In order to objectively understand organisations’ needs regarding the hiring of manpower, one must first understand their strategy and their ratios of internal vs external hiring practises. Knowing these decision making processes and the related constraints will then enable graduate placement programs to discover the importance of lateral hiring strategies; and a digitalised, integrated system in bringing roles to graduate candidates.
In the following analysis, we have used off-the-cuff data on standard
market potential estimation equations to estimate the gross potential in lateral hiring.
Gross potential lateral hiring
from a survey and study of 2000 firms on their approach to fill existing positions, we have found:
75% respondents indicated they would hire candidates from
within the company by internal posting of jobs.
External candidate sourcing was preferred for entry level jobs
and for positions whose specifications cannot be internally met.
Post pandemic workforce and related hiring
in a survey across 800 companies the respondents shared the following views on the post pandemic industry:
85%
have implemented digital technology for employee interaction and collaboration
70% & 85%
executives from India and the US respectively have indicated faster adoption of automation
35%
respondents have indicated that they have already digitised and implemented AI driven
automation for supply chain
35%
respondents feel they need more employees skilled in automation, AI and robotics
70%
executives feel that in the future firms will hire more temporary and contract workers on site
Improving the scope of lateral hiring
Factors which are not within the institute’s control to increase the gross potential hire:
Velocity of hiring:
how often (in terms of years) the establishments come to fill their vacancy from external sources
Attrition level:
percentage of people leaving jobs where lateral hiring happens
Employee base:
average number of employees where lateral hiring occur
External sourcing trends:
percentage of people hired from external sources
Factors which are in control of the institute to
improve gross potential hire
Establishment:
number of firms with whom the institution has working relationship
Coverage:
where your firm’s database is considered for lateral hiring
Decision share:
hiring the decisions which went in favour of your candidates from the database
Extrapolating the potential
if the number of establishments increase from 500 to 550 new firms,
and the coverage (consideration from your database) increases from 20% to 35%
Gross potential hires improve by 1%
in pure numerical terms, the increase is from 67 lateral hiring to 140
from the data base, when the decision share is at 10%.
Additionally,
if we increase in decision share from 10% to 15%, then
Gross potential hires sees improvement by 2.2%.
In pure numerical terms it increases from 67 hiring to 210.
Actions required to improve Gross potential hires
To increase establishments, coverage and number of decisions for which the data base is considered, and percentage of people hired from the data base,
the following actions will be required:
Expanding of the vision of hiring beyond the existing relationships to increase the number of establishments
Increased coverage benchmarked against the number of establishments with whom the institute has a working relationship
Continuous addition of more subscribers into the institute database to improve the probability of decision share
Achieving higher level of activities with establishments
Use of technology to create a bridge between the recruitment process of the establishments and the alumni database
Becoming a part of a larger employer universe, having similar bridges with other institutions
Effectively, being part of a wider candidate sourcing and recruitment entities universe
Connected technology disruptively increases the hiring probability
Using the Adorin engine to move from a disparate to a connected system
As institution’s databases don’t currently form a part of the direct hiring market, there is a lower probability of lateral hiring in these existing methods:
As multiple and disparate sources of hiring is done based on requirements
Success rate of an institute’s placement capability relies highly upon relationships with establishments and previous experience
Also, the success rate of lateral hiring from an existing database depends on the frequency of consideration of the database in the sourcing initiative, which with current methods, is not enough.
In order to disruptively increase the hiring probability:
We must connect and digitise the client’s placement and lateral hiring process and support it with a fair employment workflow system
When preferred by the institution, this integrated platform is linked to establishments that are beyond the current base of relationships
By connecting with the platform, the institution can access both the full suite of placement methods, including an entire array of testing and assessment features. On the other hand, this brings the alumni database into consideration virtually at every hiring decision
Every candidate’s data from the database are matched against every job considered for hiring to disruptively increase the probability of success
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