Social Media Recruiting

Social Media Recruiting The Advantages Of Using Web 2.0 To Source The Right Employees. Bachelor Thesis Business Administration Submitted by Teresa Nothelle Matriculation Number: 294434 Date of submission: 24. February 2014 Supervisors: Mr. John C. Davis Prof. Dr. Christian Noss

Abstract 2 Abstract The war for talents is in full effect. Companies have to deal with the consequences of acute shortage of skilled personnel, changes in technology, and a new generation that is entering the working world. Therefore, companies have to find new creative and proactive ways to source employees. Social media recruiting is becoming more and more important to survive in this fight for talent. This thesis presents an overview of the possibilities and risks that recruiting through social media provides.

Table of contents 3 Table of contents Abstract... 2 Table of contents... 3 List of figures... 5 List of tables... 5 List of abbreviations... 6 1 Introduction... 7 2 Definitions... 10 2.1 Web 2.0... 10 2.2 Internet based recruitment (E-recruiting)... 11 2.3 Social Media & Social Media Recruiting... 11 3 Historical perspective... 13 4 Current situation... 16 4.1 Demographic changes & acute shortage of skilled personnel... 17 4.2 Globalization... 18 4.3 Changes in technology... 19 4.4 Generation Y / Digital Natives... 19 5 Professional social media recruiting sites... 22 5.1 Xing... 22 5.1.1 Basic membership... 23 5.1.2 Fee-required functions... 24 5.2 LinkedIn... 26 5.2.1 Basic membership... 27 5.2.2 Fee-required functions... 28 5.3 Absolventa... 29 6 Other social media sites... 30 6.1 Facebook... 30 6.2 Blogs... 32 6.3 Twitter... 34 6.4 YouTube... 36 7 How to use social media recruiting... 38

Table of contents 4 7.1 Status Quo... 38 7.2 Defining goals... 39 7.3 Internal decisions... 39 7.4 Choosing the right social media platforms... 40 7.5 Developing a community... 40 7.6 Effort and costs... 41 7.7 Measuring success... 42 8 Opportunities and Risks... 44 8.1 Opportunities... 44 8.2 Challenges & Risks... 46 9 Conclusion... 49 9.1 Summary... 49 9.2 Outlook... 50 9.3 Final remark... 51 Bibliography... 53 Eidesstattliche Erklärung... 55

List of figures 5 List of figures Figure 1: Development of recruiting... 14 Figure 2: Reasons for new challenges in recruiting... 16 Figure 3: Development of labor force potential... 17 Figure 4: Generation Y & working population... 20 Figure 5: Social Media tools used for recruitment... 22 Figure 6: Example of a Xing profile... 24 Figure 7: Xing job ad packages... 25 Figure 8: Job seekers who use LinkedIn... 27 Figure 9: Example of a LinkedIn profile... 28 Figure 10: Absolventa options for companies... 29 Figure 11: Job seekers who use Facebook... 30 Figure 12: Example Daimler career fan page... 32 Figure 13: Job seekers who use Twitter... 34 Figure 14: Using Twitter for recruiting... 35 Figure 15: Example Daimler career Twitter account... 36 Figure 16: What will employers spend more money on?... 41 Figure 17: What will employers spend less money on?... 42 Figure 18: Social media accounts of fortune global 100 companies... 44 Figure 19: Recruiting trends of the next 10 years... 51 List of tables Table 1: Differences of generations... 21 Table 2: Advantages through Xing... 26 Table 3: Factors to consider before using SMR... 38

List of abbreviations 6 List of abbreviations CV E-mail E-recruiting et al. etc. e.g. HR HRM IAB ICR i.e. IT SMR U.S. WWW Curriculum Vitae electronic Mail electronic recruiting et alii (and others) et cetera exempli gratia (for example) Human resources Human Resource Management Institut für Arbeitsmarkt- und Berufsforschung Institute for Competitive Recruiting id est (that is to say) information technology social media recruiting United States of America World Wide Web

1 Introduction 7 1 Introduction Companies are facing many challenges, but also new opportunities when it comes to recruiting in today s day and age. The World Wide Web and an increased shortage of skilled personnel are two of the main trends that lead to these new conditions (Weitzel et al. 2012: 3). Thus, it is inevitable that companies have to compete with each other to find and recruit new talent. A war for talents has begun. Only those firms that successfully appear as attractive employers, and apply all available personnel recruiting means to their fullest, will be able to survive this crisis. The access of a new generation (Generation Y) into the working environment also adds to the challenges companies are facing. It is necessary for employers to understand the needs and expectations of this new generation (Pastowsky 2011: 60). About twenty years ago, the web started expanding in almost all private and business spheres of life. New opportunities arose for communication, marketing strategies, art, journalism, and media consumption, and of course, for the recruitment of new employees. New ways opened up for companies and candidates alike, and both sides are still learning every day about the new opportunities that are out there (Weitzel et al. 2012: 3). However, there is no doubt that nowadays, social media recruiting (SMR) on platforms such as Facebook, LinkedIn, and Twitter is becoming more and more important for companies to compete for talents. Many firms are in the process of figuring out how to use the advantages of social media in their hiring process. According to the Social Media Report 2013, conducted by the Institute for Competitive Recruiting, every 10 th position is currently being filled with the help of social media. Social media has become the 3 rd most important source to find future employees (Social Media Recruiting Report 2013: 6). For recruitment, social media can be helpful in several ways. Firms can use social media to actively look for new employees, on networks like Xing or LinkedIn, but it can also be used to improve the image of a company and, therefore, increase its attractiveness as an employer. Furthermore, social media is an effective way to raise the quantity and quality of applications.

1 Introduction 8 Using these new channels to source employees is a key factor to compete in the war for talents because in the future it will be the other way around: companies will have to apply to the qualified candidates and candidates have the power to choose where they want to work. Social media recruiting is not a hype or new trend, which is about to disappear again. Its time is only just beginning. This thesis aims to give the reader an idea of what social media recruiting actually is and why it is relevant in the context of Human Resources. The topic is still relatively new and many firms have not realized just yet, how social media can be helpful for recruitment. Therefore, we are going to take a closer look at some of the most popular social media sites and discuss how companies should use them in their recruiting process. Furthermore, the author will consider the opportunities and risks that this modern technology entails. According to the above-mentioned goals, this thesis is divided into nine chapters. The first chapter starts off with a short introduction of the topic and then continues with the goals and structure of the thesis. In the next chapter, the reader will get to know some of the most important terms regarding social media recruiting through definitions. Since there have been significant developments, we will look at the historical development of recruiting over the past 20 years. We will see how recruiting changed over the years from post & pray to active sourcing. The current situation is the focus of chapter four. Here, we discuss which factors lead to companies having to focus on creative new ways in their recruiting process. Demographic changes, changes in technology, and a new generation of employees are all being discussed in this chapter. In chapter five, we take a closer look at the professional recruiting sites LinkedIn, Xing, and Absolventa. We will get an impression of how these sites work and what advantages they offer. Other social media sites, which can also be used to source employees, are reviewed in chapter six. This means, of course, looking at Facebook and Twitter, but also at YouTube and Blogs.

1 Introduction 9 The next chapter gives suggestions on how firms should go about implementing social media in their recruitment process. The author gives some ideas on what companies should consider before using SMR. Hereafter, the thesis continues with the opportunities social media recruiting offers and then a look at the challenges and risks companies that are using SMR have to face. The last chapter summarizes what has been established in this thesis. Here, we will also take a look at the future of social media recruiting and end the thesis with a final remark.

2 Definitions 10 2 Definitions To further discuss the topic of social media recruiting, its advantages and disadvantages, as well as the ways companies can apply it to source employees; it is necessary to start off by defining some of the terms that are commonly used in this context. 2.1 Web 2.0 The age of Web 2.0 started around the year 2004 (Weitzel et al. 2012: 3). Tim O Reilley minted the term during a brainstorming session that year. O Reilly is considered to be a leading figure of Web 2.0 (Rath & Salmen 2012: 32). He defined Web 2.0 as following: Web 2.0 is the network as platform, spanning all connected devices; Web 2.0 applications are those that make the most of the intrinsic advantages of that platform: delivering software as a continually-updated service that gets better the more people use it, consuming and remixing data from multiple sources, including individual users, while providing their own data and services in a form that allows remixing by others, creating network effects through an architecture of participation, and going beyond the page metaphor of Web 1.0 to deliver rich user experiences. (Source: Tim O Reilley on Radar.oreilley.com) One could say that Web 2.0 brings the Internet to the next level. Free live software allows the user to participate actively in activities on the Internet. Programming skills are no longer necessary to take part in shaping the web. Content and information can now be continuously modified by all users (Rath & Salem 2012: 32, Kaplan & Haenlein 2010: 61). The term Web 2.0 sums up all new trends and technologies the web has to offer. It does not refer to a specific technical update and it is not a new version of the Internet (Kaplan & Haenlein 2010: 61). Thus, a significant change through Web 2.0 has been that the human being is placed at the center of all activities. Where before, the user was only passively consuming content on the Internet, now it is possible for the user to enrich the web through his usergenerated content. This results in an enormous reach of the content- almost everyone can participate in the online world (Rath & Salem 2012: 32).

2 Definitions 11 For this thesis, it is important to understand that Web 2.0 can be seen as the platform and technological foundation for social media. (Kaplan & Haenlein 2012: 61) 2.2 Internet based recruitment (E-recruiting) Due to the Internet, the process of personnel recruitment has changed completely from both the company s and the applicant s perspective. E-recruiting is short for electronic recruiting, and comprises all recruitment measures that are based on electronic media (Dannhäuser 2014: VI). This includes HR-marketing, the use of online job portals, the way a company presents itself online, placing job ads on the corporate website, etc. (Rath & Salmen 2012: 220). In E-recruiting, job applications are handled in digital form and communication is done mainly via E-mail. Systems which administer application-data and help with posting job ads through the company website are also part of E-recruiting. Ideally, the whole recruitment process is managed electronically (Cooper & Robertson 2003: 132-133). Hence, social media recruiting and E-recruiting are not the same thing. One could say that SMR is a variety of E-recruitment and more companies are presently using it to increase their attractiveness as employers (Rath & Salmen 2012: 36). 2.3 Social Media & Social Media Recruiting In the Oxford dictionary, social media is defined as: Websites and applications that enable users to create and share content or to participate in social networking. (Source: Oxforddictionaries.com) The idea behind social media is rather simple. Let us start with the word social, which comes from the Latin term socius and means collectively, adjunctive, ally. This is basically what social media is about- collectively sharing information, opinions, and experiences with others on the Internet (Bärmann 2012: 20). Social media can be seen as an online communication platform for users, which is based on the technical elements of Web 2.0. Sharing user-based content is made easy and virtual communities and relationships are formed (Rath & Salmen 2012: 34). Moreover, social media embodies the need for people to exchange ideas and participate

2 Definitions 12 in the life of others. When using social media, the borders between private life and work life seem to disappear. Not only are networks and communities social media, it also includes all types of online platforms and websites that allow users to share, assess, and spread information. So when we speak of social media, we are not only referring to networks like Facebook, Xing, and LinkedIn, but also to Blogs, Twitter, YouTube, Flickr, Slideshare and many other sharing platforms (Bärmann 2012: 20). Social media allows communication in real time. Users expect to get answers and reactions fast. Busemann and Gscheidle (2011: 361 362) divide social media into the following forms. Some of these social media sites will be discussed in more detail in chapters five and six. Social Networks: There are professional networks, e.g. LinkedIn and Xing and there are other networks that are mainly used for private purposes, e.g. Facebook and StudiVZ. Especially social networking sites, such as Facebook, LinkedIn, and Twitter, have become widely popular. Weblogs: Are usually called blogs and are public online diaries. They include experiences, opinions, and thoughts and are continuously updated (Bärmann 2012: 132). Online encyclopedias: Are an opportunity to share knowledge online. Picture communities: Users can look at, share, and comment on pictures. Video portals: YouTube for example, can be used to upload and share Videos. Micro blogs: They are usually much shorter than regular blogs. Twitter is the most popular micro blogging site (Bärmann 2012: 104). Thus, social media recruiting is the process of companies using some or all of the above-mentioned tools to source new employees. The active participation of existing employees, through sharing personal impressions and experiences from their everyday work life, is crucial for this kind of recruitment (Bärmann 2012: 36).

3 Historical perspective 13 3 Historical perspective When it comes to recruiting, a lot has changed over the last 20 years. Most importantly, the way companies and applicants communicate has changed fundamentally. And this is mainly due to the rapid development of the Internet and Web 2.0 (Dannhäuser 2014: XI). When we take a look back at the 1990s, the way companies were sourcing employees for their vacant positions was much different from today. Usually, if a company had to fill a vacancy, it would publish a printed job ad in a newspaper and then receive paperbased applications from interested candidates. Print-ads were usually published every Saturday and the company received the first applications via mail a few days later. The whole application process took much longer than today. Back then, there were usually hundreds of applications coming in for each position and the company just had to choose one applicant out of the many qualified ones (Weitzel et al. 2012: 5, Rath & Salmen 2012: 29). A big disadvantage of those paper-based applications was that the physical archives were hard to sort through and only accessible to few recruiters (Erlat 2012: 1). At that time, it was almost impossible for an applicant to know anything about the organizational atmosphere of the firm he was applying to beforehand. Only if the candidate knew someone who worked there or went to a job fair, he could get some insight. However, once a new employee started working for a company, he would stay there for at least two years, even if he did not feel comfortable. The mentality back then was different- if you left a company right away, it looked bad and you were labeled as a failure (Rath & Salmen 2012: 29). Today, it is much different, as we will further discuss in chapter four. Then, in the late 90s, the Internet became more relevant and more accessible and firms started posting available positions on their corporate websites. This development led to the creation of job portals within corporate websites (Weitzel et al. 2012: 5, Erlat 2012: 1). Although the Internet helped to make the recruiting process more transparent and quicker, back then it was still a one-sided communication from the company s point of view. The company decided which facts to post on their career website and what information to share with interested users (Rath & Salmen 2012: 30).

3 Historical perspective 14 At that time, the trend of professional online job portals (e.g. monster.de, StepStone.de) also started. These portals had a much greater reach than print media. If a company posted a job ad on one of these online job portals, it received significantly more resumes than before. These resumes were then saved and organized in databases, which made them easily accessible and available for different recruiters (Weitzel et al. 2012: 5, Erlat 2012: 1). The Internet made it possible for firms to post a job ad and then receive online applications for that same position within hours of posting it. This was the beginning of E- recruiting. As already explained in chapter two, E-recruiting includes all Internet-based measures of contacting, selecting, hiring, and processing applicants. (Rath & Salmen 2012: 30). In 2004, job aggregators improved the way candidates could search for jobs by compiling online job boards. That same year, Web 2.0 was born. It allows users to react promptly and participate in the knowledge and information of others. (Erlat 2012: 1, Rath & Salmen 2012: 32). Web 2.0 made social media sites like Xing and Facebook possible and today, recruiters are using not only corporate websites and job portals, but also these social media sites to recruit new employees. Nowadays, the web is filled with millions of users and recruiters are becoming more aware of the importance of social media to source employees. Figure 1 illustrates the described development of recruiting. Figure 1: Development of recruiting (Source: Weitzel et al. 2012: 7)

3 Historical perspective 15 Through the history of recruiting, there has also been a shift in the power of the employer. In the past, companies had the power to pick and choose employees they favored from a large quantity of qualified applicants. Today, because of an acute shortage of skilled personnel, the power has shifted to the qualified candidate, who now has the power to pick where he would like to work (Dannhäuser 2014: 1). This leads to a fight for the best employees between companies. Recruiting, in the future, will be much more focused on building a relationship with the candidate as well as active sourcing of talent. The way firms recruit is shifting from post & pray, where companies post a job ad, wait for applications to come in, and then choose the best applicant, to candidate relationship management (Dannhäuser 2014: 388). There is a need for companies to focus on attracting and identifying talent, and subsequently engaging and convincing these qualified candidates.

4 Current situation 16 4 Current situation The days of only placing an ad in a local newspaper to find new talent are gone. In todays fast paced environment almost everything is done online, even the recruitment of employees. E-recruiting has become standard (Rath & Salmen 2012: 30). Furthermore, there have never been greater challenges for companies concerning their most important resource personnel, and that is mainly due to the causes we will discuss in this chapter. Figure 2 gives an overview of these causes. These challenges make it necessary for companies to start focusing on social media recruiting. It has become critical for firms to be more creative and more proactive in their hiring process (Dannhäuser 2014: 1). An indication for a more proactive recruiting approach of companies is that, compared to 2010, almost twice as many employers (now 50%) are using social media to search for potential candidates (Social Media Recruiting Report 2013: 6). Demographic changes & acute shortage of skilled personnel Generation Y Globalization SMR Changes in technology Figure 2: Reasons for new challenges in recruiting (Source: own figure)

4 Current situation 17 4.1 Demographic changes & acute shortage of skilled personnel Demographic changes will bring new challenges for companies regarding their recruiting process. In the next years, the structure of our society will change drastically. There will be a decline in population growth and at the same time our society will become older, which means there will not be as many skilled workers available on the labor market (Rath & Salmen: 2012: 24). The structure and scope of the population change continuously through demographic events, such as fertility, mortality, and migration. This means structural changes of the population depend on the ratio of number of births to mortalities as well as the balance of immigration and migration (Bollwitt 2010: 13). The Institut für Arbeitsmarkt und Berufsforschung (Labor Market and Occupational Research, IAB) expects a significant decrease of the labor force potential in Germany by 2015. This decrease cannot be compensated by migration or by an increase of participation rates, especially among women. Moreover, this trend will continue in the following years and lead to a continuously declining labor supply (Fuchs et al., 2011: 1). Forecasts say that between 2010 and 2025 the working population will decrease by 6.3 million people. By 2050, we may even be facing a decrease of 17.68 million people (Bollwitt 2010: 11, Bärmann 2012: 13). Figure 3 illustrates these developments. Although these forecasts are, so far, just calculations and predictions and include a fair level of uncertainty, experts agree that our society will shrink and age noticeably. 50 40 30 Labor force potential 20 Labor force potential 10 0 2010 2015 2020 2025 2030 2035 2040 2045 2050 Figure 3: Development of labor force potential (Source: own graph based on IAB 2011:3)

4 Current situation 18 Another development which has to be taken into consideration, is the expected increase of positions for professionals and university graduates by 2020, amid a decrease of positions for unskilled workers (Bollwitt 2010: 19). Already there are some companies who are having trouble filling their vacant positions with qualified employees. This is especially true for positions in IT or engineering. In 2011, there were 10.000 vacant positions in IT-departments and more than 100.000 in engineering. (Bärmann 2012:13). However, this situation will become much more intense in the future. For this reason, the so-called "war for talents" is a problem firms have to face. The term war for talents expresses how intensely companies compete for highly qualified applicants. To sum it up, existing and future narrow passes in the area of qualified personnel recruiting demonstrate that the demographic change has to be seen as the major challenge in the field of occupational recruitment. It is necessary for companies to figure out strategies to handle these circumstances. Focusing on new recruitment strategies, like social media recruiting, can be helpful during this trying time. 4.2 Globalization In recent decades, globalization of the business world has gotten an immense boost. To this extent unprecedented global economic activities, such as increasing global production and distribution and a large number of strategic alliances, can be observed. The globalization trend has intensified the internationalization of labor markets and labor force (Sandner 2006: 17). Also, workforces and customers are becoming more diverse. This increases the pressure on firms to have international reach, international employees, and to hire the best talent from all over the world. On top of that, globalization adds to the intensity of competition between companies. To approach skilled workers from different countries, employers use the advantages of Web 2.0. Social media makes it significantly easier for companies, as well as potential employees from different countries, to get in touch and communicate (Griesbeck 2005: 50).

4 Current situation 19 4.3 Changes in technology As already mentioned, there have been notable changes in the recruitment process over the past 20 years. Most of these changes are due to continuous developments in information- and communication-technology. Web 2.0 poses a great challenge to recruitment, but simultaneously a great chance. Several years ago, it was only possible for companies to create content and post information on the Internet. Thus, the user could only find very one-sided information. That was back when Web 1.0 was standard (Kaplan & Haenlein 2012: 62). Today, people deal with information in a whole new way. Through the development of Web 2.0, firms have lost control over what material is being spread. With just a few clicks on the Internet, applicants can now get extensive amounts of information about the company they wish to apply to. The online image of the company is growing into the most important advertisement (Bärmann 2012: 14). As already mentioned, new technology has made it easy for users to participate in the online world. What used to be complicated processes are now possible to do for almost everyone. An unbelievable amount of information has developed on the web. Also, through modern technology, a lot of old communication channels have lost their importance because they have become too one-dimensional for the new generation. For example, printed ads are no longer as valuable as they used to be (Bärmann 2012: 14). These continuous changes in technology have played a great part in making social media recruiting as meaningful as it is. Without the progress and technology of Web 2.0 this new world of recruiting would not be possible or necessary. In chapter eight, we will discuss in detail, which opportunities these changes in technology bring. We will also take a critical look at these developments. 4.4 Generation Y / Digital Natives Apart from the already discussed demographic changes and changes through new technology, another reason social media is so important for present day Human Resource Management is the new generation of employees entering the working world right now: the so-called Generation Y (Bärmann 2012:21). Figure 4 shows how Generation Y is fast becoming the majority of the working population.

4 Current situation 20 Figure 4: Generation Y & working population (Source: U.S. Bureau of the Census, via jobvite.com) People who were born between 1980 and 2000 are part of the Generation Y (Arnold 2012: 20). The idea behind the expression Generation Y is, on the one hand, clearly chronological, as it is the next generation after Generation X. Members of Generation X were born between 1965 and 1979. On the other hand, Generation Y can stand for Generation Why, because this generation has a new way of thinking and it questions the traditional mentality in the workplace (Rath & Salmen 2012: 37, Dannhäuser 2014: 5). This generation, also called Digital Natives or Millennials, has grown up with the Internet, with Google, Blogs, and Social Networks (Bärmann 2012: 21). They take the Internet and all of its possibilities for granted and know exactly how all of these channels work. Because of these Digital Natives, old recruiting methods, like publishing printads, are becoming less and less meaningful (Arnold 2012: 21). For employers it has become a great challenge to understand Generation Y s new way of thinking, their values, and their behavior pattern (Bärmann 2012: 15). This generation of employees can accomplish high performances, but only if they are motivated (Arnold 2012: 20). Because they have grown up with video games and computers, most Digital Natives have a quick wit and are able to multitask. Moreover, they value freedom in their decisions in the workplace more than high salaries. Work-lifebalance is a crucial factor for members of Generation Y when choosing a job (Bärmann 2012: 16).

4 Current situation 21 This generation is more open to new challenges, they communicate more honestly and freely, and they are always connected and available. They are also rather highmaintenance, because they know their worth in today s labor market (Dannhäuser 2014: 5). Of course, not all members of this generation are naturally talented when it comes to technology and the Internet. However, there are many high potential candidates that belong to the generation of Digital natives and their expectations differ from other generations, who are currently still part of the working population (Rath & Salmen 2012: 38). Table 1 gives an overview of the basic views and values of the different generations, who are currently part of the working population. Veterans Baby boomers Generation X Generation Y (1900 1945) (1946 1964) (1965 1979) (1980-2000) Internet no knowledge good technical knowledge, pro Internet good knowledge of the Internet Internetgeneration Workplace hard work, hard-working, independent, multitasking, values respect, author- efficient work- skeptic, prefer tolerant, entre- ity, rules ing, quality- structure preneurs, goal- oriented oriented View on work obligation adventure contract fulfillment Way of communicating formal letter in person direct E-mail or phone Table 1: Differences of generations (Source: own table based on Rath & Salmen 2012: 39) These days, it is a must for employers to try to understand and make avail of these highly motivated, confident, and well-educated candidates of Generation Y. Companies must find ways to attract these talents and keep up with their expectations of a modern workplace.

5 Professional social media recruiting sites 22 5 Professional social media recruiting sites In this chapter, we will now introduce three professional recruiting sites that are currently used by companies and candidates alike. These sites are well on their way to becoming a substitute for online job portals. A study conducted by the Institute for Competitive Recruiting shows which social media tools are used by companies for recruiting, as shown in figure 5. Xing is by far the most used tool for recruiting. Figure 5: Social Media tools used for recruitment (Source: ICR Social Media Recruiting Report 2013, 600+ participants) 5.1 Xing When speaking of recruitment through social media, the professional networks Xing and LinkedIn quickly come to mind. These networks are often used to find work-related contacts and keep in touch with business partners. Xing went live in 2003 under the name Open Business Club (Arnold 2012: 101).

5 Professional social media recruiting sites 23 In German-speaking countries, Xing is so far the number one professional recruiting network, with 6.7 million members in Germany, Austria, and Switzerland as of September 2013 (Xing.com). Worldwide, there are currently 14 million members using Xing (Xing.com). Its target group is job seekers between the ages of 31 and 50 (Rath & Salmen 2012: 114). Xing is mostly used by candidates with working experience and not so much by recent graduates. 94.7 percent of its members already have working experience (Bärmann 2012: 48). Xing is trying to change this fact by obtaining cooperations with universities. Xing offers a multitude of possibilities for companies and candidates to communicate. With the help of this network, recruiters are able to reach candidates that are not actively searching for job opportunities. This is a big advantage compared to job portals that are usually only accessed by users looking actively for a job (Dannhäuser 2014: 19). There are four areas Xing (and most other social media sites) can be used for (Dannhäuser 2014: 21): 1. To publish job ads. 2. For active sourcing. 3. For Employer Branding (Image). 4. To find more information on already identified candidates. 5.1.1 Basic membership Xing members can choose between a free basic membership and a premium membership, which costs 6,35 a month and includes an extended search function, an ad free profile, and other advantages (Xing.com). All profiles of members include a profile picture, personal information, and different categories where members can list what they are looking for and what they have to offer. Figure 6 shows an example of what a Xing profile looks like. On their profile, members list information about their knowledge, skills, and their working experience. Moreover, they are stating whether or not they are currently interested in new job opportunities. They also have the possibility to create a short cut to their company career page, which is especially interesting for recruiters. (Arnold 2012: 101, Rath & Salmen 2012: 114).

5 Professional social media recruiting sites 24 With the help of many different search filters, recruiters can search for candidates based on different criteria, such as their skills, working experience, or location. On Xing, it is not inappropriate to contact members with job offers because that is what the platform is for. However, companies need to make sure the job offer matches the candidate s profile, so the candidate does not get the impression that it is just a mass mail (Arnold 2012: 103). Since Xing is mainly meant as a platform for communication, there are groups where members can interact with regard to various work-related topics. These groups can also be a chance for companies to get in touch with talents or keep in touch with former employees (Trost 2012: 83). Further, recruiters can use status updates to call attention to current job offers. All of these options are free of charge and increase the distribution of job offers. Figure 6: Example of a Xing profile (Source: Xing.com) 5.1.2 Fee-required functions As previously mentioned, Xing offers a premium membership with extended search functions.

5 Professional social media recruiting sites 25 However, to publish job offers through Xing, there are different packages firms can purchase. As shown in figure 7, these packages range from basic job ads, which cost 79 cent per click, to professional job ads in corporate design, which cost 595 Euros for 30 days. Figure 7: Xing job ad packages (Source: Xing.com) Not only that, but companies also have the possibility to purchase a recruitermembership, called Talentmanager, which is very helpful for recruiters who are constantly looking for new employees. This feature offers certain tools to research, find, and recruit new employees (Bärmann 2012: 49). Xing Talentmanager gives the recruiter the option of a much more defined search function with many additional filters, plus it shows profiles of potential matches, without the recruiter having to click on them. There are several other functions that this recruiter account offers companies, like faster communication with candidates, and the price for a Talentmanager membership is still less than buying one ad from a job portal like monster.de (Rath & Salmen 2012: 116). Companies additionally have the option of creating a career page on Xing. This is a special, fee-required offering, but it is a great possibility for Employer Branding (Arnold 2012: 103). To sum it up, there are certainly advantages that recruiting with Xing offers. Table 2 gives on overview of these advantages.

5 Professional social media recruiting sites 26 Candidate view: The candidate is being offered jobs without having to actively search Xing shows possible job matches Xing shows jobs from the direct network, word-of-mouth advertising Candidates can get in touch with recruiters directly and easily Company view: Reaching active and passive potential candidates Finding information on continuously updated profiles More genuine feeling than regular CV More informal, candidates are more comfortable and therefore more authentic Table 2: Advantages through Xing (Source: own table based on Dannhäuser 2014: 21) If a company intends to do active sourcing exclusively in German-speaking countries, then Xing is probably the best network to use. However, if a company wants to find talent in other countries, it should use LinkedIn on top of that. 5.2 LinkedIn Demographic changes and globalization make it necessary for companies to be proactive and include international talents in their search. LinkedIn is suitable for communication with internationally oriented candidates. LinkedIn launched in 2003 and currently has 277 million members in over 200 countries (LinkedIn.com). In German-speaking countries, LinkedIn has about 4 million members as of September 2013 (LinkedIn.com). It is the biggest online business network worldwide. Just like Xing, LinkedIn can be used through a personal profile that allows the user to find new business contacts, get relevant news, and communicate with other members and experts (Dannhäuser 2014: 93). Figure 8 takes a closer look at job seekers who are using LinkedIn. It shows that most of them are between the age of 25 and 44 (63 percent).

5 Professional social media recruiting sites 27 Figure 8: Job seekers who use LinkedIn (Source: Job seeker nation, Jobvite 2010) 5.2.1 Basic membership LinkedIn and Xing are rather similar in the way they function and the way they can be used. LinkedIn, like Xing, can be used as a database for candidates and it is evolving into a job portal (Dannhäuser 2014: 93). As a member, you automatically have a profile that you can individualize with a profile picture and relevant information, e.g. skills and working experience, as shown in figure 9. On LinkedIn, however, it is not possible for every member to see every profile. You can only see the full profiles of people who are connected to you directly or to your contacts. This also means that you cannot get in contact with just anyone; you have to have a strong network to do so (Bärmann 2012: 49). With the free of charge basic membership, recruiters can use all basic functions of LinkedIn, which include an advanced search for candidates. However, the number of search results is limited to 100 and, as mentioned before, recruiters cannot look at the full profile of members that are not in their network. Looking at and communicating with every member is only possible with a fee-required recruiter-membership (Dannhäuser 2014: 96).

5 Professional social media recruiting sites 28 Figure 9: Example of a LinkedIn profile (Source: Forbes.com) 5.2.2 Fee-required functions On LinkedIn, companies also have the option of advertising job offerings. Just like on Xing, there are different ad packages a company can purchase. There are basic ad packages, as well as premium packages that allow the company to post jobs in their corporate design. To use LinkedIn efficiently as a recruiting tool, the free, basic version is not sufficient. There are four different fee-required memberships that one can book to source candidates on LinkedIn. There is the talent basic membership, the talent finder, the talent pro, and the LinkedIn Recruiter. For professional recruiters, the LinkedIn Recruiter is a must to be able to work productively. LinkedIn Recruiter offers significantly more options, such as a faster, more detailed search function with many filters to find exactly the candidates that match your vacant position. The ability to view every profile, even the ones that are not in the recruiter s network, also makes the work for recruiters much easier with LinkedIn Recruiter. (Dannhäuser 2014: 97).

5 Professional social media recruiting sites 29 5.3 Absolventa Absolventa is a German website, which was founded in 2007 in Berlin. It is a mixture of job portal and social network. While Xing and LinkedIn mainly focus on users with working experience, Absolventa s target group is young university graduates. Of course, Absolventa is not as well-known and widely-spread as Xing and LinkedIn, but it is rather successful on the German market. Every month, the site has over 300,000 visitors and more than 55,000 candidates are available in Absolventa s CV database (Absolventa.com). On the website, Absolventa offers the user the opportunities to either actively search the job portal for suitable positions, without having to register, or to register and upload a curriculum vitae (CV) into the database. If the candidate enters his CV, it is possible for recruiters to find him, even if the candidate is not actively searching for a job. Thus, the CV database offers similar advantages as profiles on Xing and LinkedIn. All of these options are free of charge for the candidate (Absolventa.com). Another category on the website is the so-called career-helper. In this category, users can get tips and information on career-related topics like CVs, interviews, Assessment Centers. For companies, Absolventa offers different fee-required functions, as shown in figure 10: Figure 10: Absolventa options for companies (Source: Absolventa.com) A basic account includes a company profile plus standard job ads. Companies also have the option of buying premium ads in corporate design. Furthermore, recruiters can execute active sourcing through the CV database, buy banner ads, and buy ad space on the starting page.

6 Other social media sites 30 6 Other social media sites Apart from the professional social media recruiting sites discussed in chapter five, there are also other social media sites that can be used by companies to find talent. 6.1 Facebook Facebook is without a doubt the most popular social network there is. There are currently 900 million users worldwide and 23 million German users registered. Especially young adults between the ages of 18 and 34 are using Facebook (Rath & Salem 2012: 117). Facebook is mainly a network that is used for private purposes- most users wish to connect to their friends or find new ones. A study called Social Job Seeker Survey, conducted by Jobvite, shows that in the U.S. 87 percent are proactively and 81 percent actively looking for a job on Facebook. (Bärmann 2012: 69). These facts make Facebook absolutely relevant for Human Resources, because, with the right strategy, employers can find many qualified candidates through this network. Figure 11 gives a closer look at job seekers that use Facebook. Figure 11: Job seekers who use Facebook (Source: Job seeker nation, Jobvite 2010) For a firm to have a corporate profile on Facebook means it is ready to become a part of the social media culture. However, recruiting through Facebook is not as professional as recruiting through Xing and LinkedIn. Other than these professional networks, Facebook only has a simple search function with no filter options (Dannhäuser 2014: 127).

6 Other social media sites 31 So, for example, it is not possible to search for candidates based on their education, qualifications, and experiences. The easiest way for recruiters to use Facebook is through posting a status update or job ad on their personal profile and asking their network to share it, so it spreads throughout the web. For this to be effective, the recruiter has to have a strong network himself and must be willing to use his private profile for work purposes (Rath & Salmen 2012: 117). Another possibility of using Facebook in the hiring process is searching for candidates the recruiter already knows the name of. This sometimes offers a lot of insight, especially if a candidate has not made use of the privacy settings. This means that although companies cannot properly use Facebook to actively source candidates, they can get information on the candidates that have already applied (Bärmann 2012: 70). However, the main purpose for companies to be on Facebook is Employer Branding. Employer Branding means building a distinguishable, authentic, genuine, consistent, and attractive brand (Bärmann 2012: 71). It is all about the image and perception of the company. Employer Branding is important for recruiting in the long-term, because having a good, strong image definitely attracts talent (Dannhäuser 2014: 275). Through Facebook, firms become visible for candidates that are interested in a company and trying to find information about it on social media. To achieve this, companies have to create a company career site (also called fan page) and try to get the attention of potential employees. A good Facebook fan page should be designed in a nice, eyecatching manner. It should give information about the company as well as the working atmosphere through pictures, text, and videos. Fan pages are a great opportunity to share experiences from employees, so the company appears authentic and attractive (Dannhäuser 2014: 127). If a Facebook user is interested in the company, he can push the Like button and become a fan. Fans of a site see new information that the firm adds in their news feed (Kreutzer & Hinz 2010: 18). Companies need to make sure to update their page on a regular basis and post relevant content. If a firm does not keep its fan page updated, users will eventually get bored or be disappointed and as a consequence will no longer be interested in the company. To appear genuine, the company should answer questions and comments that users post on its page (Rath & Salmen 2012: 122). The goal is to keep the fans happy and interested. Figure 12, as an example, shows the Facebook fan page of Daimler.

6 Other social media sites 32 Figure 12: Example Daimler career fan page (Source: Facebook.com) To make a fan page successful, it is a good idea to have employees with social media skills create and update it. Generation Y employees are usually a good fit for this task (Bärmann 2012: 100). Although creating and updating a fan page on Facebook can be very time-consuming and costly, it can really help a company achieve a good employer brand and therefore attract new talent. Facebook also makes it easy for Human Resources employees and these potential candidates to get in touch and communicate. 6.2 Blogs Another way to get the attention of potential employees and to give a company a face is by using blogs. As explained in chapter two, blogs are public online diaries, where the blogger can write about experiences, thoughts, and opinions (Rath & Salmen 2012: 125). Blog posts are published in reverse chronological order, i.e. the current contribution appears as the first, and other users have the option to comment on them (Kreutzer & Hinz 2010: 13). In 2011, there were 183 million blogs worldwide (Bärmann 2012: 132). Most blogs are used for private purposes, but more and more corporate blogs are appearing (Kreutzer & Hinz 2010: 13).

6 Other social media sites 33 Now, why should companies blog, or more specifically let their employees blog to find new employees? Well, for one it is free of charge on most platforms. Furthermore, it is easy to do- no special skills are required, except having a passion for writing. On top of that, it is possible to share and discuss more in depth than on other social media sites (Rath & Salmen 2012: 125). Moreover, nothing else can make a company seem more authentic than its employees. This is true for all social media channels (Rath & Salmen 2012: 125). If a company wants to appear attractive and believable, then it has to include its employees to decrease the distance between company and potential employee. This is why blogs have a higher credibility than regular corporate websites (Dannhäuser 2014: 181). A corporate blog can make a company seem more transparent. At the same time, the company can directly see users reactions and maybe even influence, a little bit, what is being said about the company online (Kreutzer & Hinz 2010: 14). Although, blogs are not a suitable tool for active sourcing, through them it is rather easy to reach a lot of users, share information, and give the company a face. Blog entries do not have to be solely about job opportunities or work related topics. Theoretically, every employee can blog about whatever topic interests him/her (Rath & Salmen 2012: 126). This way, future employees can learn about the working atmosphere at a firm and about the way its employees think. Especially compared to time-consuming social media like Facebook, this is an easy, inexpensive way to get the attention of talent and to strengthen the corporate image. However, companies need to make sure there is some kind of structure on their blog. They need to figure out beforehand which target group they are trying to reach and which employees are responsible for content and updates (Bärmann 2012: 136). Once they have decided on these things, the corporate blog can be a great way to attract talent. An example of a successful corporate blog is the Daimler-blog. It launched in 2007 and employees regularly report about their professional environment. The Daimler-blog is visited by up to 40,000 unique visitors a month, who are staying on the site for an average of eight minutes (Dannhäuser 2014: 180).

6 Other social media sites 34 6.3 Twitter Twitter is a micro blogging site where users can publish short text messages on the Internet. These tweets can only be 140 characters long and can include pictures, videos, or links. Through hashtags, which are basically key words, tweets can be categorized (Bärmann 2012: 104). Tweets are visible for every Internet user, registered or not, and are actively shared with users who follow you (Dannhäuser 2014: 273). Approximately 500 million members are using Twitter worldwide, 4 million of them in Germany (Bärmann 2012:104). Figure 13: Job seekers who use Twitter (Source: Job seeker nation, Jobvite 2010) Figure 13 shows which job seekers are using Twitter. The majority of job seekers using Twitter are male and between the ages of 25 and 44. On Twitter, users do not become friends but follow each other. So if a user is interested in the activities, information, and opinions of a company, then he starts following its Twitter account. Followers have the option to reply to a tweet or share them on their site (Kreutzer & Hinz 2010: 15). As with any other social media site, the key is building a strong community; so on Twitter it is important to have many followers. Although Twitter is a very popular social media site, using it for recruiting purposes has not become a clear trend, as figure 14 shows (Dannhäuser 2014: 274). After an obvious increase in 2012, there has been a decline in companies using Twitter for recruiting in 2013.

6 Other social media sites 35 Figure 14: Using Twitter for recruiting (Source: Haufe.de) However, that does not mean using Twitter cannot be helpful to source new employees. Twitter is like a news ticker, which can really be a great tool to spread content fast. It is also highly relevant for search engines like Google (Rath & Salmen 2012: 129). Employers can use Twitter to transport messages to their target group, for example information or news about their company. The most obvious way to use Twitter for recruiting purposes is posting job ads. Of course, these ads have to be short and should include a link to the actual job ad. Also, hashtags, such as job, career, and hiring, can improve the visibility of a job ad (Arnold 2012: 161). Additionally, Twitter, just like other social media tools, can be relevant for Employer Branding. To achieve a strong brand through Twitter, companies create a profile that matches their corporate design. The profile can also link to the company s corporate website or to other social media profiles (Bärmann 2012: 105). Through this Twitter profile, the firm then shares information and communicates with its followers. However, just like on Facebook, it is crucial that companies keep their Twitter profile updated and regularly share relevant content as to not disappoint their followers. Figure 15 is a picture of Daimler s Twitter account, as an example of what a corporate Twitter account can look like.

6 Other social media sites 36 Figure 15: Example Daimler career Twitter account (Source: Twitter.com/Daimler_career) Twitter is a potentially helpful recruiting tool, but using it requires some skills and patience. It is not as easily manageable as Xing or LinkedIn and not as useful for active sourcing of candidates. It can be very time-consuming to update a Twitter page regularly. Nevertheless, this social media tool can be used to spread content fast and reach potential employees, even those passive candidates who are not actively searching for a new job. 6.4 YouTube Four billion videos are being watched on YouTube each day (Youtube.com). This number alone shows how huge this video portal, with 490 million registered members, really is. YouTube was founded in 2005 and acquired by Google just one year later (Dannhäuser 2014: 284). After registering on YouTube, every user automatically has a channel, where he can post his videos. Additionally, companies have the option to open up a brand-channel in corporate design (Bärmann 2012: 128). YouTube itself does not create content, it is just a platform for users to share their own creations with a broad audience (Kreutzer & Hinz 2010: 20). To watch a video, one does not have to be a registered user though. Even without an account, users on the Internet have access to videos on YouTube. If you are registered,

6 Other social media sites 37 however, you can use additional functions, like commenting on videos, rating them, sharing them, and of course uploading your own videos (Dannhäuser 2014: 285). Both options, whether the user creates an account or simply watches videos, are free of charge. Now, how can a firm use this site in their hiring process? Well, as already mentioned, a good image is very important for companies to attract new talent. And the best way to show the working atmosphere of the company is through experiences and stories of current employees. For example, videos of interviews with employees or videos that show off the workplace are great to give a company a face and increase its attractiveness as an employer (Dannhäuser 2014: 284). Another advantage YouTube offers: you do not have to be on the actual YouTube site to watch a video. Companies can, for example, post YouTube videos on their Facebook profile and the user can watch it right then and there, without having to leave the site (Rath & Salmen 2012: 128). The only downside is, making a video, even a simple one, can be costly and timeconsuming and requires certain equipment. Be that as it may, a creative video with humor, authenticity, and originality can excite the target group and has a good chance of going viral, which means reaching a huge amount of users in a short period of time (Bärmann 2012: 128). Therefore, YouTube videos can be an adequate tool to attract new employees. The key factor is to present yourself as a genuine employer.

7 How to use social media recruiting 38 7 How to use social media recruiting Employers have to make several decisions before starting to use social media for recruiting purposes. There are various things that have to be taken into consideration. This chapter discusses some of the things a company has to pay attention to, if it wants to use SMR. 7.1 Status Quo Before a firm starts using social media for recruiting purposes, it should evaluate the environment it is acting in. For this, research and surveys can be helpful to figure out where the company stands. This includes looking at the internal environment, as well as the external environment. Internally, the company has to decide whether or not it is generally open to using social media. Are all levels ready to share information about the company and does management support the idea (Rath & Salmen 2012: 67, Bärmann 2012: 32)? Externally, the company has to look at how its competitors are acting. Table 3 gives an overview of the factors that have to be taken into consideration. Research Internal factors Corporate goals, communication strat- egy General conditions (guidelines) Experiences with so- cial media External factors Current social media trends Competitor behavior Behavior & expecta- tions of target group Surveys Informal conditions Attitude towards us- ing social media Opportunities & Risks of social media Current relationships with target groups Table 3: Factors to consider before using SMR (Source: own table based on Bärmann 2012: 33)

7 How to use social media recruiting 39 Once all these factors have been considered, the company can decide whether or not using SMR is a good idea. 7.2 Defining goals Once a firm has decided to use SMR, it has to set concrete and measurable goals. These goals can, for instance, include a specific number of new employees that should be hired through social media within a certain period of time. This would be a goal that companies can control continuously and easily (Arnold 2012: 220). Moreover, a goal could also be improving the image of the company or becoming more popular within the company s target group (Bärmann 2012: 34). These are goals that are not as easily measurable but equally important and, with some effort, also controllable. After all, the most important reason for setting goals is to decide what the company wants to achieve through using SMR, who it wants to reach, and in what period of time. 7.3 Internal decisions After having set goals for the entire company, many other internal decisions have to be made. This starts with deciding who is responsible for the project and who does what to achieve the goals that were set (Bärmann 2012: 34). Everyone involved in the project should know exactly what he / she is responsible for. Ideally, the company uses employees who already have social media experience to work on the project. Young employees of the Generation Y can be helpful because they usually already know how to use certain social media sites and they can relate to the target group. Of course, to make social media sites interesting and make them seem genuine, not only the HR department should be involved. Employees from all over the company can be engaged to represent the company and create exciting content. Terry Terhark, a recruitment industry expert, suggests a company should identify key individuals that get the objective of the brand, are socially savvy and can provide the passion and personality that can help enhance your employment image. (O Brien 2013: 1). Certain guidelines need to be established for employees in regard to handling social media. These guidelines make sure employees know what they are allowed to share on the different platforms, what behavior the company encourages, and what they should

7 How to use social media recruiting 40 rather keep silent about. These guidelines decrease the risk of damaging the company s reputation (Rath & Salmen 2012: 153). 7.4 Choosing the right social media platforms The social media world is very big and there are always new social media sites coming up. If a company wants to use social media for recruitment, it has to decide which of the many platforms is particularly suitable for it. A smart way to decide this is evaluating the continuously published figures on social network traffic (O Brien 2013: 1). According to Bärmann (2012: 38) a company can look at three different things when deciding on the right platforms: Which social media sites its target group is using. Which social media sites its employees are using. Which platforms are consistent with the corporate culture. As already established in chapter five, different social media sites can be used for different target groups. Xing, for example, can be beneficial if the company wants to find professionals with working experience. Facebook, on the other hand, is more suitable for a younger target group with less or no experience. The decision also depends on the goals the company has set for itself. If a company wants to use social media to better its image, Facebook can be helpful. If a company wants to use social media mainly to actively source candidates, then sites with a database / talent pool, like Xing and LinkedIn are more suitable (Dannhäuser 2014: VII). Whichever social media site the company decides on, it opens up the opportunity to get in touch and communicate with the intended target group. 7.5 Developing a community To be visible for new talent, a company has to be very active on its platform of choice. Designing an eye-catching profile, answering questions of potential candidates, posting interesting and relevant content regularly can all help building a strong online presence. A lot of times a good way to start is with a corporate blog, where the interested candidate can find genuine information about the company and even get in touch with current employees (Arnold 2012: 221).

7 How to use social media recruiting 41 Of course, a strong community does not develop overnight. The process can be time consuming, but it brings many benefits. Being visible and present is a key factor in building a strong community. Also, candidates have to be able to find the social media presence easily. It is not enough to have a profile and post a job ad every now and then. If a company neglects its social media sites or does not put much effort into it, then the followers are disappointed and will no longer be interested in that company. It is all about being proactive, engaging new talent, and building a talent pool for future vacancies (O Brien 2013: 1). 7.6 Effort and costs The company has to keep in mind the costs incurred because of technical and graphical setup. Moreover, the cost for personnel that works on updating the sites. Setup costs are usually one-time, but personnel costs are due continuously (Bärmann 2012: 44). All these costs depend on which platforms the company uses, how many employees work on the project, and if these employees already have social media experience. (Rath & Salmen 2012: 154). According to the Social Media Recruiting Report 2013, published by the Institute for Competitive Recruiting, companies plan on increasing their budget for professional social media networks like Xing and LinkedIn as shown in figure 16. Figure 16: What will employers spend more money on? (Source: Social Media Recruiting Report 2013)

7 How to use social media recruiting 42 At the same time, budgets for other recruiting channels, like print ads, are being decreased (figure 17). Figure 17: What will employers spend less money on? (Source: Social Media Recruiting Report 2013) 7.7 Measuring success After having defined goals at the beginning of the SMR project, at the end of a certain period of time it should be possible to control if these goals have been accomplished. For instance, if the goal has been to hire a certain amount of new employees through social media, then at the end of the period the company can check how many of the newly hired employees have been found through Xing, LinkedIn, or Facebook (Arnold 2012: 220). For those goals that are not as easily measurable, like bettering the image of the company, monitoring all activities on social media is crucial. Thus, a company can watch the reactions and comments of users first hand (Bärmann 2012: 42). Actually, monitoring all activities from the start is important, not just to experience the reactions of users, but also to understand the way the target group communicates in different networks. For example, on Xing the way of communicating might be a little bit more formal, while on Facebook it is more casual. Also, through monitoring it is possible to detect new trends early on (Rath & Salmen 2012: 151). Various Monitoring tools are available on the Internet. The company can use free software, such as Google Insights, Tweet, or Web Analyzer, or fee-required software, like Radion6 or Trackur

7 How to use social media recruiting 43 (Bärmann 2012: 39-41). With these tools, companies are able to see how many new followers (on Twitter) or how many new fans (on Facebook) their site has, as well as how many people have commented on and shared information on the different social media sites (Kreutzer & Hinz 2010: 29). Firms should use the results to optimize their content. Another way to measure the success of SMR is asking the target group directly through surveys on social media platforms (Bärmann 2012: 42). Many aspects of social media recruiting, like the worth of a dialogue with a candidate, cannot be expressed in numbers (Kreutzer & Hinz 2010: 28). However, after a while, the number of spontaneous applications sent in by candidates who have discovered the employer on social media and were attracted by it, is a sure sign of social media recruitment success (O Brien 2013: 1).

8 Opportunities and Risks 44 8 Opportunities and Risks As already mentioned, using Web 2.0 for recruitment offers companies many opportunities, but this new technology also involves some challenges and risks. Although some of the opportunities and risks have already been mentioned in previous chapters, they will now be considered in more detail. 8.1 Opportunities Web 2.0 is slowly becoming the labor market of the future. Nowadays, communicating with friends and colleagues digitally has become the norm. According to a study conducted by the advertising agency Universal McCann in 2011, 53.1 percent of all active Internet users were maintaining a profile on social media (Dannhäuser 2014: VI). This number shows how many Internet users can be reached through social media, and companies all over the world are recognizing the value of social media recruiting. As seen in figure 18, the majority of fortune global 100 companies have an account on at least one social media site. Figure 18: Social media accounts of fortune global 100 companies (Source: Burson-Marsteller evidence-based communications group 2010 via Jobvite.com) Many firms use social media to keep up with the changes in behavior of their target groups. Through social media, it is possible to address target groups directly and to increase their loyalty to the company. Social media allows a prompt feedback and communication. It gives insight into the way users think, feel, and what they wish for. It also

8 Opportunities and Risks 45 allows recruiters to actively search for candidates and build long-term relationships with them. Additionally, social media makes it easy to stay connected to former employees and candidates (Weitzel 2012: 6). Especially for companies who offer a pleasant working environment and nice colleagues, social media is a great way to spread this information to a big amount of candidates. Social media can improve the image of a company and therefore it is very helpful for Employer Branding. Firms can share information and give the company a face, by involving employees and their experiences. Involving employees is the most effective way to appear as a genuine, authentic employer. Of course, companies that have a positive image are more desired as employers. Candidates often use social media sites to find information about firms they are interested in. At the same time, firms can use social media to gather information about candidates (Rath & Salmen 2012: 17). Social media can be a good way to entice candidates to go to the corporate website. It is also an effective way to get the attention of new talent; especially of the Generation Y. Members of Generation Y have certain expectations when it comes to choosing a workplace. For this generation, social media is a matter of course that is being used to connect to peers but also to research and find information. To connect to members of Generation Y, it is necessary for companies to be present on the same channels this generation uses (Bärmann 2012: 15). With the help of social media, companies also discover passive candidates who are currently employed, but might be open to new opportunities. These candidates cannot be reached through any other recruiting tool. They are usually very qualified but not actively trying to find a new job. Social media can help companies find talent that they may not be able to find otherwise. This will become more and more important as the war for talents goes on. Companies have to actively find these passive candidates to fill important positions, e.g. executive positions (Quast 2012: 1, Trost 2012: 80) As already mentioned in chapter five, with the help of LinkedIn and Xing, companies are able to build a solid talent pool including many different talents. Searching for candidates with the help of filters can even reduce time recruiters have to spend on active sourcing. If we take into consideration the relatively small costs, especially compared to traditional recruiting methods, it is safe to say SMR has a lot of potential. Being active on social

8 Opportunities and Risks 46 media is definitely less expensive than a print ad in a big newspaper, and it is also more sustainable (Rath & Salmen 2012: 113). 8.2 Challenges & Risks For safety reasons, many companies use social media mainly to attract new employees, not to actively recruit them. Data protection is the biggest risk when using social media. Thus, companies have to take factors, such as privacy of data and ethics, into consideration. So far, there are not enough official laws concerning the protection of private data on social media. The different platforms are expected to regulate privacy settings themselves. Therefore, it is important that companies define data protection regulations and user regulations or guidelines for the use of social media sites (Rath & Salmen 2012: 113). As already mentioned, Generation Y can be reached through social media. However, HR departments should try to avoid neglecting other generations by making too many adjustments to their recruiting processes. The needs and expectations of Baby Boomers and Generation X still need to be taken into consideration. They are usually not as technology savvy and might get confused or overwhelmed by hiring processes that are too focused on modern technology. This could also have a negative effect on the corporate image (Rath & Salmen 2012: 76). Obviously, when companies decide to enter the social media world, they have to face direct and rigorous criticism. Though, the way companies handle that criticism is much more important. With the help of social media, companies get a chance to react and reply to criticism, which is better than just letting it happen (Dannhäuser 2014: VIII). However, mistakes are punished immediately. Who makes a mistake in the social media world might end up losing respect and credibility. This happened to the parcel service DHL. Two DHL employees were caught on video loading a van. While one of the parcels threw packages carelessly onto the van, the other one stood next to him laughing. This video was uploaded to YouTube and then made its rounds on Facebook. Of course, this caused outrage between customers who complained in the comment section. But instead of apologizing, one DHL employee wanted to defend the company by replying with rude comments. Needless to say, the video along with the comments was a disaster for the company (Mai et al. 2010: 4).

8 Opportunities and Risks 47 Companies are slowly losing control over what information is being shared on the Internet (Kaplan & Heinlein 2010: 60). They cannot control everything that is being said about them on the web. Not using social media is not really an option either because that would mean the company missing out on so many opportunities. If a company starts altering information or deleting comments, they will surely anger their followers and lose credibility. The same applies if what a company says is not what a company does; users are going to notice it eventually and be outraged. However, through listening and active involvement, companies can learn from mistakes and even avert PRdisasters (Kreutzer & Hinz 2010: 11). Another challenge can be that some social media platforms are more confusing than posting a job on a job board. Companies have to understand and command social media to use it for recruiting. Inexperienced employees have to be introduced to the new technologies. Nonetheless, with a little bit of effort it can be the perfect tool to stand out in the competition of employers (Bärmann 2012: 250). Another big problem with SMR can be recruiters using online information from private networks like Facebook that they stumble upon to assess people. There is a fine line between professional research on social media and prying. Candidates use social media sites like Facebook for private social interaction and are often unaware of the fact that employers use these sites to collect character information. Recruiters should focus on things like relevant experience and education to see if the candidate would fit within the company culture. Going through personal photos can sometimes cross the line and also lead to prejudices (Quast 2012: 1). The cost and effort of financial and human resources can also be a challenge for some companies and should not be underestimated. A lot of time might have to be invested in the development of know-how and in active recruitment. Yes, a corporate profile can be created quickly; however, the work does not end there. Updating this profile with relevant content is crucial and may require a lot of time (Rath & Salmen 2012: 112). As we already discussed, measuring the success of SMR activities can be a problem. Less than half the companies who are using SMR, do actually measure the success. Approximately every 10 th company measures key performance indicators for SMR. Those companies that have a good recruiting quality usually measure the success of their recruiter using proactive social media channels (Social Media Recruiting Report 2013: 7).

8 Opportunities and Risks 48 This means, a lot of companies do not even truly know if their SMR activities are helpful. Another risk if a company is using social media to find candidates is that groups of employees outside these networks might feel left out. Some employees might not understand the need for a social media presence and might have reasonable doubt (Rath & Salmen 2012: 112). Finally, companies should not neglect classic recruiting channels in their hiring process. Especially to recruit employees from older generations, it is necessary to still post job ads on job portals, company websites, and even in newspapers (Dannhäuser 2014: VII).

9 Conclusion 49 9 Conclusion 9.1 Summary Human Resources are a serious factor in making a company successful. Finding qualified employees is a huge challenge; especially given the acute shortage of skilled personnel we are experiencing today. Even the best selection procedures do not mean anything if there are no qualified candidates interested in the company. There is a new culture developing stamped by social media and the new generation of employees. Instead of authority and hierarchy, there will be more diversity and discussion. (Rath & Salmen 2012: 77). Because of a combination of this new generation of employees, shortage of skilled personnel, and new technologies, companies have to face lots of challenges and figure out ways to survive in the war for talent. Through new technology, it has become much easier for the candidates to inform themselves about potential workplaces. This leads to companies having to deal with their strengths and weaknesses as employers. Social media can help open up new opportunities for firms to source employees. In summary, one can say that there are four different ways companies can use social media in the recruiting process (Weitzel et al. 2012: 21): To post job advertisements Just like posting job ads on job portals or their corporate website, companies can publish job ads on different social media sites. To improve the image of the company / Employer Branding Through social media, a company can connect to its target group and communicate with interested candidates. Additionally, current employees can share stories and experiences, which gives the company a face and makes it authentic. To actively source candidates Passive candidates can be found and contacted through networks like Xing or LinkedIn. These networks offer companies a talent pool and allow them to actively search for great candidates, especially for executive positions that are often hard to fill.

9 Conclusion 50 To find more information about applicants Once a candidate has applied, social media can be a helpful tool to gather more information about the applicant and get a clearer picture of his/her qualifications and personality. This way, it is easier for employers to decide if a candidate is a good fit for a certain position. 9.2 Outlook A representative survey conducted by Bitkom in 2012, shows that the trend is actually going in the direction of social media recruiting. According to this study, 29 percent of the companies published vacancies on social media platforms like Facebook, Xing, or Twitter. As a comparison, in 2010 the number was at 12 percent (Ilg 2012: 1). This study reinforces the fact that social networks are the third most important way to source employees, next to job portals and corporate websites (Social Media Recruiting Report 2013: 6). Social media is the labor market of the future. Of course, different social media tools will come and go and there will always be some that are more popular at a certain time. But one thing is for sure: the desire of people to get in touch with other people, to meet new contacts and build networks, as well as the desire to share opinions and experiences- all these things are here to stay. The borders between work and private life are becoming indistinct (Rath & Salmen 2012: 277). Not only potential employees, but also more and more customers expect companies to be available through social media tools at all times (Mai et al. 2010: 5). For the study Recruiting Trends 2012, recruiters of some of the biggest German companies have been asked which trends they expect to be most meaningful in the next ten years. These HR-experts believe social media, Internet recruiting, demographic changes, shortage of skilled personnel, and Employer Branding are already very important topics that will only gain importance over the next years (Weitzel et al. 2012: 23). Figure 19 illustrates these results. It shows that, according to this study, social media / Web 2.0 is by far the most important trend for the next ten years. One topic, which we have not discussed in this thesis but which will become more important in the future, is Mobile recruiting. It is ranked fifth most important trend in the study Recruiting Trends 2012 (Weitzel et al. 2012: 23). Many users will switch to their smartphones or tablets to search for job opportunities. This means companies have to

9 Conclusion 51 improve their recruiting information, so that it works well on these devices (Kaplan & Haenlein 2012: 67). Recruiting processes will keep on changing and companies and HR employees will be faced with great challenges along the way. And when the new generation of HR employees takes over, the recruiting process will definitely become more and more digitalized. Hopefully, this will save some time for the HR departments, help find new talent, and lead to more authenticity and honesty. Figure 19: Recruiting trends of the next 10 years (Source: Weitzel et al. 2012: 24) 9.3 Final remark The world of recruiting has become more complex. It is now standard procedure for companies to post their job ads on their own career website, on job portals, and some of them also on social media.

9 Conclusion 52 Although new technologies always bring some challenges, as discussed in chapter eight, in my opinion the positive aspects social media brings for the hiring process outweigh those. Smart candidates can take advantage of the possibilities social media offers to find a new job. At the same time companies can collect relevant information on qualified candidates and reach their target group. It absolutely makes sense for companies to go to the places where their target group hangs out. This is the best way to deliver a company s message. They get the chance to interact with their target group like never before and build strong relationships with them. Handling criticism is also a big part of this communication (Rath & Salmen 2012: 177). Companies can answer questions about the application process or load images of various recruiting events. This way, firms can connect with talent at an early stage and keep in touch until they are done with their studies and ready to apply. There are several companies that have already discovered the value of social media for recruitment and more will do so within the next couple of years. Big companies like Daimler already use social media networks like Facebook to get in contact with potential employees. Social media is also a part of Employer Branding, which means success cannot only be measured through new hires. Yes, companies are becoming more vulnerable by opening up and being transparent. However, to seal off and not take part will bring just as many challenges. Only through active participation can a company distinguish itself (Rath & Salem 2012: 78). Of course, simply being on social media does not automatically guarantee the company will find new employees. Publishing relevant content and information is crucial. Without some effort and communication on these channels, companies will not be successful. It is also crucial that firms not simply push huge amounts of information on the user, but also realize what the target group wants, expects, and has to say. Although social media may require new ways of thinking, it is not going anywhere and a company that takes social media recruiting seriously can surely gain a lot. Firms need to be courageous and try these new channels to be able to compete in the war for talent.

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Eidesstattliche Erklärung 55 Eidesstattliche Erklärung Hiermit erkläre ich an Eides Statt, dass ich die vorliegende Abschlussarbeit selbstständig und ohne fremde Hilfe verfasst und andere als die angegebenen Quellen und Hilfsmittel nicht benutzt habe. Die den benutzten Quellen wörtlich oder inhaltlich entnommenen Stellen (direkte oder indirekte Zitate) habe ich unter Benennung des Autors/der Autorin und der Fundstelle als solche kenntlich gemacht. Sollte ich die Arbeit anderweitig zu Prüfungszwecken eingereicht haben, sei es vollständig oder in Teilen, habe ich die Prüfer/innen und den Prüfungsausschuss hierüber informiert. Ort, Datum Unterschrift