New Ways of Hiring - Solutions for the MSME Sector

- Contributed by Akash Kumar

A recent study done by Milagrow found that one of the major problems faced by SME is managing human capital. Recently, I was having a discussion with one SME. He told me that his company is doing well, his product quality is superior to other MNC’s product, he pays good salaries to his employees even though he is not able to recruit and retain good people in his organization. I went in to depth and found that employee always want to be on safer side. Therefore, they prefer to work the companies which are well established and having sustainability in market. Thus, reaching out to good, loyal and efficient employee remains big task for any SMEs.

Since last few months, we have been getting news that people are getting laid off from their respective companies. Off course, the reason we all know is ‘economic recession’. Companies are giving reasons that their cost are going above their profits. Therefore, they have no other options than lying off their staff. But there are still some companies which are hiring by considering the fact that they will be able to hire the best people and at low cost. Therefore, we have tried to cover all the ways of hiring which these organizations can choose before going to employee search.

Social Networking: Social networking is picking up its momentum in web 2.0 eras. This has opened a new way for HR executive to search out their prospective employee. Linkedin, Reffster and Orkut are becoming popular among HRs. HR manager are finding it more reliable than ordinary search because they are able to reach to those ‘Passive Job Seekers’ who are not searching for job. These kinds of employee are beneficial for organization because they stick to single job and perform their best and view the companies that they work for their own organization.

Reference Hiring: ‘Reference’ has always been a preferred method for hiring among organizations. I personally know a number of organizations which hire only through reference basis. The positive of hiring on reference is employee’s liability. The people who give reference for other employee always remain responsible for the referred employee. The hired employee always performs and maintains the level of confidence and decorum to protect the reputation of the person, who referred him for particular company.

Outsource HR Recruitment: In today’s world where every company is trying to focus on his operation and productivity, these companies always considers HR recruitment as a time consuming process. Therefore, instead of going for campus to campus hiring or numbers of interview rounds, companies prefer to outsource this function to those who are specialized in it. Even the payroll system, appraisal structure is being outsourced now days.

Database Search: Various organizations, which are providing online job facilities, create a database system where any employee can register himself and upload his/her professional details. In this way, these organizations are able to create a reservoir which carries the details of million prospective employees. Then, any interested employer can just purchase database access for certain duration and start exploring the prospective employee. In today’s scenario, it is enjoying the major market share of entire HR recruitment process.

Specialized Executive Search Firms: There are also some organizations which carry out the task of searching prospective employees. These kinds of firms provide services for middle and top management. When it comes to executive search firm, from finding out the executive to finalizing salary structure they take care of everything. For their service charges, they follow 80-20 rule, which means that they charge more than what other charges for normal staffing solution.

Specialized Hiring Support: There are several organizations and associations which are providing specialized hiring support by giving a platform to showcase their requirements from employees. Some organization provides online job posting service for disable people.

A similar initiative has been undertaken by Milagrow in order to help the entire SME community. With the launch of much awaited Milagrow portal, Milagrow is coming up with an HR solution offering. Under HR Solution offering, there will be one section for employees where they can log-in and start applying to the companies of their interest. Also any Small Medium Enterprise, who is looking to hire some people, can upload their openings. Apart from this, Milagrow will be also providing specialized interim management solution for SME. Under Interim management jobs, any senior executive who will be looking to serve challenging SME community can apply these kinds of job by registering himself. Along with this, SMEs, who were not accessible to senior level guidance, can also post their interim management jobs and get access to senior level guidance. In India, Milagrow is the first who will start offering such unique services to entire SME community.

To conclude, I want say that it is not just hiring an employee; it is all about bringing a new member in your family. Therefore, while searching or interviewing any employee, one should check it out whether the prospective employee will be able fit in existing values and culture. This will also be same for employee, who will going for job hunt that his priority should be the right profile than money. In this way, he/she may not be able to earn as much as he wanted in initial stage but after certain period he/she will emerge as an expert or leader which he/she can monetize in his/her later part of career.