A large IT development center in India caters to one of the world’s largest financial institutions and credit card issuers. The technology team builds and supports the software on which the financial institution conducts millions of transactions each day. Identifying, hiring and retaining the right talent for this technology development center is no mean task.
The company employed MeritTrac Services to assess candidates with 2 – 4 years of experience in software development. MeritTrac Services, India’s largest skills assessments company designs and delivers tests to assess abilities, skills and knowledge for different job roles. The IT Tests are MeritTrac’s offering for assessing candidates with work experience for technology roles.
Between March and May 2006 MeritTrac administered IT Tests on 852 candidates out of which 581 candidates passed the test and were interviewed. The IT Tests recommended for this customer included a range of technology tests – Java Programming, Mainframes, Data warehousing, AS400, VB Programming and Oracle Programming. By using the IT Tests for hiring experienced candidates the company was able to
· Identify Right Fit candidates
· Reduce Interview Calendar Time
· Reduce Interview Time
· Reduce Interview Costs
Identifying Right Fit Candidates
On average, 64 % of all candidates who passed the IT Test also passed the customers technical interview indicating the high degree of accuracy with which the Test could predict Interviewers’ expectations from candidates. Out of 581 candidates who passed the test, 374 passed the technical interview also.
The IT Test helped in accurately identifying the right fit candidates.
Reduction In Interview Calendar Days
While the company could dedicate 3 interviewers for interviewing at any point in time at remote locations, the IT Test was administered to 50 people at one time on average. This reduced the calendar time for the selection process substantially.
The calendar days for interviewing was reduced by 24 %. It would have taken the company 24 calendar days to complete the selection process without the IT Test. It took the company calendar 18.13 days to complete the selection process by using the IT Test.
Interview Time Reduction
The company reduced interviewing time by 31% by using the IT Test. By using the IT Test the company was able to short list 581 candidates and interview them alone instead of meeting all 852 candidates who applied. This resulted in reducing interview time from 568 hours to 389 hours.
Interview Cost Reduction
The company reduced the cost of Interviewing by 9 % by using the IT Test. Since the IT Test short listed a smaller set of right fit candidates the number of interviewers used and the corresponding salary, travel and accommodation costs that the company would have other wise incurred was reduced.
By using the IT test the customer was able to get right fit candidates with reduced calendar time, reduced interview time and reduced costs. In addition to this the company gained significantly from having an easily scalable online test delivery system where tests were delivered online and scores and candidate details were accessible to the company anytime, anywhere through an online test application.
Summary of Savings by using IT Tests for Lateral Hiring
Identifying Right Fit Candidates 64% Prediction Rate
Interview Calendar Days 24% Reduction in Interview Calendar Days
Interviewing Time 31% Reduction in Interviewing Time
Interview Cost 9% reduction in Interview Cost
In addition to this, there are intangible benefits accrued by using the IT Tests
Ø Helps in measuring source effectiveness and source quality
Ø Helps to recruit from multiple cities at the same time
Ø Helps in ensuring good candidate experience in the entire recruitment process
Ø Helps in maximizing conversion from specific talent pools
For a well formatted document with tables and calculations please download the attachment from Laterals - Case Study ver 1.1.doc.
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