Recruitment & Selection Trends in FEHJ

OVERVIEW Fortis Escorts Heart Institute, formerly known as Escorts Heart Institute and Research Center, a pioneer in the field of fully dedicated cardiac care facility in India is a Fortis (Fortis Healthcare Ltd.) network hospital. Fortis Healthcare Ltd is the fastest growing hospital network in India. Fortis Healthcare, led by the vision of late Dr. Parvinder Singh of creating an integrated healthcare delivery system in India acquired Escorts Heart Institute and Research Centre Ltd. in 2005. Established in 1988, Escorts celebrated 22 years of Cardiac excellence last year. Fortis Escorts Heart Institute has set benchmarks in cardiac care with its path breaking work over the past 22 years. Today, it is recognized world over as a centre of excellence providing the latest technology in Cardiac Bypass Surgery, Minimally Invasive Surgery (Robotics), Interventional Cardiology, Non-invasive Cardiology, Pediatric Cardiology and Pediatric Cardiac Surgery. The hospital is backed by the most advanced laboratories performing complete range of investigative tests in the field of Nuclear Medicine, Radiology, Biochemistry, Haematology, Transfusion Medicine and Microbiology. Fortis Escorts Heart Institute has a vast pool of talented and experienced team of doctors, who are further supported by a team of highly qualified, experienced & dedicated support staff & cutting edge technology like the recently installed Dual CT Scan. Currently, more than 200 cardiac doctors and 1600 employees work together to manage over 14,500 admissions and 7,200 emergency cases in a year. The hospital today has an infrastructure comprising of around 272 beds (it currently enjoys 100% occupancy rate), 5 Cath Labs besides a host of other world-class facilities.

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ACCREDITATIONS Joint Commission International, USA Fortis Escorts is a Joint commission international (JCI) accredited hospital. JCI is the highest global accreditation body to recognize hospitals adhering to patient care and safety norms. The receiving of the JCI accreditation is a vindication of our excellence in medical services and the care we provide to each of our patients. (Effective February 20, 2010)

NABH National Accreditation Board for Hospitals & Healthcare Providers (NABH) is a constituent board of Quality Council of India, set up to establish and operate accreditation programme for healthcare organizations. The board is structured to cater to much desired needs of the consumers and to set benchmarks for progress of health industry. Fortis Escorts is proud to announce the comprehensive NABH Accreditation (Effective June 16, 2008)

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NABH (Blood Bank) Accreditation Blood is a Drug which has to be administered with great caution.This life saving elixir can save lives but can also prove fatal for the recipient. Effective Quality assurance is essential to ensure transfusion of safe,high quality blood and its components. National Accreditation Board for Hospitals and Healthcare providers(the highest quality assurance wing of Quality Counsel of India) ,after a thorough check of processes and procedures being practiced at EHIRC Blood Bank appreciated the high standards being maintained and were pleased to grant NABH accreditation.The Blood Bank was amongst the first few in the country to achieve this honour.To ensure the highest safety of blood the blood bank carries out Leukodepletion on all the blood donated at this centre and tests the blood by NAT Technology,the highest disease markers test available in the world, in addition to mendatory regulatory requirements of testing. (Effective January 28, 2009)

International Organization for Standardization (ISO) 9001:2000 Certification Fortis Escorts has been certified by ISO 9001:2000 ensuring compliance across multiple criteria including improved patient satisfaction, effective Quality Management System, efficient management of our processes and continuous improvement of the system. (Effective Feb 17, 2009)

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Superbrand 2008 Award Fortis Escorts Heart Institute - Honoured with Superbrand 2008 Award Regional Director, Mr. Ashish Bhatia receives a Superbrand Award from Shri L K Advani, Former Deputy Prime Minister and Leader of the Opposition and was the Chief Guest for the Award Cermony in the evening held at Ashoka Hotel, Chanakyapuri. The Superbrand is a concept that evolved in the UK in 1993. Superbrand India was launched in December 2002. The 1st edition of Business Superbrand India was out in September 1995. An independent panel of judging experts called the Brand Council awards the Superbrand status. The people of the panel represent the finest brand management practices in the country. Each member has outstanding records of creating and nurturing brands. Every country has its own jury. A Superbrand is one, which has established the finest reputation in its field. It offers customers significant emotional and/or tangible advantages over its competitors, which (consciously or sub-consciously) customers want and recognize.

Nature of the Industry Combining medical technology and the human touch, the healthcare industry diagnoses, treats, and administers care around the clock, responding to the needs of millions of peoplefrom newborns to the terminally ill. 4

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Industry organization. About 595,800 establishments make up the healthcare industry; they vary greatly in terms of size, staffing patterns, and organizational structures. About 76 percent of healthcare establishments are offices of physicians, dentists, or other health practitioners. Although hospitals constitute only 1 percent of all healthcare establishments, they employ 35 percent of all workers (table 1).

Table 1. Percent distribution of employment and establishments in health services by detaile Industry segment Total Ambulatory healthcare services Offices of physicians Home healthcare services Offices of dentists Offices of other health practitioners Outpatient care centers Other ambulatory healthcare services Medical and diagnostic laboratories Hospitals General medical and surgical hospitals Other specialty hospitals Psychiatric and substance abuse hospitals Nursing and residential care facilities Nursing care facilities Community care facilities for the elderly Residential mental health facilities Other residential care facilities SOURCE: BLS Quarterly Census of Employment and Wages, 2008. The healthcare industry includes establishments ranging from small-town private practices of physicians who employ only one medical assistant to busy inner-city

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hospitals that provide thousands of diverse jobs. In 2008, around 48 percent of non-hospital healthcare establishments employed fewer than five workers. In contrast, 72 percent of hospital employees were in establishments with more than 1,000 workers. The healthcare industry consists of the following segments: Hospitals. Hospitals provide complete medical care, ranging from diagnostic services, to surgery, to continuous nursing care. Some hospitals specialize in treatment of the mentally ill, cancer patients, or children. Hospital-based care may be on an inpatient (overnight) or outpatient basis. The mix of workers needed varies, depending on the size, geographic location, goals, philosophy, funding, organization, and management style of the institution. As hospitals work to improve efficiency, care continues to shift from an inpatient to outpatient basis whenever possible. Nursing and residential care facilities. Nursing care facilities provide inpatient nursing, rehabilitation, and health-related personal care to those who need continuous nursing care, but do not require hospital services. Nursing aides provide the vast majority of direct care. Other facilities, such as convalescent homes, help patients who need less assistance. Residential care facilities provide around-the-clock social and personal care to children, the elderly, and others who have limited ability to care for themselves. Workers care for residents of assisted-living facilities, alcohol and drug rehabilitation centers, group homes, and halfway houses. Nursing and medical care, however, are not the main functions of establishments providing residential care, as they are in nursing care facilities. Offices of physicians. About 36 percent of all healthcare establishments fall into this industry segment. Physicians and surgeons practice privately or in groups of practitioners who have the same or different specialties. Many physicians and surgeons prefer to join group practices because they afford backup coverage, reduce overhead expenses, and facilitate consultation with peers. Physicians and 6

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surgeons are increasingly working as salaried employees of group medical practices, clinics, or integrated health systems. Offices of dentists. About 20 percent of healthcare establishments are dentist's offices. Most employ only a few workers, who provide preventative, cosmetic, or emergency care. Some offices specialize in a single field of dentistry, such as orthodontics or periodontics. Home healthcare services. Skilled nursing or medical care is sometimes provided in the home, under a physician's supervision. Home healthcare services are provided mainly to the elderly. The development of in-home medical technologies, substantial cost savings, and patients' preference for care in the home have helped change this once-small segment of the industry into one of the fastest growing healthcare services. Offices of other health practitioners. This segment of the industry includes the offices of chiropractors, optometrists, podiatrists, occupational and physical therapists, psychologists, audiologists, speech-language pathologists, dietitians, and other health practitioners. Demand for the services of this segment is related to the ability of patients to pay, either directly or through health insurance. Hospitals and nursing facilities may contract out for these services. This segment also includes the offices of practitioners of alternative medicine, such as acupuncturists, homeopaths, hypnotherapists, and naturopaths. Ambulatory healthcare services. This segment includes outpatient care center and medical and diagnostic laboratories. These establishments are diverse including kidney dialysis centers, outpatient mental health and substance abuse centers, blood and organ banks, and medical labs that analyze blood, do diagnostic imaging, and perform other clinical tests. Recent developments. In the rapidly changing healthcare industry, technological advances have made many new procedures and methods of diagnosis and treatment possible. Clinical developments, such as infection

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control, less invasive surgical techniques, advances in reproductive technology, and gene therapy for cancer treatment, continue to increase the longevity and improve the quality of life of many Americans. Advances in medical technology also have improved the survival rates of trauma victims and the severely ill, who need extensive care from therapists and social workers as well as other support personnel. In addition, advances in information technology have a perceived improvement on patient care and worker efficiency. Devices such as hand-held computers are used record a patients medical history. Information on vital signs and orders for tests are transferred electronically to a main database; this process eliminates the need for paper and reduces recordkeeping errors. Adoption of electronic health records is, however, relatively low presently. Cost containment also is shaping the healthcare industry, as shown by the growing emphasis on providing services on an outpatient, ambulatory basis; limiting unnecessary or low-priority services; and stressing preventive care, which reduces the potential cost of undiagnosed, untreated medical conditions. Enrollment in managed care programspredominantly preferred provider organizations, health maintenance organizations, and hybrid plans such as pointof-service programscontinues to grow. These prepaid plans provide comprehensive coverage to members and control health insurance costs by emphasizing preventive care. Cost effectiveness also is improved with the increased use of integrated delivery systems, which combine two or more segments of the industry to increase efficiency through the streamlining of functions, primarily financial and managerial. These changes will continue to reshape not only the nature of the healthcare workforce, but also the manner in which healthcare is provided. Various healthcare reforms are presently under consideration. These reforms may affect the number of people covered by some form of health insurance, the

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number of people being treated by healthcare providers, and the number and type of healthcare procedures that will be performed. Working ConditionsAbout this section Recent developments. Average weekly hours of nonsupervisory workers in private healthcare varied among the different segments of the industry. Workers in offices of dentists averaged only 27.4 hours per week in 2008, while those in psychiatric and substance abuse hospitals averaged 35 hours, compared with 33.6 hours for all private industry. Many workers in the healthcare industry are on part-time schedules. Part-time workers made up about 20 percent of the healthcare workforce as a whole in 2008, but accounted for 37 percent of workers in offices of dentists and 32 percent of those in offices of other health practitioners. Many healthcare establishments operate around the clock and need staff at all hours. Shift work is common in some occupations, such as registered nurses. It is not uncommon for healthcare workers hold more than one part-time job. Work environment. In 2008, the incidence of occupational injury and illness in hospitals was higher than the average for private industry overall. Nursing care facilities had an even higher rate. Healthcare workers involved in direct patient care must take precautions to prevent back strain from lifting patients and equipment; to minimize exposure to radiation and caustic chemicals; and to guard against infectious diseases. Home care personnel and other healthcare workers who travel as part of their job are exposed to the possibility of being injured in highway accidents. EmploymentAbout this section As one of the largest industries in 2008, healthcare provided 14.3 million jobs for wage and salary workers. About 40 percent were in hospitals; another 21 percent were in nursing and residential care facilities; and 16 percent were in offices of physicians.

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Healthcare jobs are found throughout the country, but they are concentrated in metropolitan areas. Occupations in the IndustryAbout this section Healthcare firms employ large numbers of workers in professional and service occupations. Together, these two occupational groups account for 76 percent of jobs in the industry (table 2). The next largest share of jobs, 18 percent, is in office and administrative support. Management, business, and financial operations occupations account for only 4 percent of employment. Other occupations in healthcare made up only 2 percent of the total. Professional occupations, such as physicians and surgeons, dentists, registered nurses, social workers, and physical therapists, usually require at least a bachelor's degree in a specialized field or higher education in a specific health field, although registered nurses also may enter through associate degree or diploma programs. Professional workers often have high levels of responsibility and complex duties. In addition to providing services, these workers may supervise other workers or conduct research. Some professional occupations, such as medical and health services managers, have little to no contact with patients. Health technologists and technicians work in many fast-growing occupations, such as medical records and health information technicians, diagnostic medical sonographers, radiologic technologists and technicians, and dental hygienists. These workers may operate medical equipment and assist health diagnosing and treating practitioners. These technologists and technicians are typically graduates of 1-year or 2-year postsecondary training programs. Service occupations attract many workers with little or no specialized education or training. For instance, some of these workers are nursing aides, home health aides, building cleaning workers, dental assistants, medical assistants, andpersonal and home care aides. Nursing or home health aides provide health-related services for ill, injured, disabled, elderly, or infirm

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individuals either in institutions or in their homes. By providing routine personal care services, personal and home care aides help elderly, disabled, and ill persons live in their own homes instead of in an institution. With experience and, in some cases, further education and training, service workers may advance to higher-level positions or transfer to new occupations. Each segment of the healthcare industry provides a different mix of wage and salary health-related jobs. Hospitals. Hospitals employ workers with all levels of education and training, thereby providing a wider variety of opportunities than is offered by other segments of the healthcare industry. About 28 percent of hospital workers are registered nurses. Hospitals also employ many physicians and surgeons, therapists, and social workers. About 21 percent of hospital jobs are in a service occupation, such as nursing, psychiatric, and home health aides, or building cleaning workers. Hospitals also employ large numbers of office and administrative support workers. Nursing and residential care facilities. About 63 percent of nursing and residential care facility jobs are in service occupations, primarily nursing, psychiatric, and home health aides. Professional and administrative support occupations make up a much smaller percentage of employment in this segment, compared with other parts of the healthcare industry. Federal law requires nursing facilities to have licensed personnel on hand 24 hours a day and to maintain an appropriate level of care. Offices of physicians. Many of the jobs in offices of physicians are in professional and related occupations, primarily physicians, surgeons, and registered nurses. About 37 percent of all jobs, however, are in office and administrative support occupations, such as receptionists and information clerks. Offices of dentists. Roughly 35 percent of all jobs in this segment are in service occupations, mostly dental assistants. The typical staffing pattern in dentists'

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offices consists of one dentist with a support staff of dental hygienists and dental assistants. Larger practices are more likely to employ office managers and administrative support workers. Home healthcare services. About 59 percent of jobs in this segment are in service occupations, mostly home health aides and personal and home care aides. Nursing and therapist jobs also account for substantial shares of employment in this segment. Offices of other health practitioners. About 42 percent of jobs in this industry segment are professional and related occupations, including physical therapists, occupational therapists, dispensing opticians, and chiropractors. Healthcare practitioners and technical occupations and office and administrative support occupations also accounted for a significant portion of all jobs35 percent and 31 percent, respectively. Ambulatory healthcare services. Outpatient care centers employed high percentages of professional and related workers like counselors and registered nurses. Medical and diagnostic laboratories predominantly employ clinical laboratory and radiological technologists and technicians. Emergency medical technicians and paramedics are also employed in ambulatory services. Overview: The Healthcare Industry

The Industry Defined The healthcare industry is massive and encompasses people who work in almost every profession. For the purposes of this channel however, we've limited the scope to those careers where the work involves the caring for other people in need of medical treatment, and those who manage the caregivers. This consists of physicians and nurses, of course, but also includes therapists, technicians, assistants, and related positions that can extend to such occupations as hospital or clinic administrators.

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About 545,000 establishments of widely varying sizes and structures make up the health care industry, according to the Occupational Outlook Handbook by the U.S. Department of Labor's Bureau for Labor Statistics (BLS). By far the greatest number of of health care establishments (about 76 percent) are offices of physicians, dentists, or other health practitioners. However, although hospitals constitute only 2 percent of all health care establishments, they employ 40 percent of all workers. In 2004, the BLS ranked healthcare as the largest industry in the U.S. -- providing 13.5 million jobs, including 13.1 million jobs for wage and salary workers and about 411,000 jobs for the self-employed. In addition to being the largest industry, healthcare remains among the fastestgrowing. According to BLS projections, 8 of the top 20 fastest-growing occupations are in healthcare, and the industry is also expected to lead in new wage and salary job creation -- generating some 3.6 million between 2004 and 2014. While the technology- and science-intensive industry certainly has its share of very highly educated workers, in fact it supports a wide range of jobs with varying educational requirements. Most workers have jobs that require less than 4 years of college education, according to BLS, although health diagnosing and treating practitioners are among the most educated workers.

Industry Outlook According to the BLS, job opportunities in healthcare should be excellent in all employment settings because of high job turnover, particularly from the large number of expected retirements and tougher immigration rules that are slowing the numbers of foreign health care workers entering the U.S. Wage and salary employment in the health care industry is projected to increase 27 percent through 2014, compared with 14 percent for all industries combined.

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Employment growth is expected to account for about 3.6 million new wage and salary jobs19 percent of all wage and salary jobs added to the economy over the 200414 period. Projected rates of employment growth for the various segments of the industry range from 13 percent in hospitals, the largest and slowest growing industry segment, to 69 percent in the much smaller home health care services. Healthcare Sector Over View And Trends - 2010 The Indian healthcare industry, unlike other industries, stands untouched by recession. There had been a steady growth in this sector, revenues from the healthcare sector accounts for 5.2% of the GDP, making it the third largest growing sector in India, and further the healthcare sector is projected to grow to nearly 1,80,000 crores by year 2012 and a compounded annual growth rate (CAGR) of 15-17 percent for at least the next 7-10 years. Indian Healthcare Sector structure / Market size The sector comprises hospital and allied sectors that include: (a) Medical care providers that includes physicians, specialist clinics, nursing homes and hospitals (b) Diagnostic service centers and pathology laboratories (c) Medical equipment manufacturers (d) Contract research organizations and pharmaceutical manufacturers (e) Third party support service providers

In India, 80% of all the healthcare expenditure is borne by the patients. Expenditure borne by the state is 12%. The expenditure covered by insurance claims is 3%. As a result the price sensitivity is quite high. The high level healthcare facilities are out of reach for the patients.

Among the top five therapeutic segments, gastro-intestinal and cardiac are experiencing both high volume and value growth. Opthologicals, cardiovascular, anti-diabetic and neurological drugs continue to top the

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growth list. The anti-infective, neurology, cardiovascular and anti-diabetic segments have witnessed a high number of new product launches in recent years. Current Healthcare Landscape

Amount spent on healthcare - 103,000 crores / annum 86,000 crores is the Healthcare delivery market 17,000 crores is the Retail pharma market

Key finndings of current private spending

Private spending on healthcare delivery 69,000 crores 61 % of this is spent on OPD services, 44,000 crores Indicates low levels of affordability and a disease pattern dominated by infections

39 % on IPD services = 25,000 crores 85 % of IPD spend is in 5 areas : cardio, cancer, accidents, infections and maternity

Road Ahead 2012

Private spending on healthcare delivery 156,000 crores because of an increase in population will lead to increase treatments

Change in socio-economic mix will lead to 8 % increase in treatment rate and 30 % increase in avg. price paid

Change in prices 26 % increase in price per treatment Change in mix of diseases 50 % increase in prevalence of lifestyle diseases will lead to 12% increase in treatment rate & 7 % in price and this would lead to a change in GDP from 5.2%to 6.2%

Richest 15% will account for 50% of all private healthcare spending & 60% of inpatient spend

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Private spending would increase by another 39,000 crores if the insurance is likely to impact on middle-income households approx. 350 million in 2012, leading to achieving GDP spending to 7.5% and private spending on healthcare delivery to 195,000 cr.

Healthcare Fact File Parameters No. Of Beds No. Of Doctors No. Of Nurses Infant Mortality Rate Maternal Mortality Rate % of population Insured Total Private Spending OPD Spending Hospitals Primary Health Centres / Community Health Centres Retails chemist outlets Medical Colleges Estd Current mrkt size Average life Expectancy 3,50,000 229 103,000 Crores 63.3 years 24,000 In addition 179 New 1,80,000 Crores 74 years Current 1.2 beds per 1000 50,00,000 doctors 0.8 per 1000 34:1000 4:1000 12.00% 69,000 Crores 44,000 Crores 30,000 hospitals approx 1,50,000 approx By 2012 9,14,543 In addition 6,25,130 In addition 8,36,000 In addition 10:1000 1 :1000 50.00% 156,000 Crores 82,000 Crores 17300 In addition 1,64,000 In addition

Investments plan in Healthcare The sector has been attracting huge investments from domestic players as well as financial investors and private equity (PE) firms. Funds such as ICICI

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Ventures, IFC, Ashmore and Apax Partners invested about US$ 450 million in the first six months of 2008-09 compared with US$ 125 million in the same period a year ago, according to an analysis carried out by Feedback Ventures. Feedback Ventures expects PE funds to invest at least US$ 1 billion in the healthcare sector in the next five years.

According to a Venture Intelligence study, 12 per cent of the US$ 77 million venture capital investments in the July-September 2009 quarter were in the healthcare sector. As part of its Healthymagination initiative, GE will spend US$ 3 billion over the next six years on research and development, provide US $2 billion of financing over the next six years to drive healthcare information technology and health in rural and under served areas, and invest US$ 1 billion in partnerships, content and services.

The government, along with participation from the private sector, is planning to invest US$ 1 billion to US $2 billion in an effort to make India one of the top five global pharmaceutical innovation hubs by 2020.

The Ajay Piramal Group-owned private equity (PE) firm, India Venture Advisers, will launch its second US$ 150 million healthcare fund next year.

Leading international clinic chain Asklepios International is gearing up for a foray into the Indian healthcare market. As part of the 2.3 billion euro groups strategy to enter the sub-continent, Asklepios is mulling the launch of a US$ 100 to US$ 200 million fund.

Gulf-based healthcare group Dr. Moopen is investing over US$ 200 million for setting up hospitals and eye-care centers across India.

Healthcare major, Fortis Hospitals plans to invest US$ 55 million, to expand its facilities pan-India.

Employment Opportunities

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India faces a huge need gap in terms of availability of number of hospital beds per 1000 population. With a world average of 3.96 hospital beds per 1000 population India stands just a little over 1.2 hospital beds per 1000 population. Moreover, India faces a shortage of doctors, nurses and paramedics that are needed to propel the growing healthcare industry. India is now looking at establishing academic medical centers (AMCs) for the delivery of higher quality care with leading examples of The Manipal Group & All India Institute of Medical Sciences (AIIMS) already in place. A recent survey conducted by HarNeedi.com, gives an out look on the roles that are in great demand, Specialist doctors such as, Cardiologists, Cardiothoracic surgeons, Interventional Cardiologists, Orthopedics, Emergency Medicine Specialists, Oncologists, Radiologists, Ophthalmologists, Neurologists, Neurosurgeons, Gynecologists, Urologists, Duty doctors etc are in great demand. Some of the other profiles that are in great demand are that of experienced nurses and technicians who can handle various specialties such as ICUs, Cath labs, Operation Theaters, Emergency Departments etc. Technicians, like Radiographers, CT Technician, Radiotherapy technicians, emergency medical technicians etc. are also in great demand. Considering all the above facts and the massive growth in the healthcare industry, huge investments would offer several opportunities for Indian companies to create 'win-win' situations and there would be emerging opportunities for professionals as well in the near future.

Hiring Strategies Adopted The Hiring Strategies adopted by the respondents includes: Employee Referrals

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Campus Recruitments 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.

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RECRUITMENT

The Challenges: Attract people with multi-dimensional experiences and skills Infuse fresh blood at every level of the organization Develop a culture that attracts people to the company Locate people whose personalities fit the companys values Devise methodologies for assessing psychological traits Induct outsiders with new perspective to lead the company Search for talent globally, and not just within the country Design entry pay that competes on quality, and not quantum Anticipate and find people for positions that do not exist yet

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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.

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.

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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)

Internal Sources 1. Transfer 2. Promotion

Sources of Recruitment

External Sources Advertisements, Management Consultants, Education Institutes, Recommendations, Employment Agencies, Casual Callers, Telecasting, Contractors,

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Internal Sources There are two important sources of recruitment, namely, Transfers and Promotions: 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. Filling of jobs internally I cheaper as compared to getting candidates from external sources. 25

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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 has 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. 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

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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 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:

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Qualified Personnel: By using external sources of recruitment, the

management can make qualified and trained people to apply for vacant jobs in the organization.

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.

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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. 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.

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RECRUITING SOURCES USED BY SKILL AND LEVEL

SKILL/LEVEL Unskilled, Semiskilled & Skilled

RECRUITING SOURCE Informal Contacts Walk-ins Public Employment Agencies

Professional Employees

Informal Contacts Internal Search

Managerial Level

Walk-ins Private Employment Agencies Public Employment Agencies

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RECENT TRENDS IN RECRUITMENT

Outsourcing Under this arrangement company may draw the required personnel from the outsourcing firms or agencies or commission basis rather than offering them employment. This is also called leasing of human resources. The outsourcing firms develop their human resource pools by employing people for them and make available the personnel to various companies (called clients) as per their needs. The outsourcing firms get payment for their services to their clients and give salary directly to the personnel. The personnel deputed by the outsourcing agencies with the clients are not the employees of the clients. They continue to be on the payroll of their employees, that is, the outsourcing agencies. Several outsourcing companies or agencies have come up which supply human resources of various categories to their clients. A company in need of employees of certain categories can approach an outsourcing company and avail the services of it human resources. The advantages of getting human resources through the outsourcing agencies are: 1. The companies need not plan for human resources much in advance. They can get human resources on lease basis from an outsourcing agency. 2. The companies are free from industrial relations problems as human resources take on lease are not their employees. 3. The companies can dispense with this category of employees immediately after the work is over.

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Poaching or Raiding Poaching means employing a competent and experienced person already working in another reputed company, which might be a rival in the industry. A company can attract talent from another firm by offering attractive pay packages and other terms and conditions. Whatever may be the means used to raid rival firms for potential candidates, it I often seen s an unethical practice and not openly talked about. In fact, raiding has become a challenge for human resource managers of modern organization. Website or e-Recruitment Many big organizations use Internet as a source of recruitment. They advertise the job vacancies through the worldwide web (www). The job seekers send their applications or Curriculum Vitae, that is, CV; through e-mail using Internet, which can be drawn by the prospective employer depending upon their requirements.

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SELECTION

The Challenges: Selection is a critical process Locating The Right Person Requires a huge investment of money to get right types of people. Structure of Selection Process that helps companies to test for fit Employment Tests to rightly judge the capabilities of candidates Selecting people who possess the ability and qualifications to perform

the jobs. SELECTION Selection involves a series of steps by which the candidates are screened for choosing the most suitable persons for vacant posts. The process of selection leads to employment of persons who possess the ability and qualifications to perform the jobs, which have fallen vacant in an organization. The process of selection divides the candidates for employment into two categories, namely, those who will be offered employment and those who will not be. The basic purpose of the selection process is to choose right type of candidates to man various positions in the organization. In order to achieve this purpose, a well-organized selection procedure involves many steps and at each step, unsuitable candidates are rejected. Both recruitment and selection are the two phases of the employment process. Recruitment being the first phase envisages taking decisions o the choice of tapping the sources of workforce supply. Selection is the second phase, which

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involves giving various types of test to the candidates and interviewing them in order to select the suitable candidates only. What Selection is All About? All selection activities, from the initial screening interview to the physical examination if required, exist for the purpose of making effective selection decisions. Each activity is a step in the process that forms predictive exercisemanagerial decision makers seeking to predict which job applicants will be successful if hired. In actuality, the selection process represents an effort to balance the objectives of evaluating and attracting. Significance of Selection Process Selection is a critical process these days because it requires a huge investment of money to get right types of people. If the right types of persons are not chosen, it will lead to huge loss of the employer in term of time, effort and money. Therefore it is essential to devise a suitable selection procedure. Each step in the selection procedure should help in getting more and more information about the applicants to facilitate decision-making in the area of selection. The benefits of selecting right kind of people for various jobs are as follows: Proper selection and placement of personnel go a long way towards

building up a sable workforce. It will keep the rates of employee turnover low. Competent employees show higher efficiency and enable the

organization to achieve its objectives effectively. When people get jobs of their taste and choice, they get higher job satisfaction & in turn result into a part of a contended workforce for the organization. Selection Procedure The procedure of selection varies from organization to origination. The number of steps in the procedure and the sequence of steps also vary. Every organization

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designs a selection procedure that suits its requirements. However the main steps or stages that could be incorporated in the selection procedure are as under: 1. Preliminary Interview 2. Receiving Applications 3. Screening of Applications 4. Employment Test 5. Employment Interview 6. Physical Examination 7. Checking References 8. Final Selection

RECEPTION OF APPLICANTS

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REJECTION If found unsustainable

Recruitment & Selection Trends in FEHJ

Unfavorable general Impression

Preliminary Interview

Receiving Applications

Screening of Applications

Unfavorable Personal Data

Unfavorable Test Score

Employment Tests

Unfavorable Second Impression

Interview

Reference Check

Unfavorable Previous History

Medical Examination

Medically Unfit

FINAL SELECTION

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STEPS OF SELECTION PROCESS

Stage 1: Preliminary Interview In most of the Organizations, the selection program begins with preliminary Interview or screening. The preliminary interview is generally brief and does the job of eliminating the totally unsuitable candidates. The preliminary interview offers advantages not only to the organization but also to the applicants. It generally consist of a short exchange of information with respect to organizations inters in hiring and candidates inquiry. Stage 2: Receiving Applications Whenever there is a vacancy, it is advertised or enquiries are made from the suitable sources, and applications are received from the candidates. Stage 3: Screening of Application After the applications are received, a screening committee screens them and a list is prepared of the candidates to be interviewed. Applicants are then called on the basis of certain criteria. The screened applications are the reviewed by the personnel executives. Stage 4: Employment Tests Individuals differ in almost all aspects one can think of. They differ with respect to physical characteristics, capacity, level of mental ability, their likes & dislikes and also with respect to personality traits. Organizations rely to a considerable extent on the following employment tests: Intelligence Tests Aptitude Tests Proficiency Tests

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Interest Tests Personality Tests

Employment tests are widely used for judging the applicants suitability for the job. They bring out the qualities & weaknesses of individuals that could be analyzed before offering them jobs. Stage 5: Employment Interview The main purposes of an employment interview are: To find out the suitability of the candidate, To seek more information about the candidate, and To give candidate accurate picture of a job with details of term & conditions and some idea of organizations policies. Employment Interview may consist of number of rounds of interview with various interviewers. Stage 6: Checking References A referee is potentially an important source of information about a candidates ability and personality if he/she holds a responsible position in some organization or has been an employer of the candidate. Stage 7: Medical Examination The pre-employment physical examination or medical test of a candidate is an important step in the selection procedure. Medical examination as part of selection procedure depends entirely upon the kind of jobs to be offered to the candidates. For instance some industries do not take up medical examinations of the candidates at all. Stage 8: Final selection & Appointment letter

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Recruitment & Selection Trends in FEHJ

After the candidate has cleared all the hurdles in the selection procedure, he/se is formally appointed by issuing an appointment letter o by concluding with him/her a service agreement. Generally in all organizations, the candidates are not appointed on permanent basis because it is better to try them for few months on the job itself. Thus all candidates have a probation period & candidates are expected to show their worth during the probation period to get permanent employment in the particular organization. Classification of Employment Tests & Interviews Employment Tests Intelligence Tests: These tests are used to judge the mental capacity of the applicants. They measure the individual learning abilities, i.e., the ability to catch or understand instructions and also ability to make decision and judgment. These tests are used in the selection of personnel for almost every kind of job from the unskilled to the skilled one. Aptitude Tests: Aptitude means the potential that an individual has for learning and skills required to a job efficiently. They measure an applicants capacity and his potential for development.

Proficiency Tests: Proficiency Tests are those, which are designed to measure the skills already acquired by the individuals. A proficiency test takes a sample of individuals behavior, which is designed as replica of the actual work situation.

Interest Tests: Interest tests identify patterns of interest that is areas in which the individual shows special concern, fascination & involvement. These tests will suggest what types of jobs may be satisfying to the employees.

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Personality Tests: Personality test probes the qualities of the personality as a whole, the combination of aptitude, interest and usual mood & temperament.

Employment Interviews The nature of employment interviews varies from firm to firm. It may conducted in the following forms: Patterned or Structured Interview: In this interview, a series of questions, which can illuminate the significant aspects of the applicants background, are standardized in advance. During the interview, the standardized questions are asked as they are written; the order may vary but not the phrasing of the questions. Unstructured or Non-directed Interview: The interviewer does not ask direct & specific questions. He/she creates an atmosphere in which the candidate feels free to talk on the subject selected by the interviewer. Preliminary or Background information Interview: This type of interview is conducted when the history of the applicant has to be known in terms of his experience, education, health, interest & so on. It is more or less a preliminary interview. Stress Interview: The applicant is intentionally put under a stress by interrupting him, criticizing his/her viewpoint and keeping silent after he has finished speaking. Group Interview: It is an interview of a number of applicants in a group. The interviewers can see reactions of the applicants in dealing with each other. It is used where it is essential to know how the candidates behave in a group.

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Recruitment & Selection Trends in FEHJ

Recruitment & Selection Process Hiring Strategies (Sources of Recruitment) External sources 1. 50% of hiring through Employee referrals: In case of Referrals, 50% of the first salary of the new recruit is paid to an employee who referred him/her.

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Recruitment & Selection Trends in FEHJ

2. Consultants Internal Sources 1. Transfers 2. Promotions Selection Procedure Mode of Selection Round 1: Round 2: Round 3: Written test-General Aptitude Test Test for Specific Skill Sets (Process Specific) HR Round

Steps Followed 1. Preliminary Interview 2. Receiving Applications 3. Screening of Applications 4. Employment Tests 5. Employment Interview 6. Final Selection & Appointment Letter 7. Induction Types of Employment Tests Aptitude Tests Proficiency Tests (Process Specific: Voice or Non-voice)

Kind of Employment Interviews Group Interview

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Recruitment & Selection Trends in FEHJ

Process Specific Interview

Client Participation in the Recruitment Process Clients Participate in the Recruitment Process only at the time of Process Initialization. Average Duration Of the Training Period 2 Months Average Duration of the Probation Period 6 months Measures Adopted to Check Retrenchment Rate People Oriented policies, practices & initiatives Performance Monitoring & Appraisal System is made highly transparent. Appropriate Incentives to employees at various levels.

Recruitment & Selection Process in hospital (Sources of Recruitment) External sources 1. 2. 3. 4. 5. 6. 7. 8. Employment Agencies Management Consultants Contractors Website/e-Recruitment Employee Referrals/Recommendations Educational Institutions Casual Callers Telecasting

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Recruitment & Selection Trends in FEHJ

9. 10.

Advertisements Poaching/ Raiding

Internal Sources 1. Promotions 2. Transfers Selection Procedure Mode of Selection Round 1: Round 2: Round 3: Round 4: Round 5: Written test-General Aptitude Test Test for Specific Skill Sets (Process Specific) Group Discussion Personal Interaction Round (PIR) HR Round

Steps Followed 1. Preliminary Interview 2. Receiving Applications 3. Screening of Applications 4. Employment Tests 5. Employment Interview 6. Final Selection & Appointment Letter 7. Induction

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Recruitment & Selection Trends in FEHJ

Types of Employment Tests Intelligence Tests Aptitude Tests Proficiency Tests Personality Tests

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Kind of Employment Interviews Structured Interview Unstructured Interview Background Interview Stress Interview Group Interview

Client Participation in the Recruitment Process Clients Participate sometimes for Final Screening (happens occasionally) Average Duration Of the Training Period 20-30 Days Average Duration of the Probation Period 12 months

Alternatives to Recruitment

Some of the options in this regard may be listed thus: Overtime: Short term fluctuations in work volume could best be solved through overtime. The employer benefits because the costs of recruitment selection and training could be avoided and the employee in the form of higher pay. However,

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an overworked employee may prove to be less productive and turn out less than optimal performance. Employees may slow down their pace of work during normal workings hours in order to earn overtime daily. In course of time, overtime payments become quite routine and if any reason these payments do not accrue regularly employees become resentful and disgruntled. Subcontracting; To meet a sudden increases in demand for its products and services, the firm may sometimes go for subcontracting instead of expanding capacities immediately. Expansion becomes a reality only when the firm experiences increased demand for its product for a specified period of time. Meanwhile the firm can meet increased demand by allowing an outside specialists agency to undertaken part of the work, to mutual advantage. Temporary employees: Employees hired for limited time to perform a specific job are called temporary employees. They are particularly useful in meeting short term human resources needs. A short term increase in demand could be met by hiring temporary hands from agencies specializing in providing such services. Its big businesses idea in United States these days ($3 $4 billion industry). In this case the firm can avoid the expenses of recruitment and the painful effects of absenteeism labor, turnover etc. It can also avoid fringe benefits associated with regular employment. However, temporary workers do not remain loyal to the company. They may take more time to adjust and their inexperience may come in the way of maintaining high quality. Employee leasing: Hiring permanent employees of another company who possesses certain specialized skills on lease basis to meet short term requirements although not popular in India is another recruiting practice followed by firms in developed countries. In this case, individuals work for the leasing firm are the leasing agreements / arrangement. Such an arrangement is beneficial to small firms because it avoids expense and problems of personnel administrations.

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Outsourcing: Any activity in which a firm lacks expertise and requires on unbiased opinion can be outsourced .Many businesses have started looking at outsourcing activities relating to recruitment training, payroll, processing, surveys, benchmark studies, statutory compliance etc more closely because they do not have the time or expertise to deal with the situation. HR heads are no longer keeping activities like resume management and candidates sourcing their daily scrutiny. This function is more commonly outsourced when firms are in seasonal business and have cyclical stuffing needs. Evaluation of the Sources of Recruitment: Companies have to evaluate the sources of recruiting carefully looking a cost, time, flexibility, quality, and other criteria before earmarking funds for the recruitment process. They cannot afford to fill all their vacancies through a particular source. Time lapse data (TLD): They show the time lag between the date of requisition for manpower supply from a department to the actual date of filling the vacancies in that department. For example, a companys past experience may indicate that the average number of days from application to interview is 10, from interview to offer is 7, offer to acceptance is 10 and from acceptance to report for work is 15. Therefore, if the company starts the recruitment and selection process now, it would require 42 days before the new employees joins is ranks. Armed with this information the length of the time needed for alternative sources of recruitment can be ascertained before pinning hopes on a particular source that meets the recruitment objectives of the company.

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