Case Analysis:

RECRUITMENT OF A STAR

Problem Statement:
Which candidate should Stephen Connor, the director of research at RSH, select from the given pool of prospective
candidates to replace the position of Peter Thompson, the star semi-conductor analyst, who had submitted his resignation.

External Analysis:
Factors

Political

Economic

Factors as in the case

Institutional
ranking

The cyclical growth patterns in the

semiconductor industry
The highest-profile personnel have been
shuffling firms lately
The industry is presently going through
a boom phase

Socio-Cultural

Technological

Legal

Impact

Environmental

Internal Analysis

Investor(II)

magazine

The industry average retirement age

was approximately 45 to 50
The Analyst job profile required a lot of
travelling and cordial relationship with
sales team and clients.
Strong corporate culture in research
divisions
Tech
intensive
research
and
development
departments/firms/industry

Star ranked analysts have a better market

recognition and earn significantly higher
compensation than others. Firms that have
Star senior analysts working for them had
higher credibility in the market which increased
the overall business opportunities.
The semiconductor business had been cyclical
from the beginning, with constant rise and fall
in growth patterns.
There was a lot of
unwillingness or/and abrupt changes in the
senior level designations in the industry. The
industry is presently going through a boom
phase and so, there is a huge demand for
prospective star performers and better
investment opportunities.
The industry demanded that an analyst should
be tech savvy and ready to travel. The need to
maintain cordial relationship with clients and
sales team required a younger or well-seasoned
personnel. A strong corporate culture and
support system in a firm was a competitive
advantage in the industry.
State-of-the-art technology for research, and
dedicated technically proficient staff made the
difference in the industry. Timely and
appropriate query redressal of clients and sales
teams using various technological media was of
upmost importance in the industry.

Prompt and apt response to clients

needs and queries through email and
other media.
Technical expertise
High chances of law suits in Customer centric, highly competitive and
research intensive industry was liable to many
investment banking industry

N.A

law suits. Employees have to be technically

proficient and extra careful to avoid unwanted
legal actions.
N.A

Industrys perspective SWOT

Strength

Weakness

Research intensive and usage of state-of-the-art

technology
Presence of star rated analysts and prospective upcomers

Opportunity

The highest-profile personnel have been

shuffling firms lately
The industry average retirement age was
approximately 45 to 50

Threats

The industry is presently going through a boom

phase, so better growth opportunities

Cyclical economic growth patterns

RSHs perspective SWOT:

Strength

Weakness

Only one senior semiconductor analyst

No proper succession planning policies

Little support from top management for

development-and-training programmes

Difference in point of view between John and

Stephen

Iconic brand name, hence global reach

Follow a team oriented approach and encourage
teamwork
Low turnover rate
Family-like working atmosphere
Good support staff
Numerous well-trained juniors and dedicated
administrative staff
Known for women empowerment
Flexibility in employee travel scheduling
Dedicated to producing high quality research
Commitment to global work
Formal training programs, employee engagement
and mentorship
Daily and regular team briefings

Opportunity

Big deal coming up with Power Chip

Company
The industry is presently going through a boom
phase, so better growth opportunities for RSH
Consistently high rating in II magazine.

Peters perspective SWOT:

Threats

Competition from other established firms

Cyclical economic growth patterns

Strength
Star analyst
Incredibly intelligent
Superior analytical skills
Achiever-Go getter-proactive
Workaholic-precision work
In depth industry knowledge
Good stock-picker and writer

Weakness
Lone worker
Extremely competitive
Made others uncomfortable
Motivated by money
Shenanigans

Opportunity

Threats

II star rating gave him better career opportunities

elsewhere
Access to top clients and upper management

People started distancing themselves from him

David Hughes perspective SWOT:

Strength

Weakness

Good credentials (High rank)

Highly recommended, ranked 2 in II
Well-seasoned
Razor-sharp mind
Punctual
Vast Industrial contacts and knowledge
Team player and an excellent mentor
Celebrity/Legend in Wall Street

Opportunity

Might be able to attract more top notch clients

Mentoring junior analysts
Willing to take up work challenges

Gerald Baums perspective SWOT:

Aged
Travelling will be a problem
Not tech savvy
Relies heavily on assistants
Prefers family to work
Requires a contract guaranteeing compensation
for at least 2 years

Threats

Stiff competition from other firms younger

counterparts

Strength

Weakness

Ranked 11th within 18 months of joining as per

II.
Extremely intelligent
Pleasant young man
Maintains active travel schedules and replies
promptly
Highly enthusiastic for research
Work experience in Sales department

Opportunity

High chances of moving up the II ranking

Uncanny native sense when it comes to stockpicking

Compensation centric working style

Threats

At times cocky
History of jumping companies

Sonia Meethas perspective SWOT:

Strength

Weakness

Mentioned by II as an Up-and-comer
8th rank in II
In depth industry knowledge
Good communication skills
Tech-savvy and long term industry vision
Punctual

Opportunity

High chances of moving up the II ranking

Her use of financial models provides clients with
better insight
Seeking a lucrative job offer

Seth Horkums perspective SWOT:

Inexperienced when it comes to working with

big firms

Threats

Mother of two small children, hence travelling

might be a huge problem
Inflexibility of scheduling

Strength

Weakness

Ranked 5th by II
Brilliant stock-picker
Highly enthusiastic for research
Congenial personality
Impressive quality of work

Opportunity

RSH Sales team can promote his product

Always eager to please

Threats

Other employees might take advantage of his

personality

Rina Sheas perspective SWOT:

Strength

Weakness

Hard working
Strong interest for Semiconductor field
Three years work experience at RSH
Highly qualified
Business savvy

Opportunity

Promotion opportunity
Fully up to date on Powerchip project

Inexperienced in Senior analyst profile

Less preferred by Head of Sales and Trading
director of research

Threats

Suitable candidate filling up the Senior analyst

post at RSH

Factors:

Organizational commitment and ability to work effectively with Sales force, traders and buy side helps to

effectively understand the clients needs and work efficiently.

Willingness to work in teams and mentor junior analysts goes a long way in the growth of the firm.
Proactive mentality helps to take on additional projects.
Technical expertise helps to tap the industry growth sectors properly and attract prospective clients.
Industry knowledge is of upmost importance for picking stock and writing proper reports.
II rankings are the benchmarks that showcase the talent and worth of any analyst.
Client oriented approach and customer centric focus is a key to future growth opportunities.
Stock selection differentiates a true star analyst from the rest.
Willingness to travel and meeting up with clients, sales and buyer teams regularly was a part of the job.
Industry connections and contacts have a big impact on the firms trading commission revenue.
Writing reports is an integral part of the job description.
Punctuality was a trait that Spencer truly valued, as the job profile required traveling and meeting up
with clients and sales and buyer teams regularly.

Key Factors:
Critical Factors

David Hughes

Gerald Baum

Sonia Meetha

Seth Horkum

Rina Shea

11

---

Technical expertise

Very High

High

High

High

Low

Organizational commitment

Moderate

Low

High

High

High

Contacts in the Industry

Very High

High

High

High

Low

Moderate

High

Low

High

Moderate

Moderate

Low

High

Moderate

High

High
High

High
High

Very High
Moderate

High
High

Moderate
Moderate

II Ranking

Willingness to travel
Willingness to work in teams
and guide junior analysts
Writing of Reports
Stock Selection

Constraints

Shortage of time:

Stephen Connor is not given adequate time to select the right candidate for the post of Senior analyst. The
upcoming Power chip proposal is an important project for RSH and thus there is not enough time to
consider other options.
Compatibility with Sales team and other employees:
The new senior analyst should quickly jell with the Sales team and other employees to effectively
function.

The highest-profile personnel have been shuffling firms lately in the industry:
The semiconductor business had been cyclical from the beginning, with constant rise and fall in growth
patterns. There was a lot of unwillingness or/and abrupt changes in the senior level designations in the
industry. There is thus a limited choice of prospective candidates for the post.

Options & Evaluation:

1. Selection of David Hughes:
Adv.: Well-seasoned analyst and effective mentor. Vast domain knowledge and contacts will surely help RSH.
Dis-adv.: His age, doubtfulness to travel, requirement of a two year guaranteed compensation

contract.
2. Selection of Gerald Baum:
Adv.: Has impressive professional traits and the technical fit for the analyst profile is high.
Dis-Adv.: Low dedication towards the former employer.
tough boss to work under

Less interested in mentoring juniors and seems to be a

3. Selection of Sonia Meetha:

Adv.: She is considered an up-and-coming analyst by II. Given the advanced R&D opportunities and contacts
available at RSH, she can do wonders. Long term vision, in depth knowledge of the industry and ability to connect
with clients,
Dis-Adv.: Flexibility in scheduling and travelling may be a huge problem owing to her children. Inexperienced in
dealing with big clients and investment bankers.
4. Selection of Seth Horkum:
Adv.: RSH Sales team can promote his product and he has impressive professional and personal traits
Dis-Adv.: His eagerness to please others attitude might lead to people taking advantage of him
5. Selection of Rina Shea:

Adv.: No time delay in onboarding. Already accustomed to RSH work habits and sales team.
Dis-Adv.: Not acceptable to certain members of top management. Fairly inexperienced to handle senior analyst post.
6. Try to bring back Peter Thompson by some means:
Adv.: Already established star analyst and familiar with RSH working environment.
Dis-Adv.: Might cause uneasiness to present employees. May have to pay a huge compensation.
7. Pull data from II rankings and Greenwich Associates and search for more prospective candidates:
Adv.: May have access to candidates with better credentials than those suggested by Triple S and Clifford Associates.
Dis-Adv.: Shortage of time. Have to make a quick decision due to the upcoming proposal.
8. Request Triple S or Clifford Associates for more prospective candidates:
Adv.: May have access to more candidates with better credentials.
Dis-Adv.: Shortage of time. Have to make a quick decision due to the upcoming proposal.
9. Bring over someone from one of the buy-side firms:
Adv.: Follow the same stocks as RSH analysts, perform detailed analyses, write internal reports and interact with
portfolio managers regularly.
Dis-Adv.: No sales-skills and industry knowledge. Unacceptable to certain RSH senior analysts.
10. Selection of David Hughes as Senior analyst and Rena Shea as deputy Senior analyst:
Adv.: Using the excellent combination of Davis Hughes industrial expertise and reach with the assistance of Rena.
Rena can effectively take care of the shortcomings that David may have like travelling and age related difficulties. In
the long term, Rena is trained to takeover Davids position when he chooses to resign.
Dis-adv.: Creation of a new post of deputy senior analyst for Rena and marginal increase in costs.

Recommendation
Keeping in mind the best interests of the firm and professional and personal traits required as per Stephen Connor, our
Group suggests Option 10, using the excellent combination of Davis Hughes industrial expertise, reach ans razor
sharp acumen with the assistance of Rina.
Rena can effectively take care of the shortcomings that David may have like travelling, technological approach and
Critical Factors

David Hughes

Rina Shea

---

Technical expertise

Very High

Low

Organizational commitment

Moderate

High

Contacts in the Industry

Very High

Low

Moderate

High

Moderate-High

High

High
High

Moderate
Moderate

II Ranking

Willingness to travel
Willingness to work in teams and guide junior
analysts
Writing of Reports
Stock Selection

age related difficulties. In the long term, Rina is trained to takeover Davids position when he chooses to resign.
David and Rena will effectively be able to mentor junior analysts. David can guide and enable Rina to make the
necessary stock pickings and report writings even if there is any Family urgency. This option would also enable Rina
to enter and then climb up the II ratings. Thus in the long term, RSH would have two star analysts. This would
enable better branding and growth opportunities.

On observing the above factor table, we can clearly see that the shortcomings of both the analysts are complementary.
Making best use of both the analysts knowledge, contact, and influence can positively contribute to RSHs long term
growth. The long term benefits over weigh the cost factor of appointing two analysts.