RPO imperative for Indian HR managers

BANGALORE: Over 80 per cent of HR managers believe recruitment process outsourcing plays an important role in recruitment and over 50 per cent have evaluated and used RPO in their companies, according to a survey.

The survey by Vati Consulting Pvt Ltd interviewed over HR Managers of 50 IT companies in India. The survey was conducted with the objective of examining ‘pain areas’ in recruitment and resources and methodologies used by top Indian IT services and BPO companies screen and recruit the needed talent pool. 

Vati CEO, Amitabh Das says, “HR Managers have a tough task on hand. Firstly they have to recruit large chunk of IT professionals’ quarter-on-quarter basis to maintain their business growth, find suitable replacement for retiring or outgoing candidates and lastly try to keep attrition in check. Though they may succeed in their mission of keeping attrition in check, the study reveals an overwhelming majority look to RPO’s to speed up recruitment.”

The participants were asked eight questions that ranged from the minimum qualification of candidates; challenges faced during the recruitment; the most sought after resources pool apart from engineering and fresh graduates; the mode of recruitment; whether the HR’s considered RPO in the recruitment process; or did they believe that RPO played a major role; the cost per hire; and to the number of people recruited in a year.

The challenges faced during recruitment are Talent Pool, Compensation and Higher Number/Scale, which came under higher priority. Whereas dealing with competition from other companies fell under lower priority.

When researched on sources of culling talent pool, it showed employee referrals fared the highest between 50-75 per cent, followed by 25-50 per cent through consultancy. Unsolicited Applications, Advertising, Job Portals, Direct Job Application fared in the range of 0 – 25 per cent.

Opportunities for engineering and MCA graduates is equal, as the survey reveals that on an average, companies recruitment companies need equal number of engineers (25 per cent) and MCA’s (25 per cent).

In an IT company, the requirement for simple graduates is at 20 per cent. Other HR managers said they look for a mix of all engineering, MCA’s and simple graduated (30 per cent).

Around 74 per cent of IT companies recruited less than 1,000 skilled professionals in a year, while 13 per cent of them hired more than 1,000 to 5,000 persons. Very large organization representing another 13 per cent hired more than 5,000 people.

The cost per hire at the entry level for IT professionals is between Rs 10,000 and Rs 25,000 per month, for mid-level professionals it ranged from Rs 25,000 to Rs 50,000 and for top end managers it was above Rs 50,000 per month.

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