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EFFECTIVENESS AND USE OF E-RECRUITMENT IN PUNJAB:
A STUDY OF VARIOUS ORGANISATIONS IN PUNJAB
DR. VIKRAM SANDHU
Assistant Professor,
University Business School, Guru Nanak Dev University, Amritsar, 143005, Punjab, India
Mobile No.9855609786, Email Address: [email protected].
KETKI BHABRA
Research Scholar,
University Business School, Guru Nanak Dev University, Amritsar, 143005, Punjab, India
Mobile No.7009474229, Email Address: [email protected]
DR. HEENA ATWAL
Assistant Professor,
Department of Basic and Applied Sciences, Punjabi University, Patiala, Punjab, India
Mobile No.9814754364, Email Address: [email protected]
Abstract
In the present scenario, organizations are becoming more dependent on online mode while dealing
with human resources. The process of recruiting employees through a long recruitment process,
involving huge cost and time has shifted to the process of e-recruitment. E-Recruitment involves
less cost and consumes less time as compared to previous recruitment process. It is the most
attractive way to pick the best employees from a pool of potential candidates. Addressing
the effectiveness of online recruitment and showing its effect on Indian scenario, is the key focus
of the research study. The study reveals the comparison between earlier process of recruitment
and the present e-recruitment process. An attempt to explain methods and criteria of e-recruitment
is made in this research study. A firm becomes different from its competitors by only one mean,
and that mean is the type of employees it hires and sustains. Recruitment is crucial because it
generates human capital. Human capital is as important to a firm as blood to life. This study reveals
the various aspects of perception of the people related to e-recruitment. The traditional method
of recruitment has been revolutionized through the use of internet, resulting in e-recruitment,
defining a new era of attracting more and more potential candidates to apply for the job.
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Keywords
E-Recruitment, Recruitment, Internet, Employer websites, Social media, Recruiting yield
pyramid.
1 Introduction
Human resource management involves various activities as it is a combines management and
people. In order to sustain in the market, every organization faces a lot of challenges and the
most difficult challenge is to acquire a job and to retain the employees. Thus, staffing enables
the supply and demand of employees as required. This creates human capital which is needed
to achieve organizational goals and objectives as a whole. The performance of employees is the
key to achieve organizational goals and objectives. The first step of staffing process is the
recruitment of employees. Recruitment is the process of inviting more and more candidates
to apply for the job by creating a vast pool of job applicants. It stimulates the budding
employees to apply for the job. Functioning of recruitment is dependent upon two strands. First
is to discover the sources of personnel as per job specification and job description. In the era of
globalization, prospective applicants could search for the positions in which they are interested.
Secondly, it enables contact with employers directly by using internet. Currently, organizations
have their own placement sites along with job postings. It is cost efficient, time saving and has
scope for better match. One of the drawbacks of e-recruitment is that it requires candidates to
be computer savvy. One cannot undergo e-recruitment process until they have access to internet.
Flippo stated that recruitment can be defined as the process of searching for potential employees
and motivating them to apply for the same.
The days when the recruiter just relied on advertisement and other referrals for finding the
suitable candidate are gone. The pervasive use of internet, shows that the recruiter is now
changing and is finding results with new methods of recruitment like social media, websites etc.
E-recruitment is the process of inviting employees to apply for the job by the employer or agency
using internet. It is particularly effective at getting an important level of response .While it may
generate hundred more applications than traditional print advertising, simply attracting more
candidates is only part of the job. The purpose of study is to broaden the research on
recruitment and its effectiveness with a specific focus on e-recruitment. A key element of
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HRM is the recruitment of staff that forms the foundation of the companies. The growth and
expansion of the company is dependent upon the staff it recruits and the costs it incurs on
recruitment. Organizational development is the result of manpower skills available in the
organization. (Flippo, 2002)
Some of the examples of e-recruitment portals are: naukri.com, indeed.com, monsterindia.com etc.
The present section discusses some of the advantages of e-recruitment.
1.1 Advantages of e-recruitment are:
Cost efficient: Advertisements in internet are quite cheap as compared to newspaper, magazines,
and employment agencies that charge every time the service is provided.
Saves time: Response through e-recruitment is direct and immediate without any delay.
Thus, time to deliver and to communicate is minimized.
Broadens the area of search: In today‘s era of globalization, the search and reach is not limited
to one place. It provides access to global reach within a fraction of second.
Provides clarity: Restriction on word limit by advertisements in employment news, other
newspapers and magazines may result into misinterpretation while internet denies the restriction
of word limitation. The opinion and profile are expressed according to one‘s own choice and
preferences.
Scope for better match: The information is provided in detail along with clarity, therefore, more
scope for suitable candidate match is there.
Standardized format: Candidate‘s information is collected by the employer in a standardized
format. The information of the candidates is collected in a standardized format. After the
collection of the data, it integrates the collected information received from various sources.
Pool of information: It acts as the pool of information as every information ranging from the job
profile to applicants profile, is available along with previous applicant data.
Reduced paper work: The burden of paper work has been reduced as all the data collection,
filing and administrative work is done electronically.
(Verhoeven H and Williams S 2008)
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1.2 In contrast, E-Recruitment has some disadvantages also. These are:
Requires being computer literate: The process is limited to one‘s who are computer literate.
As the search is totally based on different websites, screening, keywords and applications could
only be possible by a computer savvy person and company.
Legal consequences: Use of vicious and unethical words in advertisement may lead to a charge
of discrimination. So, words being used should be ethical and indiscriminating.
Vast pool of applicants: As this source invites more and more potential applicants, this results
in creation of vast pool of applicants. This huge database cannot be scanned in depth. So, either
first few candidates are called for the interview or the resumes are scanned on the basis of some
key words. On the other hand, global competition is also faced by the applicants.
Non-serious applications: This source results in large number of non-serious applications who
send their resumes just to know their value in the market.
No secrecy: As all the details are available to public, the point of secrecy is not present.
Sometimes, the applicants wanting change do not want their employers know about their plan
of change. Availability of phone numbers and address information to all has led to many security
problems. (Mostyn, 2016)
The study attempted to study the recruitment and e-recruitment process and its influence on the
applicants. The study also entails the cost and time consumed in recruitment as well as in
e-recruitment. The study reveals the changed pattern of hiring staff and how e-recruitment has
effected the Indian Scenario of recruitment of employees.
1.3 Sources of e-recruitment:
Globally practiced sources of e-recruitment by global companies are briefly discussed as:
Job boards: Job boards are the places where the job vacancies are posted by the employer and
in order to search for suitable candidates. Through this, candidates get the information about
the vacancies. Disadvantage of job boards is that it is non-specific in nature.
Employer websites: These websites are either owned by the company itself or are developed by
different employers. For example, the first e-recruiting cooperative cartel owned by the employer,
formulated by Direct Employers Association was Directemployers.com. It is working as a
non-profit organization formulated by the executives and top level management of leading U.S
corporations.
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Professional websites: These are specific and not generic in nature. These websites are formed
for a specific profession or skill. For example, www.shrm.org. is the Human Resource
Management site to be visited for HR jobs.
Social Media: Social media connects large group of people thus making it a powerful tool.
For job hunting websites like Monsterindia.com, Naukri.com, Big adda, Facebook are becoming
increasingly popular with recruiters as they enable the recruiter to have a more rounded picture
of the individual. These professional networks also enable candidates to register themselves and
post comments about the company. (Verhoeven H and Williams S 2008)
2 Review of Literature
The results of e-recruitment are much more dwindling than the traditional methods of recruitment.
Organizations undertake e-recruitment at the expense of traditional methods of recruitment.
Moreover, e-recruitment has proved much more popular than recruitment with traditional methods.
As per HR professionals, company‘s own websites have given better results for most of the jobs
than traditional method of recruitment.
According to Galanki (2002), recruitment can be defined as the complete process that comprises
of job advertisement, resume applications and creating human capital databases.
As per Vidot (2000), e-recruitment is the process in which potential candidates are attracted,
their resumes are screened with end result as selection process using internet.
As per Cullen (2001), e-recruitment is not treated as a standalone tool only but is an integration
of an overall recruiting and selection strategy.
As Buda (2003) suggested, the advertisements of recruitment are much more effective when
they comprise of positive information and words at the beginning without expert sources.
(for example: media)
The review of above stated literature shows that e-recruitment is considered as the vital aspect of
every candidate searching for job and organizations searching for candidates. Hence, e-recruitment
has become the most effective tool of recruitment for building relationship between the organization
and the job applicants. (Mooney, 2002).
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2.1 Importance of study
1. This study is important to study the change in pattern of recruitment of employees as
compared to previous processes.
2. This study is important to study the use and effectiveness of e-recruitment in present
hiring process.
3. This study helps to study the pros and cons of e-recruitment.
2.2 Objectives of study
The study exclusively focuses on IT industry. The objectives of study are as follows:
1. To assess the effect of e-recruitment on quality of job applicants.
2. To analyze the effect of e-recruitment for generating broader range of talent.
3. To examine the effect of e-recruitment on job seeker‘s behavior.
3 Research Methodology
In this study, the following methods of data collection are used:
Primary data has been collected through structured questionnaire.
Secondary data was collected by visiting websites like Naukri.com, Linkedin, Indeed.com,
journals, reports of government.
Sample of five global e-recruitment companies is selected for achieving the objectives of study.
The companies selected belongs to IT, Pharma and Auto mobile sector. The sample of study
comprises of three important cities of Punjab i.e Chandigarh, Bathinda and Jalandhar. These cities
are considered to be hub for e-recruitment companies.
3.1 Recruiting Yield Pyramid 1 to be formulated:
The process of recruitment cannot stand without a proper estimation and a proper plan. It requires
to calculate the number of applicants to be generated, to hire the required number of employees.
E-recruitment facilitates by increasing the lead generation number. The present study reveals that
that 1200 applicants can increase to 2000 by e-recruitment and the ratio of estimation comes out
to 3:5. For instance if candidates interviewed do not reach 100, 50 new hires will be difficult. But
if from the base, the numbers are increased, selecting 50 candidates won't be a problem.
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CHANDIGARH, JALANDHAR and BATHINDA clocked in positive growth in recruitment
activity with 23 per cent, 22 per cent and 19 per cent respectively as discussed below.
3.2 City wise analysis:
1 Chandigarh: Hiring activity in the capital city increased by 13 per cent. Recruitment across the
areas like IT-Software, IT-Hardware and Pharma grew by 33 per cent, 18 per cent and 25 per cent
respectively whereas Banking saw a dip of 14 per cent. The experience band of 4-7 years witnessed
an increase in demand for talent with a rise of 20 per cent hiring.
2. Bathinda: Overall hiring activity in Chennai grew by 13 per cent. The industry that dominated
the hiring space for the city was IT-Software with 37 per cent year on year growth. Auto industry
saw a dip of 12 per cent. The functional area of ITES clocked in a growth of 26 per cent. Experience
band of 4-7 years saw a rise of 16 per cent in hiring.
3. Jalandhar: Recruitment activity in Jalandhar increased by 11 per cent in April 2018. The industry
that registered an increase in hiring was IT-Software(44 per cent) while BFSI saw a dip of
19 per cent. Recruitment in functional areas such as IT-Software and IT-Hardware grew by
45 per cent and 32 per cent respectively. Demand for entry level professionals with experience of
0-3 years saw a rise of 10 per cent in hiring.
(Source: Primary Data)
4. Results and analysis
In the Indian scenario, e- recruitment is developing its roads in the form of recruitment
professionals. This development has be seen by the increased use of e-recruitment sites like:
Naukri.com, Indeed.com, Monsterindia.com etc. These job sites provide customized solutions
to its seekers, fulfilling their needs and requirements.
The study reveals that in India 79 per cent of the respondents are satisfied with the
results of the e- recruitment process as compared to 55 per cent who were satisfied with the
traditional channel of recruitment of employees. While 41 per cent of those surveyed in India
found their most recent job online, 23 per cent found a job by direct employer approach, 14 per cent
through "word of mouth", 10 per cent from newspaper advertising, 9 per cent from directly
approaching an employer and 9 per cent through other methods. This highlights the growing
reach of internet and importance of e-recruitment in India. Job advertisement as posted regularly
on online communicates/ like forums, blogs and other websites. Recruiters are aggressively using
social networking sites like - Linkedin, Facebook, Whatsapp, Yahoo, gmail, google +.
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Online carrier events, virtual job, fairs have been adopted by Indian recruiters rapidly. In
India, E- recruitment has shown its escalation in term of commercial values and also in adoption
by recruitment agencies(jobseekers, applicants). Most of the Indian companies are also beginning
to use their own websites as well as some third party vendors/agents as a part of solution for
recruitment. Indian recruiters are finding online recruitment as the most efficient and effective
approach to finding the candidates and one that is targeted to their need and cost efficient.
Table no 1.1: Results revealed by the study
Serial
no.
Results revealed by the study Percentage
1. Respondents satisfied with e-recruitment 79
2. Respondents satisfied with traditional methods 55
3. Respondents getting jobs online 41
4. Respondents getting job being directly approached by
employer
23
5. Respondents getting job through ―word of mouth‖ 14
6. Respondents getting job from newspaper advertising 10
7. Respondents getting job through other methods 9
(Source: Primary Data)
4.1 Index for April 2019
The Naukri JobSpeak Index for April 2019 at (2,477), marked a 16 per cent rise hiring activity
as compared to April 2018 (2,139).
Results in the IT industry showed continuous growth in the last six months. Continuing with the
trend ,IT-software in April 2019 recorded a notable rise of 39 per cent growth. Hiring in functional
areas like Site Engineering and Sales & BD observed a growth of 27 per cent and 10 per cent
respectively
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Experience Rise in e-recruitment hiring
.
(Source: Naukri Jobspeak index)
5. Suggestions and Recommendations
Following are the two keys areas which are required for the functioning and success of e-recruitment.
Candidate be capable to:
1) Create and preserve their profile or CV.
2) Personalize to their requirement or interests.
3) Attach resumes, cover letters and academic documentations.
4) Get information about automated job alerts.
5) Accept and desire invitations for interviews.
6) View saved copies of all the correspondence forms of prospective employees in a personalized
mail section.
Recruiters should be able to:
1) Handle and manage an online or email based application approval process.
2) Co-ordinate all advertising and work flow of vacancies between external job boards and agencies.
3) Acknowledge at any level of the recruitment process.
4) Screen candidates and give them remarks/scores according to their responses.
•10% 0-3 YRS
•16%
4-7 YRS
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5) Pursue application process for any of these recruitments - contract, permanent, full or
part time etc.
6) Handle and manage a real talent pool and not fake or past applicants.
7) Handle and manage all interviews online with the ability of candidates to self schedule.
8) Handle all communications like: joining offer.
9) Report on every content of the recruitment process.
6. Conclusion
In today's present scenario, a recruiting manager cannot ignore the process of e- recruitment and its
tools. To get best results, it is mandatory to compliment old recruiting methods with new methods.
Growth of this emerging medium depends upon two aspects. First is the ability of job sites and
second is the access to internet. The use of e-recruitment aims to compliment traditional methods
and not to replace it. Traditional methods can be used to fill up the loopholes of e-recruitment.
Hence, it results in smooth and faster growth of e-recruitment with global reach.
A company having only two vacancies and only two candidates for the same does not has a wider
scope of choice. Thus in order to widen the search and stimulate more applications, company
prefers e-recruitment. But if for two vacancies, a company receives 200 applications then, in depth
filtration of all applications is not possible. This screening can be done either by campus interview
or internal search that has personal touch. But in hand receiving of applications and communicating
the same with candidates becomes time consuming without internet.
Cisco a global infotech player has gained competitive edge by their creative mix and
match of different recruitment sources. They changed the newspaper advertisement by availing
their internet address and inviting for application without giving the job profile. Another
innovation was clubbing employee's referral with internet. Cisco thought information about
them when provided by the friends, will be more approachable. They launched friends program
in 1996. Informal sources of information like referrals, word of mouth are also being used in
various IT companies, such as IBM, WIPRO. The study observed that they are hiring 1000
employees every three months of 1999, hundreds of positions still to be fulfilled. They formed
focus groups who targeted the senior engineers and marketing professionals of other companies to
find out how they spend their free time. The survey showed that 'corporate cartoon Dilbert" website
is extremely popular as watching movie was the preference. So, they linked the website with the
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webpage. The website offered online fill in resumes or create a resume using their resume builder
which appealed both active and passive job seekers. Their hiring cycle came down to 45 days from
68 days. By late 1999, job page of Cisco was recording around 500,000 applications per month.
By 2001, the Friends program accounted for 50-60 per cent of new employees into the organization.
Speedy global reach when supported with traditional methods serves the objectives of hiring
process. Cisco deserves special mention regarding this.
The study attempted to study the recruitment and e-recruitment process and its influence on the
job seekers. The study also entails the time consumed in comparison to e-recruitment.
The study reveals the changed pattern of hiring staff and how e-recruitment has affected the
Indian Scenario of recruitment of employees.
Certain outcomes of study are as follows:
1 Increased number of potential candidates.
2 Reduced recruitment time and cost.
3 Easy access to wide number of people.
6.1 Limitations of the study
1 It is not possible to study the whole concept in one research paper as e-recruitment and its
effectiveness is a wider concept.
2 This study has been confined only to three cities –Chandigarh, Bathinda and Jalandhar.
3 The inherent limitations of the statistical techniques used.
6.2 Scope for further research
1 This study will help to form a base for further studies on effectiveness and how the industry
adapts to the changes in e-recruitment.
2 In this study, only three cities have been analyzed, which cannot be universally generalized.
for further studies one must do state wise analysis.
References
1. Barber, A. E. (1998). Recruiting employees, Individual and Organisational Perspective .
Thousands Oak, California, 91320; Sage Publication Inc, http://dx.doi.org/10.4135/9781452243351
2. Buda, R. (2003). The Interactive Effect of Message Framing Presentation Order, and Source
Credibility on Recruitment Practices. International Journal of Management, vol. 20(2),pp.156-163.
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3. Cober, R.T and Brown (2004). Form, Content and Function: An evaluative methodology for
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Boston, MA. vol. 2(34).
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at modern speed. Public Personnel Management, vol. 31(1), pp. 41-52.
8. Mostyn (2016). The fundamentals of being a great recruiter, edition 1, vol. 1, pp. 20-31.
9. The Economic Times, Kolkata, January 12, 2015.
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Books
1. Diane Arthur, Recruiting, Interviewing, Selecting and Orienting New Employees. Edition 3, 2017.
2. Flippo, E.B.(1984). Personnel Management. edition 6, New York, Mc Graw-Hill Book Company.
Online
1. Vidot. J (2000) Online Recruitment: Taking the plunge. Available online at: http://www.gradlink.
edu.au/grandlink/employer/onlineartic.htm [accessed 2011, April 12].
2. http://www.mbaskool.com/business-concepts/human-resources-hr-terms/8504-e-
3. http://www.yourarticlelibrary.com/recruitment/recent-recruitment-trends-outsourcing-
raiding-and-e-recruitment/29527/
4. www.digitalcommunitiesblogs.com
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