Saturday, February 17, 2018

Of recruiters/executive search firms and kickbacks

This week, I read the article about India's leading ride-sharing firm Ola investigating its HR head for alleged bribes taken during the employee recruitment process
https://factordaily.com/ola-hr-head-fraud-investigation/ This reminds me of some other incidents that I have seen/heard about from friends

  1. Talent Acquisition(TA) leads working only with certain empanelled firms(usually this is needed for quality reasons in procurement but less reason here) who agree to pay them 1/3rd-1/2 of the recruitment fee-which is usually 8%-15% of candidate's annual CTC
  2. If the candidate is sourced through another new firm, this firm is usually forced to subcontract to the empanelled vendor, who then gives its share in cash
  3. If candidates are referred internally or though other sources, the TA lead usually ignores it. In a recessionary job environment, they anyways get enough leads otherwise
  4. New firms are not given consideration if they are not willing to bribe

Hopefully, the Ola adverse publicity(I really hope it is false) will deter others from this


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