| Companies
are now using an innovative technique of ‘360 degrees reference
checks’ in the hiring process
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 organisation, 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 organisation”, 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 organisation
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 organisation
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 specialises
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 organisation 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 organisation”. According
to the company, the emphasis will also be on getting the peers
of the professional who again may not be from the immediate
organisation where the candidate is employed. “To that,
extent we are neither hampering the candidates prospects in
the organisation, 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 organisations 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 organisation may have distilled through
the competency- based interviews or other related interviewing
processes that are already implemented by the organisation 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 organisation.
“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 Des-hpande, 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
organisation 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 organisation. 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 organisations 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.
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