ORIGINAL ARTICLE. Abstract:-

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1 Indian Streams Research Journal ORIGINAL ARTICLE ISSN: Abstract:- The short supply of talent is one of the most critical risks of today s business scenario, and when it comes to talent acquisition, efficient processes are just not enough. That s why companies around the world are turning to a partner with both the proven capability and the vision to move business forward in times of change and opportunity. This research study will be undertaken to determine, "The Essence and Effectiveness of Recruitment Process Outsourcing (RPO) Services in Recruitment Process Life Cycle (RPLC, catered by Various Recruitment Agencies Across India, for its clients, through Judgmental Sampling Survey Method, and with help of various tools and techniques like Yield Ratio, Joining Ratio, Declining Ratio, and BIG-3 Efficiency Metrics. Output of this research study, will helps to understand the most challenging, most critical and most time consuming processes at recruitment process outsourcing in recruitment process life cycle and it helps to fill the Bridge Gap between Job Aspirants and Organizations in India. EFFECTIVENESS OF RECRUITMENT PROCESS OUTSOURCING (RPO) IN RECRUITMENT PROCESS LIFE CYCLE (RPLC) Pavan P Aparanji Principal,Research Scholar, Sharda Adarsh PU College of Commerce and J K Degree College of Commerce, Hubli (Karnataka). Keywords: Recruitment, outsourcing, northkarnataka, rpo, recruitment agencies, big-3 efficiency model, joining ratio, declining ratio, yield ratio.

2 INTRODUCTION Indian Recruitment Industry - An Overview: With global outsourcing at its peak, India is at a threshold of being the biggest gainer and the next IT destination on the globe. A testimony of this fact is a NASSCOM study says that IT industry in India would contribute to 7% of India's GDP by the year India has steadily evolved along with the IT industry in past and is moving up the value chain. India today is no longer seen as a low cost centre but is seen more as a competency centre. More and more companies are offloading their core quality Research and development work to their Indian centers. India is also becoming an alluring Business Market for most the behemoths like Wal-Mart, Tesco, Vodafone, Cisco, Microsoft, Oracle, Nokia. Entrepreneurship is at its peak, PE and VC funds have created separate focus India groups / funds. In fact Industry is also forecasting that the next IT Wave will be emerging out of India and China. Today India as a location for corporates and professionals is no more an emotional Indian phenomenon but a business and a career decision. With this evolution of Industry and business, the Talent in India has also evolved. The leadership in running and managing these centers and Business has evolved. Leadership in India from just managing the day to operations of non-core / critical activities has moved to building confidence in the Global Board of doing some core and fundamental activities in India. The ownership of Products and business is now increasingly being given to India in a welcoming fashion. The Global Business strategy is now having India on its radar in a big way with a much focused attention to Indian Leadership. I would really commend our managers of yesterday who are transforming to be the "true leaders" of today and will be definitely represent the Global Leadership of tomorrow. All this growth and Leadership is sustainable provided we are able to manage the fulcrum of these activities - "Talent of today for needs of tomorrow". Today Talent has become a cause of rejoice as well as a caution for future. The salary cost pressures are high, attrition rate has crossed all limits, Talent expectations are haywire, and Innovation in recruitment methodologies is not keeping pace with growth. To top all this increasing expectations of Global management from Talent management Leadership is putting a very heavy pressure on the system. In nutshell there seems to be an emerging crisis in Talent Management in India very soon. Though our Talent Managers and Talent Management companies are really trying hard to evolve from the days of just a client vendor model to a partner model but there is a long way to go for. Our India Talent Management space has gone for a sea change and so have the Talent Management companies. From a process point it has morphed from resumes in paper to being electronic and automated and then further to an interactive and transparent system. On the Talent acquisition side the change has been significant from a mere match making to career counseling to competency based assessment hiring and now heading towards a community based hiring system. Similarly on our client side it has moved from a requirement based fulfillment system to a turnkey project based hiring to value added services (VAS) hiring with a potential future of "Recruitment on Demand" hiring. I am sure with horizon of recruitment spectrum becoming broader and clear the Leadership in this space is also evolving from just being tactical in approach to now being strategic in approach, being a sub function of HR to now having a separate representation in the board rooms. CURRENT TRENDS IN THE INDUSTRY: The Indian Recruitment Industry is worth $0.5 Billion and is growing at over 48% year on year and emerging as the focal point of next generation talent pool. Recruitment is emerging as specialized areas in Business HR. Emergence of Recruitment as a core functional area in the organizations. Emergence of various domains & verticals require focused recruitment expertise. Many foreign research firms with huge capital base are entering Indian market. Emergence of Recruitment as a core functions in the organizations. Employers today seek Recruitment Solutions. Organizations look for Recruitment partners than vendors. Future of Recruitment Industry: 2015 and beyond Emergence of Integrated Global recruitment organizations. Long term strategic partnerships and deals. Consolidation and emergence of market leadership in various recruitment functions. Distributed recruitment delivery and increased RPO. AWARENESS ABOUT CLASSIFICATION OF INDIAN RECRUITMENTCOMPANIES: 2

3 Indian Recruitment Companies can be classified into 5 types: 1.Recruitment Consulting (Permanent). 2.Staffing companies (Contract). 3.Executive search firms. 4.Software companies also sending employees on contract. 5.Recruitment process outsourcing (RPO) companies. 1.Recruitment Consulting: If you search in any metro city in India you find thousands of small consultancies who work on lateral reqs. In most of the cases they operate in small offices with employee strength of Such consultancies are generally dependent on some specific big MNCs, who don t care where the resumes are coming from. Whoever closes the position gets the commission. Now the sources of resumes are same for all i.e., Job boards and service is also similar- which increases the competition further. And due to too much of competition consultancies agree to work for very less commission- in some cases 4-5 % also. As they are playing in very less margin, they can't hire good recruiters and neither can they afford to pay recruiters well. Recruiters don t get proper training, which affects performance and their service to candidates. No surprises that many candidates complain of bad service from consultants. Apart from these there are few 100+ strength professionally managed recruitment firms, who maintain quality in terms of service to clients and candidates and create a brand for themselves. Even they manage to get premium commission due to their service. 2.Staffing Companies: Staffing companies basically keep people in their payroll and let them work with client for specific contract. Here the company charges some specific amount every month for the candidate from the client. Due to volatile market scenario especially after recession Indian companies are getting more and more eager to hire people in contract through some third party vendors. This is helping in booming of such contract staffing companies. Salary standards for recruiters are not very great here also. But this trend is going to pick strongly in future because it suits to market situations. Contract staffing is very popular in manufacturing and services sector. 3.Executive Search Firms: Again in India executive search firms have generally strength of 5-15 people. But in this case they hire for very high level candidates i.e.: CEO, Marketing head etc, so revenue is quite premium. Basically experienced people from diverse sectors join executive search firms and use their network to close positions. Their compensation is best when compared to recruiters in other types of recruitment companies. 4.Software companies also sending employees in contract: In Bangalore especially one can find many companies where they have their software division where candidates work on client projects, at the same time HR firms send employees to client place as contract employee. There are many small and big companies in this field. 5.RPO companies: There are not many companies in India which works exclusively on RPOs. Mostly big consultancies take it up as another practice only. RPO is also another sector which is picking up fast in India. Whatever may be the type of offering, we want more big size professionally managed recruitment firms in India, which can help in building standard practices, set new benchmark in terms of service, bring in new innovation in recruitment processes and can attract good candidates to join recruitment industry by offering good career prospect. REVIEW OF LITERATURE: Recruitment Process Outsourcing (RPO) is a form of Business Process outsourcing (BPO) where an employer outsources or transfers all or part of its recruitment activities to an external service provider. According to Recruitment Process Outsourcing Association, "Recruitment Process Outsourcing is when a provider acts as a company's internal recruitment function for a portion or all of its jobs. RPO providers manage the entire recruiting/hiring process from job profiling through the on-boarding of the new hire, including staff, technology, and method and reporting. A properly managed RPO will improve a company's time to hire, increase the quality of the candidate pool, provide verifiable metrics, reduce cost and improve governmental compliance." The RPO Alliance, a group of the Human Resources Outsourcing Association (HROA), approved this definition in February 2009: "Recruitment Process Outsourcing (RPO) is a form of business process outsourcing (BPO) where an employer transfers all or part of its recruitment processes to an external service provider. An RPO provider can provide its own or may assume the company's staff, technology, methodologies and reporting. In all cases, RPO differs greatly from providers such as staffing companies and contingent/retained search providers in that it assumes ownership of the design and management of the recruitment process and the responsibility of results." 3

4 On the other hand, occasional recruitment support, for example temporary, contingency and executive search services are more analogous to out-tasking, co-sourcing or just sourcing. In this example the service provider is "a" source for certain types of recruitment activity. The biggest distinction between RPO and other types of staffing is Process. While temporary, contingency and executive search firms have provided staffing services for many decades, the concept of an employer outsourcing the management and ownership of part or all of their recruiting process wasn't first realized on a consistent basis until the 1970s in Silicon Valley's highly competitive high tech labor market. Fast-growing high tech companies were hard-pressed to locate and hire the technical specialists they required, and so had little choice but to pay large fees to highly specialized external recruiters in order to staff their projects. Over time, companies began to examine how they might reduce the growing expenses of recruitment fees while still hiring hard-to-find technical specialists. Toward this end, companies began to examine the various steps in the recruiting process with an eye toward outsourcing only those portions that they had the greatest difficulty with and that added the greatest value to them. Initial RPO programs typically consisted of companies purchasing lists of potential candidates from RPO vendors. This "search/research" function, as it was called, generated names of competitors' employees for a company and served to augment the pool of potential candidates from which that company could hire. Over time, as business in general embraced the concept of outsourcing more and more, RPO gained favor among Human Resource management: not only did RPO reduce overhead costs from their budgets but it also helped improve the company's competitive advantage in the labor market. As labor markets became more and more competitive, RPO became more of an acceptable option. Furthermore, through the advent in the 1980's and 1990's of human resources outsourcing (HRO) companies that began taking on the processes associated with benefits, taxes, and payroll, companies began recognizing that recruiting--a significant cost of HR--should also be considered for outsourcing. In the early 2000's more companies began considering the outsourcing of recruitment for major portions of their recruiting need. Benefits of RPO in RPLC: 1.Traditional Recruiting Methods Can Be Expensive And Are Often Unproductive And Unpredictable: Whether you employ your own internal recruiters or utilize the services of staffing agencies, most companies, at the expense of large commissions or placement fee s, do not obtain the results they expect from their recruiting function. RPO Services eliminate the aforementioned inconsistencies by offering a simple, effective, and alternative solution to recruiting needs. 2.Reduced Recruiter Costs: Spend approximately CTC Rs 2, 50,000 for an experienced, dedicate recruiter VS. 2, 50,000 + commissions, payroll costs, medical and dental insurance, administrative costs, and paid vacation (which can add up to more than Rs 4, 00,000) for an internal recruiter. The decision to utilize external recruiters is obvious Save more than 60% on Recruiter costs by utilizing RPO services and enjoy numerous other benefits that will help the company s to grow. 3.No Infrastructure Costs: Utilizing external recruiters allows to free up capital that can be better allocated towards higher valued consulting activities. The RPO has their own state of the art offices which are equipped with everything a recruiter would need to perform his/her daily duties meaning companies don t have to pay a single rupee towards providing a comfortable working environment for their own recruiters. RPO provide workstations, computers, static-free phone lines, and a fast DSL connection at no additional cost. 4.Improved Productivity: Recruiters in India are highly technical and have tremendous experience and Knowledge. (Some of the Recruiters even have MBA s degree) and are able to deliver many qualified resumes on a weekly basis. They can be trained to follow the exact recruiting methodology of client and have the ability to match talented professionals as per the requirement of companies. And because the price of 1 internal recruiter is equivalent to 2-3 external recruiters, companies can afford to hire more recruiters at the same cost and increase productivity. The Bottom Line: More Recruiters = More Productivity. 5.Reduced Time to Hire: RPO s are specialized in the field of recruiting which allows them to process, screen, and deliver dedicated and qualified recruiters that reduces companies time to hire allowing companies to focus on the core components of their business. 6.Increased Flexibility and Control: RPO services allow companies to free up human and capital resources that can be better spent on core competencies. RPO services provide companies with flexibility, control, and visibility over their entire recruiting function by removing their dependence on 3rd party staffing agencies, which are often unreliable, unpredictable, and expensive. 7.Securing The Best Talent: Competition for the most talented individuals is increasing. Organizations need to secure the best people quickly and efficiently to help them build competitive capability. 4

5 Techniques of RPO: Source: Techniques of RPLC: Source: CareerNet consultancy induction programme ppt slide material The Human Resource, involved in Recruitment Process Life Cycle requires following percentage of time to understand each process as per internal observations of various top level recruitment agencies in India: Sub Process % of Time Understanding of the requirement 5% Placing the job position on respective portals/domain 5% Sorting the profiles and sending mailers 30% Screening the responses as per job order 30% Source: CareerNet consultancy induction programme ppt slide material Key Players at RPO in RPLC Process Model: Calling and scheduling 20% Follow up and closing 10% 1.Recruiting Manager: Manages and is responsible for overall delivery to client including response rate, interview rate, fill rate etc. 2.Recruiting Team Lead: Reports to Recruiting Manager and monitors progress on each client job order. The Team lead is also responsible to maintain relationships with candidates in the hiring process and serves as second level escalation point. 3.Junior Recruiting Teams: Perform backend searches for matching candidates in RPO internal database as well as various job boards, user groups and networking groups. 4.Senior Recruiting Teams: Evaluate and qualify candidates screened by junior recruiting team members. This results in overall operational efficiency in the recruiting process and yields optimal results in terms of a 5

6 qualified candidate in the fastest time. BIG-3 Efficiency Metrics in Recruiting: Measuring success is critical in recruiting. There are four general types of metrics on which to concentrate -- cost, quality, quantity, and time. One way we measure "quality" is using the Big 3 Efficiency metrics. Efficiency is a funny thing. It can mean many different things to different people. For example, the Laws of Thermodynamics tell us that any engine or machine is doing very well if it is operating at 80% efficiency, which means that 80% of the energy input is turned into useful work. They also tell us that NO machine can operate at 100% efficiency. In recruiting, efficiency measures how well recruiters are doing their job & effectiveness of the recruiting process: 1. Submittal Efficiency, 2. Interview Efficiency, and 3. Offer Efficiency. 1.Submittal Efficiency: The first, submittal efficiency, is a measure of how well the submitted candidates fit against the requisition profile. It is defined as the number of candidates interviewed divided by the total number of candidates submitted. You would expect this number to be high. However, as in Thermodynamics, it can be TOO high. If it is 100%, the recruiter is not pushing the edges of the requisition specifications, which means you are probably missing good candidates. However, if your submittal efficiency is too low, it indicates the hiring managers are spending too much time reviewing resumes. This could be because the recruiter may be doing a poor job, or perhaps the requisition has been poorly specified. As a whole, hiring managers and recruiters are doing well if three of every four submittals make it to interviews (75% efficiency). Flashing-red-light warnings should start to go off if less than one in two (50% efficiency) make it to interviews, meaning it is time to investigate to determine problem areas. 2.Interview Efficiency: Next, the interview efficiency is a measure of the hiring manager's screening process. It is defined as the number of candidates who receive offers divided by the number of candidates interviewed. You would expect this number to be lower than the submittal efficiency, since most people want to interview several candidates for one offer. The goal is to shoot for 30% efficiency, which means your organization is making offers to one out of every three to four interviewed candidates. If less than one in six candidates interviewed actually receives an offer (16% efficiency), it should be an indicator that it is time to investigate again. With low efficiencies there could be any number of problems, most of which are issues in the screening process, including a hiring manager who is overly selective. However, recruiters can be great assets during this phase because they can help out with scheduling interviews, prepping candidates, gathering immediate interview feedback, and generally guiding the process. 3.Offer Efficiency: The third of the Big 3 is the offer efficiency, a measure of how many candidates actually accept your offers and start working with you. It is calculated as the number of candidates accepting offers divided by the total number of offers. Since the recruiters should be helping hiring managers extend offers that will be accepted, as well as pre-closing the candidates, we expect this ratio to be high. If the process yields 80% offer efficiency, or four out of five offers are accepted, you are doing well. Conversely, if less than three in five offers are accepted (60% efficiency), then something in your recruiting processes will need to be modified or addressed. Low offer efficiencies could mean the recruiter is doing a poor job of preclosing the candidate or negating counteroffers. Or perhaps the offers themselves are undesirable, whether from a financial standpoint or on other dimensions, such as too much travel or an undesirable work location. Also, as with submittal efficiencies, the offer efficiencies percentage can be too high. If 100% of people accept your offers, perhaps you are offering too much money for the job. The efficiency metrics are relatively easy to gather and calculate, and very helpful in monitoring the quality of the recruiting process. By investigating the issues indicated by the efficiencies, it's possible to identify potential problem areas in sufficient time to take corrective action and still make hires on time. Another benefit of the efficiency ratios is that by multiplying all three of them together, it's possible to calculate the expected number of hires from the number of submittals, assisting your planning process. For example, multiplying the lower bound of the "good" efficiencies (75% X 30% X 80%) = 18%, which means you need to submit between five and six candidates to get one hire. RESEARCH METHODOLOGY: The need of study is focused upon, Results-driven RPO Services and Solutions applicable to various a diverse range of Organizations and Students across India. Statement of research problem includes Determining the Essence and Effectiveness of Recruitment Process Outsourcing (RPO) Services 6

7 in Recruitment Process Life Cycle (RPLC), Catered By Various Recruitment Agencies, at Bangalore, Hubli-Dharwad, And across India, For Its Clients. OBJECTIVES OF THE RESEARCH: 1.Elaborating the Effectiveness of End-to-End Recruitment Process Outsourcing. 2.Determining the Effectiveness of Modern Sourcing Avenues. 3.Measuring the Selection Ratio, Declining Ratio and Joining Ratio of offered Candidates in RPO Process. 4.Determining the Most Critical and Challenging Process in RPO. To achieve afore said objectives the following research methodology has been adopted. The information for this report has been collected through the various primary and secondary sources. The Primary Data is collected through the in Depth Observations in CareerNet Technologies Pvt.Ltd, Bangalore and northkarnatakajobs.com and through the discussions with officials, and also by administering survey questionnaire across various recruitment organizations through their experts in this RPO filed, one who handles this process for their client. The Secondary Data is collected mainly through the Organizations Website and Journals, Published Articles, Research Reports and through Professional Networking Sites. Data has been collected from a Sample of 1000 Employees, working in R&D Department of Various RPO agencies in Bangalore, Hubli Dharwad and Across India through online survey. The sample of research methodology is based on Judgmental Sampling where in Judgmental Sampling is a nonprobability sampling technique where the researcher selects units to be sampled based on their knowledge and professional judgment. Tools and Techniques used in this research methodology are Selection Ratio, Joining Ratio, Declining Ratio, and Yield Ratio of RPO and Big-3 Efficiency Metrics of RPO. Recruitment Process Outsourcing (RPO) is a form of business process outsourcing (BPO) when an employer outsources or transfers all or part of the staffing process to an external service provider. A true or total RPO solution involves the outsourcing of the entire recruiting function or process to an external service provider. This provider serves to provide the necessary skills, tools, technologies, and activities to serve as their client's Virtual Recruiting Department". Scope of this study helps to understand the effectiveness of RPO in Recruitment Process Life Cycle, in terms of its Essence, Growth, Success and Competition in Current Recruitment Market. PRESENTATION AND ANALYSIS OF DATA: The study was undertaken for a period of 2 months and best efforts have been made to study the Industry, Organization and Outsourcing Tools and Techniques in relation to the area of study. Citing the confidentiality factor, certain information deemed to be confidential from the company point of view was not shared. 1.Elaborating the Effectiveness of End-to-End Recruitment Process Outsourcing- 1st Objective (Graph-1) 1. The retention rate is high among the surveyed respondents in the recruitment industry, showing that the recruitment industry is having secured career growth and opportunities for the surveyed respondents. 2. Once they get domain expertise in the particular area of RPO, it attracts and retains them for longer duration in the recruitment industry. 7

8 (Graph-1.1) 1.It shows that in RPO all the clients will get higher priority and very high quality of consultancy service by Recruitment Agencies. Due to these factors Recruitment Agencies does not make any frequent Job rotations in the respondent s assigned roles and responsibilities. 2.It helps the both the respondents and clients, to give and to take more consistent and focused services and also it helps to build good rapport between each other. 2. Determining the Effectiveness of Modern Sourcing Avenues- 2nd Objective (Graph-2) 1.It was found that all the respondents used more than one source to recruit the candidate for RPO Clients. Majority of the respondents have used Job portals and existing data base (AMS) of Recruitment Agencies as a vital source of recruitment, And on an average number of respondents had used, head hunting and other sources equally. And, it also shows that only 20 respondents out total respondents used personal references as a source of recruitment. 2.It clearly indicates that, the Job portals and existing internal data base of Recruitment Agencies are providing continuously quality candidates, for Right Job at Right Time. 3. Measuring the Selection Ratio, Declining Ratio and Yield Ratio (Joining Ratio) of offered Candidates in RPO Process- 3rd Objective (Graph-3) 8

9 1.It was found that, Selection Ratio of Candidates after HR Round Discussion, is very low i.e. 1:10 or 2:10 in majority of requisitions. It s mainly due to the Negative Attitude of Candidates, Higher CTC Expectation, and Higher Expectation from Client End, Stringent Policy and Regulations of Clients. And the Selection Ratio 10:10, in the rarest cases only this kind of selection can be done in RPO or RPLC. (Graph-4) 1.It was found that, Declining Ratio of Candidates after being offered is very high in most of the RPO requisitions. It s mainly due to the Offer Hold by Some Other Company, Higher CTC or Designation Offered by Existing Company, and Inconsistency in Decision Making, Re-shifting from Current Location, Family Problems, Higher Education, Onsite Opportunities, Health Reasons, Negotiation. 3. Measuring the Selection Ratio, Declining Ratio and Yield Ratio (Joining Ratio) of offered Candidates in RPO Process- 3rd Objective YIELD (JOINING) RATIO OF RPO IN RPLC (Table-3.1) S.No NUMBER OF CANDIDATES YIELD RATIO 1 Total No. Of Candidates Lined Up For The Interview In Jan-April Total No. Of Candidates Eliminated In The First Round Total No. Of Candidates Selected In The First Round of Interview (1-2) Yield Ratio = 3/1 X % 5 Total Number Of Candidates Not Selected For Final Round Total Number Of Candidates Selected For Final Round (3-5) Yield Ratio= 6/3 X % 8 Total No Candidates Who Declined In The Offer Stage Total Candidates Who Accepted The Job Offer (6-8) Yield Ratio= 9/6 X % 11 Total No Of Candidates Who Left Job Within First 1-3 Months Total No Of Candidates Who Are In The Job After 3 Months (9-11) Yield Ratio = 12/9 X % 1.This Research revealed that, Entire RPO process is most challenging task, because Final Output generated by Recruitment Agencies, During the End of First Quarter by Its RPO Clientele is 272 Candidates. It exhibits continues efforts and contribution level of each respondents in CareerNet while in Generating Revenue for Organization. Final Yield Ratio will be 40.96% it s indicating that Generation of Return on Investment on RPO clientele is more critical and challenging task. 4. Determining the Most Critical and Challenging Process in RPO- 4th Objective 9

10 (Graph-4) 1.It was found that, Sourcing and Joining are the Most Critical Process in RPO. Due to the Heavy Cost involved in Sourcing Candidates through Job Portals, Social Media Advertisements and Maintaining the same Initial Level of Interest in candidates until the Entire End-to-End Recruitment Process Outsourcing completes and Following Up and Updating candidates is the Most Critical Job for any Recruiter. (Graph-4.1) 1.Research indicates that, Attracting/Convincing and Joining are the Most Challenging Step in RPO & RPLC. Due to Convincing and Balancing Both Clients and Candidates from the Initial Day of Sourcing to Till the Date of Their Joining, It requires lot of Patience and Groundwork for recruiters in RPO & RPLC. BIG-3 EFFICIENCY METRICS OF RPO (Based on Table 3.1) 1. Submittal Efficiency: No.of.Candidates Interviewed Submittal Efficiency= x 100 Total No.of.Candidates Submitted 6240 Submittal Efficiency= x Submittal Efficiency= % 1.Submittal Efficiency, it indicates the hiring managers are utilizing time productively in reviewing or sourcing resumes. This could be because of the recruiter may be doing a good job, or perhaps the requisition has been effectively and more clearly specified by RPO clientele. As a whole, hiring managers and recruiters are doing well in the organization. 10

11 2. Interview Efficiency: No.of.Candidates Received Offers Interview Efficiency= x 100 No.of.Candidates Interviewed 664 Interview Efficiency= x Interview Efficiency= % 1.Interview Efficiency, it s indicating that, it is time to investigate again interview efficiency of Hiring Manager in its Clientele. With low efficiencies there could be any number of problems, most of which are issues in the screening process, including a hiring manager who is overly selective. However, clearly its showing Respondents can be great assets during this phase because they helped out by scheduling interviews, preparing candidates, gathering immediate interview feedback, and through general guiding process. 3. Offer Efficiency: No.of.Candidates Joined Organization Successfully Offer Efficiency= x 100 Total No.of.Offers 272 Offer Efficiency= x Offer Efficiency= % 1.Offer Efficiency indicates something in recruiting processes will need to be modified or addressed. Low offer efficiencies could mean the recruiter is doing a poor job of pre-closing the candidate or neglecting counteroffers. Or perhaps the offers themselves are undesirable, whether from a financial standpoint or on other dimensions, such as too much travel or an undesirable work location. FINDINGS: 1.It shows that in RPO all the clients will get higher priority and very high quality of consultancy service by Recruitment Agencies. Due to these factors Recruitment Agencies will not makes any frequent Job rotations in the respondents assigned roles and responsibilities unless it s strongly required or concern to policy matters. 2.It was also found that 78 respondents Out of 100 Sample Size have used Job portals and Existing Database as the major source of recruitment for RPO clientele in CareerNet. 3.It was found that, Selection Ratio of Candidates after HR Round Discussion is very low due to the Negative Attitude of Candidates, Higher CTC Expectation, and Higher Expectation from Client End, Stringent Policy and Regulations of Clients. 4.It was found that, Declining Ratio of Candidates after being offered is very high in most of the RPO requisitions. 5.Research revealed that, Joining, Sourcing and Convincing are the Most Time Consuming, Most Critical and Most Challenging Process in RPLC. 6.Finally, BIG 3-Efficiency Metrics of RPO clearly Indicated that, Submittal Efficiency and Interview Efficiency of Recruitment Agencies Respondents is More Productive but at the same time its Interview Efficiency of Hiring Managers and Offer Efficiency, is very low. SUGGESTIONS: Based on the Interpretation and Findings of this study, the following Suggestions and Recommendations are made: 1.In the End-to-End Recruitment Process Out-Sourcing of recruitment agencies, if the Fresher s are Trained More Effectively in Pipe-Line Building and Sourcing Module by Learning & Development Team of recruitment agencies, It helps to increases the efficiency and productivity of Fresher Candidates, in Building-up Pipe-Line of Candidates. 2.If Respondent Maintains Effective Rapport and Communication with Hiring Managers of Clientele, It helps them to get more clarification and inputs regarding Specific Requisitions and Reason for Eliminating 11

12 Specific Candidates in Various Rounds. By this Respondents Can Save Time and Cost when they are referring same candidates for some other requisitions next time and also if sometimes Hiring Manager can also overlap good candidates, at that time Respondents can make Negotiation with Hiring Managers to Select Specific Candidates. 3.To increase the Selection Ratio of Candidates and to decrease the Job Leaving and Declining Ratio of Candidates the Preliminary Screening method must be used,so that it would give the clearer picture of what the candidate is looking out for and whether he/she is capable of doing the specific Job or Not. It saves the time and cost of both Clients and Candidates. 4.To effectively handle Most Critical, Challenging and Time Consuming Process like Sourcing, Attracting/Convincing and Joining, if Recruitment Agencies Implements 3-Tire Rapport Building Module among Respondents, RPO Clientele and Candidates, it make RPO & RPLC functioning more smooth and effective. 5.To Increase the Yield Ratio of RPO, Interview Efficiency and Offer Efficiency of Hiring Managers and Respondents, If Recruitment Agencies conducts GAP Analysis Study between Each Process of RPO & RPLC, it helps them to reduce the Gap Between Candidates Lined Up and Candidates Joined Clients Organization. CONCLUSION: The Main Objective of Determining the Essence and Effectiveness of Recruitment Process Outsourcing Services in Recruitment Process Life Cycle, Catered By Recruitment Agencies, For Its Clients, was successfully completed through Judgmental Sampling Survey Method, and with help of various tools and techniques like Yield Ratio, Joining Ratio, Declining Ratio, and BIG-3 Efficiency Metrics. 1.End-to-End Recruitment Process Outsourcing at Recruitment Agencies has proved that, The RPO is the one of the most dynamic and Effective Recruitment Outsourcing Model. Because, Recruitment Agencies provides recruitment process outsourcing solutions with incorporating speed, accuracy, flexibility and accountability through a team with expertise and focus on each specific process. Due to this RPO model has recorded % of Yield Ratio in the First Quarter of 2013 despite of all challenges and risks. 2.It was found that all the respondents used more than one source to recruit the candidate for RPO Clients. But majority of the respondents have used Modern tools like Job Portals and Existing Data Base (AMS) of Recruitment Agencies as a vital source of recruitment process because of its Quick, Easy and Fast Accessibility. It clearly indicates that Job Portals and Existing Internal Data Base of Recruitment Agencies are catering continuously Quality Candidates, for Right Job at Right Time. 3.Measurement of Selection Ratio proved that Selection Ratio of Candidates after HR Round Discussion, is very low i.e. 1:10 or 2:10 in majority of requisitions It s mainly due to the Negative Attitude of Candidates, Higher CTC Expectation, and Higher Expectation from Client End, Stringent Policy and Regulations of Clients.. 4.Measurement of Declining Ratio of Candidates after being offered is very high in most of the RPO requisitions. It s mainly due to the Offer Hold by Some Other Company, Higher CTC or Designation Offered by Existing Company, and Inconsistency in Decision Making, Re-shifting from Current Location, Family Problems, Higher Education, Onsite Opportunities, Health Reasons, and Negotiation. 5.Research determined Sourcing, Attracting/Convincing and Joining are the Most Critical and Challenging Process in RPO. REFERENCES: 1.CareerNetThought Center Expert Speak Page: 2.Indian Recruitment Industry An Overview By Adam Lee h t t p : / / w w w. a r t i c l e s n a t c h. c o m / A r t i c l e / I n d i a n - R e c r u i t m e n t - I n d u s t r y - - a n Overview/ #.VAyJe6OSeCl 3.Recruitment Process Outsourcing 4.The Premier Solutions To Your Recruiting Needs-By Beyond Tech IT Page Benefits of RPO Page Linked with Proven to Increase ROI- 5.Techniques of RPO- By Margadarshak Consultants Pvt Ltd 6.Measuring Success is Critical in Recruiting Page for Big-3 Efficiency Model- By Daleels 7.Ministry of HRD- www. mhrd.gov.in 8.Global RPO Report By Kelly OCG RPO Annual Report By Research Everest GRP 12