1 Journal of Human Resources Management and Labor Studies June 2014, Vol. 2, No. 2, pp ISSN: (Print), (Online) Copyright The Author(s) All Rights Reserved. Published by American Research Institute for Policy Development Critical Success Factors of the E-Recruitment System Khalil Ghazzawi 1 and Abeer Accoumeh 2 Abstract People are at the core of every organization, they are integral part of any organization today. Organizations cannot exist without staff to complete the production cycle. Therefore the organizations do not take their staff for granted. Choosing the right candidate at the right place has implications for an organization s goals. Employee well selected and well placed would not only contribute to the efficient running of the organization but offer significant potential for future replacement. The recruitment strategy needs to be dynamic to let the organization grow. This research aims to help professionals in the HR departments and management to consider and improve how they recruit, develop and look after their staff. E-Management is one of the most challenges that organizations are facing in their businesses processes. Those processes are supported by the usage of electronic information system and applications. New technologies have been increasingly facilitated and speed up the communication and business process between the internal and external users. E- recruitment considered as a part of e-hrm and defined as the implementation of recruitment activates by involving the internet and using web solutions to operate and at the end it has the same goals of the traditional recruitment. Online recruitment is becoming more attractive for the employers and job seekers. Advantages and disadvantages of e-recruitment system were determined by examining the overall process. Throughout this research we will identify the influential factors that affect the success of using online recruitment instead of traditional recruitment and measure the effectiveness of each factor. The research is going to provide the organizations and HR members a wider vision how would they set up their recruitment strategies and retain their employees. Keywords: Human Resources Management, e-hrm, e-recruitment, Traditional Recruitment, Employer 1 PhD, Chairman of the Management Study Department At Rafik Hariri University. 2 Human Resource Manager At Middle East University Kuwait.
2 160 Journal of Human Resources Management and Labor Studies, Vol. 2(2), June 2014 Introduction Organization's ability to grow and to stay on top of customer demand has always demanded heavily on the quality of its people. These days, this relationship is even more relevant, it is formed in a department named Human Resources Management (HRM). The main goal of this department is to create organizations that are both effective and efficient. (Wright & Dyer, 2000), stated in their book (People in the e-business: New Challenges, New Solutions)"Human Resources functions can become critical partners in driving success, but to do so require that Human Resources changes its focus, its role, and its delivery systems". Electronic business has increasingly become a necessary component and strong factor of business strategy and development. (Salehi, 2009) wrote The internet has made a new competitive environment for businesses rethink and adapt technology to increase effectiveness and efficiency of the business processes. E-business is not only buying and selling but also servicing customers and collaborating with business partners. (TRAPP, 2001) is convinced that the internet will never go away: the use of the internet will keep on increasing as companies look for ways to reduce costs. Human Resources department is one of the departments that have prominent contribution on the level of the company evolution. With the increasing use of information technologies in human resources planning and delivery, nature and role of human resources changed itself. (Ruël & al., 2004) stated in their study (e-hrm: Innovation or Irritation Management Revue) "e-hrm is a way of implementing HR strategies, policies, and practices in organizations through a conscious and directed support of and/or with the full use of web technology-based channels". Organizations often adopt online systems because they believe e-recruiting is more likely than traditional recruitment sources to uncover individuals with unique talents and skills. An article on High Beam Business website (Internet Continues to Draw Job Seekers, Advertised Positions, HR Focus 2008) is providing some results after analyzing surveys: In 2008, 73 percent of job seekers used the internet, compared to 66 percent of job seeker during the same period in 2005 Within the process of e-recruitment.
3 Ghazzawi & Accoumeh 161 It is evident that e-recruitment systems have become important means of helping organizations establish a brand identity, attract talented workers, and retain valuable employees comparing to traditional recruitment method. Objectives of the Study The objective of the research is to focus on the critical success factors of the e-recruitment system and to proof the important role played by using this new technology instruments such as websites, s, online interviews, online Ads and posts, online submitting CVs to attract genuinely suitable candidates and to examine their credentials carefully throughout the most suitable ways and conditions comparing with the traditional recruitment process in order to create the most suitable recruitment plan after studying the major conditions that related to the company and to the candidate so we can produce a short list for the selection candidates, and reduce the turnover ratio of the employee as the retention of the best employees starts with effective recruitment and hiring process, strategies, policies and procedures. The purpose of this study is to identify the critical success factors in the recruitment process, also to know how could e-recruiting affects the overall recruitment process and whether it causes changes in the nature and sequence of tasks associated with the traditional recruitment of external candidates. Few of the key goals to study the Critical Success Factors of the e- recruitment System is to demonstrate and consider these factors as measurement conditions on the online recruitment practices on individuals attraction and motivation to apply for a job, also on organizations benefit and satisfaction. The Significance of the Study This study is focusing on the e-recruitment system as phenomenon that many organizations are using nowadays to hire talented and motivated manpower. The organizations would be influenced by many elements that encourage the transition face from traditional recruitment process to online recruitment process.
4 162 Journal of Human Resources Management and Labor Studies, Vol. 2(2), June 2014 It always starts with the organization s strategies and planning to be implemented according to the financial and economic conditions plus globalization and internet impact. In order to measure the effectiveness and success of e-recruitment, we will highlight the major variable factors that have direct and indirect effect on the results. Research Questions and Hypothesis The central question in this research is about how we detect the critical success factors that affect the process of e-recruitment and determine the degree of the relationship between certain variables in relation with the e-recruitment environment as per the following hypothesis: H1: Is there a relationship between recruitment process and recruitment sources? H2: Is there a relationship between recruitment process and technological development of the organizations? H3: Is there a relationship between recruitment process and the recruiter qualifications? Literature Review The overall purpose of human resource management department is to ensure that the organization is able to achieve success through people, and the good human management is essential if organizations want to attract and retain good staff. Human resource management is defined as a strategic and coherent approach to the management of an organization s most valued assets the people working there who individually and collectively contribute to the achievement of its objectives. Human resources are the human labor, the physical abilities, and mental abilities that produce the goods and services of businesses. HRM is a managerial perspective which argues the need to establish an integrated series of personnel policies to support organizational strategy.
5 Ghazzawi & Accoumeh 163 (Buchanan & al., 2004) 1- Multi-level Staffing: Linking Individual Staffing to Organizational Effectiveness Organizational leaders and HR managers who have implemented or will implement e-recruitment systems must commit to ensuring the system's success and must also establish resources for those projects, systematically evaluate e-recruitment process and outcomes, and increase the training of HR staff to operate the systems effectively and efficiently (Kim & al., 2009). The recruitment strategy is different when the organization has the need to hire different level of staff. Organizations would use different approaches depending on the job level and the amount of specialized skills and qualifications required for the position. The differences start right from the job description so the management can determine specific criteria to plan for recruitment strategy. There are three components of job analysis that form the essential part of a job description: (1) The purpose of a job; (2) the major duties and responsibilities contained in a job; and (3) the conditions under which the job is performed. To hire senior/managerial-level position, recruiter should understand that it will be very difficult and important decision. Making a mistake when hiring for managerial positions can cost the organization amount of money. It is extremely important to find the right fit even if the recruiter spends few months to find the right person. In those cases, the process of recruitment will be longer and the organization will be more precise in the interviews and in each step of the recruitment cycle. 2- E- HRM Electronic business has played a major role in today s business operations and received much attention from entrepreneurs, executives, investors and industry observes (Phan, 2003).Normally, there will be a lot of resistance or obstacles from the senior or veteran staffs since most of the organizational members will get into their comfort zone after sometime implementing certain process or system (Zheng & al., 2010). E-HRM is the relatively new term for IT supported HRM, especially through the use of web technology. The development of e-business has included ways to move HRM activities onto the IT and internet.
6 164 Journal of Human Resources Management and Labor Studies, Vol. 2(2), June 2014 (Kulkarni, 2012) stated in his article about (E-HRM Implementation) that the e-hrm is the web-based solution that takes advantage of the latest web application technology to deliver and online real-time human resource management solution. In other words, Electronic Human Resources Management (E-HRM) can be considers as a way to implement HR strategies, policies and practices in organizations through the use of web-based technology. Organizations have increasingly relied on the e-hrm function to provide management solutions that increase the effectiveness of human capital. It includes: e- employee profile, e-recruitment, e-selection, e-training, e-performance, e- compensation. 3- E- Recruitment and E-Selection Process E-recruitment is a part of electronic Human Resource Management (e-hrm). It is known as one of the most popular e-hrm applications used by organizations. E- recruitment could be defined as the use of the internet to attract potential employees to an organization and hire them. Online recruitment is also known as e-recruitment, is the practice whereby the online technology is used particularly websites as a means of assessing, interviewing, and hiring personnel (Dhamija, 2012). (Greer, 2003) stated that the Internet, , fax machines, cable modems, digital subscriber lines, personal computers, other forms of telecommunications, and express mail make up a set of forces that have allowed many workers to work off-site by telecommuting. Some also have been able to relocate geographically while continuing to perform the same work for their employers via telecommunications technology. Recruitment is an important factor for the organizations since it performs the essential function of drawing an important resource into the organization. It has a strategic aim as it focuses on the need to attract high-quality people in order to gain a competitive advantage (Parry & Tyson, 2008). If people see that an organization values its staff, they are more likely to apply for a job with the organization and more likely to stay once they are recruited. Recruiting people with the right abilities support the organizational goals; Good human resources management means that an organization reduces risks to its staff and reputation. It also can reduce costs for an organization.
7 Ghazzawi & Accoumeh 165 Organizations recruiting via the Internet have two primary avenues to attract viewers into the applicant pool. First, organizations can rely upon third-parties that distribute job advertisements on a job listing website. Second option is for an organization to create and maintain its own official website to present job advertisements and additional information about the company (Braddy et al, 2006). By using the online recruitment system, recruiter must ensure that the candidates meet company goals and characteristic. This objective occurs in the context of an increasingly diverse population. Today s organizations would have employees with different culture background, educational system, talents, technical skills, languages, traditions, and personal qualities. This diversity in the workforce helps the organization to reach new markets and develop greater intellectual capital. In the selection process, Talent Management division assure that a supply of talent is available to align the right people with the right jobs at the right time based on strategic business objectives so employees become more committed to the company and achieve higher levels of job performance. Analytical Part 1- Data Analysis and Interpretation 2- Reliability Analysis The Reliability Analysis procedure calculates a number of commonly used measures of scale reliability and also provides information about the relationships between individual items in the scale. The Cronbach s alpha was tested and the ranges from 0 to 1. The more the result is close to 1; it reflects higher level of internal consistency. The calculation is shown in the below table and it indicates a satisfactory results.
8 166 Journal of Human Resources Management and Labor Studies, Vol. 2(2), June 2014 Table 1: Reliability Analysis Measure Cornbrach s Alpha The Organization Opinion in E-Recruitment System Technological Development of the Organization Recruiter Qualifications Recruitment Sources The Importance of the E-recruitment The Impact of Using the E-recruitment on the Organization Correlation Analysis Concerning our hypotheses, the positive correlation represents that the greater the independent variables (Organization Opinion, Technological Development, Recruiter Qualification, and Sources) the greater organization intention to use the online recruitment system. We can see that most of the organizations assent that there will be a positive impact when they use e-recruitment system and they believe in the importance of e-recruitment system. The highest correlation coefficient (r) was equal to It is between (Using e-recruitment can be varied depends on the industry sector and targeted applicants) and (The effectiveness of e-recruitment can be varied depends on the size of the organization). The second highest correlation coefficient (r) was equal to between (The organization believe that online recruitment has profitable revenue) and (The organization afford the budget to adopt the e-recruitment system). 4- Factor Analysis Factor analysis using principal extraction component was conducted. The analysis showed that the variance contribution of the first common factor in the (Organization Opinion in E-recruitment System) reached %. From this result we can notice that the main support to apply the online recruitment system is the strategy of the organization and its vision. It is important that the management set their goals in parallel with the market trend so they enlarge the ability to develop and compete. Also affording the needful budget is a challenge that organization go through. The rest of the factors took less importance rank in the analysis. Overall, the results of the six factors indicate linking the variables positively.
9 Ghazzawi & Accoumeh 167 Table 2: Factor Analysis Factors Percent of Variance The Organization Opinion in E- Recruitment System Technological Development of the Organization Recruiter Qualifications Recruitment Sources The Importance of the E- recruitment The Impact of Using the E- recruitment on the Organization % % % % % 5- Regression In order to examine the relationships between recruitment system and recruitment sources, one-way ANOVAS were used. The findings related to recruitment system are presented in the following Table: Hypothesis # 1: Is there a relationship between recruitment system and recruitment sources? Table 3: Regression (Hypothesis 1) ANOVA b Model Sum of Squares df Mean Square F Sig. Regression a Residual Total In order to examine the relationship between recruitment system and recruitment sources, one-way ANOVA analysis was conducted. The findings are presented in Table (4.40). Table (3) show that there is significant difference between using online recruitment system and recruitment sources with a significant difference 0.002, which reflects positive relationship. The more recruiter uses the online recruitment system, the more he has plenty of sources to get more CVs.
10 168 Journal of Human Resources Management and Labor Studies, Vol. 2(2), June 2014 Hypothesis # 2: Is there a relationship between recruitment system and technological development of the organizations? Table 4: Regression (Hypothesis 2) ANOVA b Model Sum of Squares df Mean Square F Sig. Regression a Residual Total In order to examine the relationship between recruitment system and technological development of the organization, one-way ANOVA analysis was conducted. The findings are presented in Table (4). The results in the table (4) indicate positive relationship between using the online recruitment system and the technological development of the organization with significant difference We can conclude that if the organization adapted new technology system and facilitate internet connection service to the employees, the ability to use the online recruitment system would increase accordingly. Hypothesis # 3: Is there a relationship between recruitment system and the recruiter qualifications? Table 5: Regression (Hypothesis 3) ANOVA b Model Sum of Squares df Mean Square F Sig. Regression a Residual Total
11 Ghazzawi & Accoumeh 169 In order to examine the relationship between recruitment system and recruiter qualification, one-way ANOVA analysis was conducted. The findings are presented in Table (5). There is a significant difference between using the online recruitment process and the qualification of the recruiter. The results indicate positive relationship which means that when the recruiter is using the online recruitment system, he must have certain extra qualifications more than whose using the traditional recruitment system by having excellent written and communication skill, knowing different languages, working on the social media and being up to date in the new computer technology. All of those factors considered as critical success factors in the process of e-recruitment. Conclusion This research presents a study of few factors that play an important role in using the online recruitment system. Generally, we conclude that the organization has to perform its online recruitment system to achieve its goals. The management needs to look into various factors that influence the process of online recruitment such as the organizational management opinion to adapt new system, technological development, recruiter qualifications, and sources. Then determine the importance and the impact of using the online recruitment system. The internet has radically changed the way recruiters operate. Recruiter should be characterized by high computer, communication and negotiation skills to be able to see which candidates can fit into an organization according to the organization s requirement and standards so they must understand the vision of the organization. Recruiters should be all over the Internet looking for qualified applicants; also use social media networking to find the best and brightest candidates. In E-Recruitment privacy is one of the major threats that could expose people's personal information or it can be misused by other persons, thus providing personal information online can lead to security issues. In the recent competitive market, being competitive is based on talents and skills of management and its workforce instead of classical capital; and acquiring talented workers helps firms to boost operational abilities and to develop more advanced resources, capabilities, and also add to core competencies.
12 170 Journal of Human Resources Management and Labor Studies, Vol. 2(2), June 2014 With good plan and clear goals, implementing the online recruitment system create successful opportunity for the organization to grow, for recruiter to perform well and for the candidate to explore his new horizons. References Wright P.M., Dyer L., 2000, People in the E-Business: New Challenges, New Solutions. (CAHRS Working Paper pp ). Ithaca, NY: Cornell. Salehi M., 2009, Investigating Website Success in the Context of e-recruitment: An Analytic Network Process (ANP) Approach, Lulea University of Technology. Trapp R., 2001, E-HR: Of mice and man, People management, 6. Ruël H., Bondarouk T., KeesLoosie J., 2004, E-HRM: Innovation or Irritation, An Explorative Empirical Study in Five Large Companies on Web-based HRM. Management Revue. Buchanan D., Huczunski A., 2004, Organizational behavior: An introductory, Prentice Hall. Kim, S., J. G., O'Connor, 2009, Assessing Electronic Recruitment Implementation in State Governments: Issues and Challenges. Public Personnel Management, 38 (1), Phan D., (2003), E-business development for competitive advantages: a case study, Information & Management 40, , Zheng W., Sharan K., Wei J., 2010, New development of organizational commitment: A critical review ( ). African Journal of Business Management, volume 4, number 1, pp Kulkarni S., E-HRM Implementation, Dhamija P., 2012, E-RECRUITMENT: A ROADMAP TOWARDS E- HUMAN RESOURCE MANAGEMENT Journal of Arts, Science & Commerce, Volume 3, Issue 3(2). Greer C., 2003, Strategic Human Resource Management: A General Managerial Approach, Prentice Hall, Second Edition,. Braddy, P. W., Meade, A. W., & Kroustalis, C. M. (2006). Organizational recruitment website effects on viewers perceptions of organizational culture. Journal of Business and Psychology, 20, Panayotopoulou L,, Vakola M., Galanaki E., 2007, E-HR adoption and the role of HRM: evidence from Greece - Personnel Review,
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