Proceedings of Eurasia Business Research Conference 16 - 18 June 2014, Nippon Hotel, Istanbul, Turkey, ISBN: 978-1-922069-54-2 Recruitment in the Social Media Age: An Exploratory Study Vijayan Ramasamy** and Arasu Raman* Recent studies have demonstrated social networking site as an emergent agent for recruiters. There are research on why employers have registered on to numerous social networking sites for recruiting and how they have elevated the online employment trend to greater heights. The purpose of this paper is to find out whether the elements of perceived corporate reputation and quality social network site induces job applicant through social media. The researcher has used comprehensive survey data to collect and analyse the employers’ perception on attracting job applicant through social media and the results indicated that social media was affected by it content and quality. A total of 180 valid feedbacks were obtained from employers, with the findings indicating that perceived corporate reputation and quality of social networking site does attract high number of job applicant through social media network. Field of Research: Social Media Recruiting, Corporate Reputation, Social Networking Sites and Human Resource Recruitment 1. Introduction Employees are the most valuable resources of an organization as they significantly contribute to its success and growth (Danish and Usman, 2010). Malik (2010) concluded that in the today‘s business era which is pioneered by constant and rapid changes, knowledge capital of the respective organization must be retained in order for it to be responsive and dynamic to the needs or desire of their investors. Recruitment can be defined as the process of luring talented individuals into an organization to fill up job vacancies (Fisher et al., 1999). Recruitment can also be defined as an exercise or action that is carried out by organizations with the intention of finding and attracting prospective employees (Noe, 2008). Employers are gradually using social media to attract and filter potential candidates as part of the hiring process, a study by Careerbuilder.com (2010), found 45 per cent of companies used social networking web sites to view and search potential job applicants. This number had increased from the previous year (Vicknair, 2010). The online social network site has now become almost universal with qualified professional recruitment and job finding, such as LinkedIn (Vick and Walsh, 2010). In 2011, LinkedIn has 100 million professional users worldwide, compare to 70 million in 2010 (Dufour, 2011). __________________________ *Arasu Raman is with Faculty of Business, Communications and Law, INTI International University, Malaysia. E-mail: arasu.raman@newinti.edu.my **Vijayan Ramasamy is with Faculty of Business, Communications and Law, INTI International University, Malaysia. E-mail: vijayan.ramasamy@newinti.edu.my 1 Proceedings of Eurasia Business Research Conference 16 - 18 June 2014, Nippon Hotel, Istanbul, Turkey, ISBN: 978-1-922069-54-2 There are a quite number of other social networking sites such as Facebook and MySpace, which are increasingly drawing a wide range of members (Peluchette and Karl, 2010). It is suggested that Facebook.com is becoming a popular general screening tool among recruiters (Stecker, 2009). There were 500 million users on this site in 2011, an increase of 100 million from the previous year. Recruiters will use social networking site (SNS), which provides socializing channels to view and connect the profiles of a wideranging of capable and talented candidates, mostly situated in niche communities (Hoy and Milner, 2010). When these sites are combined with search engines, like Google, and other internet functionality sites like specialized mailing lists, it‘s claimed to improve the effectiveness of recruiting without overlooking the fact that recruitment is still very much a relationship process. About 50 % of employers attending university career fairs are using online technology, such as search engines, SNS or both to filter potential candidates (Shea and Wesley, 2006). Currently between 20 (Framingham, 2008) and 25 percent (Taylor, 2007; NACE, 2006) of managers are using SNS to filter job applicants and 40 percent of them indicating that they are most likely to use SNS within the next one year (Zeidner, 2007). Nonetheless, researchers have yet to understand how the governance and structure of these SNS networks can be successfully used by employers or recruiters. Through this research, it is believed, the findings will be of major interest to human resource recruiters, professionals and academic researchers as well as to elevate online recruitment through social media to greater heights. The main objective of this research is to study the perceived effectiveness of social media in recruitment. The specific objectives of the study are as follows: 1. To examine the influence of social network site quality on employer‘s use of social media in recruitment. 2. To examine the influence of corporate reputation on attracting job applicant through social media. Research questions are as follows: 1. Does quality of social networks site help employer to effectively attract and screen prospective job applicants through social media? 2. Does the perceived corporate reputation of an employer have an influence on attracting job applicant through social media? 2. Literature Review 2.1 Human Resourcing Process Recruitment is one of the key tasks of Human Resource Management (HRM) and where they need to attract and select the best candidates and with right employee performance of an organization will improve (Rehman, 2012). According to Boxall (2011), each organization is unique in its nature and culture, so their types and qualifications of workers to fill the vacant position 2 Proceedings of Eurasia Business Research Conference 16 - 18 June 2014, Nippon Hotel, Istanbul, Turkey, ISBN: 978-1-922069-54-2 also vary. Therefore, to accomplish the recruitment objectives, a firm must tailor the recruitment sources and methods to its specific needs. Recruitment sources are where qualified candidate are located either from external environment like universities, other organizations or from within the firm itself. Meanwhile, recruitment methods are referred to online recruiting, job fairs, newspaper ads or employee referrals that enable companies to identify and attract potential candidate. According to Boxall (2011), as a result of a technology and knowledge based economy, a company may have all the upto-date technology and best physical resources but without the right people, it will struggle to achieve the targeted performance and may suffer a high turnover costs. In addition, Ferris (2002) found, recruitment process effectiveness has an influence on organizational efficiency. Similarly, many researchers agreed that selection and effective recruitment process will lead to high performance and better competitive advantage for an organization. (Pfeffer,1994; Storey, 2007; Zheng, 2006; Werther and Davis, 1996). The most important thing in recruitment process is to make sure, the job postings includes the necessary information such as the corporate culture, nature of job, clear job description, required skills, and any other relevant criteria to the job. If recruiters fail to do this, they may reduce the candidate‘s chances of applying and then end up with a low-quality pool of candidates or end up with limited choices to fill the vacancy (Mishra, 2010). Another challenge faced by human resource (HR) practitioners is that time and money spent in recruitment and selection processes are sometimes expensive and wasteful when the qualified candidates are not only missed but have gone to rival companies. To overcome this problem companies should consider alternative recruiting methods such as outsourcing, online recruiting, contingent workers or professional employment organizations. (Mondy 2012). 2.2 Social Media for Recruitment According to Breaugh (2008), since the mid-1990s, Internet has infiltrated into the employment landscape and has become a key medium for personnel recruitment and selection process. It has transformed the way Human Resource (HR) departments do their jobs as well as the way job seekers search and apply for jobs. Many companies have adopted this new evolutionary technology to overcome the challenges arising in the traditional recruitment method in terms of effectiveness and efficiency. According to Ollington (2013), social networking sites are the preferred sources for those enthusiastically looking for employment. The major advantage perceived in this recruitment channel is that all users can join for free and make use of available tools to search for job which is much cheaper and easier. The use of social networking sites for recruitment process is getting pace because most of the companies are posting their vacant job advertisements on the Internet. Certain social networking sites like MySpace or Face-book, have even added a job classified advertisement section for job seekers and job posters. However, very little empirical research (DeKay 2009) has been conducted to study the impact of using social networking sites to recruit employees. The researcher in this study attempts to propose that a further investigation is to 3 Proceedings of Eurasia Business Research Conference 16 - 18 June 2014, Nippon Hotel, Istanbul, Turkey, ISBN: 978-1-922069-54-2 be carried out to understand the implications of using the Internet for recruiting efforts. In a common term, a social network is defined as a set of actors, consisting of people in the organization and the links between them via social relationships, which will bring some value to the respective parties (Gibb, 2004; Gulati, 1998). Also, Raman and Chien (2013), confirms netizen‘s belief that their life is assumed to be complete and structured with social networking sites. Research strongly suggests that social media play an important role as a growing job seeking and recruitment tool (Bonhard and Sasse, 2006). 2.3 SNS Quality With the rapidly growing SNS these days, many employers find it very difficult to select which sites are the most relevant for their employment need (Ollington (2013). Moreover, to adapt with the age of information technology based-world, people have better knowledge of internet usage, and have become more aware of potential risks in respect to SNS platforms. Ellahi and Bokhari (2013) through their research have identified that key qualities of SNS can be categorized by the ease of navigation, privacy or security system and networking scope. Ease of navigation may be reflected in the way users learn how to use the website, how to find necessary information and how they feel about the website usability. They also concluded that SNS with an ease of navigation will be associated with grater perceived success by users. This finding has been proven consistent in the employee recruitment process studies carried out by Van Birgelen and Sivertzen in 2008 and 2013, respectively. If HR practitioners can identify which site has higher degree of navigability, they will possess ability to positively affect the perceptions of jobseekers to some extent. The security or privacy matter is also one of the most discussed subjects since the introduction of Web 2.0. According to Slovensky and Ross (2012), privacy or security involves the degree to which users believe that a site is safe from intrusion and protected personal information or group communication is possible. Moreover, as there is an increasing number of online scams and fraud, internet users have higher privacy concerns. Therefore, to effectively use of SNS in attracting potential candidate, organizations have to take privacy or security factor seriously into consideration. They need to know that a SNS with excellent privacy restriction as well as security system can enhance the intentions of users to browse for more relevant information and thus make them want to apply for posted job ads. The networking scope is another quality factor that worth examining in the context of this study. Ellahi and Bokhari (2013) defined it as the networking effect of the site that helps users to expand their virtual connection with other people as wide as possible. The networking effect is the phenomenon whereby a service becomes more valuable if it has large number of people using it. For organizations and job seekers as well, it might be important if the 4 Proceedings of Eurasia Business Research Conference 16 - 18 June 2014, Nippon Hotel, Istanbul, Turkey, ISBN: 978-1-922069-54-2 SNS can guarantee a high level of valuable connections and wide networking scope. This point has been agreed by Ollington (2013). The authors stated that SNS with the large number of registered members often perceived to be attractive because it allows people to inter-connect in the wider scope. With such sites, employers can reach out to the large pool of applicants, while the job seekers have more options in deciding their career path. SNS with high qualities, in terms of ease of navigation, wide networking scope and good privacy or security system should be adopted for recruitment and selection purposes because people perceive it in a more positive manner. H1: The quality of social network site has positive influence on recruitment among employers. 2.4 Perception of Corporate Reputation As part of the companies branding strategy, millions of dollars have been spent on carving and developing a comprehensive corporate brand identity, strong identity is fundamentally linked to a clear, relevant and defined branding strategy. With successful corporate branding strategy, luxury firms will able to create unique brands in return for customers‘ loyalty and preferences (Chevalier and Mazzalovo, 2008; Okonkwo, 2007). In employment branding strategy, human resource management policies (e.g. job security), system and corporate values, such as honesty and fairness are taken into consideration (Lievens and Highhouse, 2003). Thus, employer brand management is concerned with understanding of employees‘ preferences at beginning and how this priority may change as they build their careers in the organization. Organizations may also need to understand employees‘ attributions and perceptions, towards employment contract in order to identify and rectify the weaknesses in recruitment and retention strategies. This includes changes that the organization may undertake in meeting its long term strategic management objectives that may change the employment contract, such as enhancing innovation or reducing costs. HRM has adopted marketing concept of brand management and has recognized employer branding attractiveness as an important factor in recruiting and retaining employees (Edwards, 2010). A favorable and positive image of a company helps to increase the number of applicants and improves selectivity in meeting labor force requirements (Bowes, 2008; Love and Singh, 2011). Corporate reputation can be seen as intangible and valuable resources in the recruitment process to attract job seekers, the talented and qualified ones in particular (Konradt 2013). Moreover, the impression of the organization could be enhanced with the help of interactive activities and the realistic picture obtained from the current employees within SNS. The authors also found that when an organization has a good reputation in both product and labor markets, it will attract a larger pool of people applying for the jobs ad and it invariably has more chances to acquire sufficient number of qualified employees. Building on the previous findings, this current study is going to 5 Proceedings of Eurasia Business Research Conference 16 - 18 June 2014, Nippon Hotel, Istanbul, Turkey, ISBN: 978-1-922069-54-2 test whether corporate reputation perceived in social networking sites and potential employee‘s intentions to apply for a job are related H2: The perceived corporate reputation has positive influence on recruitment among employers. 3. Methodology 180 valid feedbacks were received and the data were analyzed with the support of SPSS and Structural Equation Model (SEM). The respondents of this study consist of human resource personnel of companies that are located in the state of Negeri Sembilan, Malaysia. A combination of both explanatory and descriptive research types were used in this study. The descriptive research is used to explain the variables used in this study such as quality of social network site and perception of employer‘s corporate reputation on attracting job applicant through social media whereas the explanatory research is used to identify the relationship between the corporate reputation, SNS quality and social media recruitment. Adopting quantitative research method is the most suitable way to answer each of the research questions and collect data from the targeted population, i.e., companies that are located in the state of Negeri Sembilan, Malaysia, through self-administered surveys. Random sampling method is adopted as it is a technique in which companies are randomly selected from the list of companies listed as per Companies Commission of Malaysia (SSM) web site. As in December 2013 (SSM, 2013), there are 77,140 companies registered in the state of Negeri Sembilan, Malaysia. The first section of the questionnaire is about the demographic characteristic of the respondent, which includes gender, age and hours spent on networking per week by HR recruitment personnel. The second section is about the various variables used in the study in order to know the respondents perception toward social media recruiting process. All the questions in this section are using by 5-point Likert scale to measure. Respondents are asked to rate their responses from 1 ―Strongly Disagree‖ to 5 ―Strongly Agree‖ with the statements about different perspectives of the characteristics of social media factors. In order to avoid confusion, the statements have the same order of response categories. (i.e. the option ―Strongly Agree‖ is always on the far left side). Both continuous as well as categorical methods are applied in designing the questions. To make sure that the respondent assigns cognitive capacity to each question, the statements are both negative and positive in nature. At last, these Likert scale items are used to summate a single average score for each measured factor. For this study, the composite reliability is used which determines the correlations of questions in a variable. Also discriminant validity of measure was used in this study. To analyze the data SPSS and SEM were used. The independent variables of this research include quality of SNS and corporate reputation while the dependent variable is employer‘s usage of social media as recruitment tool. Path coefficients method of 6 Proceedings of Eurasia Business Research Conference 16 - 18 June 2014, Nippon Hotel, Istanbul, Turkey, ISBN: 978-1-922069-54-2 analysis is chosen to study the relationship between the various variables of the research. 4. Findings Table 4.0 indicates all the respondents profile about the demographic characteristics of respondents. A total of valid 180 employers participated in this study. With regards to gender, the sample shows a slight imbalance between female and male. 49.4% (n=89) are made up of females and the rest 50.6% (n=91) is made up of males. The high number of reported males could be due to the sampling process and higher rate of willingness of the males to participate in the given survey compared to women. Table 4.0: Summary of Demographic Profiles of Respondents Demographic Gender Age SNS frequency/week usage Classification Male Female 21-29 30-39 >40 14+ hours 7-13 hours 1-6 hours Frequency (N=180) 91 89 137 39 4 59 54 67 Percentage (%) 50.6 49.4 76.1 21.7 2.2 32.8 30 37.2 Most of the respondents for this research are in the age group of 21- 29 years old. It can be concluded from the table that majority of the respondents (76.1%) are primarily young human resource recruitment personnel whose age is from 21-29 years. The second biggest age of respondents comprised of individuals who are the age of 30-39 years (21.7%). This means the human resource personnel that are in charge of recruiting process are those who are young and they are the ones who use social media heavily. This can be due to the higher popularity of social media among young HR recruiting staff. SNS usage rate is included in the demographic profiles to identify how many hours HR Personnel (respondents) spent on SNS per week. As shown in above Table 4.0, a number of respondents (N=67, 37.2 percent) have spent less than 6 hours per week to visit social networking sites. This is followed by those who visit SNS more than two hours a day which is considered as intense user (N=59, 32.8 percent). The least percentage falls under the category of respondents demonstrating the medium frequency of SNS usage from 7-10 hours a week (N=54, 30 percent). In this study, the total number of medium and intense use of SNS is quite appropriate and applicable to achieve the research purposes. 7 Proceedings of Eurasia Business Research Conference 16 - 18 June 2014, Nippon Hotel, Istanbul, Turkey, ISBN: 978-1-922069-54-2 Table 4.1: Internal Consistency Reliability (CR) and Correlation for Variable Constructs Composite reliability Average Variance Extracted (CR > 0.8) (AVE >0.5) Items Correlation Loadings > 0.7 CR SNSQ SMR 0.7923 Corporate reputation (CR) 0.814 0.5935 3 0.7731 1 0.745 0.7572 0.7269 0.79 0.789 0.7155 0.7571 0.7385 0.7406 1 0.6691 0.7771 Qualities of social networking sites (SNSQ) 0.8679 0.523 6 Social Media Recruitment (SMR) 0.8287 0.5475 4 0.7679 0.7217 0.7307 1 As shown in Table 4.1, the composite reliability values of this study‘s measurement model were ranged from 0.8140 to 0.8679. For internal consistency reliability estimate, CR of 0.8 or greater is considered acceptable (Fornell and Larcker, 1981 cited in Hairs, 2014). The reliability of indicators for each construct is also acceptable because the smallest loading produced is 0.7 as demonstrated in the sample table. Meanwhile the average variance extracted values were in the range of 0.5230 and 0.5935 that satisfy convergent validity conditions. It may be concluded the instrument and constructs used in this study are sufficiently valid and reliable. Table 4.2 Result for Discriminant Validity of Constructs CR SMR SNSQ CR1 0.7923 0.5385 0.6553 CR2 0.7735 0.4996 0.5073 CR3 0.7446 0.5095 0.5434 SMR1 0.5384 0.7508 0.6331 SMR2 0.5416 0.7676 0.6333 SMR3 0.4356 0.7147 0.5006 SMR4 0.4507 0.7234 0.5145 SNSQ1 0.5701 0.5814 0.7580 SNSQ2 0.5808 0.5901 0.7275 SNSQ3 0.5033 0.5749 0.6889 SNSQ4 0.4543 0.488 0.6885 SNSQ5 0.5369 0.56 0.7154 SNSQ6 0.5565 0.5738 0.7575 8 Proceedings of Eurasia Business Research Conference 16 - 18 June 2014, Nippon Hotel, Istanbul, Turkey, ISBN: 978-1-922069-54-2 From table 4.2, it can be observed that all the items measuring a particular construct loaded lower on other construct and highly on that construct thus satisfying discriminant validity conditions. In a nutshell, the measurement model including indicators (questions) and constructs (variables) adopted in this study demonstrates adequate consistency and discriminant validity. Table 4.3 Structural Model and Hypothesis Testing Hypothesized paths SNSQ ->SMR Coefficient Determination R Square Path coefficients 0.6251 Sample Mean (M) Standard Deviation (STDEV) Standard Error (STERR) 0.6232 0.0682 0.0682 T Statistics (|O/STERR|) 9.1682 of 0.6724 There is a significant relationship between social network site quality and employer’s usage of social media in recruitment. With SEM approach, this study measures the strength of those relationships and test fitness of model in relation to the theories behind it. In addition, in an attempt to identify the significance and stability of the path coefficients, bootstrapping or re-sampling methods are used to obtain the t-statistics. Quoted by Hairs (2014) from Lohmoller (1989), path coefficients range greater than 0.1 is acceptable, the strength of inner model will be measured based on the coefficient of determination which is also known as R2. As shown in Table 4.3 above, R2 value is of 0.6724 indicating that 67.24% of variance of social network recruiting process can be explained by the measures of corporate reputation and qualities of SNS. The hypotheses test on the causal relations among constructs in the model also been illustrated in Table 4.3. Hypothesis 1 testing the relationship between social network site quality and employer‘s usage of social media in recruitment process, the results (β=0.6251and t=9.1682); shows that the social network quality has strong positive and significant relationship with employers‘ usage of social media in recruitment process. This findings is in line with the study conducted earlier by Ellahi and Bokhari ( 2013). Table 4.4 Structural Model and Hypothesis Testing Hypothesized paths CR -> SMR Path coefficients 0.2072 Sample Mean (M) 0.2131 Standard Deviation (STDEV) Standard Error (STERR) T Statistics (|O/STERR|) 0.073 0.073 2.8366 There is a significant relationship between perceived corporate reputation and attracting job applicant through social media With respect to the perceived corporate reputation and attracting job applicant through social media, as per the above Table 4.5, the result shows (β=0.2072 (and t=2.8366,t>1.6) there are positive and significant relationship between perceived corporate reputation and attracting job applicant interest to apply 9 Proceedings of Eurasia Business Research Conference 16 - 18 June 2014, Nippon Hotel, Istanbul, Turkey, ISBN: 978-1-922069-54-2 for job advertised by the organization through social media. This finding is consistent with study conducted by Bowes (2008), Love and Singh (2011). 5. Implications and Conclusion The result shows that qualities of SNS are found to be positively and directly impact employer‘s reactions towards this online media. The intentions towards the job posting on a quality SNS have been observed. As people become more aware about the potential risks arising from unreliable sites, as such, they will have more favorable altitudes towards platforms that have a good security system, ease of use and wide networking scope. This finding has added more values and details on research about the association between the qualities of websites used in HR procedures and the application intention (Van Birgelen , 2008; Truxillo , 2011). It is also particularly important considering the increasing popularity in using SNS by employer and the enormous number of SNS created all over the world. Based on this finding, organizations and their HR recruiters are able to identify which sites are best suited for their objectives in respect to target population, geographical location, job nature and other relevant factors. This study shows corporate reputation has a significant link between the perceived corporate reputation and attracting job applicant through SNS for recruitment process. This can be explained by the great need of getting job and initial experiences among the job applicants. The employers believe that most of the applicants are in need of finding job especially with reputable companies. Applicant believe that having an employment contract with reputable companies, will offer them good pay package, better perks and privileges, secure future and also enhance their image among friend. In addition, most companies would like to hire the qualified employees in terms of skills, practical knowledge and experiences which they can choose from abundant of response they receive. This finding confirmed the previous studies conducted by Konradt (2013). HR managers should assess application via SNS as a scheme, rather than a service. A scheme is an indication that uses of SNS as a tool that implicates a series of steps for obtaining a specific result. With an expected result in mind, HR managers could use social networking sites as platform that is designed to accomplish its organizational employment goal. Employers as a part of Employer- Institutions Relationship should connect the University‘s system for student information to its networking sites. This association may enable HR managers to ration the use of SNS at realizing its goals. 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