A STUDY ON RECRUITMENT AND SELECTION FOR TEMP STAFFING
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OBJECITIVES
To understand the process of recruitment and selection in various telecom companies.
To know the effective method of recruitment and selection in selected telecom companies
To know the sources used for recruiting at various levels and various jobs.
SCOPE
The study’s emphasis is on recruitment and selection process of only three telecom companies TATA, IDEA and AIRTEL.
The study aims at understanding various issues involved in managerial recruitment process.
The study does not look into financial aspects of recruitment cost analysis
The study was done only to know the various sources of recruitment
METHODOLOGY OF STUDY
This study is conducted by collecting and analyzing the data from secondary sources.
Secondary Data:
Secondary data was collected from the books, journals, newspapers and from different websites.
INTRODUCTION
A “temp” is a temporary worker with an organization who is on a third-party (staffing company) payroll. A well-accepted norm in global companies, many large Indian organizations are now hiring a part of their workforce from employee leasing firms.
Temping in India has never been a lifestyle choice unlike the markets in the US. Since temping is used more as a stepping stone to permanent jobs in India, conversion from a temp to perm is in the higher range. In the US, it is anywhere between 4% and 5%. In Adecco Peopleone, the conversion is anywhere between 25% and 33% with the company providing liquidity support. “I would encourage this conversion to go up to 40% as it will generate greater demand,” says Ajit Isaac, MD, Adecco Peopleone.
Recently, Bharti announced its intent to absorb 14,000 temps and make them permanent employees. While the high number with Bharti is an anomaly, most companies in India maintain a temp-perm mix and convert some good temporary staffers into permanent employees. On one hand, companies can gauge employees before absorbing them and first-timers in the employment market can gain a richer repertoire of experience having worked with a few MNCs.
Meanwhile in the US, where temping is more established with 10m temps in the market, certain specialized jobs have also seen temps earn 17% more than permanent employees. For temping companies in India, it is about addressing frictional unemployment and providing jobs to first-timers in the employment market.
“Of course, temping companies manage both service fees and absorption fees when this conversion happens,” Over a period of time, the temping industry will see penetration into Tier II towns due to higher levels of absorption. Temping companies will look at value additions in competency testing and certification of temps. “It cannot be about simply payrolling; we have to look at value addition along the entire chain,” says Soumen Basu, executive chairman, Manpower India. “The high rate of absorption is a good sign for our industry, it just shows that the market is maturing,” says Achal Khanna, country-head, Kelly Services. According to ASSOCHAM (Associated Chambers of Commerce and Industry) the size of the retail market would go up from Rs 5, 88,000 crore to 1,479,000 crore in 2008. Currently, of the Rs 5, 88, 000 crore market, the organized sector is only Rs 5,000 crore, but is expected to shoot up
to 1,60,000 crore by 2008.
Many companies because of the growing competition want to focus their core business. That‘s the reason why most of the companies in telecom sector in particular wants to increase their market share by increasing sales without increasing the headcount. To do so they are going for RPO’s which employs people on the rolls of not the client but on its own company rolls.
Temporary staffing firms recruit people for their clients by using various sources of recruiting available. These firms source the candidates and conduct initial screening by using different methods so that they select and place the right kind of people for the right kind of job.
LITERATURE REVIEW
India is a growing market. While the advanced world is seeing decline in growth, India, china and other emerging countries will continue to experience boom time for almost the next 20-30 years. These possess a unique challenge for the corporates who are interested in quality recruitment. Understanding requirements is the first most important step towards effective recruitment. Despite knowing it well both organizations and Recruitment Service Providers (RSPs) do not spend time either in defining requirements or in understanding them. Organizations must “recruit” recruiters carefully, insist on good measures of value – add, define and communicate requirements, build and enlist high performing RSPs to work for them as brand promoters. Similarly, RSPs must provide services appropriate to the need of the organization , learn to say no when they cannot, improve their match making abilities and not merely push CVs.outsourcing recruitment to external RSPs should not be purely on cost considerations. Cost saving is only an initial excitement. RSPs those who provide guaranteed service levels will be more effective and would be sort after as partners for companies finding right-fit will be the key focus. Cost of wrong hires will be measured while refining the act of recruitment says S. Chandra Sekhar who works with CAP GEMINI CONSULTING INDIA at Mumbai in his article published in HRD newsletter.
In one of the studies conducted by the HR consulting firm HEWITT it was found that 45% of 129 companies surveyed did not see cost saving as their main consideration. Top three reasons for recruitment outsourcing in corporate are reported to be:
Gaining outside expertise
Improving service quality
Focusing on core business.
So the companies must not go for RSPs simply to reduce the cost of recruitment but they should focus more on improved structure, standardization, efficiency, technology, compliance and other value adds.
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