If one were to keep processes and technology
aside, then recruitment is all about people – and, guess what? Inherently, most
people are hilarious! Nothing like the pressure of a job interview to bring out
the most awkward, silly and mystifying behaviour in us. So, while we often
celebrate the victories – perfect referrals, nailing your LinkedIn search on
the first try, the candidate saying yes as soon as they are offered the job –
let’s take some time to get to the basics.
RECRUITMENT AND
SELECTION
Many a time I have noticed even the best
using recruitment and selection interchangeably. In very simple terms,
recruitment is the process of finding and hiring the best-qualified candidate
(from within or outside of an organisation) for a job opening, in a timely and
cost-effective manner. The recruitment process includes analysing the
requirements of a job, attracting employees to that job, screening and selecting
applicants, hiring and integrating the new employee in the organisation.
Hiring for the right talent is incomplete
without a thorough job analysis before recruiting someone and a periodic
job evaluation later. Job analysis is a family of procedures to identify the
content of a job in terms of activities involved and attributes or job
requirements needed to perform the activities. Job analysis provides
information about organisations which helps to determine which employees are
the best fit for specific jobs. Through job analysis, we can understand what
the important tasks of the job are, how they are carried out and the necessary
human qualities needed to complete the job successfully.
A job
evaluation is a
systematic way of determining the value / worth of a job in relation to other
jobs in an organisation. It tries to make a systematic comparison between jobs
to assess their relative worth for the purpose of establishing a rational
pay structure.
Job evaluation
needs to be differentiated from job analysis. Every job evaluation method
requires at least some basic job analysis in order to provide factual
information about the jobs concerned. Thus, job evaluation begins with job
analysis and ends at that point where the worth of a job is ascertained for
achieving pay equity between jobs and different roles.
JOB DESCRIPTION AND
SKILL NEEDS
In the light of changes in environmental
conditions (technology, products, services, etc.), jobs need to be examined
closely. For example, the traditional clerical functions have undergone a rapid
change in sectors like banking, insurance and railways after computerisation.
New job descriptions need to be written and the skill needs of new jobs
need to be duly incorporated in the evaluation process. Otherwise, employees
may feel that all the relevant job factors – based on which their pay has been
determined – have not been evaluated properly.
COST OF BAD HIRING
Misrepresentation
is the way employers end up making bad hires. It is not that you go and
deliberately hire the worst candidate. As per a study conducted by global human
resource consultancy CareerBuilder, 88% companies in Russia said they were
affected by bad hiring last year, followed by 87% in Brazil and China, and 84%
in India.
The study further said that three in every
ten Indian companies (29%) reported that a single bad hire – someone who turned
out not to be a good fit for the job or did not perform well – cost the company
more than Rs. 20 lakhs (USD 37,150) on an average. Apart from these study results,
there are many other aspects which get affected in an organisation because of a
bad hire, such as productivity, employee morale, increased turnover and the
financial costs of replacement.
CHARTERED ACCOUNTANTS –
DEMAND VS. SUPPLY
After looking at the generic process and
impacts of hiring right, let’s take a step backward and look at the scenario of
chartered accountant professionals in India.
In a country of 125 crore citizens and 6.80
crore taxpayers in 2017-18, close to three lakh CAs serve as the finance
guides. As of 2018, there are 2.90 lakh CAs in India of whom only 1.30 lakhs
are in full-time practice – that means about 44% of the total number of CAs.
Growing
industry
The
demand for CAs in India has been on the rise because more businesses are being
established and the government has been making policies and regulations to
monitor the market. As of January, 2019, more than one crore taxpayers have
registered in the GST regime. However, there are not many professionals to
guide
these taxpayers.
There is an immediate need to tap the talent
and to skill them in advanced tax calculations. Training in Artificial
Intelligence to participate in the growing automation of auditing process is
also needed.
The demand is not just because of the change
in the economy but also because of the crucial job roles that CAs have been
playing, catering to, for instance, Internal Audit, Tax Audit, tax planning,
cost planning, due diligence, audit under various state and Central
legislations, government audit, management audit, etc. Around 98 lakh
businesses have been registered under the GST regime and every business
requires a professional to manage the accounts- related matters. ‘Under the GST
regime all the taxpayers whose annual turnover is above Rs. 2 crores will
require to have a GST audit carried out by CAs’.
Lack
of professionals
India produces a large number of engineers
and doctors, despite the fact that there are no jobs for skilled students. But
even after having a long-term scope of professional security, the accounting
sector faces a crunch of trained professionals. ‘The recent push and incentives
being provided for startups, where students get full
control of their businesses, is another reason why commerce students are
looking beyond chartered accountancy’.
The struggle during the exams and low
stipends at entry-level jobs and limited job opportunities are some of the
reasons that have pushed students away from pursuing the professional field of
chartered accountancy. The crisis here is also that demand is ever increasing,
but the supply is not at par because of the salaries when compared to MBA and
other niche degrees.
The problem also lies in the curriculum
which largely is theoretical and not in sync with the industry requirement.
‘The rigorous practical exposure during the course of study is missing, which
makes most of the CAs feel that they are not ready for the corporate world,’
says Raghav Bhargava, Director, Taxmann.
Low
pass percentage
While
there is no glamour associated with CA as a career, the low pass percentage is
yet another reason that the number of professionals is not high. The pass
percentage for the May, 2018 final CA exams was recorded at 14% as compared to
7.63% in May, 2019. Due to the challenging nature of the industry, the vast
syllabus and the absence of a strong, formal setup of classes, there is a high
dropout rate which leads to the low pass percentage.
ICAI has a uniform level of scaling as per the
demand. The number of students passing the CA exams depends on the demand
calculation through ICAI’s survey. Moreover, there is no formal setup for CA
education and students have to depend on coaching centres. Aspirants from Tier
II and Tier III cities have limited chances to qualify for the CA entrance exams
because quality coaching is not available.
The
secret
We all know the theories of demand and
supply and I truly believe that a prestigious course like CA through the
Institute has adopted those theories very well. Hence, not everyone becomes a
CA and those who do, end up commanding a premium given the demand-supply
dynamics. Hiring for the niche role performed by CAs is very difficult and
those with additional skill sets in forensics, fraud, complex structuring deals
come at a premium.
TALENT VS. PEOPLE
While all of the above holds true, the
constant challenge that organisations face is hiring the right talent in their
workforce. The solution is the ever-evolving recruitment strategies, tools and
disruptions. There is a change in the spectrum of activities that were followed
a decade back and now, leading to better hiring, and we are not yet there!
However, many factors, including CSR by organisations to social media, are
playing a big part now. Let’s look at the age-old hiring style vs. the
situation now.
The
legacy recruitment
The recruitment process has remained
somewhat resilient to the changes in technology and the social revolution of
the new generation. Over the last two decades, recruitment was about publishing
ads in leading classifieds, both print media and websites, placing candidates
for interviews, comparing them with scores on common selection criteria and
arriving at a decision.
However, the time taken to hire then and now
is different, now being much less. The systems and tools without the modern AI
and analytics had a rework to be done for every new role sourcing. The early
2000s already had some job portals but these were sparsely used, so the
database of prospective employees was also individually controlled by each firm
and was limited. LinkedIn came into the picture by 2009-10, breaching the gap
between the employees but still keeping it formal.
The candidates did not have any idea about
the internal culture, work scenarios and access to some facts of their
prospective new employer before joining the firm until ‘Glass Door’ or ‘Hush’
arrived recently.
All in all, both the employer and employee
were at a higher risk of finding wrong matches for themselves because of lack
of information, although the time spent in hiring and getting hired was higher.
The
new-age hiring
The hiring process has transformed
dramatically over the years, due in large part to technological advancements.
Beyond the rise of the internet, tools like
video interviewing and interview scheduling software have helped to streamline
the hiring process, saving both time and money and making an employer’s life much
easier.
But there are some other, more subtle
differences between how people acquire talent now versus a decade ago. Here is
how the hiring process has changed over time:
Reach
is much more expansive
Before social media and the internet, a
person looking to expand his team had to hope that a qualified professional saw
his job posting in the local newspaper or trade magazine. Their reach was
somewhat limited when it came to recruiting and employers felt that they were
talking to the same candidates over and over when it came time to fill a
vacancy – or worse, choosing less-than-qualified individuals for open roles,
simply because there was no one else available.
The internet has truly revolutionised
recruiting. There are so many more touch points available to an employer
looking to fill an open role. From LinkedIn to your company’s website to
Twitter, Facebook networking groups and beyond, it’s never been easier to
access a deep pool of qualified candidates.
In some ways this might feel overwhelming,
as it means you’re sorting through more resumes than ever before, but it also
greatly increases your chances of finding someone who’s the perfect fit for the
role in question.
If you don’t like the applications you’re
getting from those in your immediate area, you can go beyond your city and even
your state until you find the ideal candidate.
Drastic improvements in interviewing
technology
Video interviewing has become a dramatic
time and money saver for those looking to hire. Instead of having to fly a
candidate in for an interview or rely on the phone to get a sense of what the
person is all about, the employer can now utilise video interviewing technology
for the process. This enables him to see and hear the professional without having to pay for
airfare and hotel costs. It’s much easier to schedule interviews. Thanks to the
arrival of interview scheduling software on the scene, employers are now able
to take the legwork out of bringing a professional in for an interview. This
enables them to shift their attention to preparing for the interview and making
the best hiring choice possible for the business.
An
increased focus on cultural fit
From an employer’s perspective, experience
and education matter, but they’re also taking a deeper look at who that
candidate is as an individual.
Those in charge of hiring have realised that
you can have the most qualified and experienced candidate available, but if the
person’s attitude is going to cause tension among clients or with veteran
employees, it’s probably best to look elsewhere when hiring.
They need to be in search of someone who
will add to the team in a positive way, not just someone who is competent
enough to get the job done. One person directly contributes to the morale of
the entire company, so choosing someone who will fit in well is essential.
Technical skill can be taught, the right
outlook simply can’t be
Greater
emphasis on employer branding
With the rise of the internet, it has become
easier than ever for job-seekers to gather information about the companies to
which they’re applying.
What kinds of clients does this company
typically work with? Based on pictures, blog posts, tweets and homepage
content, what kind of atmosphere does the office seem to exude? This is
something employers must constantly be mindful of and work to monitor. Your
online presence can either attract or deter talent, so make sure you’re using
these resources wisely.
Everyone within the company, especially
those tasked with interfacing with the public on behalf of the business, should
be aware of the organisation’s vision and values.
Being creative,
firms are using social media and their websites to show off that creativity and
attract job-seekers who want to be in a place where their ideas are allowed to
blossom.
Candidates
run the show
Today, job-seeking is much more tailored to
the candidate’s experience, particularly when a hiring manager is vying for
top-tier talent. Hiring managers have realised that if you want the attention
of a valuable would-be employee, you can’t make them bend over backwards to
move through your hiring process.
This is why allowing them to do a video
interview when it’s conducive to their schedule has become a popular option.Instead of forcing a candidate to take time
off from work or make up an excuse about why they’re stepping out of the office
for two hours, they’re able to record an interview from the comfort of their
own home at a time that works for them. This shows that the hiring manager
respects their time and sends a subtle signal about what it would be like to
work for that company.
Additionally, many hiring managers have
become focused on moving through the talent acquisition process as quickly as
possible. They also understand the importance of keeping all candidates
informed as they go.
Years ago, you could wait months to hear
back about whether you landed a second or third round interview. If you didn’t
get the job, you might never find out about it at all. This put your job search
process into a constant, frustrating limbo.
Now, people tasked with hiring realise the
importance of being transparent with applicants. They want to find the best
candidate for the open role as quickly as possible, and when that person is
selected, they understand they owe those who weren’t chosen the courtesy of an
email or phone call so they can continue with their job search.
SUMMARY
To sum it all up, we can say that chartered
accountant hiring is a meticulous process of getting the right individual for
the right job. The contributors to this are the whole socio-economic conditions
created by the government, the educationists and the organisation.
Though a little tough with the numbers, we
surely will get there soon with all the advancements in technology – education
and India’s growth story. As I sign off, here is one for the road – this
article was written by a Bot (Robot), cannot believe it? Right? Well, he is
named the Ghost Rider! Did you just believe me? Ask yourself how you would
react when a Bot has a telephonic interview with you and you still think it’s a
human.
