The impact of internet recruitment on hiring practices and business competitiveness

Internet Staffing

The advent of the internet has changed the way in which people interact with one another. Nowhere is this interaction more evident than in Internet staffing and recruitment. The purpose of this discussion is to investigate internet staffing and recruiting and discuss the impact of these hiring practices. The discussion will also focus on the whether internet recruitment is good or bad for businesses.

Internet Staffing and Recruitment

An article entitled "Firm Size and Internet Recruiting in Canada: A Preliminary Investigation" explains that internet recruitment is utilized fin both small and large firms. The article defines internet recruitment as "the use of the Internet as a channel through which jobs are posted and information is provided with respect to the application process. Internet recruitment can be implemented from a company website, through the use of an Internet recruiter (for example, Monster), or through some combination of the two (Duncan and Hausdorf, 2004, pg 325)."

Internet recruitment became popular in the late 1990's with the increase in the use of the internet. Currently, many new college graduates are just as likely to find a job on the internet as in their local newspapers. Internet recruitment is so popular that many colleges now assists student in posting resumes online and completing online applications. New graduates and other job hunters, also use the internet to find more about particular companies including the corporate culture and the benefits offered by the company (Duncan and Hausdorf, 2004).

Furthermore, the authors posit that job seekers and businesses alike view the internet as a necessary tool in today's job market (Duncan and Hausdorf, 2004). An article found in Public Personnel Management asserts

Increasingly, the North American population is becoming more technologically sophisticated. Computers, more specifically the Internet, promise to provide organizations with a new medium with which to communicate their recruitment messages. Not surprisingly, technology-oriented companies have been quick to adopt online strategies to gain a competitive advantage in attracting applicants. This strategy has proved effective for these companies. Cisco Systems, for example, has received up to 500,000 hits on its job site in a one-month time span and has hired as many as 1,200 people in a three-month period.[2] the benefits of the Internet should not be restricted only to technology-oriented companies and can be achieved by public sector organizations (Blumental et al., 2000-page 481)."

Duncan and Hausdorf (2004), note that a survey performed in Canada in 2001 found that nearly 30% of internet users utilized the internet to search for jobs and complete applications (Duncan and Hausdorf, 2004). The article also reports that internet users can find a wide range of jobs on the internet, from top executive positions to bartenders. The authors assert three main reasons why internet recruitment is advantageous "lower costs, faster posting and candidate response times, and the potential to reach a broader audience of active and passive job seekers (iLogos Research 1998; Nesbeitt 1999). For example, a 30-day job posting on an Internet-based job board can be as little as 10% of the cost of a three-day advertisement in a national newspaper (Duncan and Hausdorf, 2004, pg 325)."

Indeed the lower cost associated with internet recruitment is attractive to employers. The internet also allows the employer to provide the applicant with ample information about the position for which they are applying. Quite often applicants can also ask questions about the position before they apply. This makes internet recruitment attractive to employers and potential employees. In addition the faster posting and response times allows the company to fill the position in a shorter amount of time than with traditional recruitment techniques (Duncan and Hausdorf, 2004). Lastly, the internet broadens the pool of applicants significantly because it reaches a broader array of applicants. This is important for a firm that may be located in a small city or a more rural area because it allows the company to attract candidates that may be better qualified (Duncan and Hausdorf, 2004).

In their study Duncan and Hausdorf, 2004 reviewed the internet recruiting practices of both large and small firms in Canada. The results indicate that large firms are more likely to recruit employees through the internet (Duncan and Hausdorf, 2004). This tendency is because large firms are more likely to have websites upon which they can add pages that handle online recruitment. Larger companies are also more equipped to handle the costs associated with internet recruitment (Duncan and Hausdorf, 2004). The study indicates that because smaller firms have fewer dollars to invest in an internet recruiting service prior to building a company website (Duncan and Hausdorf, 2004). However, the study also found that the smaller firms were not as aware of internet recruiters such as MONSTER.COM and therefore they were less likely to utilize them (Duncan and Hausdorf, 2004). The study also found that in addition to growth with respect to Internet recruiting, the Internet may be used in more sophisticated ways in the future (Bartram 2000). Based on the survey, currently about two-thirds of respondents indicated that they use the Internet to provide information about their company, to advertise positions, and to receive resumes electronically, whereas only one-third used the Internet to prescreen applicants. Based on these data, companies currently are leveraging the networking advantages of the Internet but not necessarily the technological advantages (which include prescreening candidates, managing candidate information, using the website as a point of contact for accessing current employees, and testing for employment). Moreover, firm size did not differentiate between the more sophisticated uses of the Internet for recruiting (for example, prescreening candidates) (Duncan and Hausdorf, 2004, pg 325)."

The researchers conclude that in order for the small firms to compete with the larger firms for talent, they must incorporate an internet recruitment plan into their overall business strategies (Duncan and Hausdorf, 2004). The authors also insist that although the cost of access can be costly small firms can utilize the websites of recruitment firms, some of which are free (Duncan and Hausdorf, 2004). These sites allow employers to post job positions and recruit employees. The authors assert that the use of these resources should not increased recruitment costs significantly (Duncan and Hausdorf, 2004).

An article found in the journal, Personnel Management asserts that large corporation are not the only organizations that utilize internet recruiting. The article explains that state governments also use the internet to post job positions and allow future employees to complete applications online. The article explains that the internet recruiting strategy of the Washington State government is unique because it allows for the certification of candidates. The article explains

The new Internet Application system allows simultaneous online application submittal, screening and testing, scoring and notification, eligibility list placement, and referral for interview. It is a revolutionary improvement over the traditional recruitment and selection system, and reduces recruitment cycle time from several weeks to one or two hours. Certifications are tailored to fit key skill requirements provided by the hiring manager and can be customized for each position (Bingham et al. 2002, pg 53)."

The authors also contend that this new internet application system is beneficial to both the state and the potential employees because it is fast and allows for precise recruitment (Bingham et al. 2002). The certification process allows the employee to screen applicants carefully and only allows them to apply for positions that they are qualified for according to the certification (Bingham et al. 2002). This process is the reason for the quick turnaround and allows the government to fill positions quickly and maintain a high level of productivity (Bingham et al. 2002).

In another article entitled "College Candidates and Public Service Careers: Key Recruitment and Retention Strategies," the article points out the need for public agencies to utilize the internet to recruit college graduates (Mackes 2001). The article asserts that today's college graduates are internet savvy and expect to be treated as costumers rather than applicants (Mackes 2001). The article asserts that college graduate are often deterred from entering the public service sector because the application process is viewed as long and convoluted with a mountain of paperwork (Mackes 2001). Instead, the article explains that college graduates are looking for a quick process that allows them to evaluate the organization, complete an application and find out of they have been hired (Mackes 2001).

One of the most popular websites devoted to internet staffing and recruitment is MONSTER.COM. Monster was one of the first websites to provide a database of available jobs throughout America and the world. The website revolutionized the way internet recruiting is perceived. The site has single-handedly change the way that employers recruit employees. According to an article entitled "Online Job Posting Shows Huge Increase," Monster has found a way to further enhance internet recruitment through the use of an online employment index. According to the article this index measures the condition of the market and job availability. Medill (2004), also explains that the index "It also measures demand by industry; in April, it showed health- care to be the industry with the most jobs available. Job availability also increased in finance and insurance, professional and technical, real estate and retail trade industries. Monster's new index fills a gap that has existed in tracking online help-wanted ads, said Monster.com founder Jeff Taylor. The online index "really becomes more relevant as we begin to move into recovery" of the economy, he said (Medill 2004)."

The article goes on to contend that the other internet-recruiting firms such as carreerbuilder.com and chicagojobs.com have also experienced spikes in the amount of traffic on their sites. In fact career builder had revenue of $56 million for the first quarter of 2004. Compare this to $33 billion made during the same quarter of the previous year. The article asserts that this rate will probably continue to increase as the economy recovers. The authors also explain that print advertisement has not disappeared completely but it is now being used in combination with internet recruitment. In addition, the article argues that for many jobs for entry level positions and trades print advertising is still used.

Is internet staffing and recruiting Good or Bad

The Bad

Although this discussion has focused on many of the positive aspects of internet recruitment, there are also some negative aspects to internet recruitment. One very serious issue is security. Much of the information contained on an application is extremely sensitive. For this reason, most sites have secure servers and do not require applicants to enter social security numbers. However, the recent epidemic of hackers infiltrating servers that are supposed to secure have many companies on edge. If a company does implement an internet recruitment strategy they must ensure that the information that applicants provide on applications.

Another problem has to do with the technology itself. Organizations that utilize an internet recruitment tactic must ensure that the site works correctly. Problems with servers or forms can result in the loss of many applications and resumes. This is why it is important to invest the proper amount of money into the development of an internet recruitment program.

Another negative problem associated with internet recruitment is the anonymity of the internet. Such anonymity allows people to falsify information and apply for jobs for which they are not qualified. In some cases, people have been hired and the company has later found that the employee did not have the experience they claimed to have or the proper education. This situation can be extremely costly because many companies offer signing bonuses and pay for moving expenses. In addition, the company will have to recruit a new employee to fill the position.

Conclusion

The purpose of this discussion was to investigate internet staffing and recruiting and discuss the impact of these hiring practices. The discussion also focused on the whether internet recruitment is good or bad for businesses. The investigation found that internet staffing and recruiting have become the norm for large organizations. The research suggests that for large corporations the cost associated with internet staffing and recruiting is minuscule. The research also contends that companies prefer internet staffing and recruitment because there are fast response times and the potential to reach a broad spectrum of applicants. In addition, the investigation indicates that internet staffing and recruitment has grown exponentially in the past five years.

Although internet staffing and recruitment is positive, for most businesses there are some problems associated with the tactic. The investigation found that these problems include breaches in security, technical problems, and falsified information. However, overall it seems that the impact of internet staffing and recruiting is mostly positive. Internet recruiting and staffing is good for business because it is relatively inexpensive, allows companies to reach a broad range of applicants and there is a fast response time. The convenience of internet staffing and recruitment allows businesses to fill positions quickly. It also allows applicants to review different positions in a fast and efficient manner.