What measures should a company excercise in the time of recession? A few suggested measures for companies confronted with dire situations like now are cost savings, improving customer relations, product differentitation etc. Do recruitments from B-Schools figure directly or indirectly figure in the list of excercises mentioned? Prima Facie the response is NO. In this article I would try to validate my hypothesis “During recession, companies should hunt for good and cheap talent in B-Schools rather than in market” which perhaps is in complete contrast to what B-School fraternity is observing in the current placement season.
Cost Saving measures are survival measures not growth models. Hence, any company following a cost saving strategy for a long term in recession would soon see itself shrinking. Traditionally, it has been seen that many companies across the world adopt cost saving strategy in a straight jacket fashion. The companies need to revive their strategy of straight jacket cost saving and adopt a selective and intelligent cost saving models.
Moreover, Cost Saving needs to be complimented with growth models/strategies like product differentiation, innovation etc for sustainable growth. One can easily differentiate between a growth oriented company and a survival oriented firm in times of recession by analysing their strategies. Contrary to the common perception of growth orientedeness of Indian firms, one can easily find majority of Indian companies adopting survival strategies rather than growth models.
Recruitment is one of the indicator of growth strategies. Recruitement numbers have gone down due to the fallout of the cost saving models. Market recruitments are still prevalent but I personally do not consider market recruitments as an indicator of growth strategies. Populance of market recruitment over fresh recruits from B-schools is an indicator of adoption of cost saving strategy over growth models. Market recruits are seasoned and hence do not bring new and innovative perspectives with them to deliver growth strategies like product differenciation, increasing customer responsiveness etc.
A growth oriented firm should take advantage of this oppurtunity to attract fresh talents to the board at cheap prices (Fresh Talents are cheaper than Market Recruits) who would inturn would flower growth strategies for the company. One example of growth company is Directi which has been hiring fresh talents from B-Schools. The blog intends to suggest that growth oriented companies should hire from B-Schools but with caution as the traditional mode of hiring would not be able to filter the appropriate talents that would be able to deliver required results in the time of recession. With the changing dynamics, the companies should adopt newer techniques to filter good talents. Directi has adopted one of innovative ways of case studies to select candidates. View Directi’s Selection Process.
Changing dynamics of businesses combined with companies’ realisation of the importance of growth models, I believe we would observe change in the recruitment policies of the companies and selection processes at B-Schools.