Tech Mahindra Opts for Internal Recruitment - Can it Beat Attrition?

Case Code: CLHR095 Case Length: 4 Pages Period: 2022-2023 Pub Date: 2023 Teaching Note: Available

Price: Rs.200 Organization: Tech Mahindra Limited Industry: Technology & Communications Countries: India Themes: Human Resource Planning, HR Policy, HR Planning, Recruitment & Selection

Abstract

The caselet “Tech Mahindra Opts for Internal Recruitment – Can it Beat Attrition?” discusses the various implications of India-based Information Technology (IT) services company, Tech Mahindra Limited (TML)’s strategy to increase internal recruitment for open positions in the organization. The caselet discusses the pros and cons of internal recruitment vis-à-vis external recruitment. It throws light on how TML’s focus on internal recruitment was able to help it control its Average Resource Cost (ARC) and employee expenses. The ability of internal recruitment to bring down the attrition rate of the employees is also presented. Can TML’s rising internal recruitment rates have a long term positive impact on its operating cash flows and attrition levels?

Issues

• Understand the need for managers to pay attention to recruitment.
• Analyze the various factors affecting recruitment.
• Discuss the pros and cons of different sources of recruitment.
• Examine the costs involved in recruitment from various sources.
• Identify the way internal recruitment helped manage attrition in the IT industry.

Introduction

In January 2023, Harshvendra Soin (Soin), Global Chief People Officer of India-based large market capitalization (Large-cap) Information Technology (IT) Services Company, Tech Mahindra Limited (TML), claimed that the company had hit an internal fulfilment rate of around 66%, said to match the “best in the industry”.

TML had been focusing on internal fulfilment of job positions instead of hiring external candidates for some time to control its Average Resource Cost (ARC) and employee expenses. Soin said, “We’ve succeeded in doing this (manpower count) thanks to a lot of automation in IT, alongside improving internal fulfilment sizeably, by up to 66%.”

Keywords

Sources of Recruitment; Internal recruitment; External Recruitment; HR planning; HR policy; Attrition; Recruitment Cost; Recruitment Process; Employee Expenses; Employee Retention; Talent Management; Average Resource Cost; Psychology; Performance Management and Reward Systems; Employee Motivation,Tech Mahindra Limited; Large Market Capitalization Information Technology; Human Resource Management; Job-Hopping; Futuristic Skills; Multiple Job Offers; Juniorisation Strategy; Employee Pyramid; Internal Talent; Head Hunting

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