Government Exam scores to be used in private sector hiring

Prime Minister Narendra Modi said at an event in New Delhi said that India will allow private companies to hire new employees based on their performance in government job examinations.

  • The initiative will help private sector cut cost on the recruitment process and focus on creating a better work ecosystem.
  • A host of examinations in the country, such as the Common Aptitude Test (CAT), Joint Entrance Examination (JEE) and Common Entrance Test (CET), have already set a benchmark of standards to select students.
  • Similarly, the public sector banking examinations have been at the forefront of hiring new recruits.
  • The government and public sector undertakings conduct a number of recruitment examinations in the country.
  • The scores in these examinations are retained by the government. However, Modi proposed that hereafter the results will be made available to all employers with the consent of the candidate.
  • This will create a positive externality. It will provide a rich data base which can be used by private sector employers as a ready-made and objective sourcing and screening mechanism, as said by PM.
  • It will reduce search costs in the labour market for both employers and employees. It will enable better matching of candidates from labour surplus areas with jobs in other regions.

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