Monday, August 24, 2015

Hiring for Indian E-commerce : often hit by an iceberg

Hiring and Firing @ Indian E-Commerce

Indian e-commerce has boomed in last three years. The growth story of the e-commerce companies have been largely a fairy tale. However, behind the glamor, lies some horror stories which are often pushed under the carpet. Yet, these stories often find their way out- thanks to active media and social media. And one big story every company try to hide is their lay-offs.

Hiring for young e-commerce company is a task much more than it meets the eye. Often, it is mistaken as a job of quick ramp up of numbers and getting the resource in but it leads to bigger problem later on. We have seen lot of examples in last half a decade where the individual companies, who have hired the cream of the talent from premier schools and otherwise, had to ‘right size’ their organization as per business growth, forecast and cost optimization measures- often given a name of strategic initiative. The reasons for this accelerated hiring and firing can be many. I am just trying to highlight a few as per my understanding

Reason 1: Not knowing what they want
The young start-ups are largely started by young people who have enthusiasm and vision but somewhere lack experience. Hence, sometimes they do not know what kind of person will suit them best. They often land up a specialist as they see the person bringing in a deeper knowledge even at a place where they need a generalist. Hence, either one more position needs to be created or the right person needs to replace the old one.  Lack of quality interviewers also contribute to the problem.

Reason 2: Five blind men and elephant
Some profiles are much talked about in an e-commerce parlance. Online-marketing, visualizer, content writer and product management are just name a few. However, if you ask 3-4 people to define their understanding of product management or online marketing, the answers may be very different. Each company views these profiles from their perspective. A person in online marketing of travel portal has different mindset compared to online marketing person working in a premium jewellery segment.

Reason 3: Metamorphosis of environment/organization
Some organizations could not grow as per their anticipation as their funding dried up, their penetration into new market or geography did not yield expected results or some other aggressive player has dented their market share. Some organizations have gone through complete re-vamping of their business model. In such situations, the hiring of past must be undone to cut the flab, excess cost and to get new thought process as per the changed requirements.


Reason 4: Lack of vision
Sometimes hiring is done only to create a big bang on some premier school campuses or to hit the headline- trying to show off their muscles (funding). This kind of hiring often misfire as then the utilization or output is not upto the cost involved which leads to rethinking of decision.

Reason 5: Lack of HR involvement in the beginning.
Sometimes lot of duplicating of profile happens in the organization as different business units hire of similar profiles. In absence of central HR function which talks about internal availability of talent, the duplication of profiles happen. Later, such profiles often form a central team shared across divisions and hence some resources are asked to leave. Training, analytics and marketing are typical examples of such functions.



References



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