HR IN MSME S

SUMEET VARGHESE

alent attraction and acquisition is a major

area of focus not just for larger corporations
but firms in the Micros, Small and Medium
Enterprises sector as well. However, given
their small size, the MSME approach to
recruiting is oftentimes distinct from that
of large sized firms. Some of the salient aspects of
MSME recruiting are:
Greater involvement of top management: In the
case of several MSMEs that this author interacted with
recruiting commanded top management attention. This
was also because the founder in most cases was singly
responsible for all HR activities. Interestingly, it was
not functional ownership alone that motivated the MDs
to screen potential candidates personally. According
to Ajay Kulkarni, Managing Director at Vishwanet
Computers - a Kolhapur based IT Training entity that
has major tie-ups with Engineering, Polytechnic, and
Management Colleges in the area, there is a new found
emphasis on looking at plain vanilla recruiting as "Talent
Acquisition". "Our approach is more strategic now",
says Ajay, "as we focus on the talent aspects of the
candidate during an interview rather focusing on the
balance sheet." In the last 10 years, Ajay's firm has
hired several people, each of whom was personally
interviewed by Ajay.
As a matter of fact, where most MSMEs resort to
unplanned hiring based on business requirement,
Vishwanet has been able to generate a year-wise
Workforce Acquisition Plan based on the Vision of the
company, the business objectives and targets planned
till 2015 and the potential organizational structure
required to meet the business targets set for the next
5 years. Incidentally, the Workforce Plan is closely based
on the kind of growth Vishwanet has experienced in
the last few years and their plans to enhance the
business in terms of geographic spread and extensive
collaboration with existing and new channel partners.
This strategic focus was not simple to achieve, though.
"Earlier we used to operate like a tuition class," adds
Ajay, "but we changed that mindset 5 years back."
Prashant Joshi, Founder Director of Space Infotech

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July 2010

- a Kolhapur based IT Training firm, shares a similar

kind of enthusiasm for recruiting. In the last 3 years,
his company has hired employees after they have been
screened by atleast 2 of the 3 company Directors. But
since they are in the IT education business, hiring has
largely been based on business volume and demand.
Like his peers in the area, Vidyanand Deodhar,
Managing Director of Surya Equipments, a Kolhapur
based engineering firm specializing in the design and
commissioning of industrial storage systems for wellknown Pharma brands in the country, also invests time
and effort in various recruitment related processes as
there is no special person appointed for the task. While
this involvement is now about 50%, he ensures he is
mostly present at one of the interviews though he does
get involved during the final stages of the negotiation.
Also, given the nature of the business - employees are
constantly moving between the head office and other
remote locations across the country where Surya
Equipments has commissioning or installation projects,
workforce planning is still largely based on the business
volume spikes and dips.
Tapping multiple sour
ces for candidates: With
sources
increasing spread of job advertising channels like
Monster, Naukri, Times Jobs and others, MSMEs have
been quick to jump into the job advertising bandwagon
like their larger counterparts. However, they have found
limited success here especially with respect to finding
quality talent. Vishwanet has explored all possible job
advertising channels like local newspapers, Monster
and Naukri but found that a greater number of their
workforce - atleast 50%, have come through Employee
References or Internal Job Posting. Since Vishwanet is
in the business of training various student populations,
including Engineers, they have found it easier to target
the student audience for potential jobs at Vishwanet.
Of course, an appointment is based on close
consideration of the future plans of the students since
many aspire for a high profile job in nearby talent
hotspots like Pune or Mumbai.
For Space Infotech, all regular job advertisement
channels like newspaper advertisement, placement

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agencies as well as employee references appear to be

Vishwanet offers. Without fail, most of the employees
working fine. However, Surya Equipments has had very
who have left Vishwanet for greener pastures have got
limited success from these candidate sources.
very good placements thanks to the rich exposure to
"Advertisements and recruitment agencies have just
live projects and various kinds of training.
not worked for us", says Vidyanand. In the last 18
It might seem odd but Vishwanet has a practice of
years, a majority of the workforce has entered the
conducting a skill set assessment at the time of leaving
organization purely on the basis of Employee Referrals.
as well based on the Skill Matrix that it has developed.
Vidyanand's firm posts job notices internally for their
Employee progression across several levels of
workers to spread the word or recommend someone
competence - from a Trainer of Students to a Trainer
they know.
of Trainers, is mapped using this Skill Matrix.
Sev
er
al lay
ers of scr
eening: While it is true that
ever
eral
layers
screening:
Accordingly, a person who leaves the organization can
many MSMEs may find it challenging to incorporate
see for himself/herself the progress he/she has made
the best screening methods that their large sized
on these competency levels at the time of leaving.
counterparts may follow, there are a clear set of best
Interestingly enough, it is not uncommon at Vishwanet
practices that MSMEs may be evolving. For instance all
to tutor an exiting employee for his next job based on
3 entrepreneurs who were interviewed for this feature
this assessment.
shared that they have introduced multiple levels of
At Space Infotech, screening is based on clearly
screening. However, this does not in any way delay the
stated job requirements and interviewing lasts for about
process of hiring. According to them time is a critical
30-40 minutes depending on the quality of the
decider as they cannot let the best candidates wait.
candidate. Usually, one of the firm's Director's who is
At Vishwanet, initial short listing and screening is
conversant with the knowledge, skill and attitude
based on a clear wok profile. Accordingly, there are 3
requirements of the job is present for the candidate
rounds of screening to check the
screening.
various skills sets identified for
At Surya Equipments, job
the position. The first round of
applicants go through 3 layers of
With increasing
screening is a short informal
screening. The first level of
conversation with the potential
is meant to get a
spread of job advertising screening
employee. This round is designed
general gut feeling on the
to check the attitude of the
candidate and understand
channels like Monster,
candidate. The second and third
the candidate can fit
Naukri, Times Jobs and whether
levels of screening involve a
into the organization. The second
technical test for checking others, MSMEs have been level of screening is Technical
knowledge level and a technical
and involves assessment of the
interview to identify training need quick to jump into the job candidate's knowledge in the
and gauge possible probation and
area. The final level of screening
advertising bandwagon
confirmation periods for the
is Behavioral and serves to probe
like their larger
candidate. There is also an
integrity, past background,
attitudinal / values questionnaire
reference, sincerity and personal
counterparts. However,
that is administered to probe for
likes and dislikes.
attitude and value match.
With varying approaches
they have found limited
Interestingly, the entire process
to recruiting, obviously guided
success here.
takes only 3-4 hours. Most of the
by different philosophies,
time the technical interview takes
policies and practices to talent
up a good 30 minutes to 1 hour
acquisition, MSMEs today showcase an interesting mix
as the candidates is examined for work profile related
of experimentation and convention. Since every
skills like programming and logical reasoning.
candidate who appears for an interview is a potential
Incidentally, the rigorous screening at Vishwanet
employee, MSMEs appear to be mindful of the
throws up a lot of information for the 1 month training
strategic opportunity to brand the organization well
that is provided to the candidate as soon as he/she
in their interactions with candidates. Accordingly, the
joins. This data is also a very important input for the
recruiting processes that they design ensure thorough
continuous on the job training the candidate receives
probes as well as speedy completion. Whereas the
through the course of his/her employment. According
probes are meant for refining the match, the optimum
to Ajay, every candidate who goes through the screening
time spent on the recruiting process ensures the
is informed about his/her strengths and weaknesses.
convenience of the candidate and the organization.
This also informs the job offer negotiation that follows
However, this is not all. Some are even integrating
later. Since those who apply for jobs represent cream
interviewing data into on the job training processes
engineering talent that will not lose out on any
thereby making sure that valuable assessments at the
opportunity to migrate to larger cities, job related
interview stage have a utility beyond that of screening
screening at Vishwanet serves to help the candidates
candidates in or out.
HC
understand their gaps and appreciate the
Sumeet Varghese is an independent management consultant.
developmental opportunities that employee training at

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HR IN MSMES