Assessing the use of internet in recruiting process

HRIS

Contents

Introduction Traditional Recruiting Recruiting via the internet Traditional Recruiting Model at CEG CEG’s Recruiting Model via the internet Data Analysis and Findings

…Quantitative Analysis Future Trends Conclusion

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Introduction

The scope of this article is to conduct research into the influence of the Internet on processes of personnel recruitment, in light of the growing number of companies seeking to attract candidates for employment onto their staff and the enormous number of professionals who currently use this technology in their search for employment or professional placement.

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Cont..

The exponential growth of the Internet in the world is a direct result of the technological facilities inherent to its usage and the fascination exerted by the richness and reach of information available on the Web….. (Evans & Wurster, 2000).

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Cont..

“richness” signifies the quality of the information defined by the user: accuracy, bandwidth, currentness, personalization, interactivity, relevance, security, andso forth.While “reach” signifies the number of people who share and have access to this information.In the former industrial economy, it was only possible to share extremely detailed information with a mere handful of people. The old technology did not allow the same desired degree of richness and reach to be attainedsimultaneously.

Cont..

In the labor market, the concepts propounded by these authors may be used to good advantage, adding to what they refer to as“asymmetry of information.”Condition in which at least some relevant information is known to some but not all parties involved.

By applying this concept to recruiting and taking the company as the interested party, one can see how Internet technology may harmonize the ability of companies in general in their search for professionals, with the impetus of qualified professionals seeking a new position or change in profession.. (Zambos & Salazar, 2001).

Cont..

Prospecting for opportunities through the Internet is less costly

and time consuming than the traditional method, especially when the physical displacement of the candidates and the cost of postage for mailing to a large number of companies are considered……Shapiro et al. (1999)

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Second Page

The main objective of this paper is to;

Study and present the transformations that occurred at a Brazilian company (CEG), during its transition from a traditional recruiting process to a new one, based on the intensive use of the Internet.Therefore, this paper seeks to find answers to the following question (Q1), concerning the company under analysis:

Q1: What were the results obtained with the use of the Internet in recruiting processes in terms of cost, speed, and accurate matching candidates to job positions, compared to the results using traditional methods?

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Traditional Recruiting Recruitment sectors need to attract a group of

qualified candidates to the organization. The success of recruitment is measured by the suitability and adjustment of the new employee to the job position in terms of satisfactory performance (Chiavenato, 1999).

Individual performance can be expressed by the following equation: Performance = f (a, e, s); where “a” represents individual attributes, “e” represents on the job effort, and “s” represents organizational support (Schermerhorn, Hunt, & Osborn, 1982).

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Traditional Recruiting The main recruiting techniques that make it possible

to attract a reasonable number of candidates for any selection process. According to Chiavenato (1999), these techniques are:

1) Advertisements in newspapers and specialized magazines;

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Traditional Recruiting

2.) Recruitment agencies;3.) Partnerships with schools,

universities, and associations;

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Traditional Recruiting

4.) Posters or advertisements in visible public locations;

5.) Inclusion of candidates by recommendation of existing employees;

6.) Consultation of candidate files;7.) Candidate database.

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cont…

Traditional recruitment is still widely used to fill technical, administrative and managerial job positions. The well-known employment supplements in large national newspapers continue to publish advertisements and job opportunities, demonstrating the health of traditional methods.

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Recruiting via the Internet A survey conducted by the

International Data Corporation (IDC) reveals that the growth attained by the ten leading recruitment sites i.e. Monster.com, Futurestep.com, HotJobs.com, Headhunter.net, and Dice.com, etc. was in the order of 232% between 1999 and 2000.

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16BrightSpyre is used by top companies in Pakistan to advertise jobs for job seekers looking for jobs in Pakistan.

Cont..

The advantageous use of the Internet for two specific types of candidates: university students for positions as interns (trainees) and seasonal labor and technical personnel, especially those with uncommon skills.. Nakache (1997)

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Cont..

Internet is not the ideal solution for all types of recruitment. Traditional recruitment will persist, with the Internet as a subsidiary option, rather than the most important part of the process, namely:

1. Frequently, companies are unwilling to broadcast their need to fill an executive post;

2. The professionals who are sought for executive positions are normally successful in their careers, and are not actively seeking work;

3. Executives prefer to be recruited in a personalized manner, not via the computer.

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Cont..

Internet advertisements have had a good response, according to Schreyer and McCarter (1998), for the following reasons:

They replace newspaper ads with digital ads; They reach a national talent market and a society in

transition; They use technology that provides broad access to the

job market; They enable companies and employees to have greater

awareness of their mutual needs; They set standards for intermediation.

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Traditional Recruiting Model at CEG

Cia. Estadual de Gás (CEG) Brazil’s largest pipeline gas company in number of customers, engaged in the distribution of three types of gas: Natural, Manufactured and Liquid Petroleum Gas (LPG) throughout the metropolitan region of Rio de Janeiro.

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1. The position is advertised, normally on Sundays, in a leading circulation city newspaper, giving a brief description of the main characteristics of the position vacant.

2. Résumés are received

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CEG basically follows the following stages to identify the need to fill a position or create a new position:

Traditional Recruiting Model at CEG

Cont..

3. The résumés are opened and sorted, selecting those that, a priori, fall within the profile of the position open;

4. A second more detailed sorting of the résumés initially selected is undertaken;

5. The candidates chosen to participate in the selection process are contacted by telephone;

6. Since many candidates were not personally contacted and the company awaits a return call to messages left;

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Cont..

7. The phases of the selection process are determined, often involving group dynamics studies, psycho-technical tests, an evaluation of general and specific knowledge, and culminating in an interview with the person responsible for the area in which the potential candidate will work if selected;

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Cont..

8. The company checks the professional’s career background;

9. Medical admission exams are conducted, which, in many cases, are also eliminatory;

10. The candidate chosen presents appropriate documents, diplomas and certificates;

11. The professional chosen receives company orientation so that he/she can then start working in the organization.

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This is a long, time-consuming process that requires investment, since it requires Human Resources professional who is dedicated exclusively to following and monitoring all of these stages.

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CEG’s Recruiting Model via the internet Placement of ads regarding positions

available within the company on its own Web site—www.ceg.com.br

CEG recruiting operational process via the Internet involves two main channels, as set forth below:

a. Process backed by a newspaper ad:b. The process without the aid of a

newspaper ad:26

Data analysis and findingsTo check efficiency in terms of the total reduction in time using Internet recruiting versus the traditional method, the average times for the entire process for hiring 68 professionals over the Internet (34 of them backed by an ad) and those for another 33 using the traditional method were calculated based on data provided by CEG’s human resources management. To analyze the total time taken in the process, the difference between the date of the personnel requisition—the CEG form that initiates the process—and the candidate’s first effective day of work at the company was calculated. The costs were calculated for the traditional process and the Internet-based procedure either backed by an ad or not.

Quantitative analysis

Data analysis and findingsTo evaluate the permanence at CEG of the candidates recruited by both the traditional and Internet-based recruiting processes, research designed to evaluate improvements due to the change in process was conducted on candidates remaining with the company within 90 days—the normal probation period regulated by law in Brazil.Table 1 was prepared in order to analyze, on a consolidated basis, the principal indicators, namely time, cost, and fitness, associated with the CEG recruitingprocesses that involved both the Internet and the traditional methods.

Quantitative analysis

Data analysis and findingsHaving recourse to the Internet recruiting using an ad (41 days) and without use of an ad (39 days) showed a reduction of close to 30% in time consumed compared to traditional means (57 days). variation coefficient of the Internet recruiting in both cases (39%) can be seen to be substantially lower than that obtained by the traditional method (72%). This indicates a greater dispersion of results using the latter method than by the use of the Internet - where the results tend to be more concentrated around the sample average.When the Internet was used with the assistance of a newspaper ad,the cost (US$ 1,412/candidate) was reduced by 36% compared to the traditional method (US$ 2,216/candidate), and an impressive 88% when the Internet was used directly (US$ 260/candidate).

It can also be seen that the variation coefficient associated to the cost is smaller in online recruiting (35% using an ad and 9% without using an ad) than in traditional recruiting (61%).

Quantitative analysis

Data analysis and findings

Third variable of research Q1Fitness (accurate matching candidates to job positions) concerns the fitness of the candidates who appear through the Internet for the position, based on the assumption that they have a better profile than those who appeared by traditional means because they have a higher level of formal education.

Quantitative analysis

Cont..Third variable “fitness”

The results found do not allow for confirmation of this hypothesis.

Data gathered indicates that there is no significant difference between the time of permanence in the position, of a professional selected by either of the two mechanisms within the 90-day probation period.

However, the overall turnover of the candidates recruited by the Internet was a little lower (15%) than that for candidates selected by the traditional method (18%).

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Slide Title

Add your text hereTurnover

Turnover

Turnover

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Table 1. Summary chartPROCESS/Variable TIME

(Calendar days/candidate)

COST (In US$/ candidate)

FITNESS (Permanence incompany less than 3 months)

TRADITIONALAverage 57 2,216Standard Deviation 41 1,352Variation Coefficient 72% 61%N. Left/Selected 18%INTERNET WITH ADAverage 41 (implies 30%

reduction)1,412 (36% less)

Standard Deviation 16 494.2Variation Coefficient 39% 35%N. Left/Selected 15%INTERNET WITHOUT ADAverage 39 (implies 30%

reduction compared to traditional)

260 (88% reduction compared to traditional)

Standard Deviation 15 23.4Variation Coefficient 39% 9%N. Left/Selected 15%

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Future Trends

One aspect that cannot be fully quantified concerns the question of the fitness of a candidate generated by the Internet.

This question was defined by the limits of 90-day probation period as After this period, the recruiting role is considered finished and thereafter how long the employee remains in the job depends on a performance management system, which is currently lacking in the company.

Cont.. Systematic performance evaluation is an

instrument that facilitates the employee’s career after the probation period has ended

For this reason, when used constructively, performance evaluation is a tool that improves personnel quality and, by extension, the company itself, even when its goals and proposals only focus on quantitative aspects (Feldman et al., 2003).

Without a qualified evaluator, any evaluation runs the risk of being a mere bureaucratic formality, since it will not diagnose performance objectively (Steers, 1988).

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Cont..

Thus, the use of systematic performance evaluations to track the careers of the professionals recruited via the Internet could ascertain whether or not there is any difference between them and their peers recruited by the traditional process.

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Conclusion

The objective of this research was achieved as

the extent to which Internet resources facilitate the recruiting process in terms of time and cost.

However, evidence was not found to assert that the fitness of the candidates selected with the help of the Internet is greater than that for the traditional process, thereby reducing turnover.

Cont..

For CEG to determine if Internet provides better suitable

participants in the selective process that translates into lower turnover and a greater contribution, it would first have to

Implant a performance evaluation system that could measure permanence within formal criteria for periods greater than three months.

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At last, the results of this research can assist organizations in seeking

to use the Web as part of their recruiting efforts,

designing corporate recruiting Web site developing Web systems to support

processes of personnel recruiting.

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Thank You？