Recruitment Freakonomics

This came through just yesterday whie I was talking to Senior Vice President of large listed public company. Ofcourse I used Steven Levitt's freakonomical model to build the relationship clear.

The way almost all recruitment firms operate commercially is that they make money when an employee is successfully placed in an organization. For each such hiring, firm makes a cool 10 - 20% of the annual salary of the employee. That the employee is "the right guy" doesn't play any role in determining the payout. Ofcourse there are clauses & terms that do no good......here are a few freakonomical pointers to how things really are:

1. Larger the attrition in the account, larger the potential business for the firm.

2. If the firm places people who stay forever, it is killing its own market.

3. If successful placement is the key, dressing up candidate seems business need.

4. Best guy comes your way if your commercial term is relatively superior to other contracts.

5. Superstar will to the highest bidder, not to him but to the firm.

We can agree or we can find out........long live Levitt...

A great appraisal challenge !!!

Imagine getting into a new client relationship at apparaisal time and finding that some fifty professionals need to be appraised in absence of any suggested KRAs. Further more their roles also may not be defined clearly and both they and their managers cary different versions about their roles.

Now imagine you are in charge for pulling off this appraisal and there is a deadline. You are wishing you were better dead. So did we.

Thanks to survivor skills of our Group Manager that we really pulled it off after some intense discussions, definitions, form filling, processing and late night coffees.

While India seems to be on a one way journey of growth, state of affairs within organizations remains pretty dismal as far as organization building is concerned. Short cut seems to be the flavor at both companies and training schools thus making original work uninitiated & unrewarded.

plugHR's own research points out clearly that top reason for high attrition in companies is not salaries at all but absence of basic people management practices apart from faith in senior management.

Its time for coporate India to revisit basics we guess and put money where the mouth is. HR is the mouth :)