The Effectiveness of the Internet As a Recruitment Source and Medium

1. 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.

2. 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

3. 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

4. Corporate Web Site Recruiting

5. 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

6. Research Objectives • 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 3. Develop Grounded Theory to Improve the Effectiveness of the Internet as a Medium to Support the Recruitment Process 4. Speculate on the Relationship Between the Internet as a Source and Medium in the Context of Recruitment

7. Recruitment Source Model Individual Differences Recruitment Sources Information Realism Post-Hire Outcomes

8. 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: • 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)

9. Recruitment Process Model Three Phases of Recruitment Process: Generate Applicants Influence Job Choice Maintain Applicant Interest

10. 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) • Influencing Job Choice (Selectee) “Accept Job Offer”Objective/Subjective/Critical Contact (Behling) Relationship Development (Barber)

11. Web Site Design and Information Content Model

12. 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)

13. 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.

14. 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.

15. 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.

16. Distribution of Respondents By All Sources

17. Distribution of All Respondents By Job Function

18. Results: Source (Speculations) 1. WWW produces more individuals that expect to stay less with the firm. - Not significant for All and IT groups. • 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. 4. WWW produces more individuals with less education. - All group more educated; IT group less educated.

19. 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%

20. 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

21. Results: SourceIT 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

22. IT WWW Respondents Older More experienced Less educated Pay/benefits fair No salary difference More organizational commitment Better information realism Less opportunity for advancement Feel better about people work with 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 Results: Source(IT versus All Respondents)

23. Statistically Significant Variables: All Respondents

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

25. Results: Medium (Speculations)Sensitive to Web Site Design-Must be Easy Finding Jobs

26. Results: Medium (Speculations)Internet Not Being Employed Effectively-No One Experienced IntranetCapability

27. Results: Internet as Medium

28. Example of Data: Relevant Information in Support of Influence Job Choice Phase

29. Results: Internet as Medium Including Intranet Access and Timing

30. 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.

31. Relationship Between Internet as Source and Medium

32. Example Relationship: IT at 8.1% and All at 12.8% (% Sourced WWW)

33. 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.

34. 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)