Shilputsi Consultants

Shilputsi in the News
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Talent Selection : Coming Full Circle - The Financial Express: November 16, 2002

Companies are now using an innovative technique of ‘360 degrees reference checks’ in the hiring process
by Tarun Narayan

The 360 degree form of evaluation has conventionally been used by corporates to evaluate employee performance. However, with several attributes like cultural style, networking abilities, and team dynamics becoming increasingly crucial in driving business results, corporates are now using a 360 degree process even in the process of recruitment. Termed as ‘360 degree reference checks’ this system of evaluation entails that before inducting new talent into the organization, corporates go back to the previous employers of the candidate and obtain a feedback from the peers, bosses and subordinates from that establishment on a host of parameters. “In fact this system of feedback is used to re-validate some of the attributes on which we may need some more substantiation, before the professional is recruited in the organization”, says Mr Pervez Jokhi, National Manager Human Resources, AFL Ltd.

And consultants believe that this system of evaluation definitely works in the contemporary business environment — more so when it comes to recruitment at the top level. That’s also partly because HR professionals believe that with corporate governance gaining dominance, there is a pressure on the businesses to get the appropriate leadership team with integrity as its core value. Further, it also aids in reducing the subjectivity in talent selection — again an issue that corporate HR has been trying to resolve by evolving various approaches to recruitment. Also, it gives a fair understanding to the organization on certain attributes of the candidate which may not necessarily be revealed through the psychometric form of testing or several other related psychological interviewing tools. Says Dr Priya Somaiya, executive director, Grow Talent, a leading HR consultancy:” It works very well. But this happens given that the organization which is being chosen for 360 degree has an open and transparent system of communication, knowledge sharing and information.” Adds Mr. Vijay Mahajan, Partner, Horton International who specializes in the 360 degree form of reference checks: “The system definitely aids in getting a near-appropriate understanding of the candidate. However, it would also depend on how adept the person is in getting information from the professionals of the previous organization of the candidate.” How are companies doing this? India Inc. takes a look at selective case studies.

Duncan Goenka group
The Duncan Goenka group deploys 360 degree reference checks with a host of hierarchy specific deliverables—but with a difference. “We do not go back to the employers with whom the candidate is currently employed”, cautions Mr. Sudhir Goel, Head HR, Duncan Goenka group. And according to Mr. Goel there are two major reasons why the company prefers not to check back with the immediate employers. “Firstly if we were not recruiting the candidate due to some major gaps that we may have confronted, then we are exposing the individual to a greater damage,” reasons Mr. Goel. Another reason according to the company is that to a great extent, it may not be possible to maintain the a high level of confidentiality that is very crucial in such interventions. How does the company tackle this challenge? Says Mr. Goel: “We obtain the contacts from the candidate on those professionals with whom they may have worked before having a stint in their current organization”. According to the company, the emphasis will also be on getting the peers of the professional who again may not be from the immediate organization where the candidate is employed. “To that, extent we are neither hampering the candidates prospects in the organization, and alongside we are also ensuring that the confidentiality is maintained,” he explains. Accordingly, certain critical dimensions are

evaluated in the candidates. At a senior level, the reference checks with the bosses, colleagues, peers and subordinates is initiated to gauge the integrity, value system, networking ability, the capability to evolve an objective analysis of a given scenario among others. At a relatively lower level, the skill quotient becomes a major chunk of evaluation. “And that may include assessing the operating skills, ability to operate independently alongwith other related dynamics,” says Mr. Goenka. Further, this system of evaluation also aids the organizations in understanding the management and working styles and the change in styles that needs to be brought about through certain interventions.

Reinforcing results at AFL
At AFL Ltd, the reference checks are used for re-affirming some of the attributes that the organization may have distilled through the competency- based interviews or other related interviewing processes that are already implemented by the organization with a great amount of rigour. “This is done through our own contacts, networks alongwith some data that we may have been able to gather in the entire induction process”, says Mr. Jokhi. According to the company, this form of assessment is done more specifically to evaluate whether the professional is a ‘team player’ alongwith comprehending the appropriate cultural fit that the individual may have in the organization. “We make an attempt at evaluating some of the intrinsic personality traits,” adds Mr. Jokhi. This is because, according to the company there are always certain grey areas that may still remain to be probed despite administering a set of interviewing processes. And these are the gaps that then become parameters to be evaluated through a 360 degree reference check.

What are the challenges?
According to consultants, the drawbacks that are confronted in the conventional form of 360 degree are also prevalent in 360 degree reference checks. Says Dr. M V Deshpande, director, Behavioural Science Center (India) Pvt. Ltd: “If there are any interpersonal clashes then they obviously will reflect on the feedback that is lent by the person”.

Says Ms. Purvi Sheth, director, Shilputsi a leading HR consultancy: “This form of assessment can only complement the overall processes in selection. Hence the task for corporates would be to integrate this process into the overall system of assessment that is in place”.

However, Ms. Sheth is also of the view that this does help in taking a more practical approach to evaluating the professionals. In fact she affirms that this is one of the methodologies that may contribute win-win value to the overall recruitment strategy in the enterprise. “However, even then the task would be to understand the value systems and the cultural context of the individuals and accordingly decipher a feedback from the individuals on while deploying the 360 degree initiative”, explains Ms. Sheth.

Another challenge that the consultants outline is that the organization may have to align the perceptions of all the individuals who are participating in the process of feedback. Adds Dr. Somaiya: “The system can be effectively implemented only if the perceptions of all the people are well aligned in the organization. And this can happen if the guidemaps to performance and appraisals are kept in a context which is understood by one and all”.

But consultants believe that with corporates only slowly warming up to implementing the initiative in India, there is still a need to look at different forms of experimentation before one could arrive at a conclusion. Sums up Mr. Mahajan: “All that one can say at this juncture is that at least this approach makes an attempt at reducing the errors in recruitment to the extent possible, alongwith giving an indication of the candidates’ orientations that may be crucial in the contemporary business environment”. According to consultants though such reference checks do assist the organizations in making a more holistic evaluation of the candidate however this is still not a technique that is robust enough to be used as a standalone methodology in talent evaluation.