Aon Hewitt Study

Decoding Hiring Trends in India 2016

Harnessing the power of ‘Talent Centric’ economy

Solicitation Partner
Table of Contents

Foreword 02
About the Study 04
Executive Summary 05
The Big Picture 13
Looking Ahead 19
Hiring Practices 24
Hiring Metrics 30
Annexure 36

1
Foreword
Nitin Sethi
Partner and CCO
Aon Hewitt | India
Nitin is a Partner and Aon Hewitt’s
Chief Commercial Officer for India.
He has extensive advisory
experience with clients across the
globe in the areas of HR Strategy,
Performance & Rewards, Leadership
Development and M&A.
In addition to working with clients,
Nitin also leads the innovation and
New Business Incubation agenda
for the firm in India.
Favorable prognosis of the Indian economy, supporting government initiatives and sustained focus on innovation
have fuelled sustained growth for India Inc. Aligned with the national sentiment, 79% organizations project
increased hiring in the year 2016-17. As fundamentals of the economy further improve, India Inc. will see further
increase in talent demand across sectors. HR and TA teams will come under significant pressure to attract and retain
the best talent that business needs to drive organizational performance.  
Talent acquisition roles are fast changing. TA professionals now need to don the hat of strategic business partners
and align organization’s priorities to their recruitment strategies. In the last years study, we spoke of competencies
that will drive a successful TA professional of the future. Positioning the employer brand, candidate experience and
RoI on selected candidates are some of the some new measures that TA teams will now be judged by.
In the world of digitization, employers are leaning towards smarter and more innovative means of attracting key
talent. Social media and technology innovation are being leveraged ferociously to enable the last mile candidate
reach as well as deliver robust hiring solutions. Employers are refining the mix of sourcing channels and
implementing a variety of assessment tools for talent selection. Unlike in the past, professional networks have made
sourcing easy at the click of a button, giving employers the freedom to create a talent pipeline without heavy
reliance on external factors. The use of talent analytics has created quite a stir in the marketplace, albeit, the reality is
that most organizations fall well short of mastering capabilities to use these tools, thus effecting cost-per-hire – an
ongoing priority for HR.
The 2016 study brings deeper insights on what drives key decisions and talent acquisition imperatives. This report
draws characteristics that are shaping up the hiring space in India Inc. This study highlights trends that will be most
relevant as organizations evolve and what this means for – businesses, workforce and the HR alike.
My sincere thanks to the participants who shared their knowledge and insights with us. Their thoughtful and
candid inputs have made the second edition of the Decoding Hiring Trends in India Study truly valuable and one
which I hope becomes a part of the strategic toolkit of HR leaders.
2
Foreword
Ester Martinez
CEO and Editor-in-Chief
People Matters
Ester, an HR professional turned
entrepreneur and alumnus from ISB,
founded People Matters in 2009
Ester has more than 14 years of
experience in HR, with a wealth of
knowledge in areas of talent and
human resources management.
Unt i l 2 0 0 8 , s h e wo r ke d a s a
professional manager with a host of
blue chip companies in different
countries within Europe, UK and
India.
After the astounding success of its first edition, Decoding Hiring Trends in India 2015 Study which captured
distinctive insights and created a unique position in the market; this year the research focuses on the insights and
trends on talent acquisition on four different parameters – Hiring Drivers, Hiring Outlook, Hiring Practices, and
Hiring Metrics.
Many factors play a role in the hiring ecosystem, both macro and micro. This study makes an attempt to understand
the nuances of a majority of these contributing factors. It is interesting to note that employer branding, a very
important factor, is yet to become an area of focus among a majority of organizations. The study also emphasizes on
an important trend, the emergence of video interviews, which have begun to replace the more traditional in-
person processes.
Social Media hiring also finds more takers and has become the driving force in the hiring process, an important
trend that is clear from the study. Since both efficiency and effectiveness continue to be critical, cost-per-hire
remains a top priority as revealed by the study. Optimizing cost-per-hire has emerged as one of the top trends and
the top priority for recruitment and business alike. The recruitment leaders have also put an emphasis on feedback
mechanism as a part of candidate experience. To add value to the study and include a practical perspective, this
year’s research also includes short case studies from leading organizations in the major areas covered in the study.
Overall, the Aon Hewitt in partnership with People Matters Decoding Hiring Trends in India 2016 study will provide
you with valuable insights that can help you shape the recruitment strategy for the coming year for your
organization. As always, we would also love to hear from you regarding the study and its findings. Do write back to
us at the contact details provided at the end of the report.
3
About the Study Participant Profile
Aon Hewitt in partnership with People Matters conducted the Aon Hewitt surveyed 160 organizations covering more than
second annual ‘Decoding Hiring Trends in India 2016 12 industries to understand talent acquisition priorities and
Study’. best practices as a part of this research.

The study provides comprehensive inputs on the following

four parameters:
• Hiring Drivers: Talent acquisition priorities, challenges
and competitive threats
160 Companies 12+ Industries
• Hiring Outlook: Forecast of employment outlook and
budget allocation in 2016

• Hiring Practices: Best practices in attracting, sourcing,

assessing, and selecting talent

• Hiring Metrics: Critical hiring metrics tracked as per

prevalence, and industry benchmarks 46% Indian
54% MNCs
Learn how the hiring space is undergoing evolution across
different sources of hiring, changing priorities and adopting
techniques of digital economy to attract key talent in 2016 and
beyond.

4
Executive Summary
 e Big Picture: Employer branding and talent engagement keep recruiters
up at night!

Leveraging proactive strategies to engage with talent consistently keeps recruiters

awake at night
The next big shift in recruitment is the ability to maintain consistent engagement and relationship with
candidates, rather than sourcing candidates based on requisitions.
48% of organizations report that ‘Engagement with passive talent’ when done well by competitor is a
top threat to attract talent. Further, 45% of organizations report that if their competitor were to
Candidate Engagement:
communicate their employer brand effectively, then it will be a competitive threat. The Winning Strategy
With 64% of organizations reeling under the pressure of losing talent to ‘Competition’, having a well Talent acquisition leaders
defined and consistently communicated employer brand is a clear competitive advantage. The Next for tomorrow will be
Generation recruiter thwarts competition by nurturing a strong pool of candidates. brand evangelists,
mastering the art and
science of candidate
Shift from process to people based recruitment priorities engagement and
relationship management.
Companies increasingly identify two key areas of focus – recruitment priorities that are all about having a Organization perception
well formed strategy to attract active and passive talent, and relentless focus on communicating a metrics will soon be key
distinguished employer brand. effectiveness metrics for
hiring teams.
Leveraging social networks for sourcing active and passive talent (43%) and communicating the
employer brand effectively (29%) emerge as top 2 recruitment priorities. Being a trusted talent advisor
to business (28%) closely follows in the list of top recruitment priorities for the year.
Recruitment in today’s digitally connected economy is maturing, with employer brand strategy
changing talent sourcing from push to pull based methods.

6
Looking Ahead: Budget allocation aligned to drive efficiency to meet
increased hiring demand

Recruitment budgets increase in close proportion with hiring intake

79% of organizations report ‘Increase in hiring’ over the last year, with two-thirds of the hiring being done at
junior and entry levels.
67% of organizations also plan to ‘Increase the recruitment budget’ over last year. However, 12% of
companies do not plan to increase recruitment budget from the coming year, hence talent acquisition teams
are expected to deliver more with a similar amount of money as previous year.
Branding: Recruiter’s
Further, only 21% of companies report wallet share increase for ‘recruitment team cost’, thereby adding to Mindset, not an
margin pressures. With evolving recruitment practices, organizations are clearly betting on components that Activity
drive recruitment efficiencies rather than increase headcount to deliver on business needs. Rising margin pressures
and branding woes will
give rise to alternative
Efficiency components witness increased wallet share, employees are the new brand methods such as social
ambassadors sourcing and referrals.
Components that amplify
HR Technology/Platforms witness maximum wallet share, as 42% of organizations report an increase for this
the employer brand will
component. A close second is witnessed for ‘branding and marketing’ as 39% of organizations will increase witness increased
wallet share in this category, aligned with the recruitment priority to communicate the brand effectively. investments.
Investments in social media (37%) and talent assessments (34%) follow closely.
Referrals emerge as a preferred sourcing channel, as 33% of companies plan to increase spend in this area.
Organizations are ‘turning in’ with referrals and employees becoming the new brand ambassadors. This helps
decrease external dependencies for sourcing and helps leverage the employer brand through employees
themselves.

7
Hiring Practices: Consolidation of practices and internal capability
building

Enabling the business and hiring manager is more critical than ever before
With a stated priority to deliver on ‘Quality of Hire’ and advent of dynamic talent assessments, hiring
manager capability to sift the best from the rest is a key enabler. It has become so important that hiring
managers are equipped to select talent that is the best fit; looking beyond skill and knowledge fitment.
Aligned with this, 50% of organizations invest in building the interviewing capabilities of hiring
managers. Further, organizations are going the last mile with 54% seeking hiring manager feedback on
Recruitment as Trusted
the hiring process and effectiveness. Talent Advisor
Recruitment function' partnership with business becomes holistic with capability building for hiring With the advent of
managers and integration of data in the hiring cycle to drive talent decisions. behavioral and culture
fitment assessments,
hiring manager capability
New age recruiter is data and technology savvy and integration of talent
analytics into decision
As digital connectedness matures, recruitment teams build in-house capability to drive data based hiring
making will become the
and aid decision making. With a stated priority to drive technology based recruitment processes, 50% of litmus test for an effective
organizations have digitized at least one process of the entire recruitment cycle. A further 30% are recruitment team
planning to digitize the entire recruitment cycle by the end of 2016. partnership with
business.
65% of companies have dedicated team members for talent assessments, data analytics and technology.
As hiring numbers increase and the millennial population increasingly enters workforce, organizations
have to take the final leap with mobile platforms and immersive candidate experience to stay relevant
and deliver on the employer brand.

8
Hiring Metrics: Cost and Speed of hire remain critical, Quality of Hire
on the rise

Cost and speed of hiring are the most prevalent hiring metrics
55% of organizations track ‘Time to fill’, to measure hiring effectiveness, followed by ‘Cost per Hire’,
which is tracked by 44% of organizations. ‘Time to Offer’ is a close third as 37% organizations track this
metric.
Though heavily tracked, ‘Cost per Hire’ as a metric is broken since the component varies across
organizations and industries. Vendor costs (70%), background verification (66%), referral cost (65%) Quality of Hire: Rise of
Effectiveness Metric
and assessments (50%) account for the Top 4 contributors to the hiring cost across levels.
Consistent parameters
As organizations look forward to optimize this metric, innovative methods of moving employee referral that relate to high
expense from monetary outcomes to experiences and benefits emerge to offset the pricing. potential, cultural fitment
and retention will be
integral elements when
Rise of Quality of Hire: The ultimate effectiveness metric qualifying this metric.
29% of organizations believe that ‘Quality of Hire’ is the most important metric to track hiring Hiring practices that will
effectiveness over speed and cost of hire. Further, 30% of organizations want to track ‘Quality of Hire’ optimize outcomes on
these parameters will
consistently in the coming year.
witness increased
However, 90% of these organizations track ‘Quality of Hire’ differently. ‘Early attrition’ (30%) and investment in the coming
‘Manager feedback’ (20%) are the most commonly encountered metric to measure Quality of Hire. years.

As organizations strive to make hiring efficient and effective, ‘Quality of Hire’ will increasingly become
the most important metric – effectively the magic metric that will define the health of talent pool. Hiring
manager effectiveness in identifying the best talent will be a key determiner in optimizing this metric.

9
Recruitment Trends: What changes!
Passive Talent
Engagement
Organizations want to adopt targeted
strategies to engage with ‘passive talent’ as
45% employers report that the lack of this is
a competitive threat.
Sourcing moves from requisition filling to
maintaining an ongoing relationship and
recall with key talent.
Recruiters as Strategic
Talent Advisors
Recruitment teams partner with business
end to end: as the trusted talent advisor,
build hiring manager capability and enable
data based decision making.
50% employers today actively build hiring
manager interview capability to ensure
recruitment is effective.
10
Rise of
‘Quality of Hire’
Speed of hiring and cost remain critical
however organizations increasingly
consider ‘Quality of Hire’ as the most
critical effectiveness metric.
‘Early Attrition’ is the most encountered
measure for Quality of Hire, tracked by 30%
employers across
Recruitment Trends: What changes!
Wallet Share: Evolving
Apportionment
In line with the positive hiring
sentiment, 67% organizations are
increasing their recruiting budgets
over last year.
Components that improve candidate
experience and enable efficiency
(technology, branding, referrals,
assessments) have higher wallet share.
Referrals: Advent of
The Dual Model
Employees are the new talent scouts,
as organizations are increasing wallet
share for recr uitment t hrough
employee referrals (35%).
Touted as the preferred sourcing
channel, employee referrals
increasingly play the dual role in
sourcing and brand building.
11
Mobile
Enablement
With less than 20% of organizations
reporting mobile enablement of
recruitment processes, employers are
inadequately positioned for the
mobile wave.
To optimize ‘Offer to Join’ ratios, last
mile solutions at the ‘Post offer stages’
remain a key opportunity area
Recruitment Trends: What sustains!
Employer brand: The
Winner
With the naked feedback economy,
employers struggle to differentiate
themselves from the competition.
39% of organizations plan to increase
wallet share for branding and
marketing this year.
Talent Analytics and
Assessments
Pre hiring assessments remain more
important than ever before. 65% of
organizations have dedicated capability
for assessments, technology and data
analytics.
However, leveraging big data for
effective hiring decisions is still at a
nascent stage.
12
Duality of Social
Media
50% of organizations use social
network for sourcing talent at mid
and senior levels.
Organizations consistently leverage
social networks to source as well as
engage with passive talent.
 e Big Picture
Talent acquisition priorities, challenges and threats
2016 Priorities of Talent Acquisition Shifting priorities of talent acquisition
Trends Scanner teams
Sourcing through social media and leveraging the
power of employer brand have emerged as top priorities
Top Priorities for Talent Acquisition coupled with being trusted advisors to business.

26%
organizations
want to
consistently
measure ‘Quality
of Hire’

20%
organizations have
stated priority
Professional With 4 out of every 10 organization reporting use of social media, to source and
Networks for professional network usage emerges as the sourcing tool of choice engage with
Sourcing passive talent
Managing Every 3 out of 10 organizations report focus on ‘employer brand’ to
Brand and attract fresh talent and at the same time deliver brand aligned
16%
People prioritize scientific
experience for existing employees
assessments:
TA as To have a “seat at the table”, the holy grail is to link role understanding clearly far from
Trusted with talent dynamics; and align talent acquisition strategies with being the norm
Advisors business goals

14
Building a game-changing talent strategy Challenges to Attract Talent
The war for talent, skill shortage and a bleeding pipeline Trends Scanner
have made it absolutely necessary for companies to
relentlessly drive a well articulated hiring message and
differentiate from competition Challenges Impacting Organization’s Ability to Attract Talent

64%
organizations are
clearly plagued
with growing
skills shortages

10.3%
projected pay
increase in India; Talent Organizations continue to report losing talent to the competition as a
the 4th highest Drain primary challenge; thereby catapulting the relevance of a well
salary increase in articulated and implemented ‘Employer Brand’ that will act as a
the world differentiator and not just a branding tool

Embedding an
37% Entrepreneurial
Despite the plaudits, changing the entrepreneurial mindset of talent
in India, pose an indirect threat in the form of “idea replication”
impending Mindset
workforce
shortage Rethinking With 10.3x salary increase projection, organizations need to effectively
Total Rewards position ‘Employer Brand’ with a compelling message around total
rewards programs to differentiate from competition

15
 reat from Competitors Candidate centric hiring practices are
Trends Scanner competitive threats
Sourcing and engaging proactively with active and
passive talent emerges as top competitive threats. These
Recruitment Practices that when done well are competitive threats will be touted as emerging best practices in recruitment.

48%
organizations view a
well articulated and
communicated
employer brand as
a potential threat

45%
organizations are
anxious about
Predictive Use of big data to hire the right talent and optimize ‘Quality of Hire’ is a competition
Hiring potential threat from competitors if done well, and is an emerging engaging with
passive talent
challenge area for companies
‘Just in Time’
Talent Pool
4 out of 10 organizations feel that having a ‘pull based’ talent strategy 27%
is the need of the hour especially when the focus on speed of hire is say leverage of
strong as ever social media; if done
well (for sourcing
Business Losing talent to organizations that are actively prioritizing a strategic and branding both),
Partnership partnership with business is an emerging threat: An action area for is a threat
recruitment teams that already have this as a stated priority.

16
Employer Brand, a key component for Employer Brand
galvanizing talent Trends Scanner
Organizations are investing in building and
communicating a brand that is aligned with changing
talent aspirations of What Organizations Seek to Offer to eir Employees

15%
increase over last
year in ‘Learning
and Careers’ as
the stated
employer brand

18%
organizations offer
‘Well-being’ to
deliver on a holistic Learning and With skills shortage emerging as a key challenge, organizations
workplace as the Careers are building a strong promise around learning and development
employer brand
initiatives to both potential and existing employees
24% Entrepreneurs Organizations are luring talent by appealing to talented aspiring
organizations Beehive entrepreneurs, especially when millennials are likely to drive
promise
‘Inspirational and impact organizational growth in future
Leadership’ as the Socially Organizations are moving away from traditional engagement
significant employer Responsible approaches and focusing on employee well being; at the same
proposition Workforce time the focus on ‘Corporate Social Responsibility’ as an integral

17
Success Story
Effectively Harness Social Media and Enhance Organization’s Brand in Job Market

About the Organization

InMobi, a mobile advertising and discovery platform, enables over 100 billion discovery
sessions on mobile across a billion users every month, becoming the largest discovery platform
in the world

Objective Results:
The objective was to effectively harness social media and create a sustainable  Improvements in attrition and referral
model to enhance the organization’s brand in the job market rates

Approach – Referrals rose by over 100% ‘‘Our culture is our

– Recruitment costs reduced by 95%
 Retract from any engagements with recruiting agencies brand. InMobians
 Increased followership on social take pride in
 Leveraged employees on social media to become the organization’s
media
ambassadors speaking positively
 Branding programs evoked positive about our culture
 Started drawing in more referrals, moved from cash to experience based
response from its employees
referral rewards and sharing it with
– InMobians became talent scouts, referred the
 Long term approach to employer branding that would let people take finest talent, helping recruitment team close the world everyday”
pride in working at InMobi open positions at lesser turnaround time and
– Created a well-defined culture with a name – YaWiO. improved quality of hire - Kevin Freitas
– Invested in people development InMobi, HR Leader
 Recognition at leading HR awards
– Encouraged people to pursue careers of choice internally
– ‘Best Social hiring and Best Employer
– People caring policies
Branding’ in the People Matters
– Talent branding Initiatives (startup.inmobi.com, Facebook and Twitter TA League Awards 2015
career handles) – ‘Brand Development’ at the Asia Recruitment
Awards 2016

18
Looking Ahead
Forecast of employment and budget allocation for 2016
Hiring Outlook 2016 Positive hiring outlook
Trends Scanner Contrary to the global economic weakening,
India Inc. shows spurt of positive hiring
sentiment. Recruitment budgets also align with
Forecast for Hiring 2016 Recruitment Budget for 2016 hiring numbers

79%
organizations
showing increased
hiring projection for
2016

+7%
Robust increase in the
In line with stabilizing macro-economic conditions, the overall overall hiring
Hiring hiring outlook of India Inc. shows positive sentiment outlook from
Given the aggressive hiring strategy of organizations in the last year
Increased
Wallet Share coming year, 7 out of every 10 organizations have increased
their recruitment budget. 67%
Hiring 20% hiring at mid and senior levels will be for backfilling organizations
Health increasing
positions. Two thirds of hiring will be done at junior levels;
budgets for
aligned with rising job creation across industries. recruitment

20
Movers and Shakers in the Hiring Outlook 2016
hiring industry
Trends Scanner
Maximum increase reported in Pharma and
Healthcare and lowest increase for
Engineering/Manufacturing Industry v/s India Inc. Hiring Forecast – Hiring Projections for 2016
vis-à-vis India Inc.

9%
relative increase in
hiring outlook for
Pharma vis-à-vis
India Inc.

7%
relative increase in
hiring outlook for
Pharma With pharma sector expected to reach USD 14 billion by 2020,
IT/ITeS vis-à-vis on Rise the hiring forecast for 2016 too shows upswing
India Inc.

14% Engineering / Even with ‘Make in India’ in action, the hiring outlook for the
relative decrease in Manufacturing engineering / manufacturing industry is not as high as expected;
hiring outlook for Dip
Engineering/ lower than India Inc.
manufacturing
vis-à-vis
India Inc.

21
Budget allocation increase Managing an organization's
largest cost
Trends Scanner
Poised for growth on an upward swing the
recruitment budgets percolates to increased
Increase in Budget Allocation for Hiring Components budget share across components that enable
outreach and quality

39%
organizations
want to increase
spend in
social media

21%
employers will
Undeviating increase spend in
Top 4 areas that will see increase in wallet share across most
Focus recruitment team
companies remain the same as last year: Technology, Social media,
cost: low
Branding and Assessments prevalence
Employee With the increase in wallet share for ‘Employee referral cost’;
Referrals companies clearly want to align their sourcing practices with their
on Rise hiring priorities. Referrals weren’t amongst top priorities until last
13%
employers will
year.
increase spend in
Optimise Cash outflow components witness reduction in spending viz RPO cost
Cost travelling, verification and vendor.

22
Success Story
Hiring Stakeholder Engagement Program using Technology and Talent Analytics

About the Organization

Sapient, a global marketing and consulting company providing business, marketing, and
technology services to clients

Objective Results:
Sapient faced the burst in business demand, increased hiring numbers,  Reduced time to fill open positions by ~15%
unhappy clients (project delivery leads) due to inability to fill the needs at the
pace required by the business and potential revenue loss
 40% reduction in time to deploy new hires in
project teams ‘‘‘‘
The analytics tool has
enabled me to have a
 Increase ability to recruit Quarter over Quarter dialogue with other
Approach by over 15%
interviewers from my
Sapient leveraged technology and talent analytics to foster collaboration with  50% increase in interviewers participation
hiring managers project and ensuring
enabled due to transparency brought in by
 Helped business understands the need for technology and increased budget the data based reporting their availability to
using hiring analytics  Utilization of interviewer pool increased from
‘‘
support the growing
 Leveraged hiring and collaboration tools like Catalyst, Box, Vox 50% - 75% hiring demands
 Use differentiated rewards and internal recognition for contributing - Sachin Mengi
interviewers Sapient, Director (Tech)
 Interviewer skills using the STAR interviewer approach and psychometric
assessment to bring in consistency in recruiting outcomes
 Enable stakeholder partnership and capability building to reduce interviewer
time

23
Hiring Practices
Best Practices in Structuring, Sourcing, Assessing, and Selecting Talent
Rise of the data masters in the Team Structure
TA teams
Trends Scanner
With everything remaining constant, recruiters are
increasingly building in house capability with teams
that is best friend with data and technology TA Team Structure Dedicated Team (By Business only)

70%
organizations
structure TA team
by Business

84%
organizations have
dedicated teams
End-to-end Structuring hiring teams by business units remains to be the norm
for onboarding
and feedback Hiring Needs across organizations, thereby reiterating the need of a strategic
management of Business partnership between TA teams and business

90% Tech Enabled Increasingly, organizations have dedicated teams that drive the
Hiring Team technology and data based hiring agenda for the firm: Assessment,
organizations
outsource technology and talent analytics teams
‘Background
verification’ as a Dedicated Focus Focus on campus recruitments has risen with dedicated teams
process on Campus working towards sourcing and managing candidates who join the
Hiring
firm from campus

25
Sourcing Channel Mix Shifting paradigms for sourcing:
Who is talking ROI on sourcing?
Trends Scanner
As companies experiment with sourcing channels and
newer sources become the norm, soon companies
Sourcing Channel Mix by Levels that track ROI by sourcing channels will be at the
driver’s seat

64%
organizations use
employee referrals
at mid level as a
dominant sourcing
channel

67%
organizations use
Employee Employee referrals emerge as a key sourcing channel at junior and direct sourcing at
Referrals senior level:
mid levels as a disproportionate number of organizations leverage Dominant sourcing
this medium channel
Transforming
Recruitment Sourcing is witnessing a paradigm shift from traditional channels of
corporate websites to newer means of social networks and referrals 56%
organizations use
Vendor Based Relying on recruitment firms for talent remains to be a key sourcing campus hiring for
Sourcing channel for mid and senior levels. While social media usage has junior level
recruitment
increased for sourcing, there is still a gap to beat recruitment
partners for mid and senior levels.

26
Recruiting for cultural fit Prevalence of Hiring Tools
Given the impact of hiring decisions, organizations Trends Scanner
are choosing a mix of knowledge, skills and fitment
based selection tools. However, what remains to be
seen is how these drives the objective of improved Sourcing Channel Prevalence by Levels
‘Quality of Hire’.

53%
organizations
screen potential
hires for culture
fit across levels

24%
organizations do
not use functional Mix of Tools Organizations deploy a mix of selection tools, viz functional
interviews at any for Successful
level for hiring interviews in conjunction with psychometric and aptitude
Hiring
assessments to enable a robust hiring process across levels
35%
group discussions Determining Increasingly, organizations are focusing on candidate's behavioral
are prevalent as Role and
and cultural fitment, especially for hiring at mid and senior levels
pre hiring Culture
assessments across Fitment
levels

27
Digitization of Hiring Tools and Activities Catching the mobile wave is critical
for candidate experience
Trends Scanner
Recruitment landscape is evolving at rapid space,
having platforms that enable and empower
Mobile Enabled Recruitment Practices for Candidates candidates to interact with the company on-
demand is critical for a lasting impact

India Crossed
1 Bn
Mobile Subscribers
Milestone

3%
Digital Professional networks enable recruiters to evaluate credentials at organizations
Waves in touch of a button; innovative methods like video interviewing have the entire
Recruitment recruitment cycle
have begun to replace more traditional, in-person procedures digitized
Talent in While the digital world is fueling hiring space, interviews,
Digital World
application process and other activities still take place in the 15%
traditional, physical world organizations
have mobile
Scalable As organizations look to increase hiring across levels and with a
enabled
Assessments focus on junior and entry levels; managing scale while assessments
optimizing cost and quality remains a key focus. With less than
15% companies reporting tech enabled selection assessments,
the evolution is a long distance

28
Advent of the feedback economy Recruitment Best Practices
Companies are increasingly tracking feedback from Trends Scanner
key stakeholders – business and candidates alike to
manage the feedback loop, take corrective measures
Best Practices used During Recruitment Best Practices Quotient

56%
TA experts seek
feedback from
hiring managers

30%
organizations are
looking at using Feedback Nearly, 50% organizations reach out to candidates as well as hiring
tech - enabled Driven
recruitment tools managers for feedback on the recruitment process indicating the
Economy
rise of a feedback driven economy
54% Managerial
organization Capability TA experts are increasingly investing in building interviewing skills
invest in Building of hiring managers to drive consistency in the process and enable
manager’s better talent selection to deliver on the agenda of ‘Quality of Hire’
interviewing
skills

29
Hiring Metrics
Critical Metrics Tracked as per Prevalence, and Industry Benchmarks

30
Metrics to Track Recruiting Team’s Effectiveness Evaluating recruitment efforts
Trends Scanner A company is only as good as its talent, so having
a recruitment team who can master this balance is
fundamental for success. Measuring it’s
Metrics to Track Recruiting Team’s Effectiveness effectiveness is critical in order to assess and
improve the recruitment process.

55%
Track time to fill:
most prevalent
metric

37%
Prolonged In the tight labor market, organizations are using efficiency metrics Track ‘time to
Time of Hire (time to hire and time to offer) as most prevalent efficiency metrics offer’ across
to measure hiring team effectiveness levels
Hard to Early turnover can drastically affect an organization's bottom line. 3
Retain Talent
out of every 10 organizations are establishing measures to track
early attrition.
14%
Measuring track candidate
Prevalence of measuring quality of hire via feedback from
Quality of Hire satisfaction score
managers, employee engagement scores of new joiners,
performance rating and competency assessment is on the rise

31
The variegated yardstick for Prevalence of Cost per Hire components
Cost per Hire
Trends Scanner
While organizations continue to optimize ‘Cost
per hire’, there is increasing need to arrive at a
singular stack up for components of this metric. Prevalence of Cost per Hire components

70%
organizations
report ‘Vendor’ as
a key component
in ‘Cost per Hire’

Vendor Background Employee Recruitment Talent HR Branding & RPO

28% Verification referral cost team cost assessment/ Technology/ Marketing
organizations selection tools Platforms
report ‘Branding
and Marketing’ as
a key component Branding and Low prevalence of branding on ‘Cost per Hire’ is indicative of
in ‘Cost per Marketing recruitment practices where the wallet share is for platforms that
Hire’ enable branding as an outcome: moving away from traditional
55% means of a dedicated cost component for branding
organizations
External v/s There is a constant struggle to maintain a healthy balance of
report ‘Referral
cost’ as a key Internal Sourcing dependence on external and internal agents for sourcing. Vendors
component in Channels
and referrals have similar prevalence as a key component of Cost
'Cost per Hire'
per Hire by levels.

32
Decoding Quality of Hire Quality of hire positively impacts
Trends Scanner business
Measuring the quality of hire is the most strategic
action organization can take in to understand the
Components of Quality of Hire
effectiveness of its recruitment process and its impact
one’s business

Manager Feedback on new joiners 30%

Performance Rating organizations
track early
Engagement score for new joiners
attrition: most
Early Attnition prevalent metric
Competency Assessments for ‘Quality of
Hire’

20%
organizations
track manager
Feedback Inputs from hiring manager remains to be a critical metric to track feedback for early
Loop and define quality of hire in organizations across industries joiners to
measure ‘Quality
Mix of of Hire’
Performance Organizations are considering multiple metrics that could be
Measures usefully applied to help create a fuller picture of an individual’s 18%
performance at work track performance
rating of new
Engagement Organizations are increasingly measuring engagement scores for joiners for ‘Quality
as a Lag of Hire’
new joiners to track the quality of hire and understand the impact of
Indicator
the company on the individual’s engagement and vice-verse

33
Recruitment Period
Trends Scanner

Average Time to Fill an Open Position Average Time to Offer

15 days 45 days 1 Month 2 Months 3 Months More than 3 Months

100% 100%
80% 80%
60% 60%
40% 40%
20% 20%
0% 0%
Junior Level Mid Level Senior Level Junior Level Mid Level Senior Level

Offer to Join Average Retention Duration

100% 100%
80% 80%
60% 60%
40% 40%
20% 20%
0% 0%
Junior Level Mid Level Senior Level Junior Level Mid Level Senior Level

34
Success Story
Recruitment Reengineering: Interest Based Candidates and Hiring

About the Organization

CapitalVia is a renowned financial market research and consulting organization. It is a pure play
research firm which provides live trading recommendations in Equities, Commodities & Forex
markets based on high quality technical research to its clients

Objective Results:
The opportunity costs from a vacant position was going up and the vacancies at

‘‘
 10% reduction in cost per recruitment
middle management had a cascading impact throughout the organization. Interest based hiring
Also, being based out of Indore, a tier II city, CapitalVia were facing difficulty in  20% reduction in TAT of Vacancy to
Onboarding Cycle executed by our own
attracting top talent.
The objective was to hire interest based candidates and reduce two crucial  A significant drop of 3 percentage points in and existing employees
costs: recruitment and hiring costs, and opportunity cost of vacant position the attrition rate in a quarter thereby reducing
opportunity cost of vacant position have significantly
because of attrition. ‘‘
 Increased monthly revenue by 40% and reduced cost of hiring,
improved client retention TAT and attrition
Approach
 CapitalVia identified the existing employees to be the best people to resolve - Gaurav Garg
this problem through their social media presence
CapitalVia, Head - HCM
 They analyzed tools like Glassdoor, LinkedIn and other social handles and
encouraged employees to share their testimonial, reviews and openings
through their social media handles which attracted their peers to apply
 The approach was based on the principle that employee referrals are very cost
effective as well as sustaining
 The model was tested as a pilot run and delivered 360 degree ROI
 The basic of model remained the same i.e., ‘Recognition: Refer and Reward’,
for effective pull hiring

35
Annexure

36
Glossary
Employee Groups
• Top Executive/Senior Management: Senior management
plays a key role in both short-term and long-term decision-
making of a major functional area or business unit, direct, or
coordinate activities within two or more major departments,
establish policy and have a major impact on the achievement of
the business unit or function goal
• Middle Management: Middle management is experienced
managers, who manage the activities of one major department
and set up standard procedure and policy or lead projects or
programs which have broad effect on overall policy and
achievement of organization-wide objectives
• Junior Level: Provide day-to-day management of a team, has
knowledge of a specialized field of technical or administrative
function and resolve problems of some difficulty, could be
supervising a team or individual contributor or be an entry level
professional
37
Hiring Metrics
• Cost per Hire: The total cost incurred to hire an employee in the
organization. The cost is inclusive of the entire hiring cycle
starting at talent sourcing to the onboarding of the candidate
• Speed of Hire: The time taken to fill up a position to offer the
position to the selected candidate the organization from the day
of its vacancy being created
• Quality of Hire: The quality of hiring candidate being measured
by scores of competency assessments, manager’s feedback on
performance, performance rating of new joinee, engagement
scores and early attrition
• Offer to Join Percentage: Number of candidates who join the
organization as a percentage of the number of people who are
extended an offer for a particular position
About Selection and Assessment
Aon Hewitt has been a world leader in the design and
implementation of reliable and valid assessments for over 30
years. Our global staff of Industrial-Organizational
Psychologists partner with clients to implement Selection &
Assessment Solutions, covering virtually all industries and job
categories.
We offer the broadest portfolio of innovative, scientifically
proven assessments for talent acquisition and development.
Our tests are taken by over 12 million candidates annually
across all organizational levels and our solutions range from
simple off-the-shelf selection tools through to fully
customized assessment frameworks that objectively measure
the competencies, skills, abilities and personal characteristics
that predict job performance, behavior and retention.
For more information on Selection an Assessment solutions,
please visit
www.aonhewitt.com/india/selectionandassessment
38
About Aon Hewitt
Aon Hewitt empowers organizations and individuals to secure
a better future through innovative talent, retirement and
health solutions. We advise, design and execute a wide range
of solutions that enable clients to cultivate talent to drive
organizational and personal performance and growth,
navigate retirement risk while providing new levels of financial
security, and redefine health solutions for greater choice,
affordability and wellness.
Aon Hewitt is the global leader in human resource solutions,
with over 30,000 professionals in 90 countries serving more
than 20,000 clients worldwide. In India we partner with
organizations across industries; multinationals, Indian
companies and government bodies. We have strong client
impact stories from our work with Family Owned Enterprises
in India.
For more information on Aon Hewitt in India, please visit
www.aonhewitt.com/india
About Aon
Aon plc (NYSE:AON) is the leading global provider of risk
management, insurance and reinsurance brokerage, and
human resources solutions and outsourcing services. Through
its more than 66,000 colleagues worldwide, Aon unites to
empower results for clients in over 120 countries via
innovative and effective risk and people solutions and through
industry-leading global resources and technical expertise.
Aon has been named repeatedly as the world’s best broker,
best insurance intermediary, best reinsurance intermediary,
best captives manager, and best employee benefits
consulting firm by multiple industry sources.
Visit aon.com for more information on Aon and
aon.com/manchesterunited to learn about Aon’s global
partnership with Manchester United.
39
About People Matters
People Matters is a leading knowledge and media platform in
the Human Resources space. We strive to create an HR
community of practice and excellence that fosters
amalgamation of new ideas between HR managers, HR service
providers and CXOs, leading to the growth of HR as a business
critical function. People Matters’ print, online, digital and
events platforms provide thousands of HR stakeholders with
information, best practices, trends and industry news. In a
short span of 6 years, it has emerged as India’s single point of
reference for knowledge in the HR industry. As HR steps up to
its new role as business partner and becomes indispensable to
business, our vision is to become an indispensable source of
knowledge, information and inspiration for the community.
Contact Us
Research Architects: Research Team: Solicitation Partner:

Nitin Sethi Pritish Gandhi Ester Martinez

Partner and CCO Consultant
Aon Hewitt, India Aon Hewitt Knowledge Center
Aon Hewitt, India
Shivanker Singh pritish.gandhi@aonhewitt.com
Senior Consultant
Pooja Chitkara
Selection and Assessment
Aon Hewitt, India Associate Consultant
shivanker.singh@aonhewitt.com Aon Hewitt Knowledge Center
Aon Hewitt, India
Arpita Chakraborty pooja.chitkara@aonhewitt.com
CEO and Editor-in-Chief
People Matters, India
Nishanth M V
Assistant Manager
Marketing & Communications
People Matters, India
nishanth@peoplematters.in

Consultant
Selection and Assessment
Aon Hewitt, India
arpita.chakraborty@aonhewitt.com

40
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