Mumbai: Selecting right candidates and placing them at right position is a key strategic decision to becoming a successful business organisation. Robust recruitment and hiring policy is an essential element to achieve business goal. Sometimes hiring mistakes increase hiring cost and reduce return on investments.
In India 62% organizations admit they are making hiring mistakes, 53% blame it on lack of proper tracking mechanisms, as per TimesJobs.com study.
The problem lies in the chunk of resumes recruiters receive every day and the pressure to fill a position within a deadline. The stress makes most (78%) recruiters spend less than five minutes on reviewing a resume, finds the TimesJobs study. In the process, recruiters also make mistakes – such as unclear job descriptions (55%) and ignoring the cultural fit of a candidate (40%).
“The TJinsite study reveals that there is still tremendous scope for optimizing the hiring processes in India Inc. Over 400 hiring managers have claimed a lack of tracking mechanisms to measure hiring ROI but I feel it is rather a lack of awareness – because they haven’t been able to decode the metrics already available within their HR Departments,” says Nilanjan Roy, Head of Strategy, Times Business Solutions.
According to the TimesJobs study, the key internal investments in hiring include interviews, background and reference checks and onboard training.
ROI of new hires
To determine the incremental profit contribution of a new hire, the organization should multiply the revenue per employee by the variable profit margin, says S. Sundararajan, director, i-exceed. “You will get the average profit contribution expected for each new employee. This can be adjusted for salary by dividing average profit per employee by the average compensation.”
TimesJobs conducted this study across 807 pan-India employers.
About TimesJobs.com:
TimesJobs.com, India’s leading career and recruitment portal, is one of the best-selling online ventures of the Times of India Group. Conceived and launched in 2004, TimesJobs.com currently has a candidate database of more than 25 million registered job-seekers across levels and functions who clock-in over 60 million page views a month.
