163 Chapter 4 Analysis of Data from the Human Resources Managers In this chapter we analyze the responses received from the human resource managers of the various organizations in Banking and Finance and Healthcare industry. The questionnaire that was designed specifically to understand the viewpoints of human resource managers on rehiring of former employees was used to collect the data. Table 4.1: Responses from the human resource managers if they rehire the former employees in their organization Number of Responses Percentage Yes 62 97% No 2 3% Total 64 100% Source: “Data collected through primary source”
Transcript
163
Chapter 4
Analysis of Data from the Human Resources Managers
In this chapter we analyze the responses received from the human resource
managers of the various organizations in Banking and Finance and Healthcare
industry. The questionnaire that was designed specifically to understand the
viewpoints of human resource managers on rehiring of former employees was
used to collect the data.
Table 4.1: Responses from the human resource managers if they rehire
the former employees in their organization
Number of
Responses
Percentage
Yes 62 97%
No 2 3%
Total 64 100%
Source: “Data collected through primary source”
164
Data Analysis:
Out of the 64 human resource managers who responded, 62 of them say that
they do rehire former employees in their organization while 2 of them said
that they do not rehire the former employees.
Chart 4.1 – Percentage of response from human resource managers
whether they rehire former employees
From the above Chart, it can be seen that 97% of the human resource
managers respond that their organization rehire former employees and have
nothing against the former employees while only 3% of the human resourcs
managers responded that they do not rehire former employees in their
organization.
0.97
0.03
Response on Rehiring the former employees
Yes No
165
Interpretation:
It can be interpreted that most of the organization do rehiring of former
employees.
Table 4.2- Response from the human resource managers whether they
have a formal rehiring policy in their organization
Number of
Response
Percentage
Yes, there is a formal rehiring policy
available in the organization
12 18.75%
No, there is no formal rehiring policy in
the organization
52 81.25%
Total 64 100%
Source: “Data collected through primary source”
166
Chart 4.2 – Responses from human resource manager whether they have
a rehiring policy in their organization
Data Analysis:
From the Table 4.2 and Chart 4.2, we find that out of 66 human resource
managers, 12 say that there exist a formal policy in their organization for
rehiring former employees where as 52 of them say that there is no formal
policy existing in their organization for rehiring former employees.
12
52
0
10
20
30
40
50
60
Yes No
Do you have formal Policy on Rehiring of foremer employees?
Number of Response
167
Chart 4.3 – Percentage of response from human resource manager
whether they have a formal rehiring policy in their organization
From the above Chart it can be seen than nearly 81.25% of the human
resource managers say that there is no formal rehiring policy for hiring
former employees while 18.75% of the human resource managers say that
they have a formal written policy available in their organization for rehiring
the former employees.
0.1875
0.8125
Yes
No
168
Interpretation:
It can be interpreted that most of the organization do not have a formal well
established written policy on rehiring of former employees. Most of the
rehiring happens on an adhoc basis.
Table 4.3 - Response from the human resource managers regarding their
view on importance of rehiring of former employees
How important is Rehiring Number of
Response
Percentage
Very Imp 21 32.8%
Important 35 54.7%
Not Important 8 12.5%
Total 64 100%
Source: “Data collected through primary source”
Chart 4.4 – Number
they do rehire former employees
Data Analysis:
The table 4.3 and the
managers responded say that rehiring of the former employees is very
important to the organization while 35 of them opine that it is quite important
to hire the former employees. Only 8 of them felt that rehiring of former
employees is not important to th
0
5
10
15
20
25
30
35
Very Imp
21
Number of response from human resource manager whether
they do rehire former employees
the Chart 4.4 shows that 21 out of the 64 human resource
managers responded say that rehiring of the former employees is very
important to the organization while 35 of them opine that it is quite important
to hire the former employees. Only 8 of them felt that rehiring of former
t important to the organization.
Very Imp Important Not Important
35
8
Number of Response
Number of Response
169
manager whether
human resource
managers responded say that rehiring of the former employees is very
important to the organization while 35 of them opine that it is quite important
to hire the former employees. Only 8 of them felt that rehiring of former
Number of Response
Chart 4.5 – Percentage of response from
whether they do rehire former employees
From the Chart 4.5
rehiring is very impo
important.
Only 12.5% of the respondents opine that rehiring is not important to their
organization. That is nearly 8
rehiring of former employees is important to the organization and woul
bring benefits to the organization.
ercentage of response from human resource
whether they do rehire former employees
5 it can be seen that 32.8% of the v managers feel that
rehiring is very important to the organization and 54.7% feel that it is quite
% of the respondents opine that rehiring is not important to their
That is nearly 87% of the human resource managers feel that
rehiring of former employees is important to the organization and woul
bring benefits to the organization.
32.8
54.7
12.5
Percentage
Very Imp
Important
Not Important
170
human resource manager
managers feel that
% feel that it is quite
% of the respondents opine that rehiring is not important to their
managers feel that
rehiring of former employees is important to the organization and would
Very Imp
Important
Not Important
171
Interpretation:
Based on the response from the human resource managers it can be
interpreted that rehiring of former employees is important to the organization
and could prove to be beneficial to the organization.
Table 4.4 - Response from the human resource managers if they keep
track of former employees who can be rehired
Number of Response Percentage
Yes 42 65.6%
No 21 32.8%
No Response 1 1.6%
Total 64 100%
Source: “Data collected through primary source”
Chart 4.6 – Percentage of response from
whether they keep track of
Data Analysis:
When asked the human resource
former employees, nearly 42 of the 6
they do keep track of the former employees while 21 of them say they don’t.
0ne of them did not respond to this question.
01020304050
Yes
Do you keep track of former
ercentage of response from human resource
keep track of former employees
human resource managers if they keep track of rehirable
former employees, nearly 42 of the 64 human resource managers said
they do keep track of the former employees while 21 of them say they don’t.
did not respond to this question.
Yes NoNo
response
42
21
1
Do you keep track of former employees?
Number of Response
172
human resource manager
managers if they keep track of rehirable
managers said “yes”
they do keep track of the former employees while 21 of them say they don’t.
Number of Response
Chart 4.7 – Showing the percentage of response from
manager whether they do rehire former empl
That is nearly 65.6
former employees while 3
employees. 1.6% of the
query.
Showing the percentage of response from human resource
manager whether they do rehire former employees
.6% of the human resource managers keep track
former employees while 32.8% of them do not keep track of the former
% of the human resource managers remained silent on this
65.6
32.8
1.6
Percentage
173
human resource
managers keep track of the
% of them do not keep track of the former
managers remained silent on this
Yes
No
No response
174
Interpretation of data:
The above data shows that most of the human resource managers spend some
efforts in keeping track of former employees so that when an appropriate time
comes, they can be rehired.
Table 4.5 – Responses from the human resource managers whether they
follow any strategy for attracting and rehiring former employees
Number of
Response
Percentage
Yes 3 4.7%
No 56 87.5%
No Response 5 7.8%
Total 64 100%
Source: “Data collected through primary source”
Data Analysis: When asked the human resource managers if they follow any
specific strategy to attract the former employees for reemployment, nearly 56
of them said that they do not follow any specific strategy to attract the former
employees while 3 of them said that they follow some o
attract the former employees.
this query.
Chart 4.8 – Response from
follow any specific strategy to attract former employees
0
10
20
30
40
50
60
Yes
3
employees while 3 of them said that they follow some of the strategy to
attract the former employees. 5 human resource managers did not respond
esponse from human resource manager whether they
follow any specific strategy to attract former employees
Yes No No Response
3
56
7
Number of Response
Number of Response
175
f the strategy to
managers did not respond
manager whether they
Number of Response
Chart 4.9 – Percentage of
whether they follow any specific strategy to attract former employees
That is nearly 87.5
follow any specific strategy to attract former employees while only
that they follow some strategy to attract former employees
HR managers remained silent on this query
Following are some of the specific strategies followed by few of the
resource managers to attract former employees
‘Solicitation of employees for rehiring starts from the time of exit
itself’ says some of the
that hassle free exit can be a good starting point for attracting them.
They believe that the exit interviews are crucial to captu
ercentage of responses from human resource
whether they follow any specific strategy to attract former employees
5% of the human resource managers say that they do not
follow any specific strategy to attract former employees while only
that they follow some strategy to attract former employees and 7.8
HR managers remained silent on this query
Following are some of the specific strategies followed by few of the
managers to attract former employees
n of employees for rehiring starts from the time of exit
itself’ says some of the human resource managers. Hence they believe
that hassle free exit can be a good starting point for attracting them.
They believe that the exit interviews are crucial to capture some of the
4.7
87.5
7.8
Percentage
Yes
No
No Response
176
human resource manager
whether they follow any specific strategy to attract former employees
managers say that they do not
follow any specific strategy to attract former employees while only 4.7% say
7.8% of the
Following are some of the specific strategies followed by few of the human
n of employees for rehiring starts from the time of exit
managers. Hence they believe
that hassle free exit can be a good starting point for attracting them.
re some of the
Yes
No
No Response
177
reasons for their exit. Also they make sure to ask the employees if
they are willing to comeback if an opportunity arises. A database is
then created capturing the details of the employees who can be
contacted after their exit.
Keeping track of former employees through a well designed
Employee Alumni Portal
Sharing the internal job postings with the former employees through
the portal
Building proper relationship with former employees by sending
birthday greetings on their birthdays.
Organizing regular alumni meet and share the organizations expansion
plans
Develop a corporate facebook account to keep in touch with the
former employees on a regular basis
Interpretation of data:
The above data shows that less than 5% of the human resource managers
follow some strategy to attract former employees. With this we can interpret
as most of the human resource managers do not have any strategy for
attracting and hiring former employees.
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Table 4.6 - Response from the human resource managers whether the
rehiring former employees reduce cost to the organization
Number of
Response
Percentage
Yes 54 84.4%
No 10 15.6%
Total 64 100%
Source: “Data collected through primary source”
Data Analysis:
The table 4.6 and Chart 4.9 show that response from the human resource
managers about their views on whether rehiring the former employees could
result in cost savings to the organization. Nearly 54 of the 64 human resource
managers feel that rehiring former employees will result in cost savings to the
organization.
While 10 out of 64 human resource managers who responded to the
questionnaire feel that there is no significant cost savings due to rehiring of
former employees where as one of them did not respond to the question.
Chart 4.10 – Response of the
cost benefit of rehiring
Chart 4.11 – Percentage of
0
10
20
30
40
50
60
Response of the human resource managers with respect to
ost benefit of rehiring the former employees
Percentage of cost benefit of rehiring the former employees
Yes No
54
10
Number of Response
Number of Response
84.4
15.6
Percentage
179
managers with respect to
former employees
Number of Response
Yes
No
180
Nearly 84% of the respondents feel that rehiring former employees would
result in cost savings while about 16% feel that there is no cost savings due to
rehiring of former employees.
Interpretation:
Most of the human resource managers agree that the rehiring of former
employees significantly reduce the cost to the organization. Human resource
managers feel that the former employees need not have to go through
rigorous recruitment process that normally followed in the case of new hires.
Also, the former employees will start delivering the results with higher
productivity as compared to new hires without detailed training that is
required for new hires.
181
Table 4.7 – Showing the response from the human resource managers
regarding percentage reduction in cost of hiring and training
Number of Response Percentage
<10% 14 21.9%
10-15% 15 23.4%
15-20% 18 28.1%
>20% 6 9.4%
No Response 11 17.2%
Total 64 100
Source: “Data collected through primary source”
Data Analysis:
When specifically asked about how much of the cost savings that can be
achieved by rehiring former employees, 14 of the 64 human resource
managers say that it will result in less than 10% of the total recruitment and
training cost while 15 of them say that it will result in a savings between 10-
15%. Nearly 18 of them say that it will result in a savings between 15-20%
and 6 of them believe that the savings could exceed 20%. 11 of the managers
did not respond do this question.
Chart 4.12 – Response with respect t
training due to rehiring of
Chart 4.13 – Percentage reduction in cost of hiring and training due to
rehiring of former employees
02468
1012141618
14 15
9.4
Response with respect to reduction in cost of hiring and
aining due to rehiring of employees
ercentage reduction in cost of hiring and training due to
rehiring of former employees
15
18
6
11
Number of Responses
Number of Response
21.9
23.428.1
17.2
Percentage
<10%
10
15
>20%
182
reduction in cost of hiring and
ercentage reduction in cost of hiring and training due to
Number of Response
<10%
10-15%
15-20%
>20%
183
It can be seen from the above Chart that 21.9% of the respondents agree that
rehiring the former employees would result in less than 10% reduction in cost
while 23.4% agree that it can result in a savings between 10-15%. 28.1% of
the respondents agree that a savings between 15-20% can be achieved due to
rehiring the former employees and about 9.4% of the respondents agree that it
can result in a savings of more than 20% in cost. 17.2% of the respondents
did not respond to the specific query.
Table 4.8 – Mean and Standard Deviation of the cost savings in
percentage
Mean cost
savings
Standard
Deviation (σ)
14% 4.89%
Source: “Data collected through primary source”
Considering the data provided by 53 human resource managers, it can be seen
from Table 4.8 that an average savings of 14% with a standard deviation of
4.89% can be achieved by rehiring of former employees. However, it all
depends on how many former employees are hired in a year and what is its
ratio compared to the new hires
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Interpretation of data:
Here also we can see that nearly 83% of the respondents agree that the
rehiring of former employees would result in cost reduction.
Table 4.9 – Data on cost of recruitment for the year 2013-14
Number of recruits 68
Total cost of recruitment Rs 53.35 lakhs
Cost of recruitment / hire Rs 0.78 lakhs
Total CTC for the 68 hires Rs 18,36,35,609/-
Cost of recruitment as % of the salary
for the 68 recruits
2.9%
Average salary per employee Rs 10,28,000/-
Average training/employee 7 days/year
Cost of hiring a former employee 25,000/- per hire
Source: “Data collected through primary source”
The above data was received from some of the organizations in the Banking
sector and it shows that the cost of hiring a new employee is around Rs
2,00,000/ per new hire whereas the cost of hiring a former employee is Rs
25,000/-.
185
Let us assume that a company hires 100 employees per year. If we assume
that all the recruitment comprises of new hires and the company spends about
Rs 2 lakhs per hire, the total cost of recruiting these 100 employees is Rs 200
lakhs.
Instead of hiring all the new hire, if we hire about 20% former employees,
then the company would be spending nearly Rs 165/- lakhs. This will result in
a savings of 17.5% in the total cost of hiring.
If we assume that the company hires 10% of the former employees, then the
company would be spending about Rs 182.5 lakhs as hiring cost of 100
employees. This would result in a savings of 8.75%.
The above data shows that rehiring the former employees would definitely
help the organizations in reducing the cost of hiring and the cost savings may
vary depending on the policy and strategy of the organizations with respect to
the number of hiring of former employees.
186
Table 4.10 - Response from the human resource managers regarding the
attrition of the rehired employees post rehiring
Number of
Response
Percentage
Yes 27 42.2%
No 36 56.3%
No Response 1 1.6%
Total 64 100%
Source: “Data collected through primary source”
Data Analysis:
The above table 4.9 shows that 27 out 64 human resource managers find that
the former employees once again quit the organization post reemployment
while 36 of them feel that they do not leave the organization post
reemployment. 1 of them did not respond to the query.
Chart 4.14 – Percentage of response from
regarding the attrition of the rehired employees post rehiring
That is almost 42.2
would quit the organization o
that the former employees will not quit post rehiring while
remained silent on the issue.
Interpretation:
In the present era, very few employee works in the same organization till
retirement. Hence, it can be safely concluded that the rehired employees will
56.3
ercentage of response from human resource
regarding the attrition of the rehired employees post rehiring
percent of the respondents feel that the former employees
would quit the organization once again post rehiring while 56.3 percent feel
that the former employees will not quit post rehiring while 1.6% of them
remained silent on the issue.
In the present era, very few employee works in the same organization till
retirement. Hence, it can be safely concluded that the rehired employees will
42.2
1.6
Percentage
Yes
No
No Response
187
managers
percent of the respondents feel that the former employees
percent feel
% of them
In the present era, very few employee works in the same organization till
retirement. Hence, it can be safely concluded that the rehired employees will
No Response
188
once again quit the organization, if they find that their career is stagnating
once again or they are offered with better offers from other organization.
However, it can be seen very clearly from the chapter 3 that the average
tenure of former employees is significantly higher compared to the new hires
and there is a significant cost reduction in hiring the former employees.
Hence, it is important for the organization to focus and put the required
process and strategy around rehiring of former employees.
Chapter Summary:
This chapter reveals some of the views and preferences of human resource
managers with respect to rehiring of former employees. It has been observed
that most of the human resource managers do rehire former employees and
believe that rehiring former employees is very important to the organization.
However, most of them say that neither they have a well documented process
or procedure for rehiring nor they follow any specific strategy to make
rehiring most effective. It was seen that most of the human resource managers
use exit interview as a tool to identify the prospect candidate for rehiring and
put some efforts to keep track of them.
It is also seen that according to most of the human resource managers the
rehiring of former employees is very important to the organization and if
189
carried out systematically, can result in significant cost to the organization to
the extent of nearly 15% of the total cost of hiring and training per annum.
It is observed that the cost savings depends on the company’s policy and
strategy of rehiring the former employees and the percentage of former
employees recruited. Though there are many benefits of hiring former
employees in terms of reduction in cost of hiring, reducing the attrition and
increasing the retention of the employee it is important to note that the
employing of former employees cannot be 100% of the total hires. The
company needs new skills and new mindsets to be inducted into the
