The Success of Online Recruitment - Research Paper Example

The analysis of the success of online recruitment in selecting and qualifying candi s for career vacancies. The globalization and liberalization brought tremendous change in industrial structure and corporate governance. Increased rate of industrialization necessitates the recruitment of higher number of candidates for performing the jobs. At the same time, the employee retention has been very poor due to jumping of candidates from one company to another company. Hence the traditional recruitment systems couldn’t succeed in meeting the recruitment needs of the companies. The only solution to this problem is in the form of online recruitment. It has several advantages compared to that of traditional recruitment systems. The investigation on factors affecting the success of online recruitment has been under progress. Analyzing its factors would be of paramount importance in making the online recruitment a successful one. Primary survey has been done to collect the opinion of public directly which reflected that the online recruitment system helps us in faster recruitment and cost saving measures. Literature survey was carried out which also confirmed the same findings. Some disadvantages were also identified so that the strategies for reducing the same holds relevance in making success of online recruitment system. Various advantages and disadvantages were given ranking based on metanalysis and primary survey questionnaire. The ranking of these factors have been statistically analyzed by using M-STAT C package. The difference among several factors was found to be statistically significant. Based on the results, recommendations have been framed for strengthening the advantages and to reduce the disadvantages so that the online recruitment system would be made highly effective. Introduction “The terms online recruitment or e-recruiting, or Internet recruiting are synonymous and they imply the formal sourcing of job information online (Galanaki, 2002). It is also defined as the use of technology to draw the attention of candidates and help the recruitment process” (Borrell Associates Inc., 2006). The first online recruitment sites were introduced in the UK around a decade ago. The industry now boasts hundreds of business-related job boards and around 13 million job seekers in 2007. In a survey of 804 organisations carried out by the Chartered Institute of Personnel Development (CIPD) in 2006, three quarters of employers surveyed use their own website to attract applicants in addition to using local newspapers. The survey showed two thirds of the organisations use technology to aid their recruitment process with the greatest usage being email and online applications, advertising job vacancies and background information on corporate websites. Online recruitment has had such a massive impact on the way that employers recruit and pay for candidates. This is the most basic form of using technology to recruit in the recent days. Vacancies can be placed on an organisation’s website. Nowadays, several countries including UK are following online recruitment due to its major advantages compared to direct recruitment (Rankin, 2005). According to the CIPD, in the US, it has been estimated that 19% of an organisations recruitment advertising budget is spent on online recruitment advertising, the UK only spends 7.5%, but it is steadily rising. Key Note forecasts that by 2009/2010, the majority of adults in Great Britain will have Internet access, with the proportion using the Internet to find jobs or careers information at 74%. The main aim is to analyse the success of online recruitment in selecting and qualifying candidates for career vacancies. The reason behind this study is because the researcher is interested in online recruitment in general. Furthermore, he is going through online applications when applying for new jobs. Several studies have been conducted on the success of online recruitment in qualifying candidates for career vacancies. The majority of them explain about the advantages of online recruitment. Other studies have mentioned that the disadvantages of online recruitment can be reduced so that it becomes more popular in future. The investigator has identified 3 different groups in which he believes the survey can be appropriate. It includes the applicants, the recruiters and outsourcing companies (recruitment agencies). This study is considered as very important as it will demonstrate and give new recommendations for successful recruitment. Keeping these points in view, some objectives: Objectives 1. To identify the main reasons for success of online recruitment relative to direct recruitment. 2. To analyse the disadvantages of online recruitment and to suggest how these could be dealt with for its future prospects. 3. An analysis of some case studies, demonstrating best practice in e-recruitment. Research Design and Methodology Good amount of investigation was carried out on finding the efficacy of online recruitment system and several researchers identified the advantages and disadvantages of online recruitment system relative to that of traditional recruitment systems. Hence, a thorough study these available sources will certainly through light on most common factors affecting the success of online recruitment system. According to McAuley et al., (19979, meta analysis of the collected literature would be of immense help in this regard because it is becoming increasingly a prevalent method of assessing the effectiveness of technology. Based on the review of the literature, the analysis of the factors responsible for the success of online recruitment are to be identified and prioritised. Hence this method of literature review has been followed in the present study. It may be considered as inductive approach as it compiles large number of references and identifies most relevant ones required for the study. The main reason for selecting this method is that it reduces the time for us to analyze the factors of successful online recruitment process. It also helps us in framing the questionnaire accurately as it identifies the highly relevant factors to be mentioned in the questionnaire. However its limitation is that the use of literature review alone would not help us in drawing conclusions as there may be remarkable difference between the past studies conducted and stakeholder’s perception. Hence, there should be a primary survey conducted by the use of face to face questionnaires (Appendix I), with some job seekers such as final year students and job recruiters for assessing the advantage and disadvantages of online recruitment over direct recruitment. The questionnaires are short, easy to answer and distributed to the relevant parties in order to diminish the limitations of the questionnaires such as non-response bias. At the same time, the interview schedule was statistically analysed for validating the prioritised factors. Ranking was given for all the factors and the advantages with top rank will be encouraged for more success of online recruitment in future. Similarly, the disadvantages of online recruitment were also be ranked and the top ranked factors would be addressed to be managed for further success of online recruitment. The job seekers were first supplied with the interview sheets, which contain the questionnaire related to factors of online recruitment. They were given ample time for answering and their signatures would be recorded. The scores for each factor were collected from them and the factors would be ranked based on the score. The primary survey can also be considered as inductive approach as it concentrates on few relevant factors that affect the success of online recruitment system remarkably. Moreover, it also eliminates all the possible factors as suggested by the interviewees which have less significance and prioritises the factors based on the ranking score. The main reason for selecting this method is that it is highly accurate in identifying the actual factors responsible for success of online recruitment system. Its combination with literature survey and meta analysis certainly eliminates the element of experimental error. However, its disadvantage is that the interviewer must be well experienced while collecting the information from the interviewees. The questionnaire framed with out thorough literature survey may not include some remarkable factors. Statistical design called MSTAT-C package was used for analysis of results. Finally, conclusions were drawn and future recommendations for successful recruitment of candidates through online system were made. Literature Review There have been several research studies on the online recruitment and it advantages and hence they have to be reviewed before formulating the present study. Ben Greiner (2004) mentioned that online recruitment has become more popular with the advancement of new technology. A CIPD survey in 2005 showed that, 77% of businesses used some form of human resources information system and 51% of companies reported that their use of technology systems were for recruitment and selection purposes. According to an internet consultancy Point Topic, there are now 14 million broadband users in the UK, up 6.4% in March 2006-07 (Wray, 2007). Broadband access makes the transmission of live images via the Internet a feasible alternative to a conventional video linking and hence it aids in more online recruitment. Many different organisations use e-recruitment as a cost-effective method of recruiting new staff, such as JPMorgan, E-on and Asda. It is popular among job-seekers such as graduates, from the CIPD, latest figures from the British Market Research Bureau show that using the internet is the favoured job-hunting method for one in four UK adults, with the most likely job hunter to be 33 years old with 11 years experience, according to the National Online Recruitment Audience Survey (NORAS). The effectiveness of online recruitment depends upon important factors such as: The detailed job description should be given while posting jobs to attract candidates with the right skill sets (Express Computer, 2005). Furthermore, large and small companies have extensively used the Internet in recruitment and hiring which streamlined their em­­ployment process (Washington Business Journal, 2004). Even those companies which follow paper applications are increasingly using the Internet for significant components of the hiring process. In addition, a relevant report by Forrester Research states that the average cost to hire an employee via the Internet is nearly ten times less than through newspaper and magazine advertisements (Onrec.com, 2001). At the same time, it was concluded that online recruitment substantially reduces recruitment cycle time, on average from ninety to thirty days. Its clear advantage was also highly witnessed during the economic slumps such as the credit crunch. Research studies conducted by Workforce (2000a), Williams and Klau (1997) and Ballie (1996) and others confirmed the most important advantages of online recruitment such as: It fastens up the recruitment cycle and streamlines administration, which is generally calculated to free 25 to 30 per cent of HR time for strategic issues, (Workforce, 2000a). In addition, it reduces recruitment costs, (Williams and Klau, 1997 and Workforce, 2000a). Furthermore, it provides the image of an up-to-date organisation, reinforcing employer branding, flexibility and giving an indication of organisation culture, (Fister, 1999). It allows the recruiting companies to exactly assess the number of people that view and apply for jobs online (Recruiter, 2006). Still, it provides global coverage at a constant basis (Baillie, 1996). In addition, online recruitment provides crucial information on potential employers and hence higher knowledge about the recruiting company, its business objectives and goals facilitate better communication (Arthi Ramesh, 2008). Moreover, the advantages that online recruitment offers are also highly relevant for HR departments during an economic downturn (Enhance Media, 2001). Some organisations may choose to freeze headcount during a downturn and not engage in any recruitment activity such as in the financial industry according to the Telegraph online (2007). However, those that are still recruiting will need to do so as cheaply and quickly as possible. It is here that the fundamental advantages of online recruitment become apparent. However, some researchers discussed about the major disadvantages of online recruitment, which have to be addressed so that the access of this system will be made to more number of people in future. Firstly, it results in applications overloading or inappropriate applications if care is not taken designing the job profile/specification, (Hays, 1999). Secondly, it is largely perceived as apposite for IT jobs and for young graduates, there is an hypothesis that e-recruitment works best for initial assessment at junior levels, where little expertise is needed in changing candidates and more than a quarter of the company that have a recruitment webpage focus solely on their graduate intake (Lamb, 2000a). Thirdly, a rise in the number of employers using the web to gain information on prospective employees has highlighted a number of challenges that need to be considered. For example, there are employment law risks associated with using social networking sites to vet job candidates (Cronley Dillon, 2007). Furthermore, it limits the applicant audience, as the internet is not the first choice for all job hunters. Likewise, it excludes those who do not want to search for a new job online. According to CIPD (2007), “E-recruitment is becoming a more powerful and important tool in the current ‘war for talent’ environment”. Some studies suggest the following measures by looking at the trends that will shape the recruitment industry for years to come (Doke, 2007). Companies should align human resources, public relations and marketing, and be clear on core organisational values. In addition, businesses should find ways to connect with the passive job seeker and make use of peer-to-peer relationships. Primary Survey The results of the primary survey revealed that the main reason for the success of the online recruitment system was identified as fastening of recruitment cycle compared to that of traditional system of recruitment (table 1 below). It was ranked as number one factor among eight factors as respondents gave a score of 74 % which is significantly superior to that of other factors like cost reduction (65 %) and wide reachability (61 %). This is because the difference between the two factors is higher than the critical difference at 5 % level of significance. However there is no statistical significance between the cost reduction and wide reachability as the critical difference value is higher than the difference between the two factors. The higher flexibility of online recruitment system was recorded as the lowest ranked factor for success of online recruitment system (14 %). Similarly, the results of the primary survey also indicated that the biggest disadvantage of the online recruitment was in the form of elimination of effective candidates (table 2 below) who don’t have online access (81 %) followed by overloading of applications (72 %). There is a statistical significance between the two factors as the critical difference (0.05) is lower than that of the difference between the treatment means. However, the employment risks associated with the website information were considered as the lowest ranked disadvantages of the online recruitment system (9 %). One should emphasise on reducing the disadvantages which were given higher ranking by the respondents for increasing the success of online recruitment in the future. All ways of reaching as many candidates as possible should be considered. For doing this, the companies must concentrate on the following aspects: 1. The company website must be in well reach of wide range of people. 2. The company website must be well upgraded according to the end users requirement regularly. 3. The website must be framed innovatively so that more number of candidates can be attracted and company would get the potential candidates in time. Table 1: Prioritisation of advantages of online recruitment system Advantages of online recruitment Score Rank Statistical parameters Fastening of recruitment cycle 74 % 1 General Mean : 50.5 Coefficient of variation : 6.4 % Standard Error of Mean : 1.87 Critical Difference (0.05) : 5.69 Cost reduction 65 % 2 Wide reachability 61 % 3 Handling of high volume of job applications at a time 57 % 4 More tailored information about job and organisation 45 % 5 Highly suitable during economic crisis 33 % 6 Higher flexibility 14 % 7 Table 2: Prioritisation of disadvantages of online recruitment system Disadvantages of online recruitment Score Rank Statistical parameters Elimination of effective candidates who don’t have online access 81 % 1 General Mean : 44.8 Coefficient of variation : 5.9 % Standard Error of Mean : 1.53 Critical Difference (0.05) : 4.72 Overloading of applications 72 % 2 Lose out of candidates, if website is below the search engine ranking 54 % 3 It results in turn-off candidates, if the website is badly designed 45 % 4 Scope for manipulation in bio-data 16 % 5 Employment risks associated with website information 9 % 6 The following case studies are demonstrating best practice in e-recruitment Case Study 1: The Container Store. This company initially accepted only paper applications, but later it started accepting both the paper and online applications (Washington Business Journal, 2004). It has witnessed the significant impact of online recruitment process. In 2003, the company got 27,000 job applications, and 24,000 of them were applied through Internet reflecting the huge positive impact created. In this process, the company could get exact requirement of human resources. It could find matches for the companys culture and business rather than to fill a specific position through online recruitment process. Case Study 2: Orange UK Over the past four years, Orange UK has been on a journey to push e-recruitment in its resourcing activity. It sees e-recruitment as the most cost effective and quickest way to recruit candidates. More importantly, Orange believes it is the way most candidates they wish to attract are now searching for jobs. By looking into how Orange can use e-recruitment, it has allowed them to challenge their own processes resulting in a more effective resourcing function. Orange operates a main recruitment portal which provides candidates with information on the organisation and what it can offer candidates and includes a list of its current vacancies. The majority of candidates will apply directly from this site. Orange also has a number of micro sites to attract different types of candidates. For example, there are special sites for candidates wishing to apply for specific jobs at their contact centres or in their retail outlets. When a candidate searches for a job or applies for one, they move into the Orange candidate management system (CMS). The CMS, branded Orange, allows candidates to be communicated at certain stages of the recruitment process via text messaging. Orange’s CMS runs the candidate database, the job board posting links, the management information reports (source of hire, time to hire, equal opportunities and other) and controls the selection process, which the resourcing team use to select the most suitable candidates. Orange employs over 11,500 staff within the UK and last year recruited over 4,000 people into the company. The recruitment challenge at Orange covers volume and niche recruitment roles. Orange’s e-recruitment strategy ensures that all jobs are advertised internally on the internal job board before being advertised externally. When going externally, all jobs are initially posted to the careers homepages and a number of recruitment micro sites (retail / contact centres / graduates) before any other channel is considered. Subsequently, Orange uses external job boards, the press (local, national or trade) and finally, recruitment agencies are contacted. To ensure all current legislation is followed, Orange works with their Diversity team. Orange also provides a booklet outlining local access points (internet cafes, libraries, job centres, etc) for candidates who do not have direct access to the web. Savings and benefits: £1.3 million as a direct result of e-recruitment Statistics: • improved management information on the recruitment process • streamlined recruitment process • improved candidate experience Case study 3: HM Revenue and Customs HM Revenue and Customs (HMRC) e-recruitment system was launched in 2004 to help meet Departmental efficiency targets, to maximise support for recruiters, cut administration, costs and time-to-hire, reduce dependency on third parties (and associated costs), improve management information and consistency of recruitment processes, and enhance candidate service and the department’s image as an employer of choice. E-recruitment was introduced against a backdrop of and in support of Gershon efficiencies, HR Transformation, e-HR and the integration of Inland Revenue and HM Customs & Excise. Since the introduction of e-recruitment, HR has met challenging headcount reductions and has moved from the previous regional/area structure to three shared service centres. The HMRC recruitment strategy aims to recruit people with the right skills and profile at the right time in accordance with the Civil Service Commissioners’ Recruitment Code and the legal and departmental diversity and equality requirements. Applicants with a disability preventing them from using the online system are offered a paper-based application process instead. HMRC’s online external recruitment process starts with traditional job vacancy advertisements in local or national press and Job Centres. Externally advertised jobs are also posted online to Jobcentre Plus and the Civil Service Gateway, while internal jobs are advertised to “Other Government Departments” via the Civil Service Vacancy Database. Vacancy details are also posted on the HMRC careers website. Once the applicants are on the HMRC website, the online application centre provides them with information about the particular job, the terms and conditions of employment and the selection process on a 24/7 basis. Candidates may then apply online. Savings and benefits: HMRC has achieved a wide range of benefits. In some cases otherwise unobtainable targets have been achieved. These include a team of 3 recruiting 230 candidates from a standing start in less than 3 months cost per hire has been reduced by approximately 25% outsourcing has been substantially reduced significant reduction in storage and accommodation requirement the service to the business has been improved HMRC’s service to candidates has been improved and employer brand has been strengthened Conclusion Online recruitment plays significant role in selecting the desirable candidates for any company or organization. It is mainly because of its benefits in terms of faster rate of recruitment and flexibility. It is also well established that online recruitment process has to implement several strategies for making it a successful one. Lot of investigation has been done on factors affecting the success of online recruitment. Though there were several research studies conducted earlier on the factors affecting the success of online recruitment system, there is a necessity to analyse the advantages of the system and prioritise the same for increasing its efficiency. At the same time, literature review alone cannot help us in drawing meaningful conclusions. It has to be accompanied with collection of people’s response in terms of primary survey. Keeping his in consideration, the present study concentrated on both literature survey and primary survey for identifying the most relevant factors of successful online recruitment system. The literature review revealed that economic advantage along with time saving are the major advantages of online recruitment system. It also proved to be best recruitment system in reaching wide range of people so that diverse nature of candidates may be selected. The primary survey also indicated that reduction in time and cost of recruitment and wide reach of the applicants are the major advantages of online recruitment system. At the same time, the disadvantages of existing system have to be identified and strategies have to be formulated to reduce their effect so that the success of online recruitment system would be further enhanced. The present study also revealed that the elimination of effective candidates who have no access to online system and overloading of applications are the major disadvantages and all efforts must be made to minimise the same. Besides, these recommendations could be introduced by businesses in order to be proficient in that area. Thus, the present research design would be of immense help in this direction. The research is ongoing process so therefore it will be reviewed and amended as appropriate. Consequently, a comprehensive research will be finalised when the study is completed. Recommendations for practice 1. The main advantage of online recruitment system i.e. time saving must be further improved. With the advancement of technology we have sound chance to improve the design of software required for online recruitment process. This certainly helps the companies to recruit people as quickly as possible. 2. Updating the database of the company especially in recruitment methods is highly essential and it has to be well reflected in all major websites. It aids in reaching wide range of candidates and proves to be highly economical in long run. 3. The company should identify the changing needs of the young candidates and accordingly reflect the same in compensation package so that most talented people may be recruited which in turn would help us in achieving higher productivity. 4. All disdavantages have to be eliminated to the possible extent. For example, the website access to several people have to be promoted which helps the company to reach wide range of public. At the same time, the website of the company must be upgraded regularly so that it becomes customer friendly. Recommendations for future research 1. The future research should focus mainly on new methodology for successful online recruitment of candidates. 2. The possible ways for enhancing the percentage of efficacy of online recruitment system over traditional methods must be worked out. 3. Higher accuracy in meta analaysis is to be worked out which helps in setting the questionnaire more effectively. 4. The future research must also focus on impact of increasing networking access on success of online recruitment system. Reflections on the learning The present study included both the literature review and primary survey. However, initially literature was reviewed partially and questionnaire was framed for primary survey. Later it was realised that the primary survey requires extensive literature review than the initial effort made, hence the literature review was completed and questionnaire was reformatted which took considerable time. In future, this experience would help me in planning research methodology more effectively. Some of the disadvantages of online recruitment process mentioned in this study may get severely influenced by changing global trends. For example, the lack of access to internet resulted in elimination of some genuine candidates at present. But with in this study period it self, several candidates might have got access to internet and this may have a drastic effect on success of online recruitment in future. Hence any future study of this nature must be completed as quickly as possible. The researcher would like to thank his supervisor Mr. Trefor McElroy and his unit leader Dr Milena Bobeva for their support. 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