Professional Documents
Culture Documents
Ltd.
Submitted By:
Swetha V
A01023016113
MBA-HR, Class of 2008
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 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
2
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.
3
worked under my guidance for the Project Title Recruitment Process at Nucleus
Software.
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.
Ms.Shalini Bishnoi
Associate Manager-
HR
Nucleus Software
Exports Ltd.
EXECUTIVE SUMMARY
4
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 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.
5
After analyzing the reasons for the candidates backing out, I was able to give some
recommendations
TABLE OF CONTENTS:
6
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
7
7.4 Interpretation based on Findings
71
7.5 Limitations
79
7.6 Recommandations
80
8. Conclusion
83
9. Bibliography
84
10. Annexure
85
8
INTRODUCTION TO RECRUITMENT & SELECTION
MEANING OF RECRUITMENT
9
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.
10
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:
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.
11
• 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.
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:
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sending their applications. Management gets a wider range of candidates for
selection.
13
department may maintain a record of unsolicited applications. When jobs
suitable for those persons are available those are considered for
employment.
14
NUCLEUS SOFTWARE
15
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.
16
VISION OF NUCLEUS SOFTWARE
- Actively creating and exploring opportunity for the growth of our customers and
our organization
17
18
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”.
19
HR MISSION
STATEMENT
20
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
21
AND INITIATIVE.”
HR @ Nucleus:
22
HR POLICIES - SUMMARY GUIDELINES
Full opportunity to all at every level to participate in the company's decision making
process
23
24
The study carried out is purely EXPLORATORY in nature to
understand the Recruitment process of Nucleus Software.
Objective 1:
The DATA used for this objective is secondary in nature, as it has been
taken from the records of Nucleus Software.
METHODOLOGY:
25
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 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
26
database for any future reference. (Technical Assessment form is given in
References-NSEL/TA)
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)
27
3.3.Flowchart
Start
28
Nucleus Software Expo
Start
Manpower
Requisition raised
29
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
30
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.
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
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).
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):
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Personality, Communication etc.
Motivation / Drive
Professional interests & depth of knowledge in the field.
Unselected Candidates
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.
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.
33
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.
All Offer Letters cum Appointment Letters would be issued as per the hiring matrix
in the candidate fitment document.
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.
34
Separate Employment Agreement / Contract
The terms and conditions of HR Policy Manual are generic and apply to all
employees.
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
35
the packages of employees at similar level and functions within the company
and the industry.
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
36
PROBATION & CONFIRMATION
DEFINITION
PROCEDURE
37
affected the contribution of the concerned Nucleite must be taken into
consideration.
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.
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
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.
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.
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.
HR Department will also inform Reception and Security about the new
joinees.
DEFINITION
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.
PROCEDURE
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.
INDUCTION
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
44
NOTICE PERIOD
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.
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.
EXIT INTERVIEWS
46
EXIT INTERVIEW GUIDELINES
OBJECTIVE
POLICY
The enclosed "Exit Interview" questionnaire is to be completed by the
employee who has resigned from the services of the company.
PROCEDURE
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.
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
1. Naukri.com
2. Monster.com
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.
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.
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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.
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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.
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
Category B
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.
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
56
advertisements is preferred if number to be recruited is large. Some companies
deploy this channel to maintain visibility in the market.
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:
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.
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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
Direct 7% 29 6 15 1 6
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R ecru tm en t ch art
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
61
Jobsite Expenses
62
Advertisements Expenses
No. of Advertisements 6
Consultants Expenses
Nature of
Expenses Cost Q1 Q2 Q3 Q4
63
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
64
Using simple statistical tools such as ratio and division, the cost per
recruit has been found as follows
65
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
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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.
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RECOMMENDATIONS:
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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 RESPONDENTS of the sample were from different functional areas and
also from different hierarchical levels.
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
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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
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.
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
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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.
Let’s look at what stages of the recruitment process a back out can possibly happen.
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INTERPRETATION:
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.
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.
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
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.
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.
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.
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.
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
Local candidates
40%
Out Station
Candidates
60%
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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:
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:
• 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.
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.
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.
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.
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
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Web references
• www.nucleussoftware.com
• www.nhrd.com
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MANPOWER REQUISITION FORM
(DOMESTIC REQUIREMENT)
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
HR Remarks:
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Candidate Detail Sheet
Name
Primary Skills
Secondary Skills
Passport
Marital Status Single / Married / Separated
Reference 1
Reference 2
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Position /
Name of Candidate IBU
Skills to be Assessed
Negotiated
Present CTC Expected CTC CTC Designation Joining Time
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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
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
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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
Name : ____________________________________
Designation : ____________________________________
Signature : ____________________________________
Date : ____________________________________
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CHECKLIST - FINAL OFFER DOCKET
Resume
__________________________________ _____________________________________
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
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