“EFFECTIVENESS OF HIRING IN RECRUITMENT PROCESS IN CAPGEMINI”

SUBMITTED TO ANNAMALAI UNIVERSITY

Submitted by

Under the Supervision of

DEPARTMENT OF COMMERCE

JUNE - 2008

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EXECUTIVE SUMMARY

“EFFECTIVENESS OF HIRING IN RECRUITMENT PROCESS IN

CAPGEMINI” is a project undertaken by me as a part of

.

This project was undertaken under the guidance of Ms., Faculty- Institute of

Management as a part of PGDBM final term curriculum.

INTRODUCTION TO THE SURVEY

The principal objective of the survey was to understand the current Hiring

in Recruitment process. Through the survey, I also sought to understand the

various challenges CAPGEMINI are facing and the measures they are following to

address these challenges.

The Survey revealed that CAPGEMINI are trying to complement their hiring

strategies with brand-building activities in order to increase their chances of hiring

the best talent.

HIRING STRATEGIES ADOPTED

The Hiring Strategies adopted by the respondents includes:

Employee Referrals

Campus Recruitments

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Advertisements and

HR Consultants

For Lower Level Employees, the most widely used strategies are

Referrals,

Campus Recruitments and

Advertisements

For Middle-Level and Senior-Level Managers

HR consultants are mainly used.

INTRODUCTION

Poor hiring practices are both costly and time consuming and in a

competitive market place it is more important than ever before to recruit

effectively.

Companies that can develop a seamless interviewing process, are willing

and able to react quickly and can really sell the opportunity to potential employees

are consistently rewarded with the best.

Recruitment can be expensive – management time, advertising costs and

consultancy fees can mount up, and so once you have sourced the right candidate

you will want to make sure that they accept your offer. Having the right

recruitment processes in place will help you not only source the right candidate but

secures them too.

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RECRUITMENT

The process of identification of different sources of personnel is known as

recruitment. Recruitment is a process of searching the candidates for employment

and stimulating them to apply for jobs in the organizations Recruitment is a

process of searching the candidates for employment and stimulating them to apply

for jobs in the organizations. It is a linking activity that brings together those

offering jobs and those seeking jobs.

Recruitment refers to the attempt of getting interested applicants and

creating a pool of prospective employees so that the management can select the

right person for the right job from this pool. Recruitment process precedes the

selection process, that is, selection of right candidates for various positions in the

organization.

PROCESS OF RECRUITMENT

It is a positive process as it attracts suitable applicants to apply for available jobs.

The Process of recruitment:

Identifies the different sources of labor supply

Assesses their viability

Chose the most suitable source or sources

Invites applications from the perspective candidates for the vacant jobs.

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FACTORS AFFECTING RECRUITMENT

There are many factors that limit or affect the recruitment policy of an

organization. The important factors are:

Size of the organization and the kinds of human resources required.

Effect of past recruitment efforts.

Nature of Workforce market in the region.

Working conditions, wages and other benefits offered by other concerns.

Social and political environment.

Legal obligations created by various statutes

SOURCES OF RECRUITMENT

The various sources of recruitment are basically grouped into two categories:

Internal Recruitment (recruitment from within the enterprise)

External Recruitment (recruitment from outside)

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INTERNAL SOURCES

There are two important sources of recruitment, namely, Transfers and

Promotions:

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Sources of Recruitment

Internal Sources

1. Transfer2. Promotion

External Sources

Advertisements, Management Consultants,Education Institutes, Recommendations,Employment Agencies, Casual Callers,Telecasting, Contractors, Poaching/Raiding,Website/e-Recruitment

Transfer: It involves the shifting of an employee from one job to another, one

department to another or from one shift to another. Transfer is a good source of

filling vacancies with employees from overstaffed departments or shifts. At the

time of transfer, it should be ensured that the employee to be transferred to another

job is capable of performing it.

Promotion: It leads to shifting an employee to a higher position, carrying higher

responsibilities, facilities, status and pay. Many co0mpanies follow the practice of

filling higher jobs by promoting employees who are considered fit for such

positions.

Filling vacancies in higher jobs from within the organization has a benefit of

motivating the existing employees. It has a great psychological impact over the

employees because a promotion at the higher level may lead to a chain of

promotions at lower levels in the organizations.

Advantages of using Internal Sources

Filling vacancies in higher jobs within the organization or through internal

transfers has various advantages such as:

Employees are motivated to improve their performance.

Moral of the employees is increased.

Industrial peace prevails in the enterprise because of promotional avenues.

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Filling of jobs internally I cheaper as compared to getting candidates from

external sources.

A promotion at higher levels my led to a chain of promotion at lower levels

in the organization. This motivates employees to improve their performance

through learning and practice.

Transfer or job rotation is a tool of training the employees to prepare them

for higher jobs.

Transfer has the benefit of shifting workforce from the surplus departments

to those where there is shortage of staff.

Drawbacks of Internal Sources

Internal sources of recruitment have certain drawbacks such as:

When vacancies re filled through internal promotions, the scope for fresh

talent is reduced.

The employees may become lethargic if they are sure of time bound

promotions.

The spirit of competition among the employees may be hampered.

Frequent transfers of employees may reduce the overall productivity of the

organization.

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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

specifications cannot be met by the present employees and for meeting the

additional requirements of manpower. Companies commonly use the following

external sources of recruitment:

Media Advertisements

Advertisements in newspapers or trade and professional journals are generally

used. The advantage of advertising is that more information about the

organization, job description and job specifications can be given in advertisements

to allow self screening by the prospective candidates.

Management Consultants

Management consultancy firm helps the organizations to recruit technical,

professional and managerial personnel. They used to specialize in middle level and

top-level executive, but today thy even help firms in recruiting fresh graduates &

postgraduates in the industry.

Educational Institutes

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Educational institutes at all levels offer opportunities for recruiting recent

graduates. Most educational institutes operate placement services where

prospective employers can review credentials and interview graduates.

Employee Referrals/ Recommendations

One of the best sources for individuals who perform effectively on the job is

recommendation fro the current employee. An employee will rarely recommend

someone unless he or she believes that the individual can perform adequately. The

recommended often gives applicants more realistic information about the job than

any other source.

Casual Callers or Unsolicited Applicants

The organizations that are regarded as good employers draw a steady stream of

unsolicited applicants in their offices. This serves as a valuable source of

manpower. The merit of this source of recruitment is that it avoids the costs of

recruiting workforce from other sources.

Advantages of using External Sources

The merits of external sources of recruitment are:

Qualified Personnel: By using external sources of recruitment, the

management can make qualified and trained people to apply for vacant jobs

in the organization.

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Wider Choice: When vacancies are advertised widely, a large number of

applicants from outside the organization apply. The management has a

wider choice while selecting the people for employment.

Fresh Talent: The insiders may have limited talents. External Sources

facilitate infusion o fresh blood with new ideas into the enterprise. This will

improve the overall working of the enterprise.

Competitive Spirit: If a company can tap external sources, the existing

staff will have to compete with the outsiders. They will work harder to

show better performance.

Drawbacks of External Sources

The demerits of filling vacancies from external sources of recruitment are:

Dissatisfaction among Existing Staff: External recruitment may lead to

dissatisfaction and frustration among existing employees. They may feel that their

chances of promotion are reduced.

Lengthy Process: Recruitment from outside takes long time. The business

has to notify the vacancies and wait for applications to initiate the selection

process.

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Uncertain Response: he candidates from outside may not be suitable for

the enterprise. There is no guarantee that the enterprise will be able to

attract right kind of people from external sources.

Other Sources

In the search for particular types of applicants, nontraditional sources should be

considered. For example, Employ the Handicapped associations can be a source of

highly motivated workers; a forty-plus club can be an excellent source of mature

and experienced workers etc.

RESEARCH METHODOLOGY

Objective

The principal objective of the survey was to understand the current Hiring &

recruitment Procedures followed at CAPGEMINI. Through the survey, I also

sought to understand the various challenges CAPGEMINI are facing and the

measures they are following to address these challenges.

Universe

Capgemini located in Bangalore

Sample Size

100 employees of capgemini

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Sample Area

Bangalore

Data Collection

Sources of Information: Primary & secondary sources of data

Primary Sources:

Questionnaire

Interview Schedule

Secondary Sources:

Newspaper clippings (Regular Articles and journals)

The Business Today experimental guide to Managing Workforce (special

fourth anniversary issue of Business Today)

Reference Books on Human Resource Management

Limitations:

This study is confined to Bangalore only.

OBSERVATIONS and FINDINGS

COMPANY OVERVIEW

Background

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Capgemini is a global consultancy engaged in information technology,

management consulting, outsourcing and professional services.  Headquartered in

Paris, it employs over 90,000 people through offices in over 30 countries.  The

company’s clients are active in the automotive, consumer products, distribution,

energy, chemicals, financial services, health care, life sciences, manufacturing,

retail, media and telecom industries, as well as the public sector.

Corporate Atmosphere

Vault's Verdict: Consultants are generally satisfied at Capgemini, especially the

inexperienced seeking responsibility and a steep learning curve.  At the senior

level, satisfaction levels seem to drop. 

Overall Satisfaction

• “The firm has thus far been an invaluable learning environment, and has

provided me a great deal of exposure to different industries and functional areas.”

– Health care consultant

• “Good company with a very shallow leadership structure and a lot of freedom for

employees to affect the organization and impact the clients.  There are plenty of

opportunities to build new skills and improve your resume.” –middle level

• “I have not met one senior executive from whom I learned anything, or saw true

leadership.  Just lots of posturing, and little know-how.  The junior staff is

rewarded only based on favoritism.” – Finance consultant

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Recruitment & Selection Process at CAPGEMINI

Hiring Strategies (Sources of Recruitment)

External sources

1. Print Advertisements

2. Consultants

3. Employee Referrals/ Recommendations

Internal Sources

1. Transfers

2. Promotions

Selection Procedure

Mode of Selection

Round 1: Introduction Round

Round 2: Written Test (minimum Passing percentage is 80%)

Round 3: Fluency Test via Telephonic interview

Round 4: Voice Test

Round 5: HR Round (Salary Negotiation)

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Steps Followed

1. Preliminary Interview

2. Receiving Applications

3. Screening of Applications

4. Employment Interview

5. Checking references

6. Medical examination

7. Final Selection & Appointment Letter

1. Induction

Types of Employment Tests

General Aptitude Tests

Kind of Employment Interviews

Preliminary/ Background Interview

Patterned interview

Non-Directed Interview

Stress Interview

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Average Duration of the Probation Period

6 Months For Customer Care Executives & 1 Year for other positions.

Career Path For an Entry Level Employee

1. Trainee (6 Months Probation)

2. Executive (3 Months extended probation)

3. Team Coach

4. Team leader

VIEWS & REVIEWS

ON THE FAST TRACK

“Employers in the Capgemini are recognizing the advantages of recruiting a

diverse workforce including people with disabilities.”

That’s another silver lining to the CAPGEMINI domain – an industry that’s

resulted in a new-world work order, where employers are fast recognizing the

advantages of recruiting a diverse workforce including people with disabilities.

The greatest challenge for capgemini is not merely selecting the right candidate,

but also retaining them. The high rate of attrition and spiraling salaries has already

had a direct impact upon billing rates. A fact that might hit a cost advantages that

India offers. Capgemini are, therefore, looking at alternate sources of skilled

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professionals. In such a scenario, disabled people are an untapped source for

qualified candidates.

The industry is unaware of the range of skills these potential employees possess.

People with disabilities are not only dedicated and fiercely loyal to the

organizations, but their attrition rates are minimal. Indeed, people with disabilities

are more committed to their jobs. They also have better attendance. Their

productivity is not only same, but at times, it’s higher than others.

Disabled-friendly jobs in the CAPGEMINI:

Most corporate houses, which recruit people with disabilities, do not conduct any

separate screening test. The recruitment process is the same for everyone.

Employees are screened on the basis of their analytical skills.

CONCLUSIONS

The Project ““EFFECTIVENESS OF HIRING IN RECRUITMENT PROCESS

IN CAPGEMINI” basically included a survey on the Recruitment.

The aim was to find out the Current Recruitment Trends in the capgemini. Also to

find out the following:

Key Trends emerging in the capgemini

Challenges faced by the capgemini

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The survey threw up some interesting findings about the Hiring Strategies

(Sources of Recruitment) capgemini:

By & large, companies have depended on three channels of Recruitment-

Referrals

Print Advertising and

Consultants

In absolute numbers, referrals and print advertising channelize the largest number

of employees. 90% of capgemini are using referrals & print advertising as a source

of recruitment. Other popular channels of recruitment are academic institutions,

web and internal postings. For instance, referrals are expected to bring in as much

as 40 percent new recruits.

capgemini hiring ads to get bigger, better

Expansion by existing capgemini players, new entrants, bigger projects, mergers

and acquisitions and the setting up of R&D bases make for perfect ingredients for

mammoth recruitment drives that are only set to get bigger and better. Attracting

the right talent is the highest priority for capgemini.

Capgemini Hiring from Small Towns

Recruiting is fast becoming a fine art in the capgemini. With the number of contact

centers on the rise, recruiters are hard-pressed to turn to smaller towns for meeting

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their rising manpower needs. There is a move to fill the gap with recruitment from

smaller towns.

HR Banks on Referrals

While traditional channels like print advertising, consultants, academic institutes,

and the Web continue to play an important role in the recruitment strategies of

capgemini, employee referrals have emerged as a big source of recruitment in the

capgemini.

Challenges before the capgemini

There are several challenges faced by Capgemini but the most important of them

are:

Rising Attrition Rate

RECOMMENDATIONS

Implementation of Standardized Tests for the Recruitment Process.

Standardized tests will create a certain benchmark and will help screen

aspirants more effectively. For employees knowing how they fare on those

tests will provide a spur to pick up skills they don’t have and fine-tune

others. It will create a better-informed pool of manpower for companies to

choose from.

Implementation of Proper Recruitment Management System:

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Recruitment is evaluated on the basis of the speed with which positions are

filled the feedback from participants and the percentages of candidates who

end up being employed. Organizations make big investments in

recruitment. In all organizations recruitment processes needs to deliver

outstanding performance, control costs, increases sales, maintain efficiency

and develop the organization.

Most of the organizations do not provide reports on Recruitment activities

and therefore are unaccountable for the time & spend involved on it. It is

important for all organizations to assess the return on investment in hiring

in Recruitment processes. Recruitment Management System would help in

streamlining recruitment process and calculating the return on Investments

made on the Recruitment Process

Stock Options.

Stock options for employees can be an important way can use to retain &

attract key talent to the Capgemini.

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ANNEXURE

“EFFECTIVENESS OF HIRING IN RECRUITMENT PROCESS IN

CAPGEMINI”

QUESTIONNAIRE

Name of the Interviewee:

Designation:

Department:

Q.1- How many employees does capgemini have?

Less than 1000

1,001-5000

5,001-10,000

10,000-20,000

More than 20,000

Q.2- How big is your HR Department? How many people are directly

involved in Recruitment?

Q.3- What is the scale of Operation of Your Company?

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Q.4- What is the career path of the positions specified by you?

Q.5- What is the range of current salaries offered at various levels?

Executives

Sr. Executives

Team Leaders

Asst. Managers

Managers

Trainers

Others

Q.6- What are the various other benefits & fringes offered?

Q.7- What are your Hiring strategies (Sources of Recruitment)? Rank in

order of preference:

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External Sources: Advertisements

Employment agencies

Management consultants

Educational institutions

Recommendations

Casual callers

Telecasting

Contractors

Poaching/ Raiding

Website/e-Recruitment

Internal sources: Transfers

Promotions

Q.8- Do your clients also participate in the Recruitment process? If yes, when

& to What extent?

Q.9- According to you what are the key trends emerging in the

capgemini?

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Q.10-What according to you are the challenges faced by the capgemini?

Q.11-What Brand building activities capgemini is carrying out to complement

its hiring strategies?

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BIBLIOGRAPHY

Newspaper clippings (Regular Articles on Current HR Trends in HT Power

Jobs section of Hindustan Times)

The Business Today experimental guide to Managing Workforce (special

fourth anniversary issue of Business Today)

Reference Books:

DeCENZO A. DAVID & ROBBINS P. STEPHEN, Personnel/ Human

Resource Management, Third Edition, Prentice-Hall India

Kandula R. Srinivas, Human Resource Management in Practice (with 300

Models, techniques and tools), Prentice-Hall India

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