Thursday 10 July 2014

Unlearning from Akbar Birbal Story

The Most Common Profession

Akbar's Question :
One day Akbar resolved to find out which profession was the most Common Profession  in his capital. He asked the  
 courtiers; some said trade, others said masonry, but the general consensus was on soldiering.
Birbal's Answer :
When Birbal's turn came, he arose from his seat, bowed before Akbar and said, "Your Majesty, in my opinion the most
 popular profession is medicine." This was surprising as one could count the number of physicians in the city. The court
 physician was furious and said that Birbal had no clue about how difficult it was to train in this profession and advise
 people on medical problems.

Birbal smiled and said, "I can prove my statement, Your Majesty, if you come with me tomorrow morning."

Akbar agreed, and the next morning met Birbal on a major crossroad in the city.
Birbal had a bandage on one hand. Akbar looked at it and asked what the matter was. Birbal said, "I cut my hand while
chopping fruits for breakfast. Please, Your Majesty, you will have to write down the names of all the physicians we come
across."

"I will do that Birbal, but be sure to wash that wound well and apply some ointment on it," said Akbar.

I will, Your Majesty, but only after I have proven my statement," said Birbal.

They sat at the busy crossroad all through the day. Birbal was a well-known personality, so everyone who passed by
asked Birbal about his injury and advised him about some medication or the other. As the day wore on, the list grew long
and by afternoon Akbar was tired of writing names, so he suggested they go home.
Birbal asked for the list and said, "My Lord, you forgot to write your own name at the top of the list. You were the first
one to advise me!"

Unlearning from story :What is free or cheap or commonly available, need not be most suited. When it’s critical, there’s no alternative to Professional help.

Professional observation : In the similar vein of story, as per professional observation, in today’s world, after Medicine profession, second most common Profession is Recruiting or Talent Search. Any common man/woman  starting from house wife to CEO has an idea how to search a talent. Everyone tells you how he/ she had found talent successfully and advises you to do the same.

But the experienced & competent recruitment consultants india / search Professional is worried how to find new ways to hunt good candidates for their clients. They (Professional Searcher) don’t talk of solution before knowing facts & understanding the constraints. Professional Searchers know that they are requisitioned only when in-house or common efforts do not yield results. Professional Searcher knows that in this fast paced world. Searcher’s competence lies not in learning but constantly unlearning .

We, at Magna, try hard to unlearn of  the art of searching. Despite of doing many tough searches in the past, we still find ourselves nothing but bright students of science of Search. Talent Search – A science which is yet to be fully discovered. We are not the largest Executive Search company in the world but we are definitely among the top tough search ones. We advise our customer to refer us only when in-house efforts does not yield results or when Other Recruiter fails

Contact us at:
Magna Global HR Private Limited
102, Jai Shankar Apartment, 
Bhakti Mandir Road, LBS Marg, 
Opp State Bank of Patiyala
Thane West, Mumbai - 400601
Phone No : 022-25441061/62
Email : admin@magnaglobalhr.com



Tuesday 8 July 2014

The Pink Terror



Pink has long been known as a color of good health. But in industry circles today, pink is looked upon as a terror. It comes in the form of a pink slip. This is the management’s way of telling an employee politely that his services are no longer required. The pink terror unsettles and upsets an employee in more than one manner. 

Let me illustrate it with a recent example. A telecom company in New Jersey, U.S.A. suffered a major system failure. A foreman quickly located and rectified the fault and put the system back in action, thus saving the company costly downtime. For his efforts, he received a letter of appreciation personally signed by the president of the company, and some bonus.

Later in the day, however, the foreman received a pink slip from the human resources department of the company. The slip said his services were no longer required. The department explained to the agitated employee that, as a matter of strategy, the company had decided to outsource his job function and hence the pink slip.

 Pink slips (termination of services/layoffs) have become synonymous with professional terror. It creates insecurity among all kinds of professionals. One’s contribution to a company’s growth in the past is not taken into account. Job security has become an illusion. A ‘job is secure as long it is secure’.

This is what is happening in every type of industry today all across the globe. More and more organizations are realizing that CHANGE is the only reality of the 21st century. Consequently, nearly every industry is engaged in restructuring and outsourcing lower value-adding jobs. Thereby a large workforce is rendered redundant. Mergers, takeovers and hiving off non-profitable business divisions are major source of Pink Terror Realigning; downsizing or rightsizing has become the order of the day.

’On the one hand, industries are hiring personnel, and, on the other, they are laying off workers. This dichotomy is very surprising. The reason for this contradictory industrial behavior seems to be that skills sets and processes are becoming obsolete due to rapid technological changes. Companies require and demand speed, quality, aggressive strategic planning and cutting edge technologies to stay alive.

A good example of this dichotomous situation is seen in the knowledge-based industries like IT/ Software, Telecom etc. Here, every day new software packages are introduced. They become outmoded as soon as they are released. If a professional does not upgrade his skills continuously and keep himself abreast of latest developments in his area of work or specialization, he becomes redundant. Redundancy rate is very high in the knowledge-based industry. But traditional industries are also catching up.

Secondly, pink terror resulting from man-induced disasters, may compel companies to shed jobs without any early warnings. The terrorist attacks on the WTC resulted in the loss of 50,000 jobs in the airline industry alone. A Delta Airline spokesman indicated that the airline had lost one billion dollars since the WTC attacks on September 11, 2001, and hence it had to lay off 13,000 workers or 15 per cent of its workforce, and reduce its capacity by 15 per cent. Delta employs about 86,000 employees and is planning to further reduce this workforce through voluntary retirement programs.

Northwest Airlines Corporation, the fourth largest airlines, has planned to cut 10,000 jobs or 19 per cent of its workforce. Air Canada has announced similar plans. Advanced Micro Devices has (AMC) has cut 2,300 jobs or 15 per cent of its workforce. And so the list goes on and on.

A pink slip hurts its recipient in four ways. First, it hurts his professional ego, especially as he spies that some of his colleagues still enjoy job security. He becomes anxious for the future.
.
Second, a man who has lost his job suddenly suffers financial insecurity. If he has not adequately provided for situations like this, he may become traumatized. The burden of repayment of loans, paying the school fees for his children and inability to meet other exigencies may be nerve-wracking and/or heart breaking experiences. 

Third, in a country like India, a stigma attaches to a man who has lost his job. Consequently, he may avoid meeting people or social contacts.

Fourth, family pressures also take a heavy toll on a pink-slip recipient. An understanding spouse can smooth his ruffled ego. But a less supportive spouse or other members of his family can play havoc in his life.

In terms of priority, it is financial loss, which must be attended to first. Once financial security is in place, others would automatically follow.

As an industry recruitment consultants India, I can give some tips to avoid a pink slip. First of all, beat redundancy by constantly upgrading your skills and knowledge related to your job. That way one can keep oneself in demand.

Secondly, is your performance in the company rated as ‘value added’? Find ways to render value added services to your company, with a little or no support from your employer.

Thirdly, if you cannot beat your enemy, join him. If, for some reason, you sense that your job may be outsourced, the best way is to join the company to which your job is likely to be outsourced. Such an employer may pay a high premium for your understanding of the work in your company. But this must be done before being pink slipped. If possible, become an outsourcing vendor yourself. Float your own outsourcing company. Fourthly, put your experience and skills to good use in an emerging field.  There is always better use of old skills in a new technological era. But it requires creative thinking. Create your own opportunities or grab other favorable circumstances to chart your advancement. 

Notwithstanding your best efforts, you have received a pink slip. Just remember. No one is pink-slip proof in this world.  Many successful personalities of the world were pink slipped at one time or the other in their lives. For example, U.S. business magnate, Lee Iacocca, former U.S. President, Jimmy Carter, and many others suffered this fate.  But they pulled themselves up by their bootstraps, and retrieved their career and rose to great heights. Remember there is life after the pink slip. 

If the pink slip has become inevitable, then here are a few things for you to do and not to do.

The first thing to do is to announce to all concerned that you are setting up a consultancy. Get a well-designed calling card printed with your name, residential address and telephone number and spread the word as widely as possible. Stress the word ‘consultancy’. This is good for a new start. Besides, it will safeguard you against loss of social prestige, and comfort your hurt professional ego. Then strive hard to get assignments or jobs.

The next thing to do is to call up your professional friends and publicize your new consultancy. Do not retail your struggles to your friends, but try to get as many references as possible. You may let it be known that you will explore HR consultant India for a few months and, if it does not work out, you will welcome other assignments. Keep all your options open.

Tell your friends frankly about the pink slip you received, but stress “I had seen it coming in the present scenario”. Such a confession and assertion will only enhance your market value, not lower it.

If you find a new job, do not settle for a hefty cut in your salary or position. With your market value eroded, your new employer may discount your skills heavily and exploit your present situation. In such a case, negotiate for a consultancy contract rather than a regular job. Offering hefty discounts to win customers in early stages is a very normal practice, but accepting a cut in one’s salary is definitely not.

In your new job, provide value-added services. In other words, deliver more than you are paid for. By doing so, you will benefit in two ways: a) you set a good reference point; and b) at the time of renewal of the contract, you will be in a position to negotiate more satisfactory terms Build up a good customer referral base by doing value-added work.

Do not take a full-time job initially. Part time contract will give you time to look for better opportunity or upgrade your skills, which you could not do earlier. Such an arrangement may suit your new employer, too. Work out a mutually agreeable deal.

Quietly continue searching for a job. Do not send your curriculum vitae (CV) to all and sundry. Judiciously choose a few placement agencies and tell them you have been pink-slipped due to a new policy of your erstwhile employer. Tell the agencies of your strengths and weaknesses send your resume and build up a good rapport with them so as to cast the net wide for you. If you find a job offering financial stability, as well as professional enrichment, then consider it well and make a wise decision. If these two criteria are absent, then find another job.

Joining professional groups will help you network for your job or Recruitment consultancy services. Be more socially visible by joining socio-professional groups, like Rotary Club or Lions Club. Find people from diverse fields who have, or may have, received pink slips and interact with them regularly. Benefit from their experiences. Or better make a support group.

Take your family into complete confidence. Explain to them what happened and tell them how you are going to come out of the present situation. Ask them for their total support for your new venture. Half the battle is won, if you have your family on your side.

Most important, forget the past. Learn from your past mistakes and build yourself a new future. With renewed vision, vigor and hope.


The author is the Managing Director of Magna Services (India) Pvt. Ltd., which is a leading Executive Search Firm, Recruitment, Consulting & Career Counseling Company. Email to: nkmarwah@employersclub.net


Magna Global HR Private Limited
102, Jai Shankar Apartment, 
Bhakti Mandir Road, LBS Marg, 
Opp State Bank of Patiyala
Thane West, Mumbai - 400601
Phone No : 022-25441061/62
Email : admin@magnaglobalhr.com
Website : http://www.magnaglobalhr.com/


Saturday 5 July 2014

Top Level Recruitment Consultants in India



There are many who are not so lucky to get a job through their personal contacts or recruitment's advertisements. Many try to send applications proactively to the companies in hope of getting a better job. Many resort to Employment Agencies or Placement Agencies or other intermediaries for help. But few understand the difference between the agencies, their role and usefulness. This article will try to address this need.  Broadly speaking there are following type of agencies categorized in two categories:



One Time Placement or Finders’ Fee Basis

Employment Bureaus / Agencies
Recruiting Agents
Placement Agencies
Executive Search Firms / Head Hunters
Job Portals/ Vortals
Outplacement Consultants

Staffing or Deputation Organization:

Non Managed Onsite Staffing Services
Temp Staffing
Professional Employer Organization
Contract Brokers
Onsite Manage Staffing Services – Staffing Services

1.  Employment Bureaus / Employment Agencies: These agencies operate on very junior or unskilled workman level. Most of these agencies charge their fees to Jobseeker. Traditionally, they would have a Registration Fee and part of salary on getting the job. Government Employment Exchange also fall in these categories. These agencies cater to small companies  & for the workmen or Clerical positions. Most of these agencies are very small and hardly help jobseekers, generally thrive on the registration Fee. One should avoid as much as possible. These days. Job portals would prove better alternative in that regard.

2.  Recruitment Agents: These are those agencies that get a mandate of manpower requirements companies in India from particular employer. Most of the positions are in short term or temporary in nature. However some of Recruiting Agents wouldjust act  as intermediaries to select the candidate.  Most of the Gulf recruitments especially for unskilled categories are done like this. Mostly Employer companies are expected to bear the cost, but for unskilled categories, Recruiting Agent may charge the Job Seeker or Both. This is most abused category with many unscrupulous operators eager to loot the gullible. As per government rule maximum charges applicable is Rs 2000/- but few recruitment agents would agree to that until a free recruitment drive sponsored by the end Employer.

3.  Staffing Services/ Body Shoppers: Many of these Recruitment Agents would employ the persons in their own company and second / depute them on the client sites. Till recently major portion of software exports would accrue from such Body shopping activities. World wide Staffing is around USD140Bn industry. Most of these companies specialize in a particular segment. It is common for the large corporate to have their non core staff on staffing or deputation purpose. Most of the short term requirements are taken on staffing basis. In true sense,  a staffing company in India suppose to take an employee on full time roll and in the event of no deputation to customer organization , staffing companies are suppose to pay some bench allowance or full salary. In this payment to the Employee is the liability of the staffing company irrespective of whether customer pays or not. In India, staffing is common only in IT and knowledge Sector. Government has not made many exist and contract laws clear hence slow. Temp Staffing which is very short requirement like one month / two week basis Many companies specialize in this category wherein they keep a roster of available resources and place them as and when situation arises. The Temp Company pays company raises bills to the Employer and employee. In Indi, it is still picking up . In fact current staffing companies are the hybrid of Temp / PEO and Contract Brokers.

5.  Professional Employer Organizations: This is another $ 17 Bn  Industry in US primarily targeted on small business in which a PEO puts a small companies ‘employee on its roll and lease it back to the company . By doing so, employees could be given perks like 401 K (pension) , Medical Insurance and other benefits which are out of the reach of a normal employer or exorbitantly costly . PEOs enjoy the cost arbitrage along with some Pay roll expenses. Payment to the employee salary is the responsibility of the End Employer only. PEO only process the pay roll and arrange distribution. In India, most of the staffing Industry acting as PEO or Contact Broker albeit for large company. In fact operations are the hybrid of a PEO & Contract Broking Company but growing very fast.

6.  Contact Brokers: In US, many companies like to engage Independent contractors directly, however for the ease operation they may use a contract brokering company. A Broking company raises the single bill for number of contractors, receive payment, deduct its brokerage & administration fee and pass the balance to the Independent contractor. Or End Employer may pay Contract Broker its Brokerage and administration fee. The contacts are back-to-back basis. In India most of staffing contract are on these basis. But numbers are growing . Once exit laws are clear full fledge staffing would come to Play

7.  Placement Agencies: These are the agencies, which mainly work in middle to junior categories (salaries Rs 2 Lac to 8 Lac ). These agencies are driven by their databases of the candidates. Once they find a good quality candidate, they may try to place them and make money. Mostly paid by the employer on recruitment, but few may charge a registration Fee to the job seekers. One should avoid those who charge the candidate. These agency do not do any value add in the process except sending the CVs to Companies. Many Job Portals, who do not charge to the job seekers, are based on this concept. Placement Agency may charge 8.33% to 12.5% of  annual gross salary of the selected candidate to the employer.


8.  Executive Search Firms/ Head Hunters: As the name suggests, these firms search or hunt for senior/ top-level executives (Rs 8 Lac to 2 Crore Salary). Normally operate at very senior level. These companies are driven by their customer’s need. They charge  fees from 20% to 33% of the annual Gross package of the selected candidate plus other expenses. The fees vary between Rs 2 Lac to 50 Lac. An Executive Search Company is expected to identify probable candidates, interview them and select them using psychometric and other techniques. An Ethical Executive Firm would also conduct an in-depth reference Check and background checks on the candidate. In Country like US, Criminal history checking, HIV, drug addition tests are commonly conducted by these Firms. These are highly reputed firms who don’t charge anything to the candidate and would not have any moral or commercial binding with the candidate. On the contrary, they would go out of the way to help and guide the Candidates. However most of the placement agencies claims to be or position themselves as Executive Search companies. One needs to know them better to differentiate between them.

9.  Recruitment Consultants: These are high end Firms that advise customers what to recruit and how to recruit. The motive of these firms is to help their customer in better and cost effective recruitment. Some of these Consulting companies may execute the projects on their own and some of them may use Executive Search firms or Placement Agencies. These are rare breed and in the infancy stage. Not many firms would fall in these categories.


10.  Out placement Agents: These are special agencies, which help companies to out place their redundant employees. Many companies, who lay off their executives/ staff or offer VRS or issue pink slips, use the services of these agencies to reduce the negative impact or VRS or Pink slip on the employee. These agencies, help, consul, guide or even train the redundant employees to find good jobs. They may even place them in other companies. The Employer issuing the paying slips pays these agencies. India is relatively new to this concept but soon catching up.

11.  Job Portals: With the advent of Internet many job portals have sprung up. In fact recruitment is the largest activity on the net. Most of the portal acts as Employment / Placement agencies. The portals are undergoing a see change in their role and efficiency. One should be careful while dealing with these portals as privacy may be at the risk.

12.  The recruitment Industry is a fast growing and nascent field. The total industry is estimated to around US $300 billion globally and is growing@ 20 % plus annually. This offers excellent high income and professionally satisfying industry. On an average, a successful Recruiter or middle, top level Recruitment Consultants in India in a small to medium size firm would earn from Rs 8 to 15 Lac annually.

For more information about Magna Global HR visit :
Magna Global HR Private Limited
102, Jai Shankar Apartment, 
Bhakti Mandir Road, LBS Marg, 
Opp State Bank of Patiyala
Thane West, Mumbai - 400601
Phone No : 022-25441061/62
Email : admin@magnaglobalhr.com
Website : http://www.magnaglobalhr.com/

Tuesday 1 July 2014

Executive Search Firms in India

I am, apart from being an Executive Search Professional, also an active Rotarian and member of Rotary Club of Thane North End affiliated to Rotary International. Recently I was told to write an article on my profession (in Rotary we call it classification) for our club newsletter 'Mukti'. The article was written in general for different set of people to give them an idea of Executive Search as profession. This gives just a bird’s eye view about this noble profession hence I thought of sharing with all.


Executive Search or Head Hunting Specialist as commonly known, is a new age Consulting profession that is gaining a wide acceptance. Today corporates pay a consultants in India anything between Rs.10 lac (USD 16K) to 2 cr (USD 330K) to search a right professional for their enterprise. Many time people asks me why would one pay so much for finding an employee when there’s so much unemployment around. Answer is that unemployment is at lower level or at entry level due to skill mismatch or lack of  information. At senior / top level there is acute shortage of talent. Not only that, at senior level, professionals do have their choices and apprehensions that makes match making very difficult. There’s saying “Executive Search consultant does not hunt those who hunt jobs but hunt those whom job hunts”

One of the most important role of an Executive Search Consultant (ESC)  is to develop a communication without exaggeration  to entice the person to take career decision in favor of the opportunity presented.  We have heard how Steve job lured John Sculley from Pepsi to join Apple by asking Sculley "Do you want to sell sugared water for the rest of your life? Or do you want to come with me and change the world?”  Sculley proved to be most successful CEO of Silicon Valley. One of my clients, a most reputed builder of Mumbai, wanted to diversify in IT/ ITEs and were willing to invest 50 Cr (USD 10 mn) in cash capital apart from lending Real Estate but no established IT professional  was willing to join them as CEO. We released a half page camouflaged Advert in India, Gulf and USA spending closed to Rs 50 lac (USD 100K) and announcing seriousness of their intent. Fully aware that no established Professional is going to apply to this advert. Then we shortlisted 14 successful CEOs from IT Industry whom I had known otherwise and sent them the advert cutting requesting them to refer someone. Seven of them reverted asking golden question “who is the promoter?” and search story begins. Five of them were eventually presented to our client and one eventually joined.

Foundation of Executive Search is research & knowledge on the DNAs of the Companies & Professionals operating in the sector of one’s specialization. It is all about reading the undercurrents of the industry and understanding professional whims and fancies of the individuals. Executive Search is all about relationship. Most of us (ESCs) have relationships with our customers & candidates that goes  back more than a decade. Recently I placed a person for the MD position with one of my old European client at Ahmedabad, whom I had known for over a decades but never placed before.

Executive Search is used by all but it is boon for SMEs who need good talent to grow their business but  does not have requisite size and brand equity. Time when Steve Job proposed John Sculley, Pepsi was global giant and Apple a pygmy. How does one convince a professional to join a small upcoming company with low paying capability is both science & art that ESC exercise. Many get confused Executive Search Consultancy with low end recruitment Agency. Lower Level Recruiting is more mechanical process & number game coupled with filtering skills. Executive Search is like a super specialist who need to understand your need very carefully. Recently I was introduced to one Mid-size industrialist whose company was not doing well and wanted a Professional to turn around. But industrialist reacted sharply & negatively to my poking question to understand reasons for his company’s sickness. Guess what, meeting lasted just five minutes and I have to decline the mandate. If you are a Promoter / Businessman wanting to hire the services of an Executive Search Consultant, my advice to you is to find a good consultant through validated references and be transparent with that consultant and get the best out of him/her. Do not hesitate to share with them inner woes. As such all of us are under the oath of secrecy like any doctor or professional.

And if you are a professional, then best is to network with Executive Search Consultant much before you need them. Best time is when you have just getting out of Middle management getting into general management roles. And if you are already at Senior level looking for a change, then do connect with ones you had networked in past but don’t solely depend upon them. The reason is that an Executive Search consultant is driven by the needs of its client and has very limited wherewithal to push someone through unless situation warranted. You can use your relations to take ESC advise to make better career decisions. Executive Search Consultant will invest his time in you if see a potential in you. The gentleman whom I placed in Ahmedabad took my free advice 3 to 4 times for his career moves in the interim. Thanks to this I understood that he thrives in chaos. His all successful innings were in troubled companies and  he turn out to be virtual status quo manager in a stable company. So this time I have to really impress upon my client to push hard his candidature because the said company in Ahmedabad was in all sorts of troubles including the treason by local JV partner. In Last two years, he had  sorted  out all problems and put the company on comeback trail. You guessed already soon it is going to be   time to hand over company to someone else.

If you are young aspirant looking for career choices, then to be an Executive Search Consultant , it is good to have a MBA degree. Most youngster starts their career in Executive Search as Researcher where they work back end with senior consultant, just the way any intern or junior doctor / lawyer work with seniors. Good one soon starts client facing accompanying the Sr. consultant. Ideally  a person with 12 years’ experience should become a Senior Management Consultants or Practice Head. To enter midway one must have some expertise in a specific sector and a penchant of connecting with people. However, as on date there are no specialist courses in Executive Search. Most of us are self-learned professionals Graduated out of Practical Institute of Real Life. In future there are likely to be some courses too.

For more information about Executive Search Firms in India, Contact us at: 

Magna Global HR Private Limited
102, Jai Shankar Apartment, 
Bhakti Mandir Road, LBS Marg, 
Opp State Bank of Patiyala
Thane West, Mumbai - 400601
Phone No : 022-25441061/62
Email : admin@magnaglobalhr.com