Ethical Human Resource Management - Literature review Example

Ethical HRM and the Use of Social Media for Recruitment and Selection Introduction We have already entereda new world characterized by fast-changing technologies that have opened up novel opportunities for organizations to communicate and operate. One of the major changes attributed to these technological changes is the growing accessibility of high-speed internet. This has further seen the growth in use of social media, which has consequently led to the creation of social networking sites (SNSs). Today, hundreds of millions of Internet users interact through these social networking sites such as Facebook, Twitter and MySpace (Kim et al., 2009). As a result, the HR function of companies is increasingly finding it beneficial to use social media in various HR practices, especially in the recruitment and selection process. The number of Social Networking Sites available to users is increasingly growing, and varies from continents, regions and countries (Kim et al., 2009). In New Zealand, for example, a survey done by Kelly Global Workforce Index in 2013 among more than thre thousand five hundred employees in New Zealand revealed that at least forty percent of those interviewed had been contacted about job application through their social networking sites. Moreover, the survey indicated that New Zealanders are more open to being contacted through SNSs, and sixty three percent of them agree to getting job referrals through social media (Kelly OCG, 2013). The most common SNSs used by New Zealanders include LinkedIn, Facebook and Twitter. Human Resource professionals can use social networking sites (SNSs) as a source of information about job applicants by looking at their personal data in an effort to improve hiring decisions (Kluemper and Rosen 2009, p.567). However, when deciding to use social media in recruitment and selection, it is important to keep in mind the degree of reliability, validity and fairness of using social networking sites. Hence, the focus of this thesis is on the relation between use of social media for recruitment and selection, and the ethical issues involved particularly concerning the above-mentioned HR practices. Following a review of the available literature on the advantages and disadvantages of using social media in making hiring decisions, a conclusion was drawn and recommendations made to organizations concerning if and to what extent social networking sites should be used in the recruitment and selection process. One of the advantages of using social media in recruiting employees is the relative ease of access to a desired target group. This advantage, however, has a downside to it in that when an organization is looking for a diverse workforce, recruiting through SNSs becomes more difficult (Price, 2011). The most important advantages of social media in selection were the high speed and lower costs of gaining more detailed personal information about the job applicant. However, this advantage has some pitfalls to it in that, the manner in which HR professionals judge the applicant before the interview, and perceive the applicant’s information on SNSs as additional information valuable to their hiring decisions influences an applicant’s career opportunities. The judgments made by the HR professionals based on applicant information available on SNSs cab be biased due to preference for similar others. Another point of concern when using SNSs in recruitment and selection is the potential negative impact it might have on the trust formation between the employer and the potential employee. Since recruitment and selection is the beginning of a potential labour agreement, a discovery by the applicant that his or her hiring was based on information available on his social media page might not auger well with the potential employee. There are also ethical issues attributed to checking-up job applicants on SNS, which is regarded by most as an invasion of their privacy. Therefore, it is advisable to employ SNSs in the recruitment process, but if an organization is known to check-up job applicants during the selection process, it might impact negatively on the image of the organization in the long term. 2. Literature Review 2.1 The relation between social media and HR Hiring Practices Human Resource Management (HRM) is an important organizational function of people management and should be effectively managed in order to ensure sustainable business success (Price, 2011). It is therefore important for an organization to utilize its workforce effectively by capitalizing on their expertise and resourcefulness in order to meet defined business objectives and ensure sustained profitability. The core functions of HRM of any organization include but are not limited to the processes of recruitment and selection, management of its people, assessing and rewarding performance, and learning and developing key competences (Price, 2011). The most important functions of the HRM of recruitment and selection are elements of resourcing which is a continuous process of identifying people and allocating duties in a manner that ensures effectiveness and proper use of their competences (Price, 2011). According to Breaugh (2008), employee recruitment and selection is critical to organizational success and has recently gained popularity in researches and discussions. The use of social media in recruitment and selection by the HRM has also increased in the recent past. However, the concept of using such platforms to accomplish these practices is a new field and very few studies have been done regarding the topic. Social Networking Sites (SNSs) have increased in recent years, attracting millions of users all over the world and the attention of organizations planning to utilize them in their daily business activities in equal measure (Brown and Vaughn, 2011). Social Networking Sites is defined by Kaplan and Haenlein (2009) as internet-based applications which allow users to connect through creation of personal information profiles, inviting others to have access to those created profiles, and enables exchange of emails and instant messages. 2.2 Advantages of using social media for recruitment and selection Social Networking Sites can be viewed as effective tools for screening job applicants at the selection stage with positive or negative impacts on the prospects of the applicant depending on his or her SNS profile. It is the belief of potential HR professionals that utilizing these sites to carry out online background checks is an adequate practice when making hiring decisions as they provide a quick rough draft of the applicant (Clark and Roberts, 2010). Brandenburg (2007)explains that although job applicants are not likely to post on their profiles provocative photos or details about themselves that might seem socially immoral, the SNSs provide all sorts of revealing information about potential candidates. In this regard, according to Eldon (2009), one of the advantages of SNSs in recruitment and selection is that it enables employers to have an insight about applicants’ educational and professional careers in general. Moreover, these sites allow recruiters to start a communication with potential candidates in a non-committal way. Hence, SNSs provide recruiters with an opportunity to search for and interact with potential employees by building long-term relationships with them. Therefore, Eldon (2009) explain that SNSs such as XING can act as platforms where employees can search for desired talents since it encompasses a variety of social capital in the form of young professionals. Potential employees therefore have the opportunity to filter candidates and only take into consideration those with special backgrounds that they are looking for in order to achieve desired business objectives. In addition, Wolk (2004) explains that HR professionals are of the opinion that SNSs offer an abundance of information that can be used to identify passive job seekers who are especially desirable since they represent an untapped pool of potential candidates with no association to any placement or recruiting agency. DeKay (2009) further points out that these passive candidates are especially stable employees whose SNS profiles entail detailed information regarding their past and present work experiences and areas of expertise. Given the general feature of SNSs that allows users to interact with others through ‘friendships’, an employer can form connections with potential candidates, which can then be used to initiate reference and background checks (Berkshire, 2005). SNSs offer an instant access to a more comprehensive overview of potential candidates that is usually available through conventional screening methods such as resumes or reference checks (Brandenburg, 2007). The Author further explains that more often than not, companies seek out employees who display a broad range of interests or unique backgrounds. Therefore, SNSs provide an opportunity for the employer to assess potential candidates’ interests and backgrounds which can always be manifested in their pastimes, travel and cultural interests including music, literature and art. Social Networking Sites therefore offer a chance for the employer to find valuable information about potential candidates that can then be used to build a connection during the interview. Another advantage of using social networking sites for recruitment and selection is the speed and lower costs involved in gathering information about applicants. SNSs offer a readily available platform for employees to easily and quickly gather information about potential employees, thereby allowing even small business enterprises to get involved in the practice. Connected to this benefit is the possibility that employers may have access to detailed information about potential candidates which may not be as easily or economically accessible via conventional methods or recruitment and selection. Such information can be used by the employers to draw on conclusions or make inferences regarding the applicant’s character or qualities that might eventually increase or decrease their likelihood of proceeding to the next step of the hiring process. 2.3 Disadvantages of Using Social Media for recruitment and selection The use of social media through Social Networking Sites in the recruitment and selection of job applicants also has various drawbacks especially in regard to the accuracy of the extra information from SNSs and the ethical dilemma associated with the use. A review of the available literature reveals various disadvantages and challenges associated with using social media in HRM hiring practices. One of the major pitfalls of using SNSs in recruitment and selection of employees is the danger of losing personal touch (Rutledge, 2006). In a study conducted by Pin et al. (2001), fifty percent of the HR professionals interviewed were in agreement with the statement that recruiters oftentimes disregard the personal contact or building of long term relationships with potential candidates. In view of the findings of Pin et al (2006), qualified candidates can be eliminated as a consequence of the disregard for the relationships that might be built in the process. Another study that supports this view was conducted by IES research (2005), and it found that some potential candidates do not use the Internet or are less familiar with SNSs. Such applicants are therefore likely to be left out when HR professionals use SNSs in recruitment and selection of employees. Another pitfall associated with using SNSs in the hiring process is the possibility of an organization connecting with just one type of clientele, especially when the organization recruits via only one SNS. This is due to the fact that various SNSs attract people with different socioeconomic status. Facebook, for example, mainly attracts individuals of a higher socioeconomic status as compared to other SNSs such as MySpace (Papathanassopoulos, 2007). Another major disadvantage of selecting employees via SNSs is the possibility that some aspects of the applicants SNS profile may alter the impressions of HR professionals because of the new information. Walther et al (2001) demonstrated that the presence of photos during computer conferencing positively impacted on the level of fondness and social appeal of an individual in the short-term. This study suggests that the presence of photographs and other information about an individual on SNSs may have an impact on the impressions formed by HR professionals during the recruitment and selection process. This comprises a pitfall since the impression developed by the HR persons might not necessarily be the real view of the person, but rather the impression we believe to see. In addition, a survey conducted by CareerBuild in 2009 revealed that thirty five percent of employers reported failure to hire an applicant due to unfavorable information they found about the individual on SNSs (Grasz, 2009).Some of the detrimental information quoted by the employers for not hiring applicants included posting of provocative or inappropriate photos or information, display of substandard communication skills, conveyance of information related to alcohol and drugs, and posting disparaging information about the organization itself or previous employers. The survey clearly showed that the type of information displayed by an applicant on his or her SNS profile may either augment or lessen their chances of being hired (Brown and Vaughn, 2011). 2.4 Ethical Dilemma One of the major pitfalls of recruiting and selecting employees via SNSs concerns the issue of privacy of job applicants. The question that arises is whether checking up job applicants through their SNS profiles is ethical, and where the boundary between ethical and unethical lies. In dismissing the use of SNSs by organizations to check up potential employees, some of the job applicants against this practice that acting responsibly on the part of the employer infers incorporating fairness in organizational decision making by recognizing the rights of employees and potential employees and their personal privacy. However, employers argue that they need to protect themselves and their businesses from negligent hiring (Blackwell, 2004) which may occur when an organization fails to unearth an applicant’s incompetence or unfairness. This is usually possible through a meticulous background check of references, criminal records and the general background information (Edwards and Kleiner, 2002). In addition to the background information available to employers on SNSs, they state that such Internet-based platforms offer them an opportunity to assess the type of decisions a potential candidate is likely to make (Brandenburg, 2008). Accordingly, a considerable number of employers believe that the use of social media in recruitment and selection of potential candidates by checking up the SNS profiles is an acceptable practice that offers them insight to the type of person they are going to hire. This, therefore, means that HR professionals believe that there are acting ethically when they use SNSs for making hiring decisions. On the other hand, a study conducted by Deloitte in 2009 on social networking habits and reputational risks at the work place found that fifty three percent of employees consider what is on their SNS profiles none of the organizations business. Therefore, there exists an ethical dilemma because whereas employers consider it ethical to check up potential candidates on SNSs, the employees disagree and think it is ethically wrong and a violation of their privacy. Privacy is a central element relevant to the hiring practices that are internet-based such as use of SNSs (Harris et al., 2003). When using social media in recruitment and selection, privacy is a genuine concern for job applicants’ perceived fairness, and should be taken into consideration by HR professionals when hiring. The available literature asserts that employers should be cautious and uphold social responsibility by ensuring that using new technologies such as SNSs in the hiring process do not invade the privacy of an applicant more than necessary. Edwards and Kleiner (2002) argue that through SNSs, employers have access to a wide range of information concerning job applicants, the job applicants lack knowledge of the amount and type of information considered for various jobs, and that the employers should only consider the information that is job-related. This argument is supported by the views of Miller and Weckert (2000) who state that what an employer is seeking for during the recruitment and selection process is labor and not any other information that might be available to them on the SNSs but not related to work. Moreover, they assert that privacy is a mortal right that should be duly accorded to the job applicants. 3. Conclusion The above discussion focused on ethical HRM and the use of social media in recruitment and selection through a literature review of various articles and an analysis of the different viewpoints presented. The available literature provided a theoretical framework for understanding the use of social media, in particular Social Networking Sites by HR professionals in making hiring decisions. The main aim of the review was to provide to organizations a basis for understanding the advantages and disadvantages of using SNSs and offer recommendations on the usage Internet-based hiring practices. The available literature revealed that most organizations use SNSs in their recruitment and selection of job applicants, however, the use of such internet-based platforms was not dependent on the extent to which SNSs can be used in considering potential candidates, but rather on the availability of information and the content of such information. A review of the literature also showed that the most prominent advantage associated with the use of SNSs in recruitment and selection of applicants is ease of access to a variety of information about the applicant which provides the employer with a draft background information about the character and type of the potential candidate. Moreover, SNSs offer a platform on which employers can connect with the applicants and build long-term relationships which can prove useful during the interview process. Another advantage of using SNSs during the hiring process is the low costs and speed associated with it, which would not be possible via the traditional methods of hiring. Despite the widespread use of social media by HR professionals for recruitment and selection of job applicants, there are various disadvantages that are attributable to the practice. First, there is the danger of losing touch which the reviewed literature cited as one of the biggest concerns for most employers. In addition to this, some potential employees do not use the Internet or are less familiar with SNSs. This creates a form of discrimination of such applicants whose information might not be available online and are therefore disadvantaged. Closely related to this point is the possibility of an organization missing out on qualified applicants by entirely relying on SNSs for the hiring process, or using only one SNS to identify potential candidates. Most importantly, the literature study revealed that there exists an ethical dilemma on the use of SNSs in recruitment and selection process with employees registering discomfort with the practice while employers on the other hand believe they have a right to perform a background check on those they are hiring in order to avoid negligent hiring. 4. Recommendations In regard to the above discussion of the advantages and pitfalls of using SNSs in recruitment and selection process, and the ethical issues involved, a number of recommendations are suggested to organizations. These recommendations are aimed at ensuring that organizations make effective use of SNSs while remaining socially responsible. First, the HR professionals should not only use SNSs in their recruitment and selection processes but should rather incorporate the resumes and submitted credentials when considering candidates. Social Networking Sites should not be used by HR professionals as a short-cut to or quick fix in the recruitment process, but rather should be treated as a complimentary method of getting new additional information about job applicants. In this regard, the use of social media for hiring purposes should be carefully thought out and planned in order to get it right. This will ensure that employers do not entirely rely on information available to them on SNSs whose accuracy might be in question. Second, the HR function should refrain from judging applicants based on the information they have posted on their SNS profiles. It is imperative to note the right to privacy of the applicant is just as important as the organizations right to protect itself from negligent hiring. When using SNSs, it is also important to check the reference list provided by the applicant since they will offer clarity on the work ethic of the job applicant and their previous experiences. Fourth, given the legal issues that might be associated with recruiting and selecting applicants based on the SNSs, it is important to refrain from misusing the technology in discriminating against an applicant based on their gender, race, disability or the type of SNS they are using. Considering that using SNSs in recruiting and selecting applicants lessens the workforce diversity, it is important for HR professionals to consider using different SNSs in their recruitment process since the networking sites may sometimes differ in the type of clientele linked to them. This is more so important when the HR function is looking for a diverse workforce with different skills and backgrounds. Another point to consider is the possibility of an employee finding out that the HR professionals based their hiring decision on information obtained from an SNS. This might create a ‘false start’ and lack of future trust between the employee and the employer. Therefore, before basing their decisions on information obtained from SNSs, particularly personal information, the employer should first consider the benefits against the potential negative implications such a decision might have on his/her relationship with the potential candidate. When the advantages and disadvantages of recruiting and selecting applicants using SNSs are weighed, it is evident that the use of such social media platforms offers an easier and less costly way of reaching a target group and knowing the type of applicants an organization is hiring. Consequently, organizations should actively use SNSs in their recruitment processes albeit in consideration of the above listed recommendations. Although SNSs are an ideal tool for identifying and recruiting potential candidates, employers should take additional caution when using social media in the screening and selection processes. When an organization entirely uses social media to screen applicants, and in the process eliminate some of them on the basis of the information available to them on the applicants SNS profiles, there is a potential risk of exposing the organization to legal liabilities, accusations of discrimination, and non-compliance with country regulations. Although there are very few direct legal precedents regarding the use of social media for recruitment currently, the risks are evident at the moment and companies should not expose themselves unnecessarily. In consideration of this point, it is imperative for companies and HR professionals to formulate policies that that will guide them in using social media for recruitment and selection of employees in order to protect against discriminatory practices. References Berkshire, J.C. (2005). Social network recruiting.HRmagazine50, p.95. Blackwell, C.W. (2004). Current Employee Privacy Issues.The Journal of Applied Management and Entrepreneurship, 9, p.113-11. Brandenburg, C. (2007). The Newest Way to Screen Job Applicants: A Social Networker’s Nightmare.Federal Communications Law Journal, 60, p.597-626. Breaugh, J.A. (2008). Employee recruitment: Current knowledge and important areas for future research. Human Resource Management Review, 18, 103-118. Brown, V.R. and Vaughn, E.D. (2011). The Writing on the (Facebook) Wall: The Use of Social Networking Sites in Hiring Decisions.Journal of Business and Psychology [e-journal] 26, p.219-225. Clark, L.A. and Roberts, S.J. (2010). Employer’s use of Social networking sites: A socially irresponsible practice. Journal of Business Ethics. 95, p. 507-525. DeKay, S. (2009). Are Business-Oriented Social Networking Web Sites Useful Resources for Locating Passive Jobseekers? Business Communication Quarterly 72, p.101-105. Edwards, R.M. and Kleiner, B.H. (2002). Conducting Effective and Legally safe Background and Reference Checks. Managerial Law, 44, p.136-150. Grasz, J. (2009). Forty-five percent of employers use social networking sites to research job candidates, Careerbuilder survey finds. CareerBuilder Press Releases Retrieved from http://www.careerbuilder.com/share/aboutus/pressreleasesdetail.aspx?id=pr519&sd=8%2f19%2f2009&ed=12%2f31%2f2009&siteid=cbpr&sc_cmp1=cb_pr519_. Harris, M.M., Van Hoye, G. and Lievens.F. (2003). Privacy and attitudes towards internetbased selection systems: a cross-cultural comparison. International Journal of Selection and Assessment, 11, p.230-236. Kaplan, A.M. and Haenlein, M. (2009). Users of the world unite! The challenges and opportunities of social media. Business Horizons [e-journal] 53, p.59-68. Kelly OCG (2013). Workplace Performance- Kelly Global Workforce Index. Retrieved from http://www.kellyocg.com/uploadedFiles/Content/Knowledge/Kelly_Global_Workforce_Index_Content/Workplace_Performance.pdf Kim, W., Jeong, O., Lee, S., (2009). On social Web sites. Information Systems, 35, 215-236. Kluemper, D.H. and Rosen, P.A. (2009). Future employment selection methods: evaluating social networking web sites. Journal of Managerial Psychology, 24, p.567-580. Miller, S.And Weckert, J. (2000).Privacy, the Workplace and the Internet. Journal of Business ethics, 28, p.255-265. Papathanassopoulos, S. (2011). Media perspectives for the 21st century: Concepts, topics and issues. New York: Routledge. Pin, J.R., Laorden, M. and Sàez-Diez, I. (2001). Internet Recruitment Power: Opportunities and Effectiveness, Price, A. (2011). Human Resource Management. Hampshire: Cencage learning EMEA. Rutledge, P.-A.(2008). Profiting from social networking. Upper Saddle River, N.J: FT Press. Walther, J.B., Slovacek, C.L. and Tidwell, L.C. (2001). Is a picture Worth a Thousand Words? Communication Research, 28, p.105-134. Wolk, D. (2004). Social networking sites pique the interest of company recruiters. Workforce Management, 83, p.70-73. Read More