Title of Paper E-cruitment and its impact on the users of e-cruitment sites Submitting Authors Pam Malcolm Louise Malcolm Affiliation/Institutio UNITEC n School Accountancy, Law and Finance Postal Box/Address Private Bag 92025 City Auckland Country & Code New Zealand email address pmalcolm@unitec.ac.nz lmalcolm@unitec.ac.nz Phone (office) (09) 815 4321 ext 8343 Fax (09) 815 2904 1 Table of Contents Abstract ........................................................................................................... 3 Introduction .................................................................................................... 4 Procedure ........................................................................................................ 4 What is an e-cruitment site? .......................................................................... 4 Impact on employers ...................................................................................... 5 Employers’ experiences............................................................................... 6 Solutions to the quantity and quality dilemma ......................................... 8 Impact on Job Seekers ................................................................................... 9 Job Seekers Experiences ............................................................................ 9 Questionnaire ............................................................................................... 10 The future is now.......................................................................................... 12 Strengths, weaknesses and solutions ...................................................... 12 Conclusion..................................................................................................... 13 References ..................................................................................................... 14 2 Abstract E-cruitment is “the utilisation of the Internet for candidate sourcing, selection, communication and management through the recruitment process”. (Hoffman, 2001, p3). The use of recruitment sites is rapidly increasing and this has both positive and negative impacts on employers and potential employees. The aim of this paper was to identify the potential impacts of e-cruitment on society. The impacts on both employers and job seekers were looked at as the two are closely intertwined. Five interviews were conducted, three with employers who use e-cruitment sites as their primary form of recruitment, and two with job seekers who had used e-cruitment sites in New Zealand and the United Kingdom. A survey was conducted of graduates and final year tertiary students who had used e-cruitment sites to gain information about the strengths and weaknesses of this technology and it’s impact on society. Comparative information of print and Internet based job advertisements was collected using the New Zealand Herald and various e-cruitment sites. Employers can save time and money by advertising for staff online. The primary disadvantage for employers is the large number of applicants that may be received for a position from all over the world. Many applicants were found to be unsuitable for the position advertised and while sophisticated filtering software is available, this is expensive and not currently widely used. Job seekers can register with an e-cruitment site, search for a position that meets their requirements and be automatically notified when a job matching their skills and requirements is posted. However, job seekers can be inundated with positions that may meet some but not all of their skills and are therefore not suitable. Job seekers also have the opportunity to utilise the facilities of the Internet to find out more about the organisation that is offering the position. There is advanced software available to overcome disadvantages highlighted by employers and job seekers however this advanced software comes at a high cost and needs to become more cost effective for it to be widely accepted. 3 Introduction The Internet has changed the way that many businesses operate. Banking, travel bookings, supply chain management and marketing are some examples of where electronic commerce has altered the nature of business transactions. However while many dot.com enterprises have suffered downturns after an initial boom period the recruitment of staff online is rapidly increasing. (Olsen, 2001) The use of recruitment sites is growing. Ecruiting.com.au (2002a) reports that all of the major recruitment sites in Australia had at least a 33% increase in visitor numbers in February 2002 over the previous month. Australasian corporates are also rapidly incorporating online recruitment into their web sites. The Australasian Top 500 Internet Recruiting Study, reported in ecruiting.com.au (2002b), reports a 300% increase in the use of in-house recruitment on corporate web sites in the last twelve months. Hoffman (2001) cites iLogos Research 2001 who reported that in 2001 93% of North American and 83% of European “Fortune 500” companies used their corporate web sites for worldwide recruitment. The aim of this paper was to identify the potential impacts of e-cruitment on society. The impacts on both employers and job seekers were looked at as the two are closely intertwined. Procedure In order to determine the effect of e-cruitment technology on employers and job seekers, interviews were conducted and a questionnaire was administered. Comparative information was also gathered from the employment sections of the New Zealand Herald. Five unstructured interviews were carried out, three with employers and two with job seekers who have used e-cruitment sites. The questionnaire was administered by email after the interviews were conducted to sixty recent graduates and final year tertiary students, to provide support for the comments made in the interviews. Quantitative and qualitative data was collected, including which sites had been used, the reasons for use, relevance of jobs found, ease of use, and advantages and disadvantages over print-based forms of advertising. What is an e-cruitment site? Hoffman (2001) defines e-cruitment as “the utilisation of the Internet for candidate sourcing, selection, communication and management through the recruitment process”. (p3) In New Zealand the main e-cruitment sites are www.nzjobs.co.nz, owned by the recruitment agency Haines NZ Ltd, netcheck.co.nz, owned by the Radio Network Limited, seek.co.nz, an independent company not aligned with any other organisation or recruitment agency and monster.co.nz which is owned by TMP Worldwide, a very large organisation specialising in recruitment and yellow pages advertising. Additionally many large companies have their own “careers” pages forming part of their corporate web sites. (NZ Herald advertising supplement 9 April 2002). In the Careers section of the Weekend Herald (Aug 31-Sept 1, C11-18) 51% of 4 advertisements also displayed addresses of web pages that could be visited for more information and job application forms. In two studies Lermusiaux and Snell (2001a & b) investigated the use of corporate web sites for recruitment purposes of the Fortune 500 companies in North America and the top 500 companies in the world in 2001. In 2001 88% of the Global 500 companies used their corporate web site for recruitment purposes. This has grown from 29% in 1998. The growth is represented below in Table 1. Table 1 from Lermusiaux and Snell (2001b) Further analysis by Lermusiaux and Snell (2001b) showed that 83% of Europeanbased Global 500 companies, 88% of Global 500 companies headquartered in Asia and the Pacific Rim and 93% of North American based Global 500 companies used corporate web sites for recruitment purposes. The Asia – Pacific Rim region had the largest increase in adoption rate with a 20% increase over survey results in 2000. Lermusiaux and Snell (2001b) attribute this to the associated significant increase in Internet usage in this region and compare this to only a 1% increase over the same period in the North American region for Global 500 companies. They therefore forecast that the rate of increase of the use of corporate web sites for recruitment purposes will diminish as the adoption rate nears 100%. This conclusion is reached because they believe that those companies who do not yet use of corporate web sites for recruitment purposes can be classified as the “late-adopters” who have a more conservative approach towards recruitment, marketing and embracing new technologies. Impact on employers Bassat (2001) describes the benefits to organisations of advertising online as including cost benefits plus the removal of print based limitations and an enhanced functionality for the organisation. 5 In an online advertisement there is a one-off cost per month. The size of the advertisement is not limited and there are no print deadlines to be met. The advertisement can be placed online at anytime of the day or night. It is much easier to load an advertisement online than it is to format it appropriately for a print based advertisement. When applicants apply for the positions the employer has the added advantage of being able to electronically access and process the applications. Bassat (2001) describes research conducted by Recruitsoft/iLogos into the hiring cycle time. On average a position will be filled in 43 days if placed in a newspaper advertisement. Using the Internet this is reduced to 28 days. The 15 day time saving is made up of: 6 days less time taken to compose, format and place the advertisement 4 days less for suitable applicants to apply for the position 5 days less to screen and process the applications electronically. Hinton and Schapper (2001) discuss the depersonalisation of staff recruitment when applications are made via the Internet and resumés are searched and sorted according to key word criteria. They explain that it could be possible for there to be no human interaction at all between the recruiter and the job-seeker. While they are not in favour of this development they do state that this makes e-cruitment a very attractive tool for recruiters because of the efficiencies that can be introduced and the lack of blame that can be attached to a (human) recruiter if the wrong person is chosen. Employers’ experiences The administration manager of the Business Faculty at UNITEC was interviewed. She is responsible for hiring administration staff in the faculty and is also involved in the recruitment of academic staff. Administrative positions are advertised on the UNITEC web site, which connects directly to NZJobs.co.nz, in the NZ Herald, and on physical noticeboards at UNITEC. When she recently advertised for both a Programme Administrator and a receptionist approximately 80% of the applications came from candidates responding to online advertisements. The primary disadvantage that she experienced was the large number of applications from the online advertisements from candidates who, it appeared, had searched for any job with the word “administration” in the advertisement and consequently there were many unsuitable candidates. An article in People Management (2001) discusses how this disadvantage can be overcome. It suggests that recruiters use the interactivity offered by the Internet to ask the right questions that will pre-screen the applicants and provide the employer with a shortlist of candidates who are suitable for the position. The administration manager of the Business Faculty at UNITEC reported that there were a large number of advantages in advertising a position online. Advertising online is considerably cheaper than print based newspaper advertising. New Zealand e-cruitment sites such as netcheck.co.nz and nzjobs.co.nz charge $100.00 per month per advertisement whereas $100.00 would barely be sufficient for one day’s advertisement in a daily newspaper. She also felt that online recruitment reached a far wider audience. This is particularly significant when advertising for academic staff. An additional benefit of online recruitment was that it gave her the opportunity to investigate and compare the salaries and conditions being offered for similar positions 6 in other organisations. Lanphear (2000) also recommends this tactic. She suggests that in order to create an advertisement that stands out from other similar postings, employers seek a job similar to the one they are recruiting for. By seeing what other employers are offering by way of salary and conditions and the qualifications and skills that they are seeking in a candidate the employer will be in a better position to compose an advertisement to entice the right person. Obviously this same technique can be used when creating print based advertisements but it is much easier and faster to search e-cruitment sites online than to search through many pages and issues of newspapers. The human resource manager at UNITEC with the responsibility of e-cruitment was also interviewed and commented that when they first advertised on line using Nzjobs.co.nz they were not prepared for the large number of applicants. When an administration position was recently advertised they received 225 applicants and none were suitable. The primary reason for unsuitability was that the applicants did not have NZ work permits. Although it is obviously possible for an overseas resident to obtain a copy of a NZ newspaper the number of applications coming from overseas has dramatically increased with jobs being advertised on the Internet. She feels that the use of e-cruitment has increased her workload dramatically. Firstly, because of the large number of applications which, according to UNITEC policy, must be acknowledged. Nzjobs.co.nz is currently unable to supply an on-line application form. Therefore expressions of interest, or CVs, must be replied to with an official UNITEC application form. Many applicants only supply an e-mail address and do not include a postal address with their initial enquiry. Some applicants block their e-mail address which makes replies impossible. She had investigated setting up an automatic reply but as the emails could range from an actual application, to a request for more information, to thanking for the acknowledgement, she now has to select from a range of pre-set replies. When application forms are received they must be matched with previously received CVs. They are then printed before being forwarded to managers within UNITEC. Although filtering software is available it costs $700 per position advertised. It has therefore not been adopted at UNITEC and every applicant is passed to managers for perusal. A further frustration is that although job seekers have the option of attaching a document containing a CV, there are applicants who do not know how to use the attachment option and a letter must be posted requesting the missing material. The HR Manager feels that this disadvantage will lessen as job seekers become more computer literate. Being able to attach files has an additional disadvantage. When a position for a web designer was advertised some applicants attempted to attach large multi-media files to demonstrate their skills. The system at UNITEC was unable to cope with these large files and a letter was sent requesting that the material be supplied on a CD Rom. A final disadvantage reported was the very large amount of Spam, viruses and worms that have been received since the introduction of e-cruitment. Special software has had to be loaded to counter-act this nuisance. An interview was conducted with a business consultant who is involved with the selection of staff for a large number of corporate clients. He agreed with the administration manager at UNITEC regarding the cost benefits and added that job vacancies advertised online will stay online for a month for a one-off payment thereby potentially attracting a greater audience than a one-off newspaper advertisement. One of his clients is a computer company and they only advertise for staff online. The 7 reason for this is that they expect their prospective employees to be computer literate and to be using these skills in seeking a job. Solutions to the quantity and quality dilemma Jobs advertised on the Internet can be seen by anyone with an Internet connection. The same claim can be made of jobs advertised in a newspaper however the jobs advertised on the Internet can be viewed easily by job seekers from all over the world. This means that if an organisation posts a job on its web site they may receive many applications from people regardless of their qualifications or location. People who are surfing the web looking at job vacancies are also more likely to complete an on line application form than to write a formal job application letter. This means that a potential employer may have to sift through many more job applicants than if they had advertised the vacancy in a more traditional manner. (Harvard Management Update,2000a) The Harvard Management Update (2000b) recommends that employers wishing to attract the right candidate need to go beyond advertising on their own web site or on any of the large general purpose job placement sites such as Netcheck.co.nz or Monster.com. They offer suggestions to attract the “passive” candidates, who may have all the qualifications that an organisation is looking for but are not currently actively seeking to change employment. They suggest that employers should look at the age and preferences of the types of people they would like to attract to a job. For example, they recommend that in order to attract a Java programmer the employer should look at displaying a banner advertisement on sites that are likely to attract Java programmers. These people are likely to be heavy Internet users and will probably frequently access Java developers’ sites as well as sports news sites, music download sites and news sites. The Harvard Management Update (2000b) also recommends that employers make use of e-cruitment sites that target specific types of jobs in specific geographical areas. For example in NZ, Monster.co.nz is IT and executive placement focussed while seek.co.nz and NZJobs.co.nz are more applicable to people looking for administration and clerical positions. If employers are targeting prospective candidates from outside their immediate geographical area The Harvard Management Update (2000b) recommends making use of what the Internet offers that cannot be done in a print advertisement. For example, include links to other sites which allow potential candidates to compare living costs and calculate relocation costs or, as one enterprising company has done, include a web camera in the office to show candidates what the work place is like and how the current employees interact. The NZ site jobfinder.co.nz offers the facility for employers to enter key words describing the competencies that they require from an applicant. The site will search for candidates with the specified competencies and report back to the enquirer. 8 Impact on Job Seekers In order to find out about a job, the job seeker normally would either type in search keywords describing the type of position they are looking for (netcheck.co.nz) or select a category of work they are interested in (nzjobs.co.nz). When an interesting vacancy is located the job seeker can apply on line by completing a form and attaching a pre-loaded CV. Using a provided template, covering letters can also be generated and attached to the application. The job seeker can also access more information about the company by linking to the employer’s own web site. Job seekers also have the option to store multiple CVs, track the progress of their application and create a “job spotter” file containing their skills, personal attributes and the type of position they are seeking which is used to automatically scan new postings and advise them via email when a suitable posting is loaded. Online recruitment sites are not only used by people interested in applying for a new job. Taylor (2001) reports that research conducted by the Bernard Hodes Group showed that although in the UK the main motivation for people to access e-cruitment sites was to look for a new job, in Germany this was only the fourth reason. Other reasons were to see what jobs were available and with whom, the salaries being offered in various professions and by various employers and to get general information about a career move. When Hinton and Schapper (2001) conducted an experiment using monster.com they found that they had to strip their personalities and experiences into many parts. They felt they became no more than “disembodied entities…There was no opportunity for us as whole people to be considered …And our bits, let alone our whole were not valued”. (p242) Job Seekers Experiences On 15 April 2002 two people were interviewed who had used e-cruitment sites. One person (person A) had used the main NZ e-cruitment sites when looking for administrative work and was very enthusiastic about the way that the sites worked. The other person (person B) had used e-cruitment sites in the UK when looking for senior training positions and was less enthusiastic about they way that e-cruitment sites operate. The interviewees raised similar issues, but it was interesting that what Person B saw as negative, quite frequently Person A saw as a positive experience. The CV and skills and attributes loaded to an e-cruitment site by the job seeker are accessed by a key word search by the prospective employer. Both people interviewed reported that they received many irrelevant emails notifying them of jobs. For example, Person A had listed as one of her competencies that she was a good communicator. She therefore receives notification of many jobs such as telemarketing which are completely irrelevant to her other job skills. While Person B viewed this as a nuisance, Person A saw this as an indicator that she should be more specific when describing her skills and competencies. Both interviewees described how it could be time consuming searching for a relevant position because of the large quantity of jobs offered online. Person A pointed out that 9 searches can be limited not only by skills and attributes of the job seeker but additionally by skills required, salary range, geographical location and competencies required by the employer. She also suggested looking at only the most current job postings (i.e. within the last week). Person A much prefers job seeking using e-cruitment sites to newspaper advertisements as it is faster than scanning newspaper advertisements and also cheaper. Applications can be made online thus saving photocopying costs and postage. She also appreciated how automatic replies inform the applicant that the application has been received, something that does not often happen when an application is made in the traditional manner. Person B has used e-cruitment sites in the UK and in NZ and said that in his experience they are all quite similar. He thought that there were more job specific sites available in the UK than in NZ, obviously because of the larger population base. He found that some sites were quite inflexible when completing an online CV form. Some sites expect all parts of the form to be completed, even when some fields are irrelevant. He also found that it took too long to complete the CV form. Person A, however, discussed how most sites allow the job seeker to attach a pre-prepared CV thus saving time and effort. She felt that doing this also demonstrated to the employer that the applicant was more IT literate. Person A discussed with me how she felt that Internet access could be a limiting factor for some people. Employers who only advertise online may not reach some excellent candidates who do not have Internet access. From her personal experience she has used the email facility available on most sites to email job postings to friends who may not have the expertise to make the best use of e-cruitment sites. Questionnaire Of the sixty graduates and final year tertiary students emailed, sixteen replied to the questionnaire. Of these sixteen replies, five had not used or viewed any e-cruitment sites so the sample size was reduced to eleven people (M=7, F=4). The ages of eligible respondents ranged from 18 to 43 with an average age of 29.6. The respondents had graduated from a variety of courses, and ten of the eleven are currently studying, as outlined below: Education Currently Studying Bachelor of Computing Master of Computing Bachelor of Commerce Master of Commerce Bachelor & Master of Engineering, Bachelor of Science Master of Computing Bachelor of Technology Master of Computing GDITE Master of Computing Bachelor of Commerce Master of Computing Master of Computing Higher Diploma in Hotel Management & Tourism Bachelor of Commerce Diploma in Computer Graphic Design No Certificate in Business Administration Certificate in Hospitality Operations Bachelor of Science Master of Science Table 2 Education levels of questionnaire respondents 10 A variety of e-cruitment sites had been used by the respondents, including stepstone.no (Norwegian), sjs.co.nz, seek.co.nz, monster.co.nz, CIOL.com, jobsahead.com, jobuniverse.co.nz, nzjobs.co.nz, sjs.co.nz, netcheck.co.nz, nzherald.co.nz, nzoom.co.nz, desktoppeople.com, yahoo jobs, jobs4grads, and many IT recruitment websites. The reasons for using these sites are outlined in Figure one. Figure 1 Responses to question seven ‘Why did you use these sites? (Choose as many as are applicable). These responses support the trend in the UK found by Taylor (2001), showing that the primary reason for accessing an e-cruitment site is to look for a job. However, many of the respondents also accessed the site out of curiosity and to post a resume, which puts the onus on the employer to search for the applicant. On average the respondents found the sites easy to use (M=3.82, sd=.75) and providing jobs that were somewhat relevant to them (M=2.86, sd=.78), however mixed responses were found from ‘totally inappropriate’ to ‘extremely relevant’. The number of times that the respondents checked the site for vacancies ranged from daily to very infrequently. The qualitative questions asked for the advantages and disadvantages that the respondents had experienced using online rather than print based forms of looking for a job. Advantages included the ease of use in looking, updating requirements and searching for information, online searching is quicker, cheaper, specifically targeted to certain jobs, and available at any time in any location. The disadvantages mentioned included outdated information, the ads can be lacking in some types of necessary information such as location, too much information to search through before the relevant information is found, and that the jobs were not relevant to the seekers requirements. These findings supported the statements made by the five interviewees. Further advantages exist that were not mentioned by any of the subjects include the ability to obtain several support services at no cost and the ability to write and post resumes for large volume distribution. (Turban, King, Lee, Warkentin & Chung, 2002). 11 The future is now Strengths, weaknesses and solutions Bassat (2001) predicts that over the next few years the way that e-cruitment is used will become faster, cheaper and even more efficient. He predicts that including candidate testing and assessment online, improving the manner in which résumé databases are maintained and accessed and developing more intelligent software to filter the applications will produce efficiencies. Candidate filtering will screen out unqualified applicants and send customised emails to candidates who are not suitable for the position. Following the interview conducted with the HR manager at UNITEC, she approached the recruitment company used and all job vacancies posted now include basic screening questions. Résumé databases need to be structured so that employers can search them more effectively and candidates need to be offered better privacy options when posting résumés online. A huge cost saving can be achieved by making candidate testing and assessment tools available online. It should also be possible to do much of the background checking automatically online and to check the testing and assessment results against the candidate’s supplied details. Being able to effectively measure the success of online advertising in terms of cost and time can provide additional benefits to employers. Bassat (2001) feels that software is already available to perform these tasks but it is not being used effectively. Gilster, Davison and Dickmeyer (2001) describe an applicant tracking system that appears to provide what Bassat (2001) thinks should be routinely used. The applicant tracking system described by Gilster et al (2001) automatically scans résumés which are in a paper-based form or have been submitted electronically and maps the pertinent information directly into a database. An initial screening of the database for those candidates who meet the required qualifications will provide a shortlist for the employer to manually review. A reporting function provides the costs per employee hired. Some responsibility for job seekers’ mis-use of e-cruitment sites, as highlighted by the H.R. person at UNITEC, must lie with the developers of the sites. Applicants may need to be given greater direction on how to attach files, the problems associated with attaching large files and the necessity to include a (contactable) e-mail address with the job application. An innovative idea has been used by Sealord to recruit deep sea fishing staff and 400 temporary staff for the Hoki season. Greenwood (2002a) explains that, as most fisherfolk would not have access to a computer or know how to use the Internet, Sealord have established simple systems on special terminals at the Nelson branch of Work and Income to encourage prospective employees to apply online. This system will create a database of staff for future fishing seasons and handle all of the communications associated with recruiting. Lermusiaux and Snell (2001a) highlight what they believe to be leading edge developments in e-cruitment as job-specific screening tools, reuse of candidate information for multiple job applications, and provisions for privacy of applications. They describe how 55% of Fortune 500 companies now have a privacy policy posted 12 on their corporate recruitment web sites. They also report that there has been a 228% increase in 2001 over 2000 figures of corporate web sites included pre-screening tools. They feel that this capability offers the largest benefit of accepting job applications online to large corporations. The system used by the Bank of New Zealand utilises some of these best practice recommendations. The BNZ use an online recruitment system called Hire.com as part of its corporate web site. To overcome the disadvantage of unqualified people applying for jobs, applicants are asked eight initial questions which examine candidates’ skills, experiences and where they want to work. Only applicants who score well in the initial test are offered an interview. Applicants who fail the test are not discarded, they are added to the “talent pool” and notified if another position which better suits their talents becomes available (Greenwood, 2002b). In response to the problems cited regarding difficulties in accessing relevant job information, intelligent agents can be used to match openings and jobs. These are programmes that help users to search and retrieve information, support decision making and act as domain experts. They act autonomously, without any human intervention and can lead to a significant saving in time. Job seekers can create as many as five different profiles and using an intelligent agent, receive daily emails containing job opportunities from sites around the internet, which can save time and effort in searching. Employers can also use intelligent agents to find resumes that match specific job descriptions (Turban et al, 2002). Conclusion E-cruitment sites are becoming very widely used throughout the world. Employers appreciate the cost saving, time saving and coverage advantage that jobs advertised online have over other forms of job advertisements. Job seekers appreciate the ease of use, cost saving and immediacy of applying for jobs online. Employers are mainly concerned with the large number of applicants received for jobs advertised online while job seekers are concerned about the large number of positions being presented to them, the ease of use of e-cruitment sites and privacy issues regarding online posting of résumés. The large numbers of applicants applying for a position can be solved by more sophisticated screening software. This is currently available, but in New Zealand, comes at a high cost. In order to attract suitable applicants employers can also be more selective as to where they post vacancies. More sites are incorporating privacy provisions and this trend will overcome one of the concerns of job seekers. Job seekers can decrease the number of appositions being presented to them by being more specific in their skills and requirements. This, in itself, is a skill to be acquired by many users of e-cruitment sites. As job seekers become more familiar with the way in which positions can be sought and applied for on-line they will become better users of these sites. The designers of the sites should also take responsibility for making them more user friendly. 13 References Bassat, P. (2001). E-cruitment – what’s next. 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