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The Effectiveness of the Internet as a Recruitment Source and Medium

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									The Effectiveness of the Internet As a Recruitment Source and Medium
By

Bob Van Cleave
IDSc Workshop April 5, 2002
Please do not distribute or reference this material without the permission of the author.

Outline
• • • • • • • • • • • Motivation Definitions Research Objectives Recruitment Source Model and Theory Recruitment Process Model and Theory Web Site and Information Content Model and Theory Source and Medium Speculations Methodology Results Limitations Conclusions

Motivation
• Growth of Internet Recruitment - 88% Companies recruit on their Homepage - “Jobs”/”Employment” 13th most popular terms at Yahoo

• Substantial history of recruitment source research
• Role of the Internet as recruitment source and medium has not been systematically researched

Corporate Web Site Recruiting
Corporate Web Site Recruiting by Global Companies, 1998 - 2001

29% 60% 79% 57% 31% 14% 1998 9% 1999 21% 2000 12% 2001 88%

Web Site Recruiting No Web Site Recruiting No Web Site

Definitions
• Source:
Where job seekers aggregate How to Determine: “How did you first learn about the job?”

Examples: Referrals, newspaper ads, walk-ins, Internet

• Medium:

The firm’s Web site & information messages in support of recruitment process

• Job Seeker: Before individual applies for job • Job Applicant: After person applies for job • Selectee: After firm extends job offer to applicant

Research Objectives
1. Assess the Effectiveness of the Internet as a Recruitment Source as Compared to Non-Internet Methods Investigate the Special Case of the Information Technology Professional in the Context of Internet Recruitment as a Source Develop Grounded Theory to Improve the Effectiveness of the Internet as a Medium to Support the Recruitment Process Speculate on the Relationship Between the Internet as a Source and Medium in the Context of Recruitment

2.

3.

4.

Recruitment Source Model
Individual Differences Recruitment Sources

Information Realism

Post-Hire Outcomes

Recruitment Source Theory
• Recruitment Effectiveness:
Consequences associated with a firm’s decision to choose a recruitment source. (Rynes, Barber, Wanous, Breaugh)

• Three Classes of Variables: 1. Post-Hire Outcomes: Proximal (satisfaction with
job, benefits, supervisor, employees, firm commitment; Distal (turnover, promotion, performance)

2. Individual Differences: Demographics (years of
experience) and measures about job (job relocation).

3. Information Realism: Realistic Job Preview (job
requirements match pre-employment understanding)

Recruitment Process Model
Three Phases of Recruitment Process:
Maintain Applicant Interest Influence Job Choice

Generate Applicants

Recruitment Process Theory
Three Major Phases (Barber): 1. Generating Applicants (Job Seeker) “Attraction”
Signaling Theory (Rynes, Turban) Person-Organizational Fit (Kristof)

2.

Maintaining Interest (Applicant) “Remain Interested”
Relationship Emerging (Barber) Information Realism (Wanous) Timing of Communication (Arvey, Barber)

3. Influencing Job Choice (Selectee) “Accept Job Offer”
Objective/Subjective/Critical Contact (Behling)

Relationship Development (Barber)

Web Site Design and Information Content Model
Web Site Design Information Content

Attraction

Maintain Interest

Influence Job Choice

Web Site Design and Information Content Theory
Web Site Design
Attention (Levi, Medrabian)

Navigational Efficiency (Levi, Conklin, Fleming)

Information
Accuracy (Wang & Strong)

Relevant (Haung, Lee, & Wang)

Source Speculations
Relative to non-WWW sources,
- WWW produces more individuals that expect to stay less with the firm. - WWW produces more individuals with less experience. - WWW produces more individuals where the new job requires relocation. - WWW produces more individuals with less education. - WWW produces more individuals with better information realism. - WWW is utilized more as a source for IT individuals.

Medium Speculations
• IT professionals will be very sensitive to the design of the Web site in evaluating whether to apply for a job.

• The Internet has not been effectively employed to support the recruitment process after the job seeker applies for the job.

Research Methodology: Source
• • • • • • 996 recently hired respondents Self-enumerated survey (mail or WWW) Seven Twin Cities organizations Secondary data Used a subset of items from first study Performed statistical tests of difference in proportions and means using classical statistical methods.

Distribution of Respondents By All Sources
Source Frequency 138 203 170 31 126 111 59 77 27 39 981 Relative Frequency 14.04 % 20.69 17.33 3.16 12.84 11.31 6.01 7.85 2.75 3.98 100.00 % Within Company Family/Friend Campus Recruiter Job Fair Internet Newspaper, Radio, Television Headhunter Self Other Professional Network Total Respondents

Distribution of All Respondents By Job Function
Number Job Function By Internet Accounting/Finance 10 Advertising 0 Customer Service 2 Distribution 1 Education 6 Engineering 14 Facilities Management 0 Government Relations 1 Human Resources 2 Law 0 Marketing 4 Occupational Health 1 Office Management 13 Patient Care 5 Physician 3 Production Management 3 Public Relations 3 Purchasing 3 Research & Development 7 Sales 10 Information Technology 9 University Faculty 23 Other 6 Number Respondents 34 2 30 11 33 141 5 8 26 8 64 13 50 64 19 23 12 10 88 112 111 73 51 Relative Frequency 29.41 % 0.00 6.67 9.09 18.18 9.93 0.00 12.50 7.69 0.00 6.25 7.69 26.00 7.81 15.79 13.04 25.00 30.00 7.95 8.93 8.11 31.51 11.76 %

Results: Source (Speculations)
1. WWW produces more individuals that expect to stay less with the firm. - Not significant for All and IT groups.

2.

WWW produces more individuals with less experience. - Not significant for All group; IT group with more experience.
WWW produces more individuals where the new job requires relocation. - Not significant for All and IT groups.

3.

4.

WWW produces more individuals with less education. - All group more educated; IT group less educated.

Results: Source (Speculations)
5. WWW produces more individuals with better information realism. - Significant for All and IT groups. WWW is utilized more as a source for IT individuals - Disconfirmed. IT group = 8.1%; All Group = 12.84%

6.

Results: Source
All Respondents
• 12.8% sourced through WWW. These individuals tended to:
Be more educated Receive a lower salary Have better information realism Find their work and job more satisfying Feel their pay/benefits are unfair Feel less opportunity for advancement Feel better about the people they worked with

Results: Source
IT Respondents
• 8.1% sourced through WWW. These individuals tended to:
Be older Be less educated Be more experienced Less likely to be changing job type Have better information realism Feel that pay/benefits are fair Feel less opportunity for advancement Feel better about their supervisor Feel better about the people they work with Have better overall job satisfaction Put in more effort in job Feel their values matched the firm’s values

Results: Source
(IT versus All Respondents)
IT WWW Respondents
Older More experienced Less educated Pay/benefits fair No salary difference More organizational commitment
Better information realism Less opportunity for advancement

All WWW Respondents
No age difference No experience difference More educated Pay/benefits unfair Lower salary No commitment difference
= Better information realism = Less opportunity for advancement = Feel better about people work with

Feel better about people work with

Statistically Significant Variables: All Respondents
WWW INDIVIDUAL DIFFERENCES
Percent with Graduate Degree How did You First Learn About Job (%) Annual Salary (000) Knew What Job Entailed Knew Duties and Responsibilities Overall Index 46.03 12.84 49.22 4.07 3.94 4.07 81.45 1.47 73.39 29.27 50.00 98.37 97.56 1.72 4.31 36.69 87.16 55.57 3.79 3.71 3.90 70.84 1.34 81.21 36.89 58.14 93.30 90.36 1.60 4.17 .048 * .000 * .036 * .006 * .034 * .035 * .006 * .040 * .062 .085 .090 .000 * .000 * .004 * .067

NOT WWW

P-VALUE

INFORMATION REALISM/REALISTIC JOB PREVIEW

POST-HIRE OUTCOMES
Work Satisfying (% Yes) Overall Work Index Pay/Benefits Fair (% Yes) Well Paid (% Yes) Good Opportunity to Advance (% Yes) People Helpful (% Yes) People Intelligent (% Yes) People Overall Index Overall Job Satisfaction

Research Methodology: Medium
• • • • • Grounded Theory (Strauss & Corbin) Twenty IT personnel from nine firms Primary data Semi-structured personal interviews Recently hired (<6 months)

Results: Medium (Speculations)
Sensitive to Web Site Design
-Must be Easy Finding Jobs
GENERATE APPLICANTS
POSITIVE OUTCOMES
Easy to Use Track Progress Structural Easy to Find Jobs Link to Yahoo/Finance Quick Links Easy to Apply Links Work Properly Permit Job Search Agent

PERSON
1,6,9,10,19 3 5 7,8,9,10,14,17,19,20 10 11 14 16 19

COUNT
5 1 1 8 1 1 1 1 1

Results: Medium (Speculations)
Internet Not Being Employed Effectively
-No One Experienced Intranet Capability
Outcomes Have Not Seen This Person 4,8,9,10,12,13,14, 15,17,18,19 People Information Important 2,5,7,9,10,11,12, 15,16,17,19,20 People Information Unimportant4,6 Job/Work Important 2,6,7,8,9,12,14, 17,18,20 People > Job/Work 5,9 People < Job/Work 12,17 Organization Chart 2,15 Information Technology 2,5,14,17 Projects 5,8,17,19 Career Paths 5 Where Firm is Going 4 Show Too Interested if Access Too Often 4,14 Have Access Before Interview 5,11,13,19 Nice Touch 8 Access To Internal Job Openings 9 Pictures/Video of Work Environment 10,14 Benefits Important 10,11,14,15,19 People: Experience>Education 11 Education at Group Level Only 12,13,18 Great use of WWW Technology 13 Job Grade Details 13 Benefits > Others 14 Work Environment > Others 16 Attrition Rate of Employees 16,18 People: Degrees, Names 16,17 Jobs That Match 17 How Long Been With Firm 18,19 Projects > Others 18 Work > Others 19 Project > People 20 Freq 11 12 2 10 2 2 2 4 4 1 1 2 4 1 1 2 4 1 3 1 1 1 1 2 2 1 2 1 1 1

Results: Internet as Medium
ANTECEDENTS OF ATTRACTION
Available Jobs Job Descriptions Easy to Navigate Company Information Ease of Applying Appealing Web-Site

FACTORS FOR MAINTAIN INTEREST
Feedback Content of Feedback Online Testing Company Information Access to Internal Job Postings Access to People

FACTORS FOR INFLUENCE JOB CHOICE
Complete Benefit Profile Short-Term Work Plan Office Descriptors Access to People Short-term Training

ATTRACTION

MAINTAIN INTEREST

INFLUENCE JOB CHOICE

Example of Data: Relevant Information in
Support of Influence Job Choice Phase
POSITIVE OUTCOMES
Salary Reports Prospects for Promotion Prospects for Raises Benefits Rules for Job Email Addresses of Personnel Chat Room to Post Questions Short-term Work Plan People Full Intranet Access Electronic New Hire Packet Training Compensation Job Objectives Office Location/Details Policies for Changing Jobs

PERSON
6,8,17 7 7 7,8,9,10,14,15 17,18,19,20 7 10,17,19 10 11,12,15,18,20 13,16,18 13,20 13 14,15,18,20 15 15 16,29 19

COUNT
3 1 1 10 1 3 1 5 3 2 1 4 1 1 2 1

Results: Internet as Medium Including
Intranet Access and Timing
ANTECEDENTS OF ATTRACTION
* Information -Available Jobs -Job Descriptions -Firm Information * Web-Site Design -Easy to Navigate -Ease of Applying -Appealing Web-Site

FACTORS FOR MAINTAIN INTEREST
* Before Applicant Interview -Intranet Level 1 * After Applicant Interview -Intranet Level 2

FACTORS FOR INFLUENCE JOB CHOICE
* Before Selectee’s Decision -Intranet Level 3 * After Selectee’s Decision -If Yes: Intranet Level 4 -If No: Evaluation

ATTRACTION

MAINTAIN INTEREST

INFLUENCE JOB CHOICE

Some Grounded Tentative Conclusions
• Feedback: 85.7% satisfied with reply within one day. • Online Testing: 60% satisfied if <30 min. • Applicants want to be able to check the status of their application. • Level 1: Information useful for interview • Level 2: Work-group focus: projects completed, technologies employed, people • Level 3: Individualized focus/personalized information: their benefits, training, work plan; contact list for selectee questions. • Level 4: “Full” access.

Relationship Between Internet as Source and Medium
Internet As A Source: Dependent Variables (DV) Internet As A Medium: Independent Variables (IV)

Relationship: Can Medium (IV) Explain/Predict Source Results (DV)?

Example Relationship:
IT at 8.1% and All at 12.8% (% Sourced WWW)
Is there an explanation or hypothesis concerning the Internet as a medium that could explain or predict why this source result occurred? One could hypothesize that: IT professionals found the Web sites of the hiring firms in the source study to be unattractive or unappealing because of certain Web site characteristics. Because these undesirable features were observed, the IT job seekers concluded that the IT organization of these firms are not delivering on leading-edge technology. This feedback provided such a strong signal to the job seeker that he/she decided not to apply.

Limitations
• • • • Self-reported measures Twin Cities geographical area Current labor market No access to job seekers; job applicants that withdrew; or selectees that said no • No long-term data on employee turnover or performance • Small number of IT professionals sourced through the Internet.

Conclusions
- Source effects confirmed; good baseline established - More educated (Internet as source) - Lower salary (Internet as source) - Less opportunity for advancement (Internet as source) - Information realism (Internet as source) - IT professionals may not be adopting as quickly the Internet as a recruitment source - Intranet Access for Phase 2 and 3 (Personalization)


								
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