Most Indian employers don’t know the work of Nobel laureate Peter Diamond’s work on search costs in labour markets. But they live it every day. One of their biggest problems is hiring people at the bottom of the pyramid: hiring people with 0-2 years of experience.
Finding such a workforce has become the corporate equivalent of kissing 100 frogs to find one princess. This wasted effort arises from the problems of matching (say, a youngster with skills in Kanpur connecting with an employer hiring in Bengaluru), mismatch (say, someone skilled on paper but with different skills than what the employer needs) and low signalling value (résumé of skilled kids not strong enough to get shortlisted for interviews by employers). Read more