kiran s project on braintree
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BRAINTREE HR CONSULTING PVT. LTD.
BELGAUM INSTITUTE OF MANAGEMENT STUDIES (MBA) 1
EXECUTIVE SUMMARY
Outsourcing the human resource (HR) processes is the latest practice being followed
by middle and large sized organizations. It is being witnessed across all the industries. InIndia, the HR processes are being outsourced from nearly a decade now. Outsourcing
industry is growing at a high rate. The study is therefore is being done to identify the scope
for Recruitment Process Outsourcing through consultancy firms. The following are the
objectives of the study.
To identify the benefits of outsourcing recruitment and understanding the recruitment
process.
The Project contains details about the various criteria of outsourcing recruitment.
The project highlights the reasons why companies indulge in outsourcing recruitment and
the merits and advantages of outsourcing recruitment to direct hiring.
It also enumerates various factors to be considered before outsourcing recruitment.
Identify the various practices of recruitment existing in the industry. The project should
have a detailed understanding of the methods adopted by recruitment agencies to make the
hiring process quicker.
The information necessary for this survey is collected by tapping primary & secondary
source:
Primary sources:
Questionnaire
Personal interaction
Secondary sources:
Related information from Internet.
Company Website and Booklet
The questionnaire shall be personally given to the selected people (sample size) in
Bangaluru, & responses will be analysed and interpreted for the purpose of study being
conducted.
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INTRODUCTION
Nowadays, many businesses have started taking outsourcing into consideration for the
completion of various tasks. Every possible task can be completed with the help
of outsourcing, may it be human resources, technical support, billing, or management etc.
Carrying out all the tasks be a possibility but certain departments can utilize the help of
outsourcing in doing so. Mainly the department of the recruitment activities needs assistance
in appropriate talent acquisitions.
Recruitment Process Outsourcing (RPO) is basically when a business hire and
external service provider for recruitment activities of its own and these vendors take over all
or part of the firm’s responsibilities. This may include preparing job descriptions, evaluating
resumes, scheduling and conducting interviews of the eligible candidates.
Recruitment Process Outsourcing also provides additional benefits to the business. If
a company comes to terms with a seemingly appropriate RPO provider, the advantages that it
can gain may include speed and convenience in the recruitment process of new and potential
employees; access to a large number of applicants with the possibility of acquiring the most
potential and qualified among them. The best advantage of all is that the RPO provides the
firm with improved reports, savings on the budgets spent on recruitment processes and easier
to comply with various government standards. Some companies consider the option of hiring
the RPO vendors on temporary basis to outsource in part of the recruitment process however
this actually means that the company is not literally outsources but only assist it to fulfil the
staff needs. Whereas the process of the RPO is totally different, that is the vendor takes over
the ownership of the recruitment activity.
The Recruitment Process Outsourcing has gained favour among companies over time.
The HR department analyzed the benefits outsourcing brought to the business by reducing the
overhead costs and raising business standards. It became more acceptable when companies
realized that outsourcing brought additional benefits in various tasks in terms of time and
resource application in things like taxes and payroll etc.
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So overall a Recruitment Process Outsource provider benefit the establishment in
terms of saving of money, improving and speeding up the hiring process and provide a wide
range of access of experienced, potential and the most qualified pool of applicants to the
employers.
Recruitment Process Outsourcing Companies only focus and take responsibility over
the recruitment processes allotted by the company who hired them and allow them to keep
track and stay updated with the latest recruitment methodologies and procedures regarding
the recruitment activities.
The business world has experienced a phenomenal growth in recent past and
companies are getting more concerned about the recruitment process of their employees
including freshers and other positions available. It is indeed a time consuming task to select a
pool of best candidates out of thousands of applicants. Of course, the entire process
constitutes a series of steps which also incurs lot of additional expenses on a huge amount. It
becomes a more difficult task for amateur investors, who face lot of hurdles in selecting the
best employees for the progress. This is when RPO companies come to the rescue. Read on to
know more.
There are many noteworthy benefits with availing RPO process. It enables companies
to secure best talent among the candidates. The quality of human resource that a company
hires plays a major role in its betterment. RPO solutions have a set of experienced HR
persons who make sure to select the most suitable candidates. The most attractive rpo
recruitment advantage lies in the fact that it stems out major expense troubles during the
recruitment process otherwise. This is a smart way to save huge sum of money and save it on
other developmental purposes of the company. There are instances when recruiters of companies require onsite support in the recruitment process. Thanks to recruitment
outsourcing companies which provide onsite expert support when needed. When a company
hires another company for providing recruitment outsourcing it gains access to the latest
technology very easily. The firms are well equipped with newest trends in technology and
make the best use of it.
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Whilst a set of your company members were previously engaged in the recruitment
activity all the time, with the introduction of RPO recruitment, you can use the man power in
some other activity as it now becomes the responsibility of the agency to carry it further. This
will ensure that you provide high quality service to your clients. Experts who have a higher
experience in the field of recruitment process outsource have discovered that the turnaround
time of the company improves considerably. The efficiency of the company shoots up which
adds to the advantages. Moreover, the RPO services are a way to avail international expert
guidance in the recruitment process as the agency provides off-shoring services. Thus once
you select the right outsourcing company you can rest assured about the smooth recruitment
process throughout and make the best use of man power.
Role of RPO Companies
According to the Recruitment Process Outsourcing Association (RPOA), the official
definition for the RPO is “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, provideverifiable metrics, reduce cost and improve governmental compliance.“
Besides that, sporadic recruitment support, like short-term, emergency, retained and
executive search services are more akin to outsourcing but are not actually that. This is more
of a service provider or projects based outsource group’s activity and is not part of RPO.
The main role of RPO companies is to act on behalf of their client in the process of
hiring staff just as their own HR team would have done. This is usually to support a company
as an insider to reduce their workload of fresh recruiting or hiring at all tiers. The key
difference is assuming the ownership of the entire process of hiring by the RPO companies,
while the other types of HR service provider acts as part of a process controlled by the client
organization.
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With RPO companies in aid, the hiring organization can continue to focus its efforts
on their business without involving in the process of hiring as this tends to slow, or even stop
their functioning. Professional RPO companies assure their hosts with confidentiality and
timeliness and offers improvement in quality, cost, service and speed. This is what makes
hiring professional RPO companies worth its while.
The need for hiring RPO companies arises from the fact that when a company
calculates its managerial staff’s commitment in terms of employment in productive activities
and find hiring lesser productive but essential task which requires deliberation at the same
time and means the future output of the company. This has to be handled in a very
professional way so that the staff in future is competent and can function well in the
company’s working environments. RPO companies can be hired for their valuable services as
a permanent faculty of HR department for managing a continuous process of hiring or work
on case to case bases, depending solely on a company’s hiring frequency and their budget for
this purpose.
Tool for Quick Hiring
Most people, who have been managing their own business for more than 25 yearsnow, will agree that things have violently changed as far as the attitude of the employees is
concerned. According to a survey carried out in USA, an unbelievable 33% changed their
bosses while staying in the same field of business, while 8% changed their field altogether.
This trend has ever since been on the increase as people keep changing their jobs very often
while searching better opportunities for them.
This tendency is found more in young men as compared to middle aged men. Though
this is not a sex oriented issue, but women have been found to this less as compared to men.
In either case, the sufferer is always the company which loses a working hand and has to look
for another person to fill in the void.
Since 1990, a new concept based field has emerged to help out medium and large
sized businesses with hiring problems, as this aspect being non productive, take up a lot of
time and effort and also there I a decrease I the productivity as rehiring and training of new
staff takes a lot of time. Recruitment Process Outsourcing (RPO) has emerged as one of the
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greatest tools to resolve hiring issues for companies that face this problem very often and
have to have hiring as an ongoing process to keep the voids filled as all times.
Now these companies can get the services of a Recruitment Process Outsourcing
(RPO) firm which takes over the hiring issues of the firm and keeps their strength at 100% at
all times. Recruitment Process Outsourcing (RPO) gives very definite benefits to the
company that they function with by reduced their recruitment costs as they are equipped to
carry out this task and the company’s staff is free to do their jobs. Their well developed
procedures and methods accelerate hiring times and reduce the period for which the void
remains unfilled. Their testing and interviewing techniques ensures improved quality of
candidates who are shortlisted and thereby future wastage of employees is reduced. Through
this optimum flexibility and scalability is achieved by the company at a very minor cost.
Recruitment Process Outsourcing (RPO) has now established itself as a very potent
tool for the multinational and corporate companies especially in the marketing field where
employee wastage is on the higher side and hiring is a very regular feature.
Outsourcing Recruitment is the Next Version of BPO
The BPO industry has shown tremendous growth in the recent times. Almost everything in
any part of an industry can be outsourced to a third party today who handles and manages the
whole process. Right from the technical support a company needs to the human resources can
be outsourced. Outsourcing recruitment has just taken the BPO in to the next level where the
whole recruitment process of hiring talented employees is outsourced to a firm. This firm is
responsible for handling all or only a portion of the process of recruiting and this is decided
by the HR department of the respective company.
There is a huge difference between totally outsourcing recruitment rather than only a portion
of hiring. A true RPO is where the whole ownership of the whole recruiting process is
transferred to the outsourced firm which handles everything right from creating job
descriptions, advertising, filtering and grouping different job profiles, and finally
interviewing the filtered applicants. Apart from all this the firm also keeps the record and all
the reports pertaining to that recruitment process. All this is done keeping in mind the
objective and the kind of people the company wants to hire.
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Outsourcing recruitment has many advantages to it but to get the best out of these
outsourcing firms is a big challenge. A company should outsource it to a potential recruiting
firm which has excellent resources and a good methodology in hiring. Professional HR firms
is one good choice who totally redefine the whole outsourcing process into another level and
are capable of hiring a talented pool of employees. Generally outsourcing recruitment
improves the quality of hiring, reduces the cost as there is no fixed investment being made by
the company and is fluctuating depending on the number of people to be hired, and also
definitely reduces the amount of time a company spends in hiring. This greatly helps as the
company can throughly concentrate on improving their business rather than the HR
department doing the whole recruitment.
The usage of RPO for staff hiring is being used on a large scale by many companies
today and for a successful outsourcing recruitment process the company should monitor
regularly the activities performed by these RPO firms to be assured of getting those intended
results. When all these are taken proper care of outsourcing recruitment can do wonders for a
company which is fast expanding.
Recruitment Process Outsourcing can add Value
In today’s world where finding a reasonable job is not an easy task even in the
presence of job boards of the kinds of reed, monster and a few more, the personal element
that we used to know of has been taken off from the process of job searching.
However, in the United Kingdom you can do yourself a big favor by selecting the
right company for recruitment who are specialists in their field. There are certain websites
operating in the UK as well, who can help you a great deal by saving your time, energy and
keeping you from stress and finding you a reasonable job.
Majority of the recruitment consultants you will come across are likely to be
specialists and those who have been serving people for some time. They must have practiced
their skills of good communication and working in the job market of your field. The are many
UK based recruitment specialists operating in the capital city of London. Not only these
specialists help in recruitment but also with employment law and give advice to the
businessmen.
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There is a big benefit of internet for people looking for a job. The general salary data
of UK can be reviewed over the internet. This way the interesting parties can find out what
salaries are being given to employees in certain field and what overall packages are being
offered to them. The reason for success of many recruitment companies is due to the fact that
they are contacted by qualified personnel. By making good use of these personnel’s, the
recruitment company can gain a great deal and show the world how far these people have
gone in their field but truly that is only because of the abilities and their qualifications. By
giving authority to a RPO firm, a lot of work process is actually given to them for completion
which saves a lot of time and effort for the other work that needs to be done. If there are no
need of employing an RPO firm for certain issues then you can instead work on the option of
hiring workers on temporary basis.
In certain possibilities you are likely to get a rebate within a certain time and get
another candidate to work for you if the previous candidate was unsuitable for you. The RPO
agencies directly pay their temporary workers and the tax liability is also on them. This again
is saving you some time for your more important work.
Recruitment Process Outsourcing models of a business compared to those of the
traditional recruitment models mainly depend on business’ economies of scales, economies of
scope, cost and flexibility. Under the condition of filling the position first, the retainer of the
business requires or demands for a payment for the upfront which is followed by another fee
based on success. In a similar way, firms can avoid spending a lot on the up-front costs by
carrying out an analytical and predictable search. There is however difficulty faced in filling
up the position of the contingency firm because no guarantee can be provided in doing so and
spending the additional amount of money is quite difficult as well.
On the other hand, under the conditions of the in-house traditional recruitment model,
when a firm plans to hold major hiring uptick, the first thing that they require to start off with
the task is to hire a team of recruiters which would take complete authority in bringing
forward or recruiting the eligible candidates suitable for the position the firm offers. These
recruiters, also referred as to “mercenary” recr uiters, are paid very well for doing this kind of
job and work temporarily on the basis of severance packages and they are then again
consulted for the next hiring uptick session.
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Outsourcing Process Flow Chart
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CRITICAL REQUIREMENTS For any managed services model to work there are some critical requirements or must
haves like
Executive sponsorship of the project. Any business model innovation requires the executive
to champion internal resistance into acceptance.
Clear Partnership Definition - A detailed and clear scope of work to be defined before
agreeing on to the terms. The managed services agreement will have the scope of work
documented & agreed upon.
Clarity on the role & the deliverables from the onsite resource & the same to be documented
& mutually agreed upon.
Mutually agreed expectations to be jotted in the agreement. Prepare a project plan with
defined recruitment process & get a consensus on the same.
Historical data to be made available so as to help prepare a project plan blocking all
possible loop holes and deciding on the key deliverables.
It’s imperative for the success of this arrangement that we have a buy in from each person
involved in the project from Clients side and everyone understand that the intention is to
meet the numbers and nothing else.
Factors to be consider before selecting a Recruitment Consultant
If an organisation decides to outsource its recruitment processes or activities, it is very
important to find and select a suitable recruitment consultant or consultancies, which can
deliver results according to the needs of the organisation. Today, there are thousands of
consulting firms (consultancies) as well as freelance consultants working independently. An
organisation looks for various considerations and qualities before selecting the suitable
recruitment consultant.
The reputation of the consulting firm in the job market (based on expertise and
experience).
Who are the consultant’s or firm’s past and present clients?
Consultant’s expertise and experience (from how long has he/firm been in the business)
Does the recruitment consultant have the requisite resources to complete the targets on
time?
Get the idea of the effectiveness and the services of the recruitment consultant from its
current and past clients.
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Qualities of an independent recruitment consultant
Some of the qualities or characteristics looked in recruitment consultants are:
Marketing skills
Flexibility and adaptability
Wisdom
Exuberance
Ability to prioritise
Ambition
Resourcefulness
Diplomacy/ delicacy
Selecting the right recruitment consultant is essential for the effective recruitment
processes. A successful Recruitment consultant is someone who is determinative, focused,
and able to create opportunities for him, works harder and smarter than competitors and
continually set and achieve higher standards.
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BENEFITS OF RPO
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 $25,000 (including $100 commissions/placement) for anexperienced, dedicate recruiter VS. $50,000 + commissions, payroll costs, medical and dental
insurance, administrative costs, and paid vacation (which can add up to more than $65,000)
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 CostsUtilizing 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 a company don’t have to pay a single rupee towards providing a comfortable
working environment for there 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.
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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, who are often unreliable, unpredictable, and expensive.
7. Securing the best talent
Competition for the most talented individuals is increasing. Organisations need to
secure the best people quickly and efficiently to help them build competitive capability.
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TECHNIQUES USED BY RPO FOR RECRUITMENT
Online Candidate Sourcing
Online candidate sourcing helps RPO for resume generation using the internet. From
using Job Board/CV databases, Google, advanced search engine usage techniques, filetype
searches to searching blogs, and other business networking sites.
Advertising Posting
RPO can post the advertisement in the leading newspaper about the vacancies of
different companies to attract the right talent as per the requirement.. The cost of the
advertisement can be share as per the agreement between the company and RPO. RPO should
know how to write a Job Advert copy and manipulate keywords to attract candidates who
could otherwise be heading towards competition.
Networking
RPO can get the best out of social networking sites like LinkenIn, Orkut, and
FaceBook. Networking provides "never seen before" searching techniques and keys to unlock
"hard to find" candidates. RPO should know how to write compelling emails and letters to
engage cold candidates located on these sites, to convert them into hot prospects.
Communication.
Improved communication levels will help RPO to stand out from the crowd. By
applying world-class communication techniques in everything from emails, letters, job
adverts to blog posts will help the RPO to gain edge over its competitor.
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CORE AND NON-CORE ACTIVITIES OF CORPORATE HR
The corporate HR organisations can outsource almost all of the non – core recruiting
functions of the HR and leave only the core tasks of the organisations to their HR and
Recruitment team.
These recruiters will play an important role in the cycle of recruitment and by making
the process less complicated, while the HR can function on core activities like interviewing
candidates, paperwork, instructing the candidates, completing the joining formalities and
others. The focus on these tasks adds a great deal of efficiency to the work being done.
Below is a chart that describes the benefits of working with RPO:
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CHOICE OF OUTSOURCING MODEL
Full Outsourcing
Activities initiated in a recruitment process from day one i.e. understanding the
requirement until closing down the position, all comes under the Full Outsourcing model.
This model of outsourcing comprises of not only non-core but also core recruitment activities
that are communication based and are effective for critical recruitment.
Partial Outsourcing
Apart from the core recruitment activities, all other non-core activities such as
understanding the requirement, placing the position on various job boards, searching and
researching candidates, sorting profiles, screening CV and responses, and finally sourcing
you with the list of candidates that are the best match for the position make into partial
outsourcing process. These are precisely the activities that RPOs are most preferred.
Feature-set comparison between the two outsourcing model:
Partial RPO Full RPO
High client/data security Low client/data security
Partial RPO is about non-core activities ina recruitment process, which consumes upto 70% of the time.
Full RPO is about core and non-coreactivities in recruitment process.
More monotonous nature of job. More interesting kind of job .
Can produce quick results in a short spanas employees have necessary expertise toextract the leads in bound timelines.
Involves all the activities till the candidate isplaced in the company, which may end as atime consuming job.
Employees need a limited period trainingto start on the process.
A high-level training is essential to helpemployees build better repo with the
candidates.
Low man hour rates. High man hour rates.
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UNDERSTANDING RECRUITMENT PROCESS
Recruitment Process, by all means, is a systematic process that consumes your time
invariably in nurturing right candidate for right position.
The below chart denotes break-up of requirement process in various sub-processes;
quoting approximate time consumed in each relevant sub-process. It is a complete study of all
the core and non-core activities included in the recruitment process.
THE RECRUITMENT PROCESS LIFECYCLE Understanding requirement specifications
Experience, technical skill sets, managerial aptitude, flexibility, localization,
environmental ethics, etc are grounds, which companies take into account depending upon
the job and nature of work. Studying these requirements minutely and sourcing candidates is
the first and foremost job.
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%
Calling and scheduling 20%
Follow up and closing 10%
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Job-Boards database searching and Sourcing
Job-board database searching is the first active task initiated on receiving the
requisition. To get quality candidates, we have subscribed on major job portals worldwide
that serve us with a large bandwidth of candidates' resumes from all streams. While not
restricted to a single medium, we also source candidates from other channels like networks,
agencies, referrals etc.
Screening, Sorting and Mailing
Candidate screening and assessment is an area that relies on a blend of technology and
offshore recruiter's expertise. We have developed effective processes to present the most
prominent candidates in front of your hiring managers.
Selection
While the hiring decision remains with the recruiters, we can help to support
managers in a variety of ways to speed the hiring process. We can be involved in the process
to call all the short-listed candidates, schedule their interviews, follow-up with the hiring
authorities and finally close the position by sending offer/rejection mailers.
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ADVANTAGES OF RPO
1. Top notch Talent Pool.
Competition for the most talented individuals is increasing. Organizations need tosecure the best people quickly and efficiently to help them build competitive capability
2. Cost reduction and removal of workload from the HR Administration.
RPO providers take on the burden of operational recruitment activities, allowing
organizations to focus on core value-creating and strategic activities. By transforming
processes, utilizing best practice, and replacing a fixed cost base with a variable charging
structure, RPO can significantly reduce the cost of recruitment. In regular staffing, you invest
in salary, incentives, overheads, infrastructure cost and more. By outsourcing recruiting
functions to Recruiting Junction, all you need to pay is a fixed monthly retainer fees (which is
lesser than the salary of one in-house recruiter) along with a negligible commission.
3. Better Productivity and Quality.
RPO providers can provide highest quality services. By outsourcing your recruitment
process to Recruiting Junction you get dedicated recruiters for each client, while in regular
staffing, one recruiter handles many clients. In regular staffing the focus is lost, as recruiters
serve bigger clients better. RPO recruiter can provide undivided attention to your all your
clients – big or small.
4. Reduce operational risks.
Risks come in many forms, and the expert knowledge of an RPO specialist can help
organizations reduce the risks associated with an inability to scale their business operationally
to meet changing demand, and the risks of non-compliance to legislative and regulatory
change .
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THE ROI OF RPO: RECRUITMENT EXPERTISE
The unique expectations and job requirements of the next generation entering the
workforce can be challenging. The younger workers filling the shoes of the retiring. Baby
Boomers value work-life integration, prefer teamwork and expect greater compensation and
benefits. Undoubtedly, a new approach to recruiting is required in order to catch the attention
of the talented.
Streamlining the Recruitment Process
In order to attract the Millennia’s, the first step your organization needs to accomplish
is to develop a strong image and identity. How do you accomplish this? When you partner
with an RPO provider, this essentially means that they are working to improve the
effectiveness of your recruitment process. By tightening up your process, a fair and consistent
image of your organization will be quickly delivered to potential employees that are applying
for a job with your company.
A fast, responsive recruitment process will be an essential component in keeping the
tech-savvy, options-oriented Millennia’s interested in working for your organization.
Organizations that remove barriers for employees to apply, have a user-friendly application
process and respond to applicants in an expeditious manner will certainly have an edge on the
competition. The Internet has meant that people have many choices when seeking
employment, and companies who create the best applicant experience will ultimately have a
competitive advantage in attracting and retaining the best talent.
Offering Best Practices Recommendations
A top-notch RPO provider should essentially be working as a partner "extension" of
your organization and continuously be offering you best practices recommendations. The
provider should be on the look-out for ways to improve the image of your organization so it
is an appealing option for potential employees.
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Is your organization attractive to the young talent entering the workforce? If not,
why? How does your organization stack up to competitors in terms of pay and benefits? Does
your organization have a strong corporate culture? Does your organization empower
employees to grow and pursue leadership opportunities? These are all important decision-
making factors for the next generation. A strong RPO provider can help you improve in these
areas - making you undeniably attractive to potential employees.
Developing an "Employment Brand"
Companies like Southwest Airlines and Google have actually turned the common
talent shortage problem into a more desirable talent "sorting" problem by using employment
branding techniques. They are known as great places to work with excellent growth andleadership opportunities. As an expert in recruiting, an RPO provider can also help you by
putting together the whole employment value proposition and sourcing strategy for your
organization.
Essentially, your employment brand communicates to potential employees what your
organization represents and what the employment experience is all about. Most employment
branding efforts include elements that gather information on your organization's best
practices. By working intentionally to develop an employment brand, this can actually
strengthen your internal corporate culture as well. The consistent messaging can reinforce
corporate values and what it means to be a part of your organization. A strong culture will
certainly help you to attract potential employees and retain them once they are working for
you.
Using Recruitment "Marketing"
As an expert in recruiting, an RPO provider will have knowledge about the latest
recruiting trends and insight into the most effective sourcing channels. They will be able to
help you use your employment brand to develop high-impact, innovative recruitment
marketing campaigns to spread the word that your company is a great place to work.
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An RPO provider can augment your current recruiting activities through new methods
such as job fairs, radio programs, social networking sites and innovative direct mail
campaigns. These avenues are also excellent opportunities to promote information about
company milestones, new product/service offerings and your overall competitive edge. The
goal of the marketing campaigns is to elevate your differentiators, grab the attention of the
modern Millennia’s and to specifically distinguish your organization from the rest of the
media storm.
Entering into an RPO relationship is no doubt a big step, but the benefits will certainly
far outweigh any initial start-up challenges. And as the current talent war shows no signs of
relenting, RPO is sure to be one of your best kept weapons. An RPO provider's specialization
on recruitment will expose you to new sourcing techniques and overall help you to attract and
retain the best people. RPO is a new trend, but it is a solution that will certainly make a
lasting and positive impact on your organization.
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RPO PROCESS MODEL
Recruiting Manager:
Manages and is responsible for overall delivery to client including response rate,
interview rate, fill rate etc.
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.
Junior Recruiting teams:
Perform backend searches for matching candidates in RPO internal database as well as
various job boards, user groups and networking groups.
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 aqualified candidate in the fastest time.
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THE 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 and
effectiveness of the recruiting process.
1. Submittal efficiency,
2. Interview efficiency and
3. Offer efficiency.
Submittal Efficiency
The first, submittal efficiency, is a measure of how well the submitted candidates fitagainst 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.
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LITERATURE REVIEW
In February 2009 the Human Resources Outsourcing Association (HROA) specified
and approved a group associated with them the Recruitment Process Outsourcing
Alliance. Recruitment Process Outsourcing (RPO) is basically a type of Business Process
Outsourcing (BPO) where the management of the firm gives the responsibility of the
recruitment process for that organization to a third party service provider. The Recruitment
Process Outsourcing provider can himself choose the methods to carry out the recruitment
process which they feel is convenient for them, which may be that the vendor may adhere to
his own methodologies or the company’s way of carrying out the entire recruitment process.
The Recruitment Process Outsourcing is a lot different from the other service
providers such as contingency search firms, staffing agencies and retained search providers in
dealing with entire recruitment because the RPO provider is entirely responsible for the
methods utilized, design ownership, conducting the entire recruitment process and the
outcomes of the process.
Service Providers other than the RPO providers like executive and contingency search
forms were providing the firms with recruitment services for many years until the employers
started realizing the consistency of the concept on relying upon an outsource to deal with the
entire or part of the recruiting process. This was not until the 1970’s when there was a high-
level competition in the technical labour market. Expanding High Tech Firms were usually
distressed upon the acquisition of high tech expertise and specialists and were left with other
choice except to hire highly paid external recruiting specialists for the completion of their
hiring staff projects.
With the passage of time many companies starting analyzing how they can reduce
their expenses while still be able to hire the high tech specialists for their firm and while
doing this they started to acknowledge the steps of the recruiting process along with focusing
on the areas of great difficulties faced by their company. This then eventually added great
value to the business.
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At first, the job of the RPO programs was just to conduct the recruitment process,
shortlist the eligible candidates and inform the employers it and the acquisitions are then
carried out by the company.
As time passed, the idea of outsourcing kept gaining more and more favour among
establishments’ HR managements because they not only helped in reducing the expenses and
overhead cost but also helped in bringing quality and completion in the labour market. Since
then until the early 2000’s, among many companies, RPO programs were taken into great
consideration to fulfil their recruitment needs.
Recruitment outsourcing is fitting increasingly established tradition for both the large
and the small business of today. A survey was conducted and it was noticed that in many of
the European countries, nearly 50% of the business are recruited outsourced. Different
countries are recruiting outsourcing in different countries and providing them the quality
work and service they desired for years.
Recruitment outsourcing can be defined as the hiring process is outsourced to the
third party to achieve better results. Recruitment outsourcing is considered by business to be
both a long designate solutions to attain efficiency in venture operations and concise phrase.
Recruitment outsourcing helps the company in finding the best suitable professional for the
job with less cost being incurred. Recruitment outsourcing works in finding the individuals in
web blue print, marketing, IT maintenance, logistics, accounts management and web hosting.
There are various reasons involved why an organization should use recruitment outsourcing.
The expertise way of finding the suitable candidate, use of higher technologies and proper
surveys, scrutiny of the offered skills and professionalism in the applicant’s date.
Whether it is a small or a large business, it is necessary to find the relevant
information needed about recruitment outsourcing as well as the advantages and the
disadvantages involved in hiring the third party to fulfil your needs. Recruitment outsourcing
surely has pros and cons. recruitment outsourcing firm’s job is to work on the information
being provided by the company to a greater extent and to find the best suitable result possible
for the growth of the organization.
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Outsourcing has impacted on a long term basis on the business and recruitment
outsourcing has really developed with its wide range of searches of the working assets of the
company. Recruitment outsourcing surely helps in reducing the cost of the company by
sharing the work load of the in-house human resource department and providing them the
better results compared to the in-house.
Recruitment outsourcing has worked wonders in finding the suitable candidate from
other country and making them realize that this is the perfect opportunity for them to grab on
and show what you are capable of. The service provided by the recruitment outsourcing firms
are of highly quality in compared to the charges they put on.
There is a negative vibe in Americans that outsourcing is an evil which is taking jobs
away from them and providing it to strange countries. Recruitment outsourcing has really
contributed in the growth of finding the experienced professional at a cheaper rate globally.
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NEED FOR THE STUDY
With more and more companies looking to rationalise employees on their payroll,
manpower outsourcing is slowly becoming the new buzz in India too. And the trend seems tohave hit not just big multinational companies but the public sector and government
undertakings as well, though on a very low key yet in the latter. Estimates show that the
latent size of HR outsourcing in India is about $2 billion with a current market of $27 million
and it is growing at a rate of about 50 per cent. Experts, however, say though foreign
companies are outsourcing jobs to India, putting the country in the middle of outsourcing
boom, the Indian companies do not seem to be enamoured by the opportunity till now and are
not adopting HR outsourcing practices in a big way.
"HR outsourcing in India has not seen the required momentum and is limited to a
trickle effect, with companies outsourcing a few selected low-end HR processes,"
Hence there is a great need of Agencies which do the job of recruitment process outsourcing.
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PROBLEM’s OF RPO
If a company failed to define its overall recruitment strategy and hiring objectives,
then any recruiting program may fail to meet the company's needs. This is especially true for
outsourced programs like RPO: RPO can only succeed in the context of a well-defined
corporate and staffing strategy.
As with any program, a company must manage its RPO activities. A company must
provide initial direction and continued monitoring to assure the desired results. Overall,
providing guidance to external activities can present a significant management challenge.
Outsourcing of company processes may fail or prove a poor organizational fit. Improperly
implemented RPO could reduce the effectiveness of recruitment.
The costs charged for outsourced recruitment transactions may total more than the
cost of the internal recruitment department.
RPO service providers may fail to provide the quality or volume of staff required by
their customers. Placing all recruitment in the hands of a single outside provider may
discourage the competition that would arise if multiple recruitment agencies were used.
An RPO solution may not work if the company's existing recruitment processes are
performing poorly. An RPO solution may not work if the service provider has inadequate
recruitment processes or procedures to work with the client.
RPO may not resolve difficulties that organizations have hiring staff when the
organization is perceived negatively by potential employees. This will instead require
improved branding and an adjustment of image. The perception is that very few RPOs can
successfully integrate their client's brand and therefore do not represent their client's brand as
well as a retained search or internal recruiting resource may drive brand representation and or
marketing.
Further, most RPOs perform their staffing functions and service offsite, further
disconnecting the client's growth & recruiting strategy from the actual workforce within the
client company. This is important because during a period of rapid recruitment growth, one of
the many positive effects that a company typically enjoys is an increase in the workforcewellness or an overall workforce positivity of sentiment of optimism that comes with
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personnel additions... this may be lessened with an offsite recruiting function. Organizations
with efficient hiring process that are viewed as employers of choice by potential staff may
stand to gain negligible benefits from RPO.
SELECTION OF THE TOPIC
The topic “A study on Identifying the Scope for Recruitment Process Outsourcing
through Consultancy firms, its criteria and advantages” is being done to understand the
process, scope and benefits of the Recruitment Process Outsourcing and also to study the
criteria or the steps involved in the process of Recruitment Processing Outsourcing by
consultancy firms.
SCOPE OF THE STUDY
The non-core recruitment processes such as database searching, job advertisements,
head hunt research; internet mining, etc. involve 50 - 60% of the recruiter’s time, energies
and costs. Outsourcing the non-core recruitment process creates additional efficiencies, while
simultaneously allowing for a focus on building relationships with candidates and clients.
Recruiters, thus, are able to focus better on core recruitment functions and work on important
hiring strategies that create profitable growth and sustain business success.
For reasons of having no time and resources to manage human resource functions,
companies usually resort to HR outsourcing. It is a cost-effective way of managing human
resource functions without having to resort to employing personnel for an in-house HR staff.
There are a lot of benefits that businesses can gain from outsourcing HR tasks. One of
the most appealing benefits is the ability of a company to focus on their core businessactivities while still having effective HR policies.
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OBJECTIVE OF THE STUDY
To identify the benefits of outsourcing recruitment and understanding the recruitment
process.
The Project contains details about the various criteria of outsourcing recruitment.
The project highlights the reasons why companies indulge in outsourcing recruitment and
the merits and advantages of outsourcing recruitment to direct hiring.
It also enumerates various factors to be considered before outsourcing recruitment.
Identify the various practices of recruitment existing in the industry. The project should
have a detailed understanding of the methods adopted by recruitment agencies to make the
hiring process quicker.
LIMITATION’S OF THE STUDY
The limitations of the study are:
The sample which we take does not represent the whole population as the numbers of
respondents were very less
We used convenience sampling technique owing to limited resources.
Our limited experience was another constraint on the quality of the research
We could not include the HRO vendors in our research to gain their perspective
Our respondents were from specific areas and did not cover the whole of India
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COMPANY PROFILE
BrainTreeHR is a premier provider of competent Professionals to Fortune 500 and
Global 2000 companies. We are currently ranked among one of the top Staffing company in
the country.
Established in 2001, BrainTreeHR currently employs over 150 Associates across
various industrial sectors with domain experts to anchor specific industry verticals. We are
today the single largest HR outsourcing service provider with vertical specialization.
The company has been promoted and is managed by IT and HR professionals having
rich experience. We believe that our customer's success settle on strive to ensure high quality
in all the services we offer.
COMPANY VALUES, VISSION AND MISSION
VALUES
We are a values-driven firm. We value quality, integrity and profits
VISION
To be India's prime HR consultant and the core for eminent employment prospects, providing
individuals with excellent career opportunities and organizations with right resources and the
tools to attain brilliance in the workplace.
MISSION
Rejuvenate individuals and organizations by mobilizing human resources.
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The proven track record, expertise in the following industry / business segments:
1. Information Technology
2. IT Enabled Services
3. Banking / Insurance Telecom
4. Health Care / Bio Tech Process Industry
5. Retail Education
BrainTreeHR Consulting Pvt Ltd, is an energetic organization providing total
recruitment solutions. With an ongoing commitment to quality, the Company's continuing
goal is to enhance its position as one of the leading independent providers of resources for IT,
ITES and Non-IT industries.
BrainTreeHR is one of the fastest growing companies in India in HR consulting
Space. BrainTreeHR is based at Bangalore having dedicated team of young professionals,
who are committed to the company's MISSION to be best quality Integrated HR service
provider. BrainTreeHR provides end-to-end HR process outsourcing services.
BrainTreeHR brings in the right combination of proficiency assisting organizations to
acquire flexible and permanent workforce, enhancing productivity.
BrainTreeHR assure speedy, flexible, transparent, dependable and excellent service,
needless to say, value addition and a solution based approach for career aspirants seeking
flexible employment or an Organization seeking flexible workforce, recruitment and staffing
solutions in any function or category.
BrainTreeHR have focused approach, continuous venture to enhance operational and
release standards. Execution of Best Practices and Technology has enabled us to attain the
leading position in the HR Outsourcing.
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MANAGEMENT OF BRAINTREE HR CONSULTING PVT. LTD.
Umesh Belludi
Managing Director
Umesh B.O. is the Managing Director and founder of BrainTree HR Consulting Private Ltd.
He is a first generation entrepreneur with a knack for identifying opportunities. He is
basically a Management Graduate having a decade of experience in the field of client
relations, marketing and human resources. He is industrious having a fire in a belly and
positive bent of mind with burning desire of success. His vision of servicing unique human
resource has lead BrainTree one of the premier human resource firm in the new economy.
Vishalakshi Umesh
Chairman
Vishalakshi is the Chairman of BrainTree HR Consulting Private Ltd. She is specialised in
the field of Human Resource and having wide knowledge on Enterprising skills.
Jayashree Patil
Director - Staffing, Client Relations & Sourcing
Jayashree Patil is a Director and Co-founder of BrainTree. Started her career as a recruiter,
Jayashree has accumulated a rich experience in the human resource management domain with
expertise on IT recruitment. She heads the staff training and development, Knowledge
transfer and augmentation. She is handling key clients and holding major responsibility of
sourcing division. Jayashree has contributed to the steady growth of BrainTree and itsformidable customer base with the right mix of long-term vision, technical aptitude and risk-
taking ability.
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SERVICES PROVIDED BY BRAINTREE HR CONSULTING PVT LTD
IT Recruitment Service
BrainTreeHR is a groundbreaking global recruitment organization, which helps
corporate find the right people. With excellent experience in IT recruitment, BrainTreeHR isable to assess the needs of both the client and the candidate, and provide cost effective, tailor-
made solutions across the industry.
BrainTreeHR has a systematic approach that is comprehensive in scope and adhering
to the urgency of client needs. The organization focuses in the search, selection and
placement of IT professionals, providing a wide contribution of highly qualified candidates in
the both Application and Systems fields. BrainTreeHR has the ability to adapt in an evolving
IT industry for successful partnerships with corporate and IT professionals.
BrainTreeHR adopts a holistic approach to develop company specific staffing
solutions that are highly research oriented with process capabilities and a strong technology
platform. We have the expertise and the talent pool to provide comprehensive solutions for
all cadres in an Organization.
ITES RECRUITMENT - FOUR LEVELS OF SCRUTINY
BrainTreeHR follows a four-level scrutiny process for recruitment of Customer
Service Associates:
Level One:
Short-listing at the time of registration based on client specifications - age,qualification, experience and the flexibility to work in shifts.
Level Two:
Short listed candidates are required to make individual presentations for voice-basedprocesses, and are evaluated on their proficiency in English, accent, tone and vocabulary.
Level Three:
Candidates appear for a written test to evaluate their technical knowledge (if required)and/or a written test to check aptitude and analytical skills.
Level Four:
On successful completion of first three levels, Candidates are considered eligible for
the HR round with the clients.
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Non- IT Recruitment:
BrainTreeHR has a dedicated team which works in the non-IT sector with clients like
Arvind Brands Ltd., Gokaldas Images (P) Ltd., Texport Overseas Ltd., Raymonds, Shahi
Exports, Way to Wealth Securities Ltd., to name a few.
BrainTreeHR provides them with manpower on continuing bases, within stipulated
time frames. The team process a excellent database containing profiles from all sectors like
textiles, banking and insurance, facilities management, human resources, engineering,
manufacturing and so on.
Specialization: Information Technology:
Programmers, Programmer Analysts, Systems Analysts, Project Leaders, Software
Programmers, Managers, Directors, Consultants, Systems Administrators,
Telecommunications., SAP, Oracle, Siebel, Datawarehousing, Informatica,Teradata, Business
Objects, Oracle APPS, Embeded, Networking, Mainframe, JAVA/J2EE, PL SQL, ETC.
BPO/Call centre:
Customer Service Executives, Technical support Executives, Team Leaders, Trainers,
Senior Managers, HR executives, HR Managers
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CLIENTS OF BRAINTREE HR CONSULTING PVT LTD
INFORMATION TECHNOLOGY
Tata Consultancy Services Ltd.
HCL Technolgies Ltd.
ABB India Ltd.
Dell India Ltd.
IBM India Ltd.
Yahoo India Ltd.
Binary Spectrum
SLK Software Ltd.
Symphony Software Services Ltd.
Verisign India Ltd.
Kodiak Networks Ltd.
Wipro Technologies Ltd.EMC 2 Ltd.
Alcatel Lucent India Ltd.
INSURANCE
Reliance Insurance co. Ltd.
ICICI Prudential Life Ltd.
Birla Sunlife Insurance Ltd.
Aviva
APPARELS Arvind Brands Ltd.
Gokaldas Images (P) Ltd.
Gokaldas Exports Ltd.
Shahi Exports Ltd.
Raymonds Ltd.
Ever Blue Apparel Ltd.
Prateek Apparels
Krishna Knits Ltd.
Texport Overseas Ltd.
Texport Syndicate
LT Karle Ltd.
Deccan Leathers Ltd.Financial Services
Way to Wealth Securities Ltd.
Spirsm Securities Ltd.
India Bulls
J.M Funds Ltd.
Sriram Stocks Ltd.
Cholamandalam Finance Ltd.
ITESThomson India Ltd
HCL Capital Market Services Ltd.
ICICI One Source
Tata Consultancy Services Ltd.
Transworks Ltd.
Ocween Financial Services Ltd.
HTMT
BANKINGHDFC Ltd
Centurian Bank
Citi Bank
ABN Amro
HSBC
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