pls.
ask for extra paper if needed)

Open to Relocate to Noida


(Yes/No)

References: Name Organization Contact Details

Reference 1

Reference 2

Date & Signature

Activity Welco Resum Written HR Technica Technical Technica Final


me at e sent Test Interview l Interview 2 l HR
Recepti to HR Interview Interview Round
on 1 3
Start Time
End Time

92
Position /
Name of Candidate IBU
Skills to be Assessed

Assessment (To be assessed on rising scale of 5 as per suitability)


Round - 1 Round - 2 Final Round
Name of Interviewer
Date
Selection Parameters
Qualification Degree
Institute
Experience/Cos Relevant
t
Total
Cost
Communication Speaking
Understanding
Written
Personal Traits Leadership
Innovation
Maturity
Confidence
Team Spirit
Flexibility
Disposition
Situation
Handling
Decision
Making
Overall Overview

Recommendations FW. to Nxt Rd. FW. to Nxt Rd. OK for Hiring


Hold Hold Hold
Not Suitable Not Suitable Not Suitable
Signature

Negotiated
Present CTC Expected CTC CTC Designation Joining Time

Final Approvals (Signatures with


dates)

IBU Head HR Head MD


Final Status CTC Offered Date of Offer Tentative DOJ Signature & Name

93
Position /
Name of Candidate IBU
Skills to be
Assessed
CATS Test Scores
Test
Competency Level
Score
Technical Interviews (To be assessed on rising scale of 5 as per suitability)
Round - 2 Round - 3 Round - 4 Round - 5 Final Tech Round
Name of
Interviewer
Date
Selection Parameters
Domain/Business
Logic
Programming
Analysis
Designing
Integration /
Interface
Process
Quality
Testing
Documentation
Tech Support
Sys Administration
DBA
Project Mgmt.
Overall Technical
Overview

FINAL RATING :
Mandatory for tech
panel to highlight EXCELLENT VERY GOOD GOOD AVERAGE SATISFACTORY
Recommendations FW. to Nxt Rd. FW. to Nxt Rd. FW. to Nxt Rd. FW. to Nxt Rd. OK for Hiring
Hold Hold Hold Hold Hold
Not Suitable Not Suitable Not Suitable Not Suitable Not Suitable
Additional
Comments

Signature

94
EMPLOYERS’ REFERENCE
FORM 1
PRIVATE & CONFIDENTIAL

Reference Check Done With:


Designation:
Organisation:

Reference Check done for :


Position Code :

We would appreciate it if you could provide us with the following information:

1. Date Joined : _______________________________________________

2. Date Left : _______________________________________________

3. Last Held Position : _______________________________________________

4. Last Drawn Salary : _______________________________________________

5. Reason for Leaving : Resignation on own accord/Dismissal/Termination

Please elaborate, if applicable ___________________________________________

___________________________________________________________________

___________________________________________________________________

6. Is he / she eligible for re-hire by your organization?  Yes  No

If no, please elaborate_________________________________________________

___________________________________________________________________

___________________________________________________________________

95
EMPLOYERS’ REFERENCE
Time Period You Have Known Candidate (Work-
Related)
Duties Performed By Candidate Whilst Working With
You
Your Working Relationship With Candidate
Would you recommend a hiring decision for him/her? Yes
No
Integrity No Reasons To
Doubt
Doubtful
Overall Quality Of Work Consistently High
- Accuracy And Speed Satisfactory
Needs Improvement

Attendance / Punctuality Excellent


Satisfactory
Needs Improvement
Adaptability / Stress Tolerance Excellent
Satisfactory
Needs Improvement
Initiative / Independence Excellent
Satisfactory
Needs Improvement
Problem Solving Excellent
Satisfactory
Needs Improvement
Interpersonal Skills Excellent
Satisfactory
Needs Improvement
Performance Ranking In Relative To His / Her Peers Top 10%
Top 25%
Top 50%
Bottom 50%
Bottom 25%
Strengths

Areas Needing Improvements

Other Comments (Please Include, If Any)

Name : ____________________________________

Designation : ____________________________________

Signature : ____________________________________

Date : ____________________________________

96
CHECKLIST - FINAL OFFER DOCKET

Documents/Information Please Tick/Details

Name of the candidate

Technology & IBU

Resume

Candidate detail sheet

HR Interview sheet -Duly signed and completed

Technical Interview Sheet - Duly signed

Appointment cum Offer Letter - Original

Appointment cum Offer Letter - Office copy

Reference check sheet


Print out of any communication taken place
between recruitment team and candidate

Any Other - pl specify

Recruitment team Operations Team

__________________________________ _____________________________________

Name & Signature Name & Signature

Date:

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QUESTIONNAIRE (Back out)
Name (optional):
Educational Qualifications:
Location:
1. What were your reasons back out?
a. Lengthy Interview Process
b. Delay in Feedback
c. Better Offer
d. Brand Issues
e. Other reasons (please specify)
2. What is your skill set expertise?
a. Java
b. Oracle/D2K
c. Dot Net
d. Testing
e. DBA
3. What position have you applied for?
a. Software Engineer (SE)
b. Senior Software Engineer (SSE)
c. System Analyst (SA)
d. Senior system Analyst (SSA)
e. Assistant Project Manger (APM)
f. Project Manager (PM)
g. Senior Project Manager (SPM)
4. What Division did you apply for?
a. Delivery (software)
b. Non Delivery (Support)
5. How did Nucleus contact you?
a. Direct
b. Advertisements
c. Employee Referrals
d. consultants

98