Yvette O'Hagan MSc
MSc Thesis

Online Recruitment:
A study of the use of the Internet as a recruitment tool in Key British Enterprises.

Submitted in part fulfilment of the requirements for the degree of
Master of Science in Human Resource Management.

© Yvette O'Hagan 2002

ABSTRACT

This study investigates whether there is a difference in the perceived value of Internet Recruitment between the “initial Internet recruitment usage” industries and “other” industries in Key British Enterprises. It also examines whether there is a relationship between the use of Internet recruitment and specific types of vacancy in Key British Enterprises. In addition, the project researches which approaches employers are using when posting vacancies online, and their future plans regarding their use of Internet recruitment.

This project is based on primary data collected from Key British Enterprises in the UK through a questionnaire survey. It is based on feedback from 64 employers, of whom 94 per cent use the Internet for recruitment and 6 per cent do not. The findings reveal that there is no difference between the initial Internet recruitment usage industries and other industries on the perceived value of Internet recruitment. The results indicate that there is a relationship between the use of Internet recruitment and specific types of vacancy. Moreover, using organisations’ own websites to advertise their vacancies appears to be the most popular Internet recruitment approach.

There is a strong inference that companies would be disadvantaged by not having Web sites that catered for the needs and expectations of job seekers. Moreover, in an environment with fierce competition for talent, companies need to master the art and science of online recruiting to attract the best people. There is, however, likely to be a reliance on both traditional and electronic methods so organisations would be better employing a mixture of both advertising methods in their business strategies. Perhaps the best combination is using external recruitment websites in conjunction with posting jobs on an organisation’s own website. This means that employers are using external Internet providers to enhance the recruitment process and ensure their vacancies are exposed to the largest volume of applicants.

Chapter 1            Introduction

1.1 Why is it of interest?

1.2 Research Objectives

1.3 Chapter Overview

Chapter 2            Literature Review

2.1 Introduction

2.2 Internet

2.2.1 Definition of the Internet

2.2.2 Internet services

2.2.3 Internet usage in the UK

2.3 Recruitment

2.3.1 Recruitment process

2.3.2 Traditional recruitment methods

2.3.3 Internet recruitment methods

2.3.3.1 “Initial IR usage industries”

2.3.3.2 IR and specific types of vacancy

2.3.3.3 Perceived values of IR

2.3.3.4 For the future

2.3.3.5 IR approaches

2.4 Conclusion and research question

2.5 Formulation of hypotheses

Chapter 3            Methodology

3.1 Introduction

3.2 Research approach

3.3 Method of data collection

3.3.1 Scale development

3.3.2 Questionnaire design and administration

3.3.2.1 Type of questions

3.3.2.2 Content of questionnaire

3.3.2.3 Distribution of questionnaire

3.3.3 Pilot testing

3.3.4 Reliability and validity

3.3.5 Field work

3.4 Sampling

3.4.1 Population

3.4.2 Sampling method

3.4.3 Sample size

3.5 Summary of methodology

Chapter 4       Analysis of Survey Results

4.1 Introduction

4.2 Research findings

4.2.1 Descriptive statistics

4.2.2 Hypotheses testing

4.2.2.1 Testing Hypothesis One

4.2.2.2 Testing Hypothesis Two

4.3 Other Findings

4.3.1 The length of time of using IR

4.3.2 Approaches to Internet Recruitment

4.3.3 Online application form

4.3.4 Screening software

4.3.5 For the Future

4.3.6 Recruiters that do not use the Internet

4.5 Conclusion

Chapter 5            Conclusions and Recommendations

5.1 Introduction

5.2 Brief summaries

5.3 Managerial implications

5.4 Limitations of the research

5.5 Further research 

Appendices

Appendix 1

Appendix 2

References.

Acknowledgements

I would like to express my gratitude to my Supervisor, Mr. Brian Good, for his invaluable advice and guidance in my research project.

I would like to thank my partner Richard O’Hagan for his continuous support and encouragement throughout the project and the whole MSc study.

I would also like to thank my peer Chen Hua for his very useful suggestions.

Abbreviations & Glossary

EDB: Employee Development Bulletin
E-mail: Electronic Mail
CIPD: the Chartered Institute of Personnel and Development
IR: Internet Recruitment
SIC: Standard Industrial Classification
SMEs: Small and Medium-sized Enterprises
URL: Uniform Resource Locator
WWW: World Wide Web

CHAPTER 1   INTRODUCTION

1.1  Why is it of Interest? 

The potential of the Internet cannot be ignored and this is as true for the HR community as it is for business in general. There is evidence to suggest that the relationship between HR and the net is becoming closer (IRS Employment Trends 733, 2001).  Nearly half of all employers are now using the Internet for recruitment and a growing number of HR professionals are turning to the web as an effective and measurable way to recruit, according to the fourth annual recruitment survey by the CIPD (URL 1). 

Indeed, both jobseekers and employers are now using the Internet as a serious tool in the search for jobs and suitable applicants respectively.  The Internet is powerful and can offer possibilities far beyond those of traditional advertising and recruiting tools. However, what is the future likely to hold? Will “e-recruitment” increasingly be utilised by companies?  Will its growth be limited after the novelty has worn off?  This study will explore how the Internet is bringing radical changes to corporate recruiting in Key British Enterprises. 

1.2 Research Objectives

The primary objectives of the study are to investigate whether there is a difference between the initial IR target industries and other industries on perceived values of IR; and whether there is a relationship between the use of IR and specific types of vacancy in Key British Enterprises. Moreover, the project will find out which approaches employers are using to post vacancies online. The study also investigates employers’ plans towards online recruitment – whether they plan to increase or reduce the use of the Internet for recruitment in the future. 

1.3 Chapter Overview

This paper has been divided into five chapters.

Chapter one provides a brief introduction which explains why this area is of interest and the purpose of this study. It also offers a brief outline of the contents for the following chapters.

Chapter two is a review of the literature. A number of theories are reviewed in order to define an analytical approach to questions such as the definition of the Internet and recruitment. It also focuses on the issues of Internet Recruitment including initial IR usage industries; IR and specific types of vacancy; the perceived values of IR and IR approaches. A summary of conclusions leading to the formulation of hypotheses is also covered in this chapter.

Chapter three describes the methodology applied in this research. It refers to the research approach, the method of data collection, sampling and a summary of the methodology.

Chapter four is the analysis of the results. Data received were entered into the SPSS software package for analysis and the research findings are interpreted accordingly. The characteristics of the samples are also analysed. An independent sample t-test is conducted to find out whether there is a difference between the initial IR usage industries and other industries on perceived values of IR.  A chi-square test is used to see whether there is a relationship between the use of IR and specific types of vacancy.

Chapter five provides conclusions on the project. It covers conclusions of the findings, managerial implications, limitations of the research and recommendations for future research.

CHAPTER 2   LITERATURE REVIEW

2.1 Introduction

Like all business sectors, recruitment has been affected by the Internet in a profound way with professionals applying technology to ease the burden on employers. This chapter first takes a look at the definition of the Internet and its related applications. Afterwards, the literature review focuses primarily on online recruitment but takes a wider look at recruitment in general to be able to give a balanced view. This research has found there to be only a limited amount of literature available concerning online recruitment, but more did become available after 1999 when the Internet took on more of a high profile business focus.

2.2 The Internet

2.2.1 Definition of the Internet

The Internet (with a capital “I”) is a vast network of computers that straddles the world and is open for anyone to use. It hosts the World Wide Web and provides Email for countless organisations and individuals. An "internet" (with a lower case “i”) is a network that consists of two or more networks liked together. So the Internet is the most significant example of an internet (URL 2).

2.2.2 Internet Services

Like any computer network, the Internet is of no value in its own right. It is only useful to the extent to which the software applications that run on it provide a useful service. Of the countless applications running on the Internet the most popular are the World Wide Web (WWW) and Electronic Mail (Email).

The World Wide Web is often abbreviated to WWW or simply the Web. The WWW is used by individuals or organisations to store information that can be accessed by other users of the Internet. This is one of the most popular ways of using the Internet because the Web is capable of presenting information attractively and provides an easy means of navigation through hyperlinks. Each Web page has a unique address called a URL (Uniform Resource Locator) which when typed into a web browser, will result in the page being retrieved for users regardless of where in the world they are. 

Email is used by users of the Internet to communicate with one or more other users of the Internet. Users can send messages, documents, pictures, video and audio to any other Internet user anywhere in the world within minutes. The recipient of the message reads it on his/her computer and can then delete the message, store it on the computer, print it, send a reply or forward it to other people on the network. Email has become very popular. A few years ago, many companies were investing in scanning software to help them record and manage paper-based job applications. But the system was compromised by poor accuracy. Calls for better scanners were the initial response but, in the Internet recruitment market, there is no longer a need for the procedure. If someone creates a CV using a word processor, they will already have an electronic form of that CV. It makes much more sense then to e-mail the CV directly to the employer than to print it out and post it (Kent, 2001). Indeed, employers are increasingly rejecting paper CVs in favour of electronic versions according to a survey of more than 400 recruiters (Reed, 2002).

2.2.3 Internet Usage in the UK

Internet connections are doubling every six months in the UK (Hoare, 1999). More than 33 million Britons used the Internet in the second quarter of 2001, according to research from Jupiter MMXI (CyberAtlas staff, 2001). Internet users in the 35 to 49 age range are the biggest Web “audience” in Britain. They represent 25 percent of the online population, closely followed by those over age 50 (20 percent) and 25 to 34-year-olds (18.6 percent). More than 11 million of the Internet users in Britain are considered "heavy" users of the medium, which means they go online more than three times a week. Nearly 4 million are "moderate" users, using the Web up to twice per week (CyberAtlas staff, 2001).

The massive growth of the web in the UK is well known, but few people realise that online recruitment is increasing four times faster than general web use (Kerrigan, 2001). Looking for a new job on the Internet is the fourth most popular online activity – coming ahead of banking, using chatrooms or share dealing, according to recent research from workthing.com, (EDB 141, 2001). Research for workthing.com was conducted by BMRB, an independent research organisation, and is part of a long-term project. The workthing.com research indicates that Internet users expect to use the Internet more heavily than traditional methods on the next occasion they look for a job.

2.3 Recruitment

There is always a need for replacement employees and those with unfamiliar skills that business growth makes necessary. Over three million people are recruited by employers in the UK each year (Torrington et al., 2002). It can be a costly and difficult process when skills are in short supply and labour markets are tight (IRS Employment Review 738, 2001). In such circumstances the employer needs to ‘sell’ its jobs to potential employees so as to ensure that it can generate an adequate pool of applicants. Recruitment is the activity of searching for and generating a pool of potential job candidates in sufficient numbers and quality that the organisation can select the most appropriate people to fill its job needs or vacancies (Dowling et al, 1999; Foot & Hook, 1996; Lewis, 1985).

2.3.1 Recruitment Process

In order to recruit successfully, it is important for an organisation to have a systematic approach towards recruitment. With reference to Torrington (2002), the approach starts from determining the vacancy. Is there a vacancy? Is it to be filled by a newly recruited employee? These are the first questions to be answered in recruitment. Potential vacancies occur either through someone leaving or as a result of expansion. Recruiting a new employee may be the most obvious tactic when a vacancy occurs, but it is not necessarily the most appropriate. There are some other options including reorganising the work; using overtime; mechanising the work; making the job part time and subcontracting the work (Torrington et al., 2002). For example, the creation of a new post to deal with a specialist activity may be more appropriately handled by contracting that activity out to a supplier.

If the decision is to recruit, the next process is to produce job descriptions and person specifications. Methods of doing this are well established in the conventional HR approach (Ungerson, 1983; Pearn & Kandola, 1988). The approach involves breaking the job down into its component parts, working out what its chief objectives will be and then recording this on paper (Torrington & Hall, 1998; Wright and Storey, 1997). A person specification listing the key attributes required to undertake the role can then be derived from the job description and used in recruiting the new person (Armstrong, 2001; Mullins, 1996;).

Once an employer has decided that external recruitment is necessary, a cost effective and appropriate method of recruitment must be selected. There are a number of distinct approaches to choose from. The most appropriate recruitment method will “depend upon the nature of the organisation, the position to be filled, and possibly the urgency of the need to make the appointment” (Mullins, 1996: 681). Boella (1998: 64) also made a similar proposition and stated that: “the choice of media is critical to success and always depends on the type and level of vacancy and whether prospective employees are part of a local, a national, a primary or a secondary labour market”. For the purpose of this research, methods of recruitment have been divided into two main categories: traditional recruitment methods and Internet recruitment.

2.3.2 Traditional Recruitment Methods

The traditional recruitment methods have been to advertise positions in local and national newspapers, radio, specialised journals and through recruitment agencies. Recruitment of university graduates has been through direct links to universities, schools and colleges. Other commonly used traditional methods are: ‘Head-Hunter’ agencies; Job Centres and personal recommendations. However, only some of them are going to be reviewed here because of the limited space.

Newspaper Advertisements – Advertisements are placed directly by the organisation in a local or national newspaper. The choice of which periodical is used depends upon the type of jobs being advertised and their targeted audience. For instance, when recruiting professionals, managers or consultants, the posts are commonly advertised in a national “broadsheet” newspaper; when the target is manual or clerical staff, local newspapers are likely to be used. It is one of the most popular and effective recruitment methods but can be very expensive.

Recruitment Agencies – Goldsmith (1997: 28) suggests that recruitment agencies are “useful for the initial weeding of candidates, they can save a lot of time – as long as the agency has the right candidates – and are especially useful for applicants from operative to supervisory level”. However, they are unable to gauge the exact needs of each individual company.  As the agency interviews all candidates, they cannot detect subtle personality requirements which affect the suitability of a candidate for a position in a particular environment. 

2.3.3 Internet Recruitment Method

Internet recruiting uses the Internet to advertise or ‘post’ vacancies, provide information about jobs and the employer, and enable e-mail communications to take place between employers and candidates (Armstrong, 2001: 395). A recent Forrester report suggests that Internet recruitment advertising will increase from 3% of total recruitment advertising spend in 2001 to over 20% in 2003 (URL 3). At the same time, some companies are now geared up to receive job applications online and to pull this data into recruitment management software systems to streamline their administration. Indeed, the Internet is quickly becoming an important tool for the HR professional. HR managers will, for example, be able to electronically post current vacancies on the Internet, and receive, without delay, electronic applications and CVs from candidates, which can then be passed on to the line managers through the company’s Intranet. Interviews and offers of work can then be arranged through Email, with the possibility of video conferencing by personnel that may be unable to attend meetings in person.

2.3.3.1 Initial IR Usage Industries

When looking at the future of online recruitment, it is essential to look back over the history of the industry. When online recruitment fully took off in the early nineties, it was largely to service the IT and Telecom industries who were the early adopters of the Internet. Subsequently, a myriad of new sites began to emerge in the market place to serve the IT, Telecom and Finance sectors (Sinclair, 2001). These sites offered a welcome alternative to those employers dissatisfied with paying the traditional agency placement fee.

Today the Internet has been embraced universally and is playing a growing role in the recruitment strategy of many industries. The IT and Telecom industry has slowed down dramatically; the telecommunications industry has cut close to 345,000 jobs worldwide this year alone (Sinclair, 2001). Demand for staff in these sectors is shrinking. Many of the big names in online recruitment like Monster and Jobserve have realised the need to diversify their offering. Some have introduced new channels such as graduate jobs; others have added a range of HR solutions to widen their appeal. Moreover, with the increasing rate of PC ownership and higher computer-literacy rates, accessing and using the Internet for finding information and for communication are becoming widespread. Thus, Internet recruiting is not restricted only to those initial IR usage industries. Gradually, the span of employment opportunities on recruitment web sites is covering many fields, including education, media, the public sector, secretarial work, construction, engineering and graduates intakes (EDB, 2000: 10).

At the same time, an increasing number of companies from many industries are also providing general careers information or advertising specific vacancies on their corporate websites. A number of sources indicate that companies can enjoy the benefits of using Internet recruitment (Baker, 2000; Bird, 1999; Employee Development Bulletin, 2000; Gunner, 1998; Hays, 1999; HR Focus 2000; Jones 1997; White, 1997). Most of the previous findings and research of IR emphasises massive reach, better communication channel, speed, low cost and better quality candidates as being the key benefits to employers. These perceived values of IR will be discussed later in this chapter.

2.3.3.2 IR and Specific Types of Vacancy

The use of IR and specific types of vacancy has been directly related since its early days. Merrick (1999: 40), reports that a survey carried out in the UK by the IPD found that:

29% of employers used the Internet to advertise vacancies for professional staff, while only 18% used it for managerial posts and 9% for skilled manual jobs. Approximately, 23% of companies seeking to fill graduate vacancies looked to recruit online.

The low usage figure for “skilled manual” jobs (9%) was a reflection on the perception of recruiters that the Internet was not used, at that moment, by people who make up this type of occupation and therefore they are unwilling to advertise this type of work on the Internet. In contrast, many qualified IT people have a culture of searching for work on the Internet which is why there is a 29% usage by employers to advertise vacancies for professional staff. There is agreement that the Internet is one of the best media for attracting graduates (Hobby, 1997; Martinez, 1997; White, 1997; Thaler-Carter, 1998; Goodwin, 1999). This would seem logical as 98% of university students have Web access and this will be the fastest way for both parties to interact (White, 1997). Also, students are short of time and organisations are keen to show that they are progressing with technological innovation.

Similarly, according to a CIPD survey (EDB, 2000: 10), recruiters use the Internet as much for professional and managerial recruitment as they do for new graduates, and fewer use it for less-skilled positions such as in manual, clerical and skilled manual work. However, because of the increasing rate of PC ownership and the higher computer-literacy rate, accessing the Internet for information and communication has become widespread. Hall (1998: 18) states, “firms who have traditionally used the Internet to select only technical and graduate employees are increasingly dipping a toe in the water when seeking out other staff”.

2.3.3.3 Perceived Values of IR

There are five main perceived values that online recruitment can offer to recruiters 1) massive reach 2) better communication channel 3) speed 4) low cost 5) better quality (Baker, 2000; HR Focus, 2000; Monsters.com, 2001).

Massive Reach

Traditional media only operate in a particular geographic locations and are published only at fixed intervals. However, companies can load a job onto the web 24 hours a day, 7 days a week and it will be accessible by people next door or on the other side of the world. Subsequently, Internet recruiting makes it possible for companies to reach and expose to a larger audience (Hays, 1999; Hogler et al, 1998), this means that the pool of potential candidates can be broadened (Harvard Management Update, 2000).

However, the big disadvantage of using the Internet for posting jobs is its exclusion of non-web users. Not all job seekers having access to the Net leads to the lack of coverage. Wright in White (1997) confirms that the Internet has always been effective in attracting computer literate people but makes the point that “it is always going to be less convenient and harder to use than paper”. Unless a person has computer skills and is competent and confident in using the internet, there is a probability that they will always revert to doing what they are most comfortable with, which in this case would be traditional recruitment channels such as reading advertisements in newspapers or going to a recruitment agency.

Better communication channel

The Internet delivers an interactive capability unmatched by any other communications medium. Going beyond simply reaching the relevant candidate with the company’s message, the Internet allows the company to engage in an online dialogue from which each party learns more about each other. Building an association with potential candidates in this way should be evaluated as developing a competitive advantage for organisations; an important factor in a tight labour market (URL 4). Fully 97 percent of the respondents to the 6FigureJobs.com survey indicated that they prefer to receive candidate resumes electronically via e-mail or "one-click apply" functionality rather than through regular mail (Pastore, 2001b).

Speed

Research indicates that recruitment can take up to 20% of a manager’s day (British Gas TIME Survey, 2000). Hence, time is a key reason for adopting an ‘e’ approach to sourcing staff (Online recruitment, 2001: 13). As soon as the company is aware of a job vacancy, it can list an advertisement on the net and search the database of candidates. It is possible to advertise and identify a suitable candidate in a day. Martinez (1997), describes how organisations need to wait two weeks when using traditional print based advertising such as newspapers and journals and then further delays when waiting for candidates to respond. People can respond within seconds of reading about an opportunity by e-mailing their CV to the employer.

In principle, the Internet is really speeding up the recruitment process. In practice, however, the major problem is that employers tend to get bombarded with hundreds of applicants. Consequently, it takes HR staff much time to screen out unsuitable applicants. A recent survey has revealed that over 45% of recruiters and recruitment managers spend in excess of 50% of their working day searching the Internet or screening their inboxes for CVs (Online recruitment, 2002). This occurs because of the large number of people who read the advertisement and because it takes so little effort to email a copy of a pre-prepared CV to the employer concerned. In order to prevent ‘spamming’ of this kind it is necessary to make use of online short-listing software which is able to screen out unsuitable applications (Torrington et al., 2002).

Low cost

For employers the principal attraction of IR is the way in which it allows jobs to be advertised inexpensively to a potential audience of millions. According to Frankland (2000) the cost of setting up a good website is roughly equivalent to that associated with advertising a single high-profile job in a national newspaper. Huge savings can also be made by dispensing with the need to print glossy recruitment brochures and other documents to send to potential candidates. Indeed, a report by Forrester Research states that the average cost to hire an employee via the internet is nearly ten times less than through newspaper and magazine advertisements (Kerrigan, 2001).

However, the Employee Development Bulletin’s (September, 2001) first survey of online recruitment shows employers to be enthusiastic about a recruitment tool that is not without its problems. After all, there is a price to be paid. Employers may value its potential, but they have yet to be convinced that it will fulfil it.

Better Quality

It is argued that Internet Recruitment brings better quality candidates than traditional recruitment methods. According to a survey by iLogos.com (HR Focus, 2000), 80% of the respondents said that candidates who apply via the Web are of a higher calibre than those from other sources. Since the internet’s technology enables companies to tell potential employees much more about their organisations from their own web sites, it ensures they receive applications from better informed and quality candidates because unsuitable and unqualified people will not apply in the first place (Baker, 2000; Bird, 1999).

However, according to ERC Dataplus’s survey (HR Focus, 2000), only 17% of respondents thought that the quality of Internet candidates is higher than those found with other recruitment tools. Hays (1999) said that although Internet recruitment does mean the entire hiring process can be handled quickly, it does not guarantee that the quality of applicants is better. In some cases, it may exclude potential candidates of a better quality who are not likely to use the Internet or do not have basic IT knowledge.

2.3.3.4 For the Future

On any measure, online recruitment is now a viable option for many industries. At best, the Internet is a stand-alone solution, but it can enhance a recruitment campaign by complementing more traditional media, including newspapers, direct mail or radio.

Is the Internet going to play an increasingly important role in recruitment in the future? The EDB survey (2001) shows that respondents had a strong approval for this statement. However, the survey shows that it is still too early to say that the Internet will replace traditional recruitment methods in the future.

Moreover, Franks in Thaler-Carter (1998: 61), warns that:

“Despite its rapid growth, low cost and potential, recruiters should not depend solely on the internet. The best companies use a variety of sources to identify strong candidates”.

This reflects that there must remain a flexible, mixed approach to recruitment because there will be many employees and employers who will not be using the Internet for a variety of reasons. This is also supported by James in Croft (1999: 60), he states:

“Despite its usefulness, he did not see recruitment on the Net as ever wholly replacing advertising in newspapers and magazines but it is one that is fast growing in importance”.

Above all, Gabb (1997), points out that despite the movement towards online recruitment, organisations still favour interviewing (including a mixture of numerical and verbal tests, and exercises to determine communication and teamwork skills) as an important part of their recruitment policy. The Internet is therefore seen as only part of an overall recruitment strategy. 

2.3.3.5 Internet Recruitment Approaches

IR takes three basic forms. The first is centred on the employer’s own website, jobs being advertised alongside information about the products and services offered by the organisation. The website will often have been designed to encapsulate the organisation and its values so it can be an effective way of attracting the right type of candidate to the positions on offer. According to iLogos Research, using corporate web site for recruitment purpose by Global 500 companies has increased from 29% in 1998 to 88% in 2001.

Table 2-1 Online Recruiting by Global 500 Companies

Source: iLogos Research, 2001

The increased adoption of corporate career Web site recruiting, positions the world's largest companies to take advantage of the powerful opportunity to not just “webify” existing processes, but to use technology to gain productivity and effectiveness in online recruiting.

The second approach makes use of the growing number of external recruitment sites. Many recruitment sites serve both the employer and the job seeker. These sites range from huge national sites such as www.monster.co.uk and www.reed.co.uk to small, regional sites targeted to more specific geographical areas. Some of these attract jobseekers by offering value-added services. For example, jobseekers now can use Monster to expand their careers, obtaining continuous access to the most progressive companies as well as interactive, personalised tools to make the process effective and convenient.

The third approach is media sites.  Most major newspapers and specialist recruitment journals offer classified ads on their websites. They usually repeat all advertisements from their printed recruitment section and are offered free to anyone paying for a printed advertisement (Baker, 2000; Greengard, 1998; Wright, 1998). They also provide a link to the company’s web site in the paper.

2.4 Conclusions and Research Question

The literature has shown that the continuous rise in the number of Internet users in the UK increases the probability of an organisation using IR. The initial Internet recruitment usage industries were the IT, Telecom and the Finance sectors. After a decade of growth, other industries have made progress in adopting Internet for recruitment purposes. Companies enjoy the benefits that IR can bring them including reaching a wider pool of candidates, better communication channels, speed, lower cost and better quality candidates. This leads to the first research question: Is there a difference between initial IR usage industries and other IR usage industries on perceived values of Internet recruitment in Key British Enterprises 2002?

IR and specific types of vacancy have always been directly related since the early days of IR. This has also been confirmed by two surveys carried out in the UK by the IPD in 1999 and CIPD in 2000. However, with the increasing rate of PC ownership and higher computer literacy, firms who have traditionally used the Internet to select only technical and graduate employees are increasingly seeking out other staff too. This leads to the second research question: Is there a relationship between the use of IR and the positions that are to be filled in Key British Enterprises 2002?

The literature review has also taken a look at the traditional recruitment methods including newspapers and recruitment agencies. The perceived values of Internet Recruitment include massive reach, better communication channel, speed, low cost and better quality candidates. To conclude, many assert that organisations should not solely rely on the Internet for their recruitment of staff at this stage. The most effective way to recruit a well-qualified employee is by using both the Internet and the traditional methods of recruitment.

2.5 Formulation of Hypotheses

Drawing on the issues discussed throughout the literature review and the research question upon which the project is based, two hypotheses are formulated: 

Hypothesis one:

H_0-1: There will be no difference between the initial IR usage industries and other industries on perceived values of IR in Key British Enterprises.

H_1-1: There will be a difference between initial IR usage industries and other industries on perceived values of IR in Key British Enterprises.

Hypothesis two:

H_0-2: There will be no relationship between the use of IR and specific types of vacancies in Key British Enterprises.

H_1-2: There will be a relationship between the use of IR and specific types of vacancies in Key British Enterprises.

CHAPTER 3   METHODOLOGY

3.1 Introduction

The objective of this study is to find out whether there is a difference between the initial IR usage industries and other industries on perceived values of IR; and whether there is a relationship between the use of IR and specific types of vacancy. To effectively answer research questions, it is important to select an appropriate research approach, this is addressed first. Next, the method of data collection covers scale development; questionnaire design and administration; pilot testing; reliability and validity; and field work. Sampling is discussed in detail including defining the population, sampling method and sample size.

3.2 Research Approach

Bell (1993) had identified five main approaches to research:

1) action research 2) case study 3) ethnographic investigation 4) surveys, and  5) experimental research. This research focuses on a quantitative survey approach administering a questionnaire to two groups within a widespread target population. The reason for using a questionnaire survey is that they offer the following advantages over alternatives: cost, ease of establishing, less bias, familiarity to the respondents, and uniform question presentation (Bell, 1993; Riley et al., 2000).

3.3 Method of Data Collection

3.3.1 Scale Development

This step is to translate the research objective into information requirements and then into questions that can be answered by anticipated respondents. For hypothesis one, perceived value of IR is measured by multiple indicators. A main reason for using multiple indicators is to create measurements that cover the domain of the construct ion that it purports to measure (Ghauri et al., 1995). To measure users’ experience with Internet recruitment, five elements were used. They are 1) massive reach 2) better communication channel 3) speed 4) low cost 5) quality. Each of the indicators is measured by Likert scales.  Likert scale was chosen to avoid the problem of developing pairs of dichotomous answers and is used to measure the five items (Jankowicz, 1994). The most common approach in this method is to ask the respondents how strongly they agree or disagree with a series of statements (Saunders et al., 2000). Then, they can be summed to form a single score for each individual’s attitude (Tull and Hawkins, 1993).

For hypothesis 2, the type of vacancy is the independent variable. The usage of the Internet will be changed with different types of vacancy. The usage of the Internet is measured with a nominal scale: use and not use. The type of vacancy is measured with nominal scales: graduate, IT staff, managers, clerical staff, and manual workers.   

3.3.2 Questionnaire Design and Administration

3.3.2.1 Type of Questions

There are basically two types of question – open and closed (Wood et al., 2000). The types of questions in this questionnaire were close-ended to avoid problems such as enormous variations in answers that can make coding difficult or almost impossible (Ghauri et al., 1995). Moreover, close-ended questions take less time than an equivalent open-ended question (Riley et al., 2000). This is particularly important factor because the target population are top companies in the UK and their HR staff are extremely busy.

3.3.2.2 Content of Questionnaire

The questionnaire consists of 3 parts (Appendix 1). In part A, the respondents were asked to tick the appropriate boxes about their general characteristics (Question 1-2). Part B was designed for the company which is using the Internet for recruitment purposes. The respondents were asked to complete a five-point Likert Scale where ‘1’ = Strongly disagree and ‘5’ = Strongly agree (Question 4-8) to examine how strongly the respondents agree or disagree with five statements that are related to the perceived value of IR – reach, better communication channel, speed, cost savings and quality, which were discussed in the literature review. Next, respondents were asked to tick the recruitment methods that are used by companies for recruiting specific types of position (Question 10). Afterwards, the respondents were asked to answer some questions related to the future of IR (Question 13-15). Finally, for those companies that are not using IR, the reasons and whether they are planning to use such recruitment method in the next six months were also asked (Question 16-17).

3.3.2.3 Distribution of Questionnaire

The questionnaire was circulated to the sample population group by post. A covering letter (Appendix 2) was accompanied explaining the purpose of the questionnaire. A two week return date was also given in the letter. Experience has shown that if no date is specified or if too long is given, it becomes too easy for subjects to put the questionnaire to one side, which often means that it will never be seen again (Bell, 1993). Questionnaires are expected to be completed by the Human Resource personnel or relevant staff who are responsible for recruitment in the sample companies.

3.3.3 Pilot Testing

Empirical observations (Apostolakis & Kastania, 1994; Wright & Crimp, 2000) revealed that pre-testing a questionnaire is an important part of the research effort and must be done in order to verify that:

-          The questionnaire does not create any negative attitudes

-          The question ordering is correct

-          The time spent to complete the questionnaire is reasonable

-          There are no terms that are difficult to understand

The pilot test was conducted by 20 companies in the Nottingham area where the researcher lives. There are 10 companies belonging to the initial IR usage industries and 10 companies belonging to other industries. Pilot questionnaires were handed to the HR staff in person and collected within the three days. Several changes were made based on returned pilot questionnaires with comments. For example, specific types of vacancies were originally categorised in question 10 as 1) graduate 2) IT staff 3) Line managers 4) Senior managers 5) skilled workers. It was suggested that “line managers” and “senior managers” could be joined into “managers”. Also, “clerical staff” was made into it’s own group. Moreover, it was found that all responses finished the questionnaire within 8 minutes.

3.3.4 Reliability and Validity

Whatever procedure for collecting data is selected, it should always be examined critically to assess to what extent it is likely to be reliable and valid (Bell, 1993). “Reliability is the extent to which a test or procedure produces similar results under constant conditions to all occasions” (Bell, 1993: 64). The check for reliability comes at the stage of question wording and piloting of the instrument.

Validity tells researchers whether an item measures or describes what it is supposed to measure or describe. It should be noted that validity and reliability go together, as reliability cannot be demonstrated without validity (Bell, 1993). The validity of the questionnaire was pre-tested in the pilot of 20 companies. According to SPSS analysis of reliability in table 3-1, the Cronbach’s Alpha is 0.8045. According to Fink (1995), a validity estimate of 0.80 or more is acceptable. Therefore, the use of the questionnaire for this research is acceptable.

Table 3-1 Reliability Test for Pilot Testing Items

3.3.5 Field Work

For the purpose of conducting the research, a total of 170 questionnaires were put into individual envelopes and posted on 4^th June 2002. The questionnaire was prepared in two formats. The first format was printed on A4 paper. Respondents were advised that it should take them no longer than fifteen minutes to complete. The second format was online survey format which is displayed on the researcher’s website:

www.yvette.ohagan.org.uk/survey. The online questionnaire was provided to ensure a speedier collection of results and ease of response. Respondents were given two weeks to respond. However, the response rate was low. There is no doubt that the problem of non-response is central to the use of mail surveys. If one simply mails questionnaires to a general population sample without an appropriate follow-up procedure, the rate of return is likely to be less than 20 per cent (Aaker et al., 2001).

Therefore, a second wave of questionnaires was sent out to remind respondents on 18^th June 2002 with another specified return date. Nevertheless, the returned sample size was still not big enough to conduct the test for two Hypotheses. HR staff of the selected companies were contacted by telephone on 25^th and 26^th June 2002. The researcher was stating the purpose of the research and emphasising the importance of their opinion to research’s final project. The researcher’s website address was also provided again over the phone. Afterwards, there were some returned online questionnaires. A bigger sample size would have been better but time was not allowed to wait for more responses. As soon as the returned questionnaires from companies using the Internet for recruitment reached the minimum size (30) for doing the test, it had to stop because of the time constraint. 

3.4 Sampling

3.4.1 Population

The target population of this research is Key British Enterprises 2002. These companies are well structured so their recruitment process is planned and systematic. There are 2,585 companies listed in “Key British Enterprises 2002” published by D&B. The listing divides companies into 10 major groups using the 1972 US Standard Industrial Classification (SIC) code system. “Key British Enterprises 2002” was obtained from The Nottingham Trent University Boots Library. “Rankings by Industrial Grouping” is on pages 1283 – 1301 in Volume 4: British Business Rankings.

For the purpose of this research, the list is divided into two main industrial groupings: IT, Telecom and Finance are named “initial IR usage industries” and other industries including Agriculture, Forestry & Fishing; Mining; Construction; Manufacturing; Wholesale Trade; Retail Trade; Business Services; Social Services; Social Services & Public Administration are referred to as “other industries”. The population of the initial IR usage samples was all IT, Telecom and Finance companies in Key British Enterprises. They were total 658 companies. The population of other industries was all companies in other industries apart from IT, Telecom and Finance companies in Key British Enterprises. They were total 1927 companies.

3.4.2 Sampling Method

The source of the data is the Key British Enterprises. 658 initial IR usage companies and 1927 companies belonging to other industries were input into SPSS. To maximise the probability of the sample being representative of the population, a random sampling method was used here. This was because ‘random sample is a sample of scores taken from a population in such a way that each score of the population has an equal chance of being included in the sample’ (Grimm, 1993: 124).

3.4.3 Sample Size

As Wood et al (2000: 88) states, “there are no hard and set rules on what sample size should be selected for a particular study”. Nevertheless, a minimum number of samples chosen is required to maximise the possibility of generating a useful quality of information.

The minimum sample size of initial IR usage industries can be calculated from the formula:

      n  =  

Where n = the minimum sample

            z = the degree of confidence required

            SD = the standard deviation of the population (or an estimate of the SD)

            E =the plus or minus error factor allowed

To calculate the sample size of initial IR usage companies, the five indicators structuring the perceived values is combined in SPSS. The standard deviation of the perceived values in the initial IR usage industries in the pilot study was: 0.184 (see table 3-2).

Table 3-2 Statistics of initial IR usage industries pilot

With a 95% confidence interval, the calculation for the sample required was as follows:

n  =  

n = 36

Similarly, according to the pilot survey of SPSS, the standard deviation of the perceived value in other industries in the pilot study was: 0.230 (see table 3-3). Hence, by using the same formula, the sample size of other industries was 45.

Table 3-3 Statistics of other industries pilot

As a result, the minimum sample size for initial IR usage industries is 36. However, according to Saunders et al (2000), the response rate for postal questionnaires is about 30%. Therefore, the actual sample size required can be calculated by using the following formula:

 n ^a =  

where n ^a is the actual sample size

n is the minimum (or adjusted minimum) sample size

re% is the estimated response rate expressed as a percentage

Source: Saunders et al., 2000: 130

The calculation as follows:

n ^a =  

n ^a = 120

Hence, the actual sample needs to be 120 for initial IR usage industries. Similarly, the actual sample size for other industries is 150.

3.6 Summary of Methodology

This chapter initially discussed the research approach and concluded that using a questionnaire survey was the most effective tool to collect data for this research. The questionnaire consists of 17 closed questions, aiming to generate precise answers. 120 questionnaires were distributed to initial IR usage companies and 150 questionnaires were distributed to other industries within a widespread target population. Finished questionnaires could be returned by respondents by post or submitting them online directly. The whole target population was 2,585 Key British Enterprises 2002. The population of the initial IR usage samples is 658 while the population of other industries is 1927 companies. The sample was a representative one because random sampling method was chosen to ensure each score of the population had an equal chance of being included in the sample.

CHAPTER 4   ANALYSIS OF SURVEY RESULTS

4.1 Introduction

This chapter shows the analysis of the collected data by means of the self-administered questionnaire. Data received were entered into the SPSS software package for analysis (Version 10.1). The characteristics of the samples were analysed. An independent sample t-test, and a chi-square test were used to test the hypotheses set in the literature review.

4.2 Research Findings

4.2.1 Descriptive Statistics

Figure 4-1 Numbers of respondents by nature of company 

Figure 4-1 shows the number of the respondents by the nature of their company (Question 1). Initial IR usage industries had returns of 30 questionnaires, which accounts for 46.9% of the total respondents. Other industries had returns of 34, which is slightly high than initial IR usage industries (53.1%).

Table 4-1 Description of the use of Internet for recruitment

The response of Question 2 shows how many companies are using the Internet as a recruitment tool in the sample size. It can be seen from Table 4-1, among the total of 64 responding companies, 93.8% of them are using the Internet as a recruitment tool, while 6.3% of them are not. This figure reflects that Internet recruitment is becoming extremely popular.

4.2.2 Hypotheses Testing

4.2.2.1 Testing Hypothesis One

The statistics of the perceived value of IR in the two groups is shown in Table 4-2. The mean of the perceived value of IR for “initial IR usage” industries was: 3.84 while the mean of the perceived value of IR for “other” industries was: 3.78. The standard deviation of the perceived value of IR for initial IR usage industries was: 0.259 whereas the standard deviation of the perceived value of IR for other IR usage industries was: 0.294

Table 4-2 Statistics of the perceived values of IR in two groups

A t-test was used to determine whether a set or sets of scores are from the same population (Coakes and Steed, 1999). This Hypothesis tries to find out whether there are differences between the initial IR usage industries and other industries on perceived value of IR. The assumptions of the t-test are satisfied in the research. Firstly, the perceived value of IR is structured into five indicators which are measured by Likert scales. A Likert scale is an interval scale which means that the measurement is suitable for the t-test. Secondly, the sample size was sufficiently large (about 30), which means the sample distribution was nearly normal. Thirdly, the observed significance level for Levene’s test was 0.650 (See Table 4-3). It was larger than 0.05. The null hypothesis of Levene’s Test can be accepted, which means the two population variances are equal.

Table 4-3 Independent-samples t test result for the first hypothesis

The result of the t-test is shown in table 4-3, the t statistic was 0.838 with 58 degrees of freedom. It had a probability of 0.405, this is higher than the alpha level. It means the null hypothesis was accepted: there was no difference between the initial IR usage industries and other industries on perceived values of IR. The result reveals that the initial IR usage industries and other industries have the same perceptions and attitudes towards IR. IR is not only serving the initial target industries but also other industries. This indicates that organisations are going to ‘keep the faith’ with Internet recruitment.

Since the Null hypothesis was accepted, the sets of scores of the two groups would be from the same population. The two groups were combined into one for hypothesis two.

4.2.2.2 Testing Hypothesis Two

The null and alternative hypotheses of the test were:

H_0-2: There will be no relationship between the use of IR and specific types of vacancies in Key British Enterprises.

H_1-2: There will be a relationship between the use of IR and specific types of vacancies in Key British Enterprises.

A Chi-square test can be used to determine whether there is a relationship between the use of IR and specific types of vacancy. Since the type of vacancy was measured by nominal data, the researcher had to choose the nonparametric test to examine the relationship between the two variables. The “type of vacancies” is categorised into five groups: 1) graduates 2) IT Staff 3) managers 4) clerical staff 5) skilled workers (See Appendix 1 for Questionnaire Question 9).

Table 4-4 Recruitment methods and specific types of vacancy crosstabulation

Table 4-5 Chi-Square test results for the second hypothesis

The result of the Chi-square test is shown in Table 4-4 and Table 4-5 above. In table 4-5, Pearson has a value of 16.393 with a significance of 0,003. The significance value is below the alpha level of 0.05, which means significant. In table 4-4, the minimum expected cell frequency is 8.37, which is larger than five. It means that the test has not violated one of the main assumptions of the chi-square test. Therefore, hypothesis H_0-2, there will be no relationship between the use of IR and specific types of vacancies in Key British Enterprises, was rejected. Furthermore, in examining the observed cell frequencies in crosstabulation (Table 4-4), it can be seen that about 35% of the companies were using IR for IT staff recruitment, whereas only 6.7% of the companies were using IR for their manual workers recruitment. Thus, it is concluded that the companies prefer to use IR for IT staff, as well as graduates and managers while companies do not show a marked IR preference for clerical staff and manual workers.    

Figure 4-2 Recruitment methods and specific types of vacancy

On the other hand, the results (Figure 4-2) show that respondents were still very keen on using traditional recruitment methods with the exception of recruiting IT staff. This indicates that the traditional recruitment methods were still playing a very important role in corporate recruiting.

4.3 Other Findings

4.3.1 The Length of Using IR

Figure4-3 The length of using Internet recruitment from sampling companies

As can be seen from Figure 4-3, most employers in this survey were mature users of the Internet for recruitment purposes. For example, half of them (50%) had been using online recruitment for more than 12 months, and one in five (20%) had done so for more than two years.

At the other extreme, 20% of the employers had been recruiting online for less than 12 months, 7% had done so for less than six months, and 3% had done so for less than three months.

4.3.2 Approaches to Internet Recruitment

Figure4-4 Company using different approaches of Internet recruitment

Almost nine out of ten (86%) of organisations were using the Internet to advertise job vacancies on their own website. This was particular popular. Using the organisation’s own website to advertise vacancies can be an effective way of attracting the right type of candidate to the positions on offer. It is an effective way of advertising all the positive aspects of working in such an organisation, as well as some of the “negative” things that can allow prospective candidates to self-select.

Using “external” websites to advertise job vacancies followed the use of the organisation’s own website in order of popularity. More than two in five (63) respondents posted vacancies on external websites. This is unsurprising, given the high number of recruitment sites available and the facilities and functionality they can offer employers. 15% of respondents used media sites while 43% of them used other forms of online recruitment.

4.3.3 Online Application Form

Table 4-6 Description of usage of online application form

Table 4-6 shows that the majority (76.7%) of employers in the survey were providing an online application form to applicants. It indicates that employers had realised that asking applicants to write an application form slows down the application enormously and could result in candidates being put off from applying in some cases.

4.3.4 Screening Software

Table 4-7 Description of usage of screening software

It can be seen from Table 4-7 that two out of three (66.7%) of all respondents are using screening software for initial screening.

4.3.5 For the Future

Table 4-8 Description of employers’ attitudes to the increasing usage of IR

Figure 4-5 Employers’ attitudes to the increasing usage of IR

The mean of the distribution of 3.7 (Figure 4-5) indicated the approval for the statement in Question 14. Indeed, it can be seen from Table 4-8 that two in three (65%) of all respondents either agreed or strongly agreed that the Internet was going to play an increasingly important role in recruitment in the future. This was a positive finding and indicated that Internet recruitment was here to stay.

Table 4-9 Description of Employers’ attitudes to the replacement of traditional

                  recruitment methods

Figure 4-6 Employers’ attitudes to the replacement of traditional recruitment

                  methods

Table 4-9 shows a mixed bag of responses for the statement in Question 15. Over half respondents disagreed (56.7%) that the Internet would replace traditional recruitment methods in the future. This was a significant number of respondents either disagreeing or strongly disagreeing. However, 31.7% of respondents agreed with it, strongly or otherwise, and the remaining 11.7% neither agreed nor disagreed with the statement. According to Figure 4-6, the mean of the distribution of 2.7 indicates that respondents were generally more inclined to disagree with this statement than agree. Indeed, it was still too early to say whether the Internet will replace traditional recruitment methods.

Table 4-10 Description of Employers’ future usage on Internet recruitment

Figure 4-7 Employers’ future usage on Internet recruitment

Two in five (40%) of respondents believed that their use of the Internet with regard to the recruitment process would greatly increase in the future.  A small minority (18.3%) felt it would increase slightly, while some one in four (26.7%) felt it would stay the same. Only 6.7% of respondents felt that it would reduce the usage of Internet recruitment. The results indicate again that organisations were going to “keep the faith” with the IR.

4.3.6 Recruiters that do not use the Internet

The researcher intended to get a picture of what proportion of Key British Enterprises were actually using the Internet for recruitment purposes. Therefore, the researcher had returns from both users and non-users in order to get a clearer picture of the impact the Internet was making within the recruitment process. However, returned questionnaires from the companies not using Internet for recruitment purpose were only four. Three of them did not feel the Internet was useful in the recruitment process while one of them felt uncomfortable with this technology. Regarding the future, two of them plan to use the Internet for recruitment purposes in the coming six months.

4.5 Conclusion

In summary, from the results of the two tests, it can concluded that there was no difference between the initial IR usage industries and other industries on perceived values of IR; but there was a relationship between the use of IR and the type of positions that were to be filled. From other findings, advertising vacancies on an organisations’ own website was the most popular IR approach, and using external recruitment websites was next in terms of popularity. For the future, respondents agreed that the Internet was going to play an increasingly important role but were generally more inclined to disagree that IR would replace the traditional recruitment methods. This corresponds with EDB survey 2001.

CHAPTER 5   CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction

This chapter summarises and concludes the research findings with respect to the purpose, literature review and hypotheses of the study that have been discussed in the previous chapter. It also considers the managerial implications of the findings and the limitations to the research. Moreover, there is a discussion of the main avenues of potential future work, based on the specific findings and on the literature reviewed.

5.2 Brief Summaries

The Internet recruitment market is still in its infancy but employers cannot ignore the market dynamics. The review of the literature shows that a sizable and increasing proportion of the UK population have access to the Internet; a significant proportion of these people are looking for a job on the Internet and a large number of companies are already using the Internet for recruitment. The main purpose of this study was to test whether there is a difference between the “initial IR usage” industries and other industries on perceived values of IR; and whether there is a relationship between the use of IR and specific types of vacancies.

The surveys in this research were conducted by means of self-administered questionnaires, these were completed in the sample companies by the HR personnel or relevant staff who were responsible for recruitment. From the study, 100% of the responding “initial IR usage” companies were using Internet recruitment, while 88% of responding “other industries” companies were using Internet recruitment at the time during the survey.  The remaining 12% though not using it, were becoming more aware of the development of this recruitment tool because half of them planned to use Internet for recruitment purposes in the coming six months. In general, online recruitment has become very popular in Key British Enterprises 2002.

The results of this research show that there is no difference between the initial IR usage industries and other industries. This concurs with the research conducted by iLogos.com survey in 2000 that companies have the same perceptions and attitudes towards IR. The literature review also indicates that companies can enjoy the benefits from using Internet recruitment (Baker, 2000; Bird, 1999; Employee Development Bulletin, 2000; Gunner, 1998; Hays, 1999; HR Focus 2000; Jones 1997; White, 1997). Most of the previous findings and researches of IR emphasise massive reach, better communication channel, speed, low cost and better quality candidates are the key benefits to organisations. Therefore, the survey reveals that IR is not only serving the initial target industries but also other industries, indicating that organisations are going to ‘keep the faith’ with Internet recruitment.

The survey results also demonstrate that there is a relationship between the usage of Internet recruitment and the type of positions that are to be filled. The majority of the respondents are posting IT staff, graduates and managers on the Internet when these positions are needing to be filled. In contrast, only a small portion of respondents advertises clerical staff and manual work vacancies on the Internet. The latter seems to be more likely to be recruited through traditional recruitment methods. Regarding the recruitment of clerical staff, Roberts (1997) pointed out that this type of job is usually resourced from local markets. In the same way as in recruiting manual workers, the usage of local newspapers, recruitment agencies and staff referral seem to be the most appropriate methods rather than the Internet. The results confirmed several researches reviewed in the literature. For example, according to CIPD survey (EDB, 2000: 10), recruiters use the Internet as much for professional and managerial recruitment as they do for new graduates, and fewer use it for less-skilled positions such as in manual, clerical and skilled manual work.

With regard to the “approaches” of Internet recruitment, using organisations’ own websites appears to be the most popular. The website will often have been designed to encapsulate the organisation and its values so it can be an effective way of attracting the right type of candidate to the positions on offer. External recruitment websites follow the use of organisations’ own website in order of popularity. Recruitment sites offer users a wide audience for vacancies; they also offer more than a posting facility for jobs online. Many will collect CVs from applications, and offer some level of screening, or short listing of candidates.

For the future, it is clear that the traditional recruitment methods still play an important role in corporate recruiting. This corresponds with EDB survey 2001 mentioned in the literature review. Organisations agree that the Internet is going to play an increasingly important role but it is still too early to say that it will replace the traditional recruitment methods.

5.3 Managerial Implications

The advent of online recruitment has been a fantastic addition to the recruiter’s arsenal. Along with newspapers, recruitment fairs, employment agencies, consultancies and headhunters, employers can also use the Internet as a valuable source of candidates. The key word here is choice. It means a tougher recruitment environment in which employers can choose the route most appropriate for the job in hand. Therefore, many HR professionals will need to refine and adapt their own working practices to achieve their corporate recruitment goals. The main business may still be people management, but modern personnel managers must also understand IT and the ways in which it is transforming recruitment practice. Therefore, HR managers should be aware of the importance of training in online recruitment because well-trained and experienced Internet recruiters help the company to gain a competitive advantage. Indeed, in an environment with fierce competition for talent, companies need to master the art and science of online recruiting to attract the best people.

Furthermore, having an online recruitment process does not mean that Key British Enterprises have to change they way they attract new employees. For some companies, traditional recruitment advertising works, and will continue to work, for the foreseeable future. For some, a mixture of offline and online advertising will produce the best response yield. However, with the continuing shortage of quality applicants, companies will find it increasingly more difficult to attract and retain jobseekers’ interest during the recruitment cycle if they rely on traditional methods of communication. At least, the move to online recruitment saves the HR department vital time, giving them an advantage over competitors. Nevertheless, this does not mean that companies should concentrate wholly on the Internet as their main communications channel. Organisations should be aware that there is a need to keep a balance between traditional and Internet marketing strategies.

The survey makes clear that posting jobs on an organisations’ own website can send a message to applicants that, for example, the organisation is advanced in its use of technology. This is particularly useful for organisations that do not have an immediate reputation for such things and want to attract individuals in the area of IT. Moreover, perhaps the best combination is using external recruitment websites in conjunction with posting jobs on an organisation’s own website. This means that employers are using external Internet providers to enhance the recruitment process and ensure their vacancies are exposed to the largest volume of applicants.

If the company uses its own website to advertise vacancies, it is recommended to develop an online application form as it helps to speed up the recruitment process. However, the company should be careful with the use of screening software. It can lift HR’s administrative burden but there is a danger that the capabilities of software packages will be over-hyped. It is important for such tools to be individually tailored. Moreover, the company should not exclude the human element because candidates are customers who still want face-to-face contact. The crucial denominator will always be human planning when it comes to matters such as talent spotting and retention.

5.4 Limitations of the Research

There are some limitations to this research. First, the questionnaire survey resulted in 30 responses from 120 initial IR usage companies for a response rate of 25% while 34 responses from 150 other industries for a response rate of 22% in Key British Enterprises. Overall, the response rate of this research is only 23.7%. Given the relatively small sample size, sample generalisation may be a concern, as is common in social science research. This study had particular difficulty in getting responses because the target population are top companies in the country. Presumably, they have many similar posts often and tend to ignore them. Many HR personnel and related staff were very busy and so declined to fill the questionnaires.

Secondly, due to time and financial constraints, the target population selected in this research were all top companies in the UK and the recruitment process in these companies tends to be planned and systematic. Therefore, the results of this research only represent the IR usage situation of Key British Enterprises and may not be generalised to the whole UK situation.

Thirdly, this study examines one side of the employers’ perception. Jobseekers’ behaviour of applicants via the Internet is not discussed in this research. Since Internet recruitment offers benefits to both recruiters and jobseekers, research which only considers the recruiters’ side is not comprehensive. The usage and perceptions of IR of the jobseekers are also important.

5.5 Further Research

Given the limitations of this study, it is recommended that its findings should be extended by further research. The sample size in this study was limited due to time and cost constraints and therefore may not be representative. A larger sample size could be used in future research with a wider reach of organisations. In addition, if a large-scale survey can be conducted in the UK including small and medium-sized enterprises (SMEs), then a more accurate and representative picture of the current situation of using the Internet for recruitment purposes in the UK can be obtained and generalised.

Another possible area for further research on the subject of Internet recruitment is the study of the effectiveness of Internet recruitment. The research can further investigate and examine the benefits in real terms such as the actual number of searches, success rate of searches, number of applicants per search, number of hires and diversity of pools compared with the traditional recruitment methods.

So far, various studies have investigated the use of the Internet and specific types of vacancy from the side of recruiters. It is suggested to do further research on the jobseekers side. Is there a relationship between online jobseekers and specific types of vacancies that they are searching for? Moreover, further research can also study the paths online jobseekers follow and their attitudes to Internet recruitment, as well as their perception of the company to which they are applying.

For all the predicted growth in Internet recruitment, it is HR managers not jobseekers who will be responsible for delivering industry’s billions. Whether placing an advertisement with a web site or investing in electronic solutions, HR managers will be making the key decisions. How they feel, and what sort of services they envisage choosing from online sites, is something that the future research can gauge.

Appendix 1

Yvette O'Hagan

Online Recruitment Questionnaire

Please e-mail me if you have any questions, or have difficulty completing this form: yvette@ohagan.org.uk

Part A

1.      What is the nature of your company (select one)?

c Information Technology, Telecommunications or Finance

c Others

2.      Is your company using the Internet as a recruitment tool?

c Yes (Please complete Part B)

c No (Please complete Part C)

Part B

3. How long has your company been using the Internet for recruitment purposes?

c Less than three months

c 3 – 6 months

c 6 – 12 months

c 12 – 24 months    

c More than 2 years

9. Please tick which recruitment methods are used by your company for recruiting each type of employee (Tick as appropriate):

10. Which approaches is your company using for Internet recruitment (you can tick more than one box):

c Its own website

c External recruitment sites e.g. “www.monster.co.uk”

c Media sites jobs sections e.g. “www.theguardian.co.uk”

c Others

11. Does your company’s website provide an online application form?

c   Yes                                          c  No                           

12.  Does your company’s website have online screening software for initial screening?

c Yes                                           c  No                           

13. Do you consider that “The internet is going to play an increasingly important role in recruitment in the future”?

cStrongly disagree      c Disagree       c Neither disagree nor agree       c Agree

c Strongly agree

14. Do you consider that “The internet will replace traditional recruitment methods in the future”?

cStrongly disagree      c Disagree       c Neither disagree nor agree       c Agree

c Strongly agree

15.  In the future, do you envisage your company’s use of the internet for recruitment:  c Reducing   c Staying the same  c Increasing slightly  c Greatly increasing

Part C

16.  Reasons for not using the Internet as a recruitment tool (you can tick more than one box):

c  Too expensive

c  Tried before but unsatisfied

c  Do not feel the Internet is useful in the recruitment process

c   Lack of technology resources

c  Inconvenient/uncomfortable with this technology

c  Others (Please specify:____________________)

17.  Does your company plan to use the Internet as a recruitment tool in the coming six months?

c  Yes            c  No

End of the Questionnaire – Thank you for your time!

Appendix 2

Covering Letter

Yvette O'Hagan
Nottingham
NG2 4GF

Human Resources Department
Company name
Address

Dear Sir,

I am a post-graduate student at the University of Surrey studying for an MSc in Human Resource Management. 

As part of my final project, I am researching the use of Internet recruitment in the country’s top companies.  With this in mind, I wonder if I could trouble you to answer a few multiple-choice questions regarding how your company uses the Internet to recruit staff?  A short questionnaire is enclosed along with a reply paid envelope. 

The form comprises a short page of multiple choice questions so should take no longer 8 minutes to complete and would assist me greatly in my studies. If it is easier, you could alternatively complete the form online on my web page at: www.yvette.ohagan.org.uk/survey

Any information supplied will be treated with the utmost confidence and not used for any purpose other than calculating a series of statistics for use in my final thesis.

Thanks for your time.

Yours faithfully,

Yvette O'Hagan.

References:

Aaker D A, Kumar V & Day G S (2001) Marketing Research 7^th edn. John Wiley & Sons New York

Apostolakis J & Kastania A (1994) Decision making with SPSS, Stamoulis Publishing, Athens

Armstrong M (2001) A Handbook of Human Resource Management Practice 8^th edn. Kogan Page, London

Baker S (2000) Recruitment on the Internet Employment Digest 512: 2-6

Bell J (1993) Doing your research project 2^nd edn. Open University Press, Buchingham

Bird J (1999) The art of web spinning Human Resource (42): 56-60

Boella M J (1998) Human Resource Management in the Hospitality Industry 5^th edn. Stanley-Thornes, London

British Gas TIME Survey (2000) In: Online recruitment (21) October 2000 P17

Coakes S J & Steed L (1999) SPSS Analysis without Anguish Wiley, Australia

Croft P (1999) Here is an I&D… People management 22(4): 99

CyberAtlas staff (2001) Home is Where the Net is, August 21, 2001

http://cyberatlas.internet.com/big_picture/geographics/article/0,,5911_870461,00.html [Accessed on 28/12/2001]

Dowling P J, Welch D E & Schuler R S (1999) International Human Resource Management 3^rd edn. South-Western College Publishing, Cincinnati

Employee Development Bullietin 2000 Surf’s up: using online recruitment and selection IRS Employment Review (710): 10-16

Employee Development Bulletin 141 (2001) The Internet comes of age with online recruitment September 2001

Foot M & Hook C (1996) Introducing Human Resource Management Longman, London

Frankland G (2000) If you build it, they will come People Management 16 March, P45

Gabb A (1997) University Challenge (Graduate Recruitment), Management Today, December 1997, p62-64

Ghauri P N, Gronhaug K, Kristianslund I (1995) Research methods in business studies, Prentice Hall Europe, London

Goldsmith A L (1997) Human Resource Management for Hospitality Services

     International Thomson Business Press, London

Goodwin B (1999) ICL makes Net the focus of recruitment strategy Computer Weekly, 28.1.99, p7

Grimm L G (1993) Statistical Applications for the Behavioural Sciences John Wiiley & Sons, Inc., New York

Greengard S (1998) Putting online recruitment to work Workforce 77(8): 73-76 

Gunner E (1998) Surf and select In: Reed Brsiness Informantin (ed) The Recruitment Yearbook & Directory 1998 Reed Business Information pp178-180

Harvard Management Update (2000) Online hiring? Do it right Harvard Management Update 5(2):6-7

Hall L (1998) Call and response cited from Reed Business Information The Recruitment Yearbook & Directory 1998: 18-19

Hays S (1999) Hiring on the Web Workforce 78 (8): 76-84

Hogler R L, Henle C and Bemus C (1998) Internet recruitment and employment discrimination: a legal perspective Human Resource Management Review 8 (2): 149-164

Hobby J (1997) Lost in Cyberspace, Personnel Today, 27.3.97, p26-27

HR Focus (2000) Online recruiting: what works, what doesn’t HR Focus (3) 1: 11-15

iLogo Research (2001) in: Pastore M (2001a) 429 Million Online Worldwide

http://cyberatlas.internet.com/big_picture/geographics/article/0,,5911_782281,00.html#table [Accessed on 28/12/2001]

IRS Employment Trends 733 (2001) HR on the net: the IRS guide August, 2001

IRS Employment Review 738 (2001) The labour market position in September 2001 15 October, 2001

Jankowicz A D (1994) Business Research Projects for Students Chapman & Hall, London

Jones K (1997) Net benefits still to be realised by recruiters People Management 3(21): 61

Kent S (2001) IT gets personnel

     http://www.softwaresource.co.uk/NLrecselectFEAT.asp?itemID=442

     [Accessed on 09/03/02]

Kerrigan K (2001) Benefits of online recruitment during an economic downturn Online recruitment 21: 19

Lewis C (1985) Employee Selection Hutchinson & Co. Ltd., London

Martinez M N (1997) How top recruiters snag new grads HR Magazine, 42 (8): 61-66

Merrick N (1999) Super Hire Way IPD Annual Review of Recruitment Advertising Industry 1999 p34-40

Monsters.com (2001) Advantages of Internet Recruitment

     http://hr.monster.com.sg/internet/hr010626_002/ [Accessed on 14/01/02]

Mullins L J (1996) Management and Organisational Behaviour 4^th edn. Pitman Publishing, London

Online recruitment (2001) Vast savings in Human Resources time Online recruitment October 2001 Issue 21: 13

Online recruitment (2002) The Internet is here to stay - keep the faith!

     http://www.onrec.com/content2/news.asp?ID=1302 [Accessed on 30/05/02]

Pastore M (2001b) Online Recruiting Gains Popularity Worldwide

     http://cyberatlas.internet.com/markets/professional/article/table [Accessed on 28/12/2001]

Pearn M & Kandola R (1988) Job Analysis: A practical guide for managers IPM, London

Reed.co.uk (2002) Employers favouring electronic CVs Personnel Today 4/9/2002 p9

Riley M, Wood R C, Clark M A et al., (2000) Researching and writing dissertations in business and management Thomson Learning, United Kingdom

Saunders M, Lewis P & Thornhill A (2000) Research Methods for Business Students 2^nd edn. Financial Time Prentice Hall, London

Sinclair H (2001) Recession and online recruitment Online Recruitment (21): 11

Thaler-Carter R (1998) Recruitment through the web: better or just bigger, HR Magazine, 43(Nov): 61-65

Torrington D & Hall L (1998) Human Resource Management 4^th edn. Prentice Hall Europe, London

Torrington D, Hall L & Taylor S (2002) Human Resource Management 5^th edi. Prentice Hall, London

Tull D S & Hawkins D I (1993) Marketing research measurement and method, 6^th edn. Prentice-Hall, London

URL 1 Internet recruitment leads the way

     http://www.managementfirst.com/articles/recruitment.htm [Accessed on 01/02/02]

URL 2 The HyperGlossary for understanding the Internet

     http://www.hyperglossary.co.uk [Accessed on 29/12/2001]

URL 3 http://www.onrec.com [Accessed on 26/06/02]

URL 4 Online recruitment growth - a Monster of a story

     http://hr.monster.com.sg/internet/hr010626_001/ [Accessed on 23/04/02]

Ungerson B (1983) How to Write a Job Description IPM, London

White L (1997) Getting Wired Personnel Today, 22.5.97, p 27-28

Wright M & Storey J (1997) Recruitment and selection In: Beardwell I and Holden L Human Resource Mangement: A contemporary Perspective 2^nd edn. Pitman Publishing, London pp210-276

Wright G (1998) Online Recruitment? Tolley’s Employment Law-Line 4(2): 9-11

Wright L T & Crimp M (2000) The Marketing Research Process 5^th edi. Prentice

     Hall, London

© Yvette O'Hagan 2002

 Email Me

All original content: Copyright © Richard & Yvette O'Hagan 2006