Arecruiter’s life is never easy, chasing numbers and meeting TAT (Turn Around Time) consistently in terms of closing positions for business is a never-ending task, but what struck me on moving from one type of organization to another was the question -
What is the difference in recruitment or hiring for a Product-based Organization versus a Service-based Organization?
Having previously worked for a Service-based organization for almost 4 years and now with my experience at DLT Labs, a Product-based organization, I have realized the differences in approach while searching and sourcing for a particular candidate or role, so let’s shed some light on those differences.
- A Product-based organization looks for closing the position with a candidate that fits closest to the requirement rather than closing the position in a short span of time. Whereas on the other hand, a Service-based organization works on a certain model where they provide services and charge their clients on an hourly basis (most of the time) hence it has been observed that for the closing/filling a position faster becomes very important.
- Product-based organizations hire on a need-to-need basis, whereas Service-based organizations mostly hire candidates more in numbers (commonly referred to as bulk-hiring) than catering to actual demand/business requirements thereby resulting in a lot of the hired resources being put on the bench.
- Pitching a particular role for any Product-based organization is comparatively easier as they offer more in terms of career growth and development, particularly for the technical positions. For example, there is more scope for research & development related exposure, more challenging environment and steep learning curve in developing their technical expertise whereas a Service-based organization is majorly driven by customer/client needs and delivering recommendations on solutions and services as per the client requirement. This, in true essence, has comparatively less scope for any aspirant to evolve in terms of thinking out of the box and innovatively.
- Product-based organizations offer better packages in comparison to Service-based organizations. Although, it has been observed that lately Service-based organizations have started giving higher packages and benefits to attract better talent for sustaining their growth.
- Sourcing for a particular role in Product-based organizations is comparatively difficult as the work-experience/expertise requirements are niche and very specific, and of course, one has to stick to a certain matrix to maintain compensation-related parity within the organization. The areas one can still slightly compromise upon (focus on slightly) are like fluency in a candidate’s communication skills, presentation skills or interpersonal relationship skills. This is mostly the other way round for a Service-based organization.
On an ending note, my opinion on this comparison is not biased towards either of the two types of organizations. It is more on how the times and focus have changed in what millennials today look for versus what generation X or even some parts of generation Y would look for in their ideal career growth. People are more competition-driven, they are not scared but in search of greater challenges and monotony at work is a major dis-engaging factor. There might be fellow readers who disagree, but this submission is purely based on my own experiences in the world of Talent Acquisition catering to multiple types of industries.
Author: Shweta Sachdeva, DLT Labs™
About the Author: Shweta Sachdeva is a result-oriented HR Professional with rich experience in end-to-end recruitment. Currently working with DLT Labs as a Talent Acquisition- Manager, learning and exploring other aspects of Human Resources.