RECRUITMENRECRUITMENTTand

Cisco’s case study

By:-Hemlata VermaJeevan YadavKanika BhattKhushboo BorasiMamta Marmat

well,

Jobs

different

require

different

skills

Recruitment:-Recruitment:-

Recruitment is the process of Recruitment is the process of searching for prospective searching for prospective candidates and stimulating candidates and stimulating them to apply for the jobthem to apply for the job

It is a positive process because it increases the selection ratio by attracting a large volume of applicants for the job

PurposesPurposes

► Increase size of applicant pool at Increase size of applicant pool at minimum costminimum cost

► Identify & prepare potential job Identify & prepare potential job applicantsapplicants

► Increase success rate of selection Increase success rate of selection process by reducing over/under process by reducing over/under qualified applicantsqualified applicants

► Decrease early turnover of new hiresDecrease early turnover of new hires► Increase individual/organisational Increase individual/organisational

effectivenesseffectiveness

Recruiting Yield PyramidRecruiting Yield Pyramid

50

100

150

200

1,200

New hires

Offers made (2 : 1)

Candidates interviewed (3 : 2)

Candidates invited (4 : 3)

Leads generated (6 : 1)

Recruitment sources:-

Internal sources:-• present permanent employee• present temporary employee• retired employee • Dependant of diseased employeeExternal sources:-

• Campus recruitment• consultancies• Data banks

• Casual applicants• Trade unions• public employment exchange• Similar

organisation

Can be reduced

Advantages of Internal Advantages of Internal RecruitingRecruiting

►Better assessment of internal Better assessment of internal candidatescandidates

►Lower costLower cost►Motivator for good performanceMotivator for good performance►Familiarity with organisationFamiliarity with organisation► Improved morale and securityImproved morale and security

Stability of employees can be insured Stability of employees can be insured

Trade union can be satisfied

Cost of training , induction , period of adoptability

Disadvantages of Internal Disadvantages of Internal RecruitingRecruiting

► Inability to find appropriate peopleInability to find appropriate people►Morale problems Morale problems ►Political in-fightingPolitical in-fighting►Need for strong T&D programsNeed for strong T&D programs

Advantages of External Advantages of External RecruitingRecruiting

► Introduces new ideas and knowledgeIntroduces new ideas and knowledge►Reduced need for trainingReduced need for training►Larger skilled pool available Larger skilled pool available

UNBIASED RECRUITMENT NEW ENTRIES CAN BE MADE AT LOWER PAY

TALENTED CANDIDATES OF SIMILAR ORG CAN BE BROUGHT IN EASILY

SCALES

External

recruitmentMay notAlways be

useful

Disadvantages of External Disadvantages of External RecruitingRecruiting

►Problems of fitProblems of fit►Morale problems for internalsMorale problems for internals►Adjustment periodAdjustment period►Decreased incentive value of Decreased incentive value of

promotionspromotions

Factors affecting recruitment:-

Internal factors:-• company’s pay package

• Quality of work

• Organizational requirement

•Carrier planning and growth• Company’s size • Companies product/ services• Companies growth rate• Roll of trade unions

• Company’s name and fame

External factors:-

• Socio economic factor

• Supply and demand• Employment rate • Political legal governmentfactors• Information systemLike employment exchange

Recruitment technique:-Recruitment technique:-

For internal candidatesFor external candidates

• promotion

• demotion• transfer

• recommendations• scouting

• advertising

Measuring past recruitment can help predict:

Timeliness of recruitment

Budget needed

Methods that yield greatest number of best quality candidates

Assess performance of recruiters

Recruitment EvaluationRecruitment Evaluation

Recruitment – The Cisco WayRecruitment – The Cisco Way

““Our philosophy is very simple – if you get the best people in the industryOur philosophy is very simple – if you get the best people in the industryto fit into your culture and you motivate them properly, to fit into your culture and you motivate them properly,

then you’re going to be an industry leader.’then you’re going to be an industry leader.’

John ChamberJohn ChamberCEO, Cisco SystemsCEO, Cisco Systems

INTRODUCTIONINTRODUCTIONR

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The case examines various changes brought about by global networking major. Cisco, in its recruitment policies in the mid-1990s

The Case:

Cisco was founded in 1984 by a group of computer scientists at Stanford, who designed an operating software called IOS (Internet Operating System)

Background of Cisco:

In 1985, the company started a customer support site from where customers could download software over FTP and also upgrade the downloaded software. It provided technical support to its customers through emails

INTRODUCTIONINTRODUCTIONR

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In 1995, global networking major, Cisco, found that despite hiring an average of 1,000 people every three months during the year, the company still had hundreds of openings.

Introduction to the case:

Cisco hired more than 1,000 employees every quarter – around 10 percent of the total jobs generated through Internet in the Silicon Valley.

The management realized that they had to adopt innovative recruitment measures to get the best people and remain the leader in the Internet era. Foremost among these was the first of its kind online recruitment called the ‘Friends program’

In 2001, the company recruited around 40-50% of its employees through ‘Make a friend @ Cisco’ online program and other such initiatives

“Friends is designed to put some grace into the hiring process.”. Cisco recruiters have also began to target passive job seekers, who were content and successful in their existing jobs.

- Michael McNeal, Director, Corporate Employment

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Cisco sources revealed that the company had a policy of attracting the ‘top 10-15 percent’ people in the networking industry. It believed that if it could get the best people in the industry and retain them, it would remain the industry leader

Cisco’s recruiting team identified the candidates whom they felt that the company ‘should hire,’ and then figured out ways those potential candidates did their job hunting and designed hiring processes to attract them to the company.

“The top 10 percent are not typically found in the first round of layoffs from other companies, and they usually aren’t cruising through the want ads.”

- Barbara Beck, Vice President, Human Resources

“Attracting, growing and retaining great talent is critical to sustaining Cisco’s competitive advantage.”

Cisco’s Vision Statement:

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Since the most sought after employees were not accessible, Cisco deviced a strategy to lure them.

As part of its strategy to attract the best talent, Cisco changed the way it used wanted advertisements in newspapers. Instead of listing specific job openings, the company featured its Internet address in its ads and invited prospective candidates to apply.

The company learned to attract happily employed people through focus groups. For example, it was found that most professionals like to watch movies in their free time, websites on ‘corporate cartoon Dilbert’ were extremely popular and most professionals hated job hunting.

Cisco linked its website to the Dilbert web page, which registered around 2.5 million hits per day, mainly from engineers and Internet-savvy managers.

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The focus group’s exercise made Cisco realize that a candidate would approach the company if he had been informed by a friend about better opportunities at Cisco.

Cisco also reached out to potential applicants through a variety of routes which were unusual in recruiting. It began frequenting art fairs, beer festivals and certain annual events in which people from Silicon Valley participated. These places proved to be very ‘fruitful hunting venues’ as they attracted young achievers from various successful InfoTech companies.

Cisco recruiters mingled with the crowd, collected business cards from prospective candidates and spoke to them informally about their careers. The Cisco employees then called the prospects to inform them in their own words about life at the company.

By 1999, about one third of new recruitments were made through the Friends program, Cisco launched a tool called Profiler on the employment page of its website to accelerate and standardize online resume submission.

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To avoid applicants from being caught by their current employers while using Profiler, Cisco designed each screen with an escape button that opened web page about gift suggestions for co-workers.

To speed up the hiring process, Cisco hired in-house headhunters to identify qualified candidates for managers.

Cisco also encouraged internal referrals for recruitment through a program called ‘Amazing People.’ This system allowed Cisco employees to refer their friends, acquaintances for positions in Cisco. Employees were given bonus if the company hired the person they referred.

Every new recruit was assigned a ‘buddy’ who clarified all doubts and answered questions about Cisco and work in general.

strengths:-strengths:-

•Use of revolutionary technique that is internetInexpensive method which covers large volume

•Recruiting team’s effort to identify and study job hunting Style of potential candidates

•Advertising website at cyberspace and linking it to otherImportant websites

•Formation of focus groups for passive job seekers

Weaknesses:-Weaknesses:- Factors like higher salary, incentives etc Factors like higher salary, incentives etc

which may lure passive job seeker which may lure passive job seeker havn’t been includedhavn’t been included

As cisco target top level employees, excessive recruitment Will be useless and unfocused

Internal refferals may cause conflicts and maydivert employees attaintion to get bonus forrefering

Opportunity:-Opportunity:-

►Unusual but fruitful Unusual but fruitful recruitment techniques like recruitment techniques like art fairs, beer festivals and art fairs, beer festivals and certain annual events etc are certain annual events etc are frequently done; where frequently done; where potential candidates can be potential candidates can be easily contacted and informedeasily contacted and informed

Threats:-Threats:-

►Other competitive firms Other competitive firms can soon followcan soon follow similar similar recruitment techniques recruitment techniques with additional lucrative with additional lucrative features like higher pay features like higher pay scales , better working scales , better working atmosphere etc atmosphere etc

Conclusion:-

According to our swot analysis we would like to concludeThat cisco’s recruitment technique is very beneficial, cost effective and innovative but it seems to be a bit undirectional as its objective is to hire top networking people but its not significantly fulfilled they have just made the recruitment technique smooth and easy but not attractive specially for passive job seekers