Online Technologies and Their Impact on Recruitment Strategies: Using Social Networking Websites To Attract Talent

Transcription

1 Online Technologies and Their Impact on Recruitment Strategies: Using Social Networking Websites To Attract Talent

2 Introduction Building relationships and networking has always been one of the best ways for staffing professionals to source job candidates and for job seekers to find jobs. The technological frenzy of the 21 st century is having a profound impact on recruiting strategies, whilst still allowing the human element of relationships to remain at the core. This survey investigated how staffing professionals are using online technologies, specifically social networking sites, for recruitment and screening of job candidates. Social networking sites provide a unique method of allowing staffing professionals to source, contact and screen both active and passive job candidates. 2

3 Figure 1: Recruiting Sources Primarily Used When Recruiting Job Candidates n=571 National online job boards (e.g. careerbuilder.com, hotjobs.com etc.) Employee referrals Career section of organization's website Internal job postings Industry-specific/ niche online job boards Print advertising Job fairs On-campus college recruiting Regional online job boards Direct hire agencies/ search firms (excluding temp agencies) Informal networking Temporary agencies Social networking sites (Facebook, M yspace, Friendster) Online campus recruiting Trade publications (print & online) Open house events Research/ sourcing firms TV advertising Radio advertising Other 16% 13% 12% 8% 8% 5% 5% 3% 3% 3% 2% 1% 1% 1% 0% 0% 3% 35% 43% 48% 0% 10% 20% 30% 40% 50% 60% Note: Percentages do not total 100% because multiple response options were used. Respondents were asked to select their top three primary recruiting sources. National online job boards, employee referrals and the career section of an organization s website, are the primary sources used for recruiting. 3

4 Table 1: Influences on a Hiring Decision From Information Implicitly or Explicitly Found on an Applicant's Social Networking Profile Would be much less likely to hire Would be somewhat less likely to hire Would be neither more likely nor less likely to hire Would be somewhat more likely to hire Unusual hobbies (n=43) 2% 5% 93% 0% 0% Information or pictures concerning romantic exploits (n=42) Involvement in volunteer or civic groups (n=44) Revealing private or confidential information about former or current employers (n=44) Personal views, values, and/ or morals contradictory to your own organization (n=44) Involvement in professional societies or organizations (n=44) Information on the applicant s profile page contradicts that provided on the applicant s resume, cover letter, or CV (n=44) 26% 21% 52% 0% 0% 0% 2% 36% 52% 9% 52% 41% 7% 0% 0% 11% 43% 43% 2% 0% 2% 0% 30% 59% 9% 52% 41% 2% 5% 0% Would be much more likely to hire Note: Percentages may not total 100% due to rounding. A subset of participants were surveyed. Those who don t currently use social networking sites to screen job applicants were excluded. 4

5 Table 1: Influences on a Hiring Decision From Information Implicitly or Explicitly Found on an Applicant's Social Networking Profile (continued) Information on the applicant s profile page supports that provided on the applicant s resume, cover letter, or CV (n=44) Slanderous or otherwise negative discussion of former or current employers (n=44) Negative or slanderous discussion of the applicant s friends, peers, or coworkers (former or current) (n=44) Would be much less likely to hire Would be somewhat less likely to hire Would be neither more likely nor less likely to hire Would be somewhat more likely to hire 0% 5% 34% 46% 16% 43% 50% 5% 2% 0% 41% 46% 11% 2% 0% Excessive alcohol use (n=44) 41% 39% 21% 0% 0% Personal views, values, and/ or morals similar to your own organization (n=43) 2% 5% 51% 37% 5% Illegal drug use (n=44) 80% 18% 2% 0% 0% Positive or complimentary discussion of former employers (n=44) 0% 7% 55% 30% 9% Would be much more likely to hire Note: Percentages may not total 100% due to rounding. A subset of participants were surveyed. Those who don t currently use social networking sites to screen job applicants were excluded. Negative information has a greater influence on hiring decisions, than positive information. 5

6 Figure 2: Usage of Social Networking Sites as an HR Tool 90% 80% 79% 70% 60% 56% 50% 40% 30% 20% 10% 0% 18% 13% 12% 9% 7% 4% 2% 0% Always Frequently Occasionally Seldom Never 2006 (n=297) 2008 (n=529) Social networking sites are being used more frequently now as an HR tool, than they were two years ago. 6

7 Figure 3: Usage of Online Search Engines as an HR Tool 30% 26% 29% 27% 21% 22% 23% 20% 16% 13% 12% 10% 10% 0% Always Frequently Occasionally Seldom Never Note: Percentages may not total 100% due to rounding (n=297) 2008 (n=533) Online search engines are being used more frequently now as an HR tool, than they were two years ago. 7

8 Figure 4: Average Number of Hours Spent per Week on Social Networking Sites Related to Recruiting and Screening Applicants 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 49% 51% 28% 24% 13% 10% 5% 6% 2% 3% 3% 3% 3% over 41 Number of Hours Recruiting Applicants (n=94) Screening Applicants (n=39) Note: Percentages may not total 100% due to rounding. A subset of participants were surveyed. Those who don t currently use social networking sites to screen or recruit job applicants were excluded. A few hours a week are spent recruiting and screening applicants on social networking sites. 8

9 Figure 5: Usage and Intention of Using Online Search Engines and Social Networking Sites to Screen Job Applicants at Any Point in the Hiring Process 80% 70% 67% 60% 53% 50% 40% 34% 30% 20% 10% 9% 18% 4% 2% 13% 0% No, we have never and do not plan to No, we have never, but plan to Yes, we did previously, but do not plan to again Yes, we currently use this online tool to screen applicants Online Search Engines (n=381) Social Networking Sites (n=388) Most organizations do not use online search engines and social networking sites to screen applicants. 9

10 Figure 6: Usage and Intention of Using Social Networking Sites to Recruit or Contact Potential Job Applicants n=371 No, we have never and do not plan to in the future 45% Yes, we currently use these sites to recruit/ attract potential applicants 34% No, we have never, but plan to in the future 19% Yes, we did previously, but do not plan to again in the future 3% 0% 10% 20% 30% 40% 50% Note: Percentages may not total 100% due to rounding. A subset of participants were surveyed. Those who don t currently use social networking sites to recruit job applicants were excluded. Close to one-half of organizations do not use social networking sites to recruit/contact applicants. 10

11 Figure 7: Methods Used on Social Networking Sites to Recruit or Contact Potential Applicants n=103 Search for passive recruits or applicants by using the social netw orking w ebsite's search feature 53% Both create a group or page w ith information about your organization and search for passive applicants using the social netw orking w ebsite's search feature 24% Create a group or page for your organization to post information and career opportunities 16% Other 7% 0% 10% 20% 30% 40% 50% 60% Note: A subset of participants were surveyed. Those who don t currently use social networking sites to recruit job applicants were excluded. For recruiting/contacting potential applicants, social networking sites are primarily used to search for passive applicants. 11

12 Figure 8: Points in the Hiring Process Where Social Networking Sites are Used to Screen Applicants Prior to actually contacting the applicant for the first time n=51 47% After initially contacting the applicant, but before offering a formal interview to the applicant 41% After offering a formal interview, but prior to extending an offer for employment to the applicant 37% After extending an offer for employment to the applicant 8% Other 6% 0% 10% 20% 30% 40% 50% Note: Percentages may not total 100% due to rounding. A subset of participants were surveyed. Those who don t currently use social networking sites to screen job applicants were excluded. Social networking sites are mainly used prior to contacting the applicant for the first time, prior to an interview and before extending a formal offer to the applicant. 12

13 Figure 9: Existence of a Formal Policy for Using Social Networking Sites to Screen Applicants n=471 No, there is no formal or informal policy at all with regards to use of these sites 72% No, there is no formal policy but there is an informal policy against use of these sites No, there is no formal policy but there is an informal policy allowing use of these sites 10% 13% Yes, formal policy against use of these sites 3% Yes, formal policy allowing use of these sites 2% 0% 10% 20% 30% 40% 50% 60% 70% 80% Most organizations do not have a formal policy regarding the use of social networking sites for screening applicants. 13

14 Figure 10: Intention to Implement a Formal Policy for Use of Social Networking Sites to Screen Applicants n=208 No, our organization does not have plans to implement a policy 89% Yes, our organization plans to implement a policy within the next 12 months. 11% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Note: A subset of participants were surveyed. Those who have a formal plan regarding the use of social networking sites were excluded. Most organizations don t plan to implement a formal policy for the use of social networking sites for screening applicants. 14

15 Figure 11: Job Levels Social Networking Sites are Used for to Recruit or Contact Potential Applicants n=125 Exempt/ Non-management (e.g., coordinator, specialist) 58% Middle management (e.g., director, manager, supervisor) 54% Non-exempt employees/ Non-management (e.g., assistant, secretary, retail. hospitality, etc.) 32% Executive level (e.g., CEO, CFO) 27% Consultants 15% 0% 10% 20% 30% 40% 50% 60% 70% Note: Percentages may not total 100% because multiple response options were used. A subset of participants were surveyed. Those who don t currently use social networking sites to recruit job applicants were excluded. Social networking sites are primarily used to recruit exempt/nonmanagement and middle management applicants. 15

16 Table 2: Effectiveness of Social Networking Sites for Recruiting Applicants at Each Job Level in the Past 12 Months Non-exempt employees/ Nonmanagement (e.g., assistant, secretary, retail, hospitality, etc.) (n=60) Exempt/ Non-management (e.g., coordinator, specialist) (n=86) Middle management (e.g., director, manager, supervisor) (n=75) Executive level (e.g., CEO, CFO) (n=52) Very ineffective Somewhat ineffective Neither effective nor ineffective Somewhat effective 10% 12% 40% 32% 7% Very effective 4% 11% 26% 49% 12% 4% 9% 23% 44% 20% 12% 14% 29% 31% 15% Note: Percentages may not total 100% because multiple response options were used. A subset of participants were surveyed. Those who don t currently use social networking sites to recruit job applicants were excluded. Social networking sites are effective in recruiting applicants of all job levels, they are most effective for exempt/non-management and middle management positions. 16

17 Figure 12: Why Organizations Use Social Networking Websites to Recruit or Contact Applicants n=125 Able to recruit passive applicants which might not otherwise apply or be contacted by your organization 69% Able to target a specific job level to recruit or contact (i.e., entry level, managers, executives, etc.) Can target applicants with a very specific set of skills To increase employer brand and recognition Able to target a specific geographic region in which to recruit applicants Allows for potential applicants to easily contact your organization about employment Results in more qualified applicants relative to the amount of time and effort invested Able to identify potential applicants in other geographic regions Results in a large quantity of applicants relative to the amount of time and effort invested To create an online community focused on my organization Allows for effective dissemination of job and organization related information 40% 38% 35% 31% 29% 27% 25% 20% 18% 18% Other 3% 0% 10% 20% 30% 40% 50% 60% 70% Note: Percentages may not total 100% because multiple response options were used. A subset of participants were surveyed. Those who don t currently use social networking sites to recruit job applicants were excluded. The number one reason social networking sites are used is to recruit passive applicants who might not otherwise apply or be contacted by an organization. 17

18 Figure 13: Why Organizations Do Not Use Social Networking Websites to Recruit or Contact Applicants n=246 Do not have enough HR staff time to use this recruiting method in addition to others 49% Questions about the veracity of the information contained in these pages 42% Social netw orking sites do not have applicants at the job level which we are targeting Results in less qualified applicants relative to the amount of time and effort invested Results in a smaller quantity of applicants relative to the amount of time and effort invested HR staff does not have the know ledge or skills to recruit using this method 22% 21% 21% 19% Other 15% 0% 10% 20% 30% 40% 50% 60% Note: Percentages do not total 100% because multiple response options were used. A subset of participants were surveyed. Those who currently used social networking sites to recruit job applicants were excluded. Other includes reasons such as IT restrictions on these sites, legal ramifications for using these sites and having not considered using them as an option. Not having enough staff time to recruit via social networking sites and questions about the veracity of the information obtained, prevents organizations from using such sites for recruitment purposes. 18

19 Figure 14: Why Organizations Use Social Networking Websites to Screen Applicants n=51 Takes little time and effort in relation to information gained 51% Able to obtain more information about an applicant than would be provided by just a resume, cover letter, or CV 49% Able to easily verify information from an applicant's resume, cover letter, or CV 26% Able to assess whether the applicant is a good fit with the organization 26% Able to assess the applicant's work related potential or performance 20% Less expensive than other methods of screening applicants 16% Other 16% 0% 10% 20% 30% 40% 50% 60% Note: Percentages may not total 100% because multiple response options were used. A subset of participants were surveyed. Those who don t currently use social networking sites to screen job applicants were excluded. Other includes reasons such as discovering the applicant s character. Social networking sites are used for screening because compared to the information that is gained little time/effort is needed and more information is gained about an applicant than through traditional methods. 19

20 Figure 15: Why Organizations Do Not Use Social Networking Websites to Screen Applicants n=337 Questions about the legality of the process 54% Not able to verify w ith confidence information from an applicant's profile 43% Concerns about unethically invading the privacy of applicants 40% Information about applicants taken from these sites is not relevant to their w ork related potential or performance 36% Information about applicants taken from these sites is not relevant to w hether they w illl be a good fit w ith the organization 26% Takes too much time and effort in relation to information gained. 19% Other 16% Applicants might be less likely to apply if they knew your organization screened applicants in this manner. 9% N/A - Organization does not screen applicants in any manner w hatsoever 4% 0% 10% 20% 30% 40% 50% 60% Note: Percentages do not total 100% because multiple response options were used. A subset of participants were surveyed. Those who currently used social networking sites to screen job applicants were excluded. Questions about the legality of using social networking sites and not being able to verify the information on applicant s profile pages with confidence prevents organizations from using such sites for screening purposes. 20

21 Figure 16: Percentage of Organizations Collecting Data on Quality/Quantity of Candidates Sources Through Various Methods 80% 70% 71% 60% 61% 50% 40% 39% 30% 29% 20% 10% 0% No Number of Qualified Candidates (n=381) Yes Quality of Qualified Candidates (n=372) More organizations track the number of qualified candidates sourced through various methods rather than the quality of qualified candidates. 21

22 Table 3: Comparison in Quality of Applicants Recruited From Social Networking Sites and Other Sources Direct hire agencies/ search firms (excluding temp agencies) (n=75) Much worse Somewhat worse Neither worse nor better Somewhat better Much better 7% 28% 43% 13% 9% Regional online job boards (n=74) 3% 14% 51% 24% 8% Internal job postings (n=82) 9% 26% 44% 20% 2% Radio advertising (n=41) 0% 7% 63% 22% 7% Open house events (n=57) 9% 12% 53% 18% 9% Print advertising (n=72) 4% 15% 36% 24% 21% Industry-specific/ niche online job boards (n=84) 8% 18% 46% 19% 8% Informal networking (n=83) 6% 23% 49% 11% 11% Temporary agencies (n=66) 3% 17% 38% 21% 21% Trade publications (print & online) (n=65) 5% 15% 49% 20% 11% Research/ sourcing firms (n=74) 1% 24% 50% 14% 11% 22

23 Table 3: Comparison in Quality of Applicants Recruited From Social Networking Sites and Other Sources (continued) National online job boards (e.g., careerbuilder.com, hotjobs.com etc.) (n=85) Career section of organization s websites (n=86) Much worse Somewhat worse Neither worse nor better Somewhat better Much better 4% 20% 42% 24% 11% 9% 21% 49% 14% 7% Employee referrals (n=85) 15% 37% 33% 9% 6% Job fairs (n=79) 4% 17% 48% 20% 11% Online college recruiting (n=64) 6% 9% 56% 23% 5% On-campus college recruiting (n=66) 11% 24% 38% 20% 8% TV advertising (n=40) 3% 5% 68% 15% 10% Note: Row percentages may not total 100% due to rounding A subset of participants were surveyed. Those who don t currently use social networking sites to recruit job applicants were excluded. The quality of applicant s recruited from social networking sites is predominantly neither worse nor better than other recruiting methods. 23

24 Figure 17: Do Applicant's Social Networking Site Profiles Provide Important Information About an Applicant's Work Related Potential or Performance? n=402 Strongly disagree 16% Somewhat disagree 24% Neither agree nor disagree 30% Somewhat agree 27% Strongly agree 3% 0% 10% 20% 30% 40% Three out of 10 recruiters agree that examining an applicant s profile can provide important information about their work related potential or performance. 24

25 Figure 18: Do Applicant's Social Networking Site Profiles Provide Important Information About Whether or Not an Applicant is a Good Fit for an Organization? n=400 Strongly disagree 11% Somewhat disagree 19% Neither agree nor disagree 31% Somewhat agree 36% Strongly agree 4% Note: Percentages may not total 100% due to rounding. 0% 10% 20% 30% 40% Four out of 10 recruiters indicate that examining an applicant s profile can provide important information about whether or not an applicant is a good fit for an organization. 25

26 Figure 19: Organizational Industry n=403 Organizational Industry Services (profit) 15% Health 13% Manufacturing (durable goods) 7% Finance 7% Educational services 6% Government 5% Wholesale/retail trade 4% Manufacturing (nondurable goods) 4% Insurance 4% High-tech 4% Construction & mining/oil & gas 3% Transportation 3% Services (nonprofit) 2% Telecommunications 2% Utilities 2% Newspaper publishing/broadcasting 1% Other 18% Note: Percentages do not total 100% because multiple response options were used. Source: SHRM Staffing Research: Online Technologies and Their Impact on Recruitment Strategies (2008, July - September) Several industries were represented, especially services (profit) and health. 26

27 Figure 20: Organizational Sector n=402 Privately owned for profit 41% Publically owned for profit 28% Nonprofit organization 18% Government sector 10% Other 3% 0% 10% 20% 30% 40% 50% Most organizations that participated in the survey were either privately owned for profit or publically owned for profit. 27

28 Figure 21: Organization Staff Size n=386 Large (500 and more employees) 50% Medium ( employees) 30% Small (Fewer than 100 employees) 20% 0% 10% 20% 30% 40% 50% 60% One-half of organizations that participated in the survey had more than 500 employees. 28

29 Methodology In May 2008, SHRM conducted a survey about the use of social networking web sites and recruitment. A sample of 3,000 HR professionals with the job function of recruiting/staffing was randomly selected from the SHRM membership database, which consisted of more than 225,000 members at the time the survey was conducted. Of these, 2,797 s were successfully delivered to the recipients, and 571 HR professionals responded, yielding a response rate of 20% (the number of respondents is indicated by n in figures and tables). 29