Searching for the right fit

People are fickle, but we are generally rational, so read the entry in one of marketing guru Seth Godin’s blogposts (http://sethgodin.typepad.com/). Whilst this entry was related to people making choices and marketing rational for buyers’ behavior, I was relating it to my search and people’s search in general for finding the right fit job.

According to the software industry apex body, Nasscom, the Indian IT/ BPO industry will employ close to 2 million people by end of 2008. The growth and impact of the tech sector on the Indian economy can be traced from its contribution to the GDP from 1.2 per cent in1998 to 5.5 per cent in 2008. However, even as the industry braces to cross total revenues for software and services of US$75 billion by 2010 one of its major pain points remains around talent and manpower attraction and retention.

Take for instance, the BPO industry. It is faced with attrition rates of close to 35 per cent according to /www.bpoindia.org/, whereas some companies have a churn rate of close to 100 per cent per annum. It is estimated that the industry would recruit 1.1 million people within the year 2008 and this is excluding replacement hiring.

As a follower of the IT/ BPO industry for close to a decade now as an insider and outsider, I have seen the companies change their stance from being just customer oriented to employee oriented. Yet the amount of research that goes into understanding the employees, its aspirations and making policies that keep employees interests at the forefront is negligible as compared to the amount of research that goes into discovering new markets, marketing spend and creating brands.

Of course, with the huge recruitment targets that companies have, they have woken up to the branding game. Hence rational people looking for a change would try and associate themselves with the companies portrayed image before they join the organisation.

Reasons for switching	Seth Godin on consumers switching product loyalty	Jobs
Matter to me:	Not matter to you or to the next guy, but matter to me. That's all I care about. (Example: it might mean more to me that my friends use your product than it does that you're cheaper).	Not matter to you or to the next guy, but matter to me. That's all I care about. (Having friends and people that I can relate to within the company.)
Worldview:	Based on the way I see the world, the assumptions I make, the truth that I believe in. (Example: If I don't trust young people as a matter of course, I'm not likely to choose you if you're young, all other things being close).	Based on the way I see the world, the assumptions I make, the truth that I believe in. (Example: If I don't trust young people/ startups/ entrepreneurial aspirations as a matter of course, I'm not likely to choose you if you're young, all other things being close).
Options I'm aware of:	If I don't know about you, you don't exist.	If I don't know about you, you don't exist.
Switching cost:	The incumbent gets a huge advantage, especially in high cost/high risk/network effect instances.	The incumbent gets a huge advantage, especially new title/ designation/ higher salary, compensation package.

Companies are building and maintaining competitive advantage in the job seekers market by implementing good HR practices. Some of the practices to retain and attract skilled resources include more involved HR, employee integration, management spending face time with employees to induce higher emotional attachment, provision for crèche, providing utility services like payment of bills, booking of tickets, restaurants, flexi work timings, focus on imparting new skills and higher training benefits. Besides, companies are also building of a brand name for creating awareness and attracting resources by larger media spends.

However, the reasons an employee chooses a company are not "we are #1!", "we are better!" and "we try harder." “Cheerleading skills are not a competitive advantage in most settings,” says Seth Godin. Here's what your board (prospective employer) wants to know:

Product Marketing (Seth Godin)	Recruiting new employee
What's your competitive advantage?	What's your competitive advantage?
Is it really, or are you dreaming it up?	Is the company your dream company?
How long will it last?	How long will your stint at the company last?
Can your competition copy it?	Can the competition lure you with higher money – is money your only motivation factor?
Does it resonate with the part of the market that is looking to buy?	Does the job profile suit you and is the role you were looking for?
Is the advantage big enough to overcome the switching cost?	Is the advantage that you (job seeker) bring to the table big enough to overcome the switching cost?