SME Recruitment Strategy - What works for you?

Small and Medium sized companies in both IT and ITES always have a hiring problem. When large established companies have swooped down on every major Engineering College and have hired away most of the good students even when they are in third year or college, what chances do you, as an SME, have of recruiting good people?

Well today, and the next 6 months may be an easier time for recruitment in India but what happens on the other side of the current hiccup?

We have found that it always better to have a strategy and follow it diligently, monitor how it is working for you and make adjustments as you go along.

One thing is for sure - if you are an SME, be prepared to spend three times the amount of time a larger company does in Recruitment!

Beyond the usual lip-service cliche " Your employees are everything", SMEs don't have a choice - Your people are going to make or break you. An ill chosen employee may not do too much harm in a large company but in an SME, they can cause havoc.

The good news is that if you spend a lot of time and effort in recruiting the right kind of people, the results can be very surprising. We spare no expense in recruitment - time wise. If we go through 4000 resumes and 100 people in interviews and tests and don't find anybody we are impressed with, we skip recruiting who is available. We are in software product development and so we can delay recruitment somewhat. If you are Services, you may not have that luxury. You may need to kickstart a project soon.

In our company, we recruit mostly freshers, given the size of our company now. When we are larger we may need to recruit more experienced candidates, which may or may not be tougher given what happens in India in the next 6 months or so.

We target only Tier 3 and Tier 4 colleges and use Naukri to spread a wider net.  We don't waste time in Tier 1 and Tier 2 college although just last week we recruited some from Tier 1 also. Things have eased up a lot in just the last couple of months. We sift through many resumes and pick those that have had a consistently good academic record throughout or those that have shown dramatic improvement recently.  Some realize that they are going to miss the career bus if they don't spend enough time on their studies. They tend to be serious with the right attitude since they may be already scared straight once.

We put them through three or four subject tests (like C, C++, SQL server, Dot.Net, Java) etc. The idea is to be able to compare how well the different candidates have understood basic concepts and how well they have applied themselves.

More than anything else, we spend a lot of time asking them questions in depth about a single subject they liked in college - like Data Structures or C++. The phonies can be spotted by the third in-depth question.

We also see, even from Tier 3 or Tier 4 colleges, some overlooked gems that the big companies have missed in their mass recruitment. They are usually graduates that have done a terrific final project, on their own initiative and spent a lot of time learning about their subject on their own. Very few Indian colleges have the time or the teaching talent to guide their students in their final project work well.  Most of them "Buy" their final project and are easy ti spot. Asking them usually gets you the answer right away! Those that have done an oustanding job, taking initiative and learning something on their own because they liked it are the people we want.

Sometimes, some of these candidates may come from a rural background, but even if they explain things in broken faulty english, they have done amazingly well in their tests and they have understood basic concepts well - we like them also.

Many candidates with good communication skills can be BS artists also. They can be spotted with an in depth technical question.

We have had tremendous success with our recruitment. As I said before, when we recruited experienced candidates, we skip the tests but asking them in depth about their experience, you can separate easily, the wheat from the chaff!

Hope this is useful! SMEs cannot fool around with Recruitment. That's the most important part of your success. It cannot be taken easily or done quickly, especially with the amount of competition there is for the handful or really good people that is there in any group of recruits. The Normal distribution curve applies there also. But there is hope. If you take it seriously and spend enough of your sweat equity, you can land some gems!

Replies to this Topic

Hi Nari,

I see a 1st hand original experience in your post. Thanks for sharing.

One of the things that might work well when hiring slightly senior people is to DATE them. Just like what the VCs do before they invest in companies. When you run into good people during networking or other occasions, you can make it a point to invite them to places where you go commonly..... That way you have an opportunity to understand them in a much more informal gathering. Remember this works both ways, that is probably what is desirable in any case!

Suresh

Nari,

I see that your strategy is somewhat different that ours esp wrt hiring only freshers for your product dev team. In my experience building a product needs fair amount of user workflow, domain and experience with technology adoption in the domain.

When we built our team, I wanted to find 4 pillars who could own the architectural aspects of the four key modules of our product. Once we had "dug" the pillars in, it is easier to build the supporting structured. As such the first four folks we hired had 16, 15, 12 and 10 years of experience! How did I get them? I worked with the recruitment firms and "sold" my product idea so that they could get these senior folks to come and talk to me. Then I showed these senior folks how they could make a great impact on the product and the company.

Best,

Arvind 

Suresh:

You are absolutely right. For SMEs, dating and wooing good people is a great strategy to get some very good people early on. When you hire your first four or five people, those will be your leaders if you grow bigger, the pillars of your company as Arvind put it.

I have talked to a couple of Entrepreneurs in the Bangalore Area who have put together startup companies in some new spaces like Social Networking. Their CTOs are all young people with about 10 years of experiemce that the founders had worked with before in another life, in a larger company. They had a good working relationship and enormous respect for each other and that's what made them take the plunge! In a job-security conscious society (with good reason of course!) like India, these are enormous risks these young people are taking! Things are-a-changing!

Arvind,

Yes. You are right. Our recruitment of freshers only is deliberate and with a lot of thought. 99.9% of the experienced people you get in India have Application Development experience. Application Development and Product Development are two completely *DIFFERENT* beasts. If you think otherwise and want to learn some lessons very painfully to realize this, you are welcome! We want people who have not been sullied by others' training or software development practices. We want them to be trained in our way of doing things. The two founders of our company bring 50+ years of experience technical, product management, architecture, sales and marketing experiences and for a startup company that is bootstrapped, the founders will wear multiple hats and perform all the other functions! Of course, we have experienced people managing things in India but they are all people who have worked with us before in another life, another company, trusted and dependanble!

The main lesson here is that for SMEs recruitment of the first few people is very crucial and has to be very thoughtfully done!

Nari

It is a good thing what you are doing and if i could add, Suresh also would agree to the fact that there are good candidates available in Tier 3 & 4 cities in India. The reception and the kind of insight we got from one of Empower IT meet in Tirunelveli was overwhelming and these type of cities are really good for SME's.

we as an organisation practice similar approach of hiring fresh engineers from Tier 3 colleges/cities. This helps us in two ways 1) save on costs 2) save on retention as these guys i have seen from my personal experience have real passion to learn and would definitely stick with you for atleast 12-15 months.

As for Arvindh's reply, we do need a strong core team that is technically strong and business wiser to take these fresh engineers in, mentor them and guide them

You guys are a great fount of experience. I am running operations of my services organization with slowly focussing on products - primarily within the same domain where we do services. I have made some serious errors in hiring earlier  - like getting desperate and hiring the first person available.

In the last recruitment I made, I put out a very specific role and responsibility chart and managed to get some tier1 college grads interested - still have to see how they work out when they join my organization.

Do companies get a 2nd chance to rectify hiring mistakes?

 

 

Oh Absolutely. There is always opportunity to shuffle the pack though your pay for the mistakes in lost time and increased costs. But dont worry, most folks dont get it right the first time :-)

Recruitment for SMEs got incredibly easy this year! We got two gems in March'09 from a Tier 1 school in Bangalore. All of their 80 or so post-graduates usually are recruited by March of every year but this year only two or three companies had picked up about ten or so candidates.

Now is a great time for SMEs to get very good entry level talent! Experienced talent may also be available easily (especially in Hyderabad, I am guessing) but we are not at a stage we need too many of them yet!

Nari, I am your admirer always from the time we both met first time when you mentioned few golden wisdom points that in SMEs

- hiring has to be based on clear idea about what we want from hires

- hiring should focus on passion and zeal of the individuals rather than language skills etc

- you have depended on tier 2-3 colleges folks for their reasoning skills even they may not know any English

Other thing what we learnt from Ganesh Challa, another management consultant whom I adore was

SMEs has no role for HR dept except collection and shortlisting of CVs

Great ideas...keep it up Nari- your experience is a great learning for this community

Post Reply

You must be a member of this Groupsite in order to post a reply to this topic.
Click here to join this group.