Most manufacturers dip into internal talent pool

Management talent groomed for top-level posts: Hewitt survey

Even as the services sector is employing head hunters to fill up top positions, the manufacturing sector is focusing more on the development of managerial talent from within the organisation.

According to a Hewitt Associates survey among 35 manufacturing sector units, nearly 87 per cent of the companies are filling top level posts internally.

A paltry 13 per cent of the firms are sourcing them from outside.

"The manufacturing sector requires more technical expertise even in the top managerial level, while the services sector requires more of processes-led personnel. The manufacturing sector finds it more convenient to graduate people to higher levels with specific training and not bringing people from outside," Purva Mishra, senior associate at Hewitt, said.

The survey also pointed out that companies prefer internal postings even if external candidates are better qualified, with nearly 58 per cent of the respondents preferring internal candidates for senior positions even if the external candidate is more qualified to take on the role.

The survey also said that an internal recruitment team with the help of external consultants was the most commonly used recruitment method for hiring people for senior-level management posts among manufacturing companies. Whereas job fairs were the least used method for recruitment of senior personnel in the segment.

Survey statistics

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• In 58% of cases, firms prefer internal postings even if external candidates are better qualified
• Most give about 70% weightage to internal recruitment teams and gradual training for top-level recruitment
• 95% of firms said assessment was based on leadership and behavioural skills

Most organisations give about 70 per cent weightage to internal recruitment teams and gradual training for recruiting higher level staff, while only 3 per cent look at job fairs or the Internet for such executives, the survey pointed out.

While hiring the top-level executives, 95 per cent of the respondents said the assessment was based on leadership and behavioural skills.

As for the methods of hiring, 95 per cent of the companies route it through interviews with the human resources department. Psychological assessment test/interview is another frequently used method.