‘ ‘ x cp Rann [ease | HR Analytics at ScaleneWorks — Behavioural Modelling to Predict Renege’ Sense ScaleneWorks supports several information technology (IT) companies in India with their talent acquisition. In 2015, Indian IT industry directly employed 3.5 million workers.* Acquiring new talent >. is always a challenging and time-consuming task, especially in IT since the hired person has to handle fast changing technology. In many cases, itis difficult to find the exact match for the job specified. If an offer is denied, then the Human Resource (HR) department has to repeat the entire recruitment process resulting in additional effort from the top management. (On 30 April 2014, Sanjay Shelvankar, Cofounder and the Chief Executive Officer of ScaleneWorks, had called for the meeting of its top management, which included Ashish Tiwari, Vice President and Head of Operations and Sharon George, Head of ‘Technology and Strategy. Sanjay wanted to brainstorm with Ashish and Sharon on recent challenges the company was facing as talent management consultants. Sanjay began the meeting with the following statement: Case Stud We all know that talent acquisition is becoming a tough task, consuming time and effort of HR department and top management of many organizations. Even after they find the right talent, there is no guarantee that the person will join the organization if an offer is made. Sharon George, one of the co-founders of the company, said: | fwe can predict in advance whether someone will accept an offer or not, it will help companies to reduce their talent acquisition effort significantly. I think, many companies are now using analytics to address HR problems, I saw a video in YouTube on how Google is using analytics for promotions. Ashish Tiwari, the other co-founder of the company, concurred and all of them decided to explore the possibility of using analytics to improve the talent acquisition process. ScaleneWorks had collected data from its past talent acquisition drives with key information such as current cost-to- company (CTC), expected CTC, offered CTC, locations and so on, All the founders of the company were convinced that it is possible to develop an early warning system that can help the companies to predict in advance on whether or not a person will accept an offer. ScaleneWorks ScaleneWorks People Solutions LLP (ScaleneWorks) is a Bangalore based start-up that commenced its operations in the summer of 2010. ScaleneWorks was conceived by a team of HR practitioners » Copyright © The Indian Institute of Management Bangalore (IIMB), The case is authored by Rahul Kumar and Professor U Dinesh Kumar and is distributed through Harvard Business Publishing as part of IIMB's case collec- tioa, Reproduced with permission from HIM Bangalore. ‘The case is non intended to serve as an endorsement, source of primary data or effective handling of decision of business process. Source: Economic Times, February 17, 2015, Available at http://articles.economictimes.indiatimes.com/2015-02- 27inews/39583092_1_economic-survey-e-commerce-market-export-marketBEE) sess ays aoe comprising Sanjay Shelvankar, Ashish Tiwari and Sharon George who had already scripted successful corporate careers and were from three différent areas of expertise such as, Technology Consulting, > Talent Acquisition and Marketing, Their combined vision was to build an organization of great value and to position it amongst the most respected Talent Acquisition Solutions provider globally within the next 5 years; this was reflected in the way they carefully chose their customers and engaged with them, ScaleneWorks sees itself as the first true end-to-end Talent Acquisition Solutions organization which has the passion to bring together decades of experience in ‘Technology Consulting and Talent Acquisition areas to usher in a paradigm shift in the way Talent Acquisition is practiced in today’s ultra-demanding business environment, Scalene Works not only advises its customers on where their Talent Acquisition practices are, but also recommends and implements individually tailored, viable solutions using analytics. Business process re-engineering with its three tenets ~ People Capability, Process Maturity and ‘Technology Adoption — form the core ability of the company to provide customers with an enter- prise-class customized solution to address their Talent Acquisition challenges. They bring in deep domain knowledge of how Talent Acquisition happens in corporates and provide viable recommen- dations to their customers. Case Stud Current Business Challenge Client service is all about the quality of the people involved in delivering business. However, one of the major challenges for Sanjay and his clients revolved around managing a quality workforce Organizations spend tremendous amount of time and energy to create a homogenous environment where people thrive and succeed. Despite all the effort to keep an environment that is conducive, people leave organizations in search of better opportunities. In order to fill the vacuum, HR is bound to recruit new talent, thus forming a vicious circle in between attrition and recruitment; and in order to mitigate this, organizations keep trying to bridge the gap by strengthening their recruitment pro- cesses and creating a culture of inclusivity. Sanjay wanted to find a unique solution which goes beyond the process aspect of human resource management. At first, Sanjay identified and prioritized the renege problem and put forward in a subile way: [ “in my opinion, a significant proportion of the candidates do not join the company that has made an offer. If we can identify them in advance, then companies dor't have to waste their resources” # Although this problem is generic, for a case-in-study we've identified a particular dient of Scalene Works, According to Sanjay in a typical IT services company, the number of people not join- ing the company varies anywhere between 15% and 35% of all the people who accepted the offerContinued --- Sanjay went ahead to explain the impact of this problem from time, cost and quality perspective. The impact may seem minimal if the number of offers rolled out to candidates revolves around hundreds ina year, But if the offers rolled out surpasses the thousands mark, the magnitude of impact rises exponentially, He elaborated the impact for a client? where 12,000 offers are rolled out every year. At 30% renege rate, about 3600 candidates would accept the offer and then not join the company. Even with the most conservative estimates, on an average organizations would have spent 15 hours in the recruitment lifecycle, effectively indicating a humongous loss of 54,000 man hours wasted from an organizations perspective by one client alone. This involves the time spent by the business in interviewing the candidate whose value is more than the mere numbers of hours. Renege has greater impact on the cost of talent acquisition. The entire recruitment lifecycle, starting from sourcing resumes till candidate is deemed fit for recruitment, involves various agencies. These agencies work in tandem with the talent team to screen for candidates who would fit the profile. There is a payout which happens to these agencies for their involvement in the recruitment cycle, It is estimated that if one accounts for cost of recruitment associated with the renege candidates, we would find that the cost of hiring goes up anywhere between 10% and 15% according Scalene Works. Ashish elaborated a scenario of business impact of renege: — 4 Case Study ‘a candidate sends in a mail rejecting the offer just 10 days before his date of joining and if the business has already committed to the client and had made an entire plan of on-boarding the new joinee to the project, then what do we do. Bither we go and tell this to the client and make a miserable situation which no one would like to do in front of the customer, or, we look for an alternative. Most of us look for alternative and fill up the position so as to make business go as usual. But in doing so, we cannot expect to get the same quality of resource as was the case with the one who reneged. So Sanjay and Ashish wanted to know answers to the following questions: 1. What are the key drivers that influence the candidate joining/not-joining a company? 2. What rules can be used to predict the acceptance or rejection of the offer? 3. How to devise a predictive algorithm to calculate the probability of acceptance of an offer and joining the company after offer acceptance stage? Scalene Works had captured several data related to the applicants. The variable description is provided in Exhibit 1. Exhibit 2 describes the recruitment process in detail. © Name of the client is not revealed to ensure confidentiality.‘Business Analytics Continued -*: ESCTETUMN A total of 12000 records spanning a year was captured. The variables were as shown in the Table SA S.No. Variable Name Variable Description S 1 Candidate reference Unique number to identify the candidate & number 2 DO extended Binary variable identifying whether candidate asked for Date of joining extension o (Ves/No) a S 3 Duration toaccept the offer Number of days taken by the candidate to accept the offer (Scale variable) 4 Notice period Notice period to be served in the parting company before candidate can join this, company (Scale variable) 5 Offered band Band offered to the candidate based on experience, performance in interview rounds 2 4 (CONC iC ICAICS/C6) : 6 — Percentagehike expected Percentage hike expected by the candidate (Scale variable) 7 Percentage hike offered Percentage hike offered by the company (Scale variable) 8 Joining bonus Binary variable indicating ifoining bonus was given or not(es/no) 9 Gender Gender ofthe candidate (Male/Female) 10 Candidate source Source from which resume of the candidate was obtained (Employee referra/Agency/ Direct) V1 REX (ins) Relevant years of experience ofthe candidate for the position offered (Scale variable) 2 108 Line of business fr which offer was rolled out (Categorical variable) 13 Dateof Birth Date of birth of the candidate 14 Joining location Company location for which offer was rolled out for candidate to join (Categorical variable) 15 Candidate relocation status Binary variable indicating whether candidate has to relocate from one city to another 16 HR Status Final joining status of candidate (Joined/Not Joined) Source: Scaleneworks. EXHIBIT 2 The Recruitment Process ‘The recruitment process at ScaleneWorks follows the usual Talent acquisition lifecycle (TALC): Sourcing > Screening ~> Selection > Fitment & Offer > Post offer follow-up (PoFu) ‘The recruitment process for a company starts when the Resource Management Group (RMG) per- formsa yearly demand planning in conjunction with business units, sales team and Talent Acquisition Group (TAG). TAG finally takes over the recruitment process to meet the finalized demand pipeline.-Continued-*- Sourcing involves looking for resumes which can fit in the different schemas of demand. Typical channels to source resume involves: 1. Job portals 2. Employee referral 3. Advertisement/Walk-ins 4, Direct 5. Vendors/Consultancy 6. Internal database of sources resumes 7. Social networking sites Sourcing ftom vendors/consultancy is most expensive while sourcing through internal database and social networking sites falls under least expensive way of sourcing resumes. However, companies prefer to go with more than one way of sourcing so as to balance the cost, quality and effort required {o get an optimal mix of resumes. Management and TAG looks into the conversion rate for each channel and cost per channel to arrive at the channel mix to be used to meet the resource demand pipeline Screening can broadly be divided into two types: 1. Hygiene screening involves scanning the resume for notice period to be served by the candi- date, gap in education, previous companies of employment, etc. 2. Technical screening involves matching the skills mentioned in the resume with the desirable skills mentioned in the job description for a particular position. ; ‘The screening process is a time-consuming and strenuous process. A team of HR executives are involved in screening nearly 12000-15000 resumes for every client every month. The screening process also comes with a pre-determined service level agreement (SLA) with the client. This SLA puts a cap on the number of resumes which should not be rejected in the selection round. From a clent’s perspective, this SLA is needed to ensure the quality of resume being screened by the HR executives, Selection process involves multiple rounds of interview for the candidates whose resumes have been screened and cleared. Typically, selection process would have: 1, Technical assessment 1: This primarily would be a telephonic round, 2, Technical assessment 2: This may be a second telephonic round or a face to face interview. 3. Final round: This would be a face to face interview round with senior management. 4. HR round: This round of interview is aimed at understanding the communication and inter- personal skills of the candidate. 5. Customer round: This round’s primary objective is to ensure the comfort level of the candi- date and gain client’s confidence in the skills of the candidate.ET) isinesstnaiis Initially, the customer round may or may not take place for all the candidates, ‘The objective of selection process is to evaluate the candidate on technical/functional skills, process and tools know! edge, domain knowledge and behavioural aspects, Fitment and offer is a function of the score given by the interview panel in different rounds of selection process. Demonstration of skills, knowledge and attitude as judged by the interview panel finally gives a fitment calculation score. The offer roll-out or rejection is guided by this score. If the candidate is deemed fit for the position, a final offer is rolled out which details each and every aspect of the employment. There is also an online system through which offer is rolled out to the candidates, wherein they can either accept or reject the offer online. Post offer follow up (PoFu) process involves the HR executive to be in touch with the candidate to whom the offer has been rolled out in order to ensure that the candidate joins the company post completion of the notice period being served with the parting company. The operations in this team are carried out by sub-teams organized as follows: — Case Study 1. Document collection team: lf the candidate accepts the offer, within 24 hours a link is sent to the candidate through which the candidate has to upload all the documents which aid in completing the joining formality. The target for the document management team is to get all the relevant documents uploaded and verified for completeness within five days. Once the documents are uploaded and verified for completeness, the document management team intimates the third-party vendor for background verification process. The background veri- fication needs to be completed within 15-20 days of candidates having submitted the docu- ments, Advanced PoFu team: In case the document collection team finds candidates unwilling- ness to submit the document, the case gets escalated to the advanced PoFu team. [his teams works closely with the clients TAG to sort out the issue and make amendments in the offer, if needed, 3, Renege management team: In case the candidate accepts the offer and has uploaded the document successfully, this team takes the wagon forward to ensure that the candidate joins the company post completion of the notice period and on date of joining agreed by the candidate. ‘This team keeps following up with the candidate using a structured six-stage process. Every stage has a series of questionnaire which the team uses to rate the probability of candidate joining the company. The objective of this team is to provide 70% predictability by stage 2. The objective for the stages is detailed below. Stages Objectives to Check Stage 1 (SLA: 0-3 days) “Offer letter received : Offer accepted Joining form filled Documents uploaded in the system __ Resignation submitted checkSe noises Continued - -- ‘Stages Objectives to Check ‘Stage 2 (SLA: Stage 1 + 109%*Notice period) Last working day confirmation > 4y Stage 3 (SLA: Stage 1 + 20%%*Notice period) Replacement found GA Stage (SLA: Stage 1 + 40%6*Notice period) Knowledge transition completed a 9 Stages (SLA: Stage 1 + 60% *Notice period) Resignation acceptance mail a oe ~ Relieved from curentrole Stage 6 (SLA: Stage 1 + 8096?Notice period) Induction deals réeived Date of joining confirmed Joined or not joined Duration between calls is subject to change. Stage-wise objectives, issues, queries/unresolved queries, incoming calls from candidate, holidays, BGY, recruiter requests, etc. may impact the duration. Finally, renege cases are escalated to the advanced PoFu team for discussion, ifneeded. PEEIEIEY he sicstage questionnaire n genera the tbl below depicts the let process which follows forthe sistages Stage 1 Greeting a ~ Mandatory Resigned Check Mandatory Introduction Mandatory Resignation Acceptance Check Mandatory _GaliRecipient Check Mandatory Notice Period Mandatory Conversation Starter Preferable Replacement and KT Mandatory ‘Setting The Agenda Mandatory Retention Efforts Preferable Jb Offer Check Mandatory Tentative/Confirmed LWD Mandatory “Congratulations on OA Mandatory Referral Pitch “Preferable Reason for accepting the offer Preferable _Tentative/Confirmed DOS Mandatory “Prelude : Preferable Relocating Yes/No Preferable Documents Uploaded Check Mandatory Accommodation Required Yes/No Preferable Joining Form Filled Check Mandatory Induction Details ~ Mandatory BGY Status lf Required Preparation For Closing the Call Mandatory “Curent Company Details Mandatory Call Closing Mandatory | Company Reactions WfRequired Prediction Mandatory Resignation Process. Mandatory: Q Stage 2 ___Stage3 Greeting Mandatory Greeting Mandatory Introduction 2 Mandatory Introduction Mandatory “GallRecipient Check e Mandatory CallRecipient Check Mandatory (Continued)Continued --- E2UTISUE] Thesixstage questionnaire. In genera the table below depicts the alect process which follows forthe sistages— Continued >. Conversation Starter Preferable Conversation Starter Preferable “O Setting The Agenda Preferable Setting The Agenda Preferable Documents Uploaded Check IfRequted Documents Uploaded Check Required A soining Form Filled check tfRequired Joining Form Filled Check Ir Required © Bevstatus IfRequired GV Status IfRequired ©S Company Reactions IfRequired Company Reactions Ie Required 7 O) Resignation Process Mandatory Resignation Process Mandatory Notice Period Mandatory Notice Period Mandatory | Replacement and KT Mandatory Replacement and KT Mandatory Retention Efforts Preferable Retention Efforts Preferable Confirmed LWD Mandatory Confirmed LWD Mandatory Confirmed DOJ Mandatory Confirmed D0} ® Mandatory — Referral Pitch IRequired Referral Pitch iFRequired Preparation For Closing the Call Mandatory Preparation For losing the Call Mandatory all Cosing Mandatory Call Closing Mandatory Prediction Mandatory 2 4g Stage 4 Stage 5 __ Greeting Mandatory Greeting Mandatory Introduction Mandatory Introduction Mandatory Cll Recipient Check Mandatory Call Recipient check Mandatory | Conversation Starter Preferable Conversation Starter Preferable Setting The Agenda Preferable Setting The Agenda Preferable | Documents Uploaded Check If Required Documents Uploaded Check lfRequired 7 Joining Frm Filled Check IF Required Joining Form Filled Check lfRequired BG Status IFRequired — BGVStatus If Required Company Reactions ‘If Required Company Reactions Required | Resignation Process Mandatory Resignation Process Mandatory Notice Period Mandatory Notice Period Mandatory Replacement and KT Mandatory Replacement and KT Mandatory Retention Efforts Preferable Retention Efforts Preferable Confirmed LWD Mandatory Confirmed LWD Mandatory ConfirmedDO) Mandatory Confirmed DO} Mandatory Referral Pitch HRequired Referral itch If Required _ Relocation Planned Yes/No _ Preferable Relocation Planned Yes/tio Preferable_Aoaistictesesion | EE Continued: PEEIEIE] thesnstagequestonare Ingen the table below depicsthe ile pracess hich olons forthe stages Continued Source: SdaneWorks, >~_ Accommodation Planned Yes/No Preferable Accommodation Planned Yes/No Preferable S peparation For lasing the Call Mandatory Induction Details Mandatory A aatcasing Mandatory Preparation For Closing the Call Mandatory o Call Closing Mandatory “stages VY Ee Mandatory Introduction Mandatory Call Recipient Check Mandatory Conversation Starter Preferable Setting The Agenda Preferable Documents Uploaded Check IfRequired Joining Form Filled Check UFRequired BGV Status ifRequired Company Reactions IfRequired Resignation Process Mandatory Notice Period Mandatory Replacement and KT Mandatory Retention Efforts Preferable Confirmed LWD Mandatory Confirmed DOs Mandatory Referral Pitch IF Required Relocation Planned Yes/No Preferable Accommodation Planned Yes/No Preferable Induction Details Mandatory Joined/ Not Joined Check ifRequired Preparation Fr Closing the Call Mandatory Call Closing MandatoryBED) ties tipi Continued--- Oy @ (use data set HR Analytics.xlsx) 1. 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