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?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• 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

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