This Q&A session delves into the fascinating world of staffing and recruitment in India and its intersection with technology. Join us for a conversation between Krishna Khandelwal, Founder & CEO at Hunar.AI, and Mr Jaydev Sanghavi, Executive Director of Aarvi Encon, as we explore how Aarvi Encon is addressing challenges in the staffing industry and creating differentiation in its business offering. Let's uncover Mr Sanghavi's insights and discover exciting developments in this evolving field.
Krishna : Thank you for joining us to discuss various staffing and recruitment industry topics. Congratulations on the remarkable 20%+ CAGR Growth in your share price since your IPO in 2017. Let's start by understanding:
What is the business of Aarvi Encon?
Mr. Jaydev : Aarvi Encon helps companies in the Energy sector execute multi-million dollar projects by deploying the right talent. Established in 1987, Aarvi Encon is a leading Technical staffing and recruitment business in India. With over three decades of experience, we deliver high-quality talent to industries like oil and gas, power, infrastructure, EPC, and manufacturing. We offer comprehensive staffing solutions, including contract staffing, permanent recruitment, and project management.
Krishna: Thank you for sharing about your business. I am sure the industry has evolved a lot since your inception, but particularly over the last five years, what has become the biggest differentiation for staffing businesses in India?
Mr. Jaydev: Certainly! The staffing industry in India has witnessed notable transformations driven by the nation's growth. The biggest challenge has been the growing skill deficiency among candidates. The ability to deliver highly relevant candidates within a short turnaround time has emerged as a crucial aspect that sets staffing businesses apart.
Our clients' requirements have become increasingly refined and technical, while the talent pool needs help. Candidates with 1-2 years of experience are typically sought after, and a significant proportion are passive job seekers. Our organisation has taken a proactive stance, leveraging AI-powered resume parsing, Text-Based Recruitment Techniques, and Recruitment Marketing Automation to establish a robust candidate pool which sets us apart as one of the leading staffing businesses in the country.
Krishna: We are intrigued to learn about your utilisation of AI techniques for differentiation in your recruiting process. But before we go over there, we're interested in understanding the gravity of the growing skill deficiency in the workforce. How severe is the increasing skill deficiency in the workforce, and what are the implications for the industry?
Mr. Jaydev: Absolutely. Rather than solely relying on statistics, I would like to highlight some industry trends that reflect the impact of growing skill deficiency in the workforce.
Over the past few years, there has been a significant increase in the number of candidates processed for each open job position. This surge in applicant volume indicates the challenges faced in identifying the most suitable candidates. Despite technologies like Resume Parsing being out there in abundance, there needs to be more good and genuine job-matching algorithms and smart recruitment automation such as intelligent chatbots.
Job descriptions have become increasingly specific, making the process of matching candidates to job requirements more arduous and time-consuming. Industry-wide recruiters are experiencing a decline in their throughput, measured by the number of candidates they can select per month. This decline can be attributed to increasing difficulty in finding relevant candidates for jobs and the lack of automation in the industry in recruitment processes.
The cost of accessing candidate data through job boards and other channels has witnessed an upward trajectory, contributing to the rising recruitment costs for staffing businesses. The industry, grappling with the growing skill deficiency, has been grappling with year-on-year increases in recruitment expenses.
Krishna: Technology can play a significant role in addressing these challenges. However, before we delve into that, could you explain the cost implications of these challenges on your business?
Mr. Jaydev: Certainly. While I cannot provide specific figures, it is important to acknowledge that recruitment costs significantly contribute to the overall expenses of staffing businesses. The increasing cost of talent acquisition is a significant concern for the industry.
Krishna: How does Aarvi Encon tackle these challenges differently from others in the industry?
Mr. Jaydev: As a technology-driven leader, we solve challenges of candidate relevance and turnaround time. We leverage advanced technologies to provide unparalleled solutions that deliver efficient staffing outcomes.
One key aspect of our technological approach is the implementation of Language Learning Models driven software vs traditional resume parsing solutions. This powerful tool with a job matching algorithm enables our recruiters to rapidly and accurately match candidates to job positions, ensuring higher candidate relevancy in the selection process. Through which we dive into our bank of over a million resumes and optimise the talent pool we already are in touch with at an arm's length is one of our strong suits since it helps cut down our turnaround time for each hire.
But our technology adoption goes beyond traditional recruitment methods. We analyse vast amounts of candidate data through data analytics and artificial intelligence to identify skills and experiences that align with specific job requirements, providing a personalised candidate experience. This intelligent approach allows us to pinpoint suitable candidates from a pool of applicants and streamline the recruitment process.
Furthermore, our technology-driven solutions offer a seamless and personalised candidate experience. Our Text-Based Recruitment Automation on WhatsApp facilitates efficient engagement, while intelligent recruitment chatbots provide timely updates on job opportunities and streamline the information-gathering process. Building stronger connections with candidates ensures a smooth and expedited recruitment lifecycle. We aim to enhance candidate experience, improve engagement, and optimise recruitment.
We have built a robust digital infrastructure through our recruitment CRM system, placing utmost importance on securing and efficiently managing candidate data. Our strong emphasis on technology distinguishes us within the industry, allowing us to deliver staffing solutions that precisely address the evolving needs of our clients.
Krishna: It's fascinating that you use advanced technologies. How does your forward-looking thought process drive your investments?
Mr. Jaydev: We are dedicated to harnessing cutting-edge technologies in our business to enhance operational efficiency and provide enhanced value to our customers. Our forward looking approach empowers us to foresee industry challenges and allocate resources towards innovative solutions. Through the utilisation of emerging technologies such as language learning models and intelligent recruitment automation, we can ensure swift and precise job-candidate matching, resulting in significant advantages for our clients. Our investments in technology streamline our operations, optimise resource allocation, and drive cost efficiencies. By staying at the forefront of technological advancements, we unlock substantial value for our clients, ensuring our competitiveness within the dynamic staffing and recruitment industry.
Krishna: Mr. Jaydev, this was a thought-provoking and insightful discussion. Thank you for sharing the industry trends and how Aarvi Encon uses technology to adapt to the change. Thank you, sir, for your time today.
Mr. Jaydev: Thank you, Krishna, for having me and for your intriguing questions. I thoroughly enjoyed it, and all the best.