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IMPACT OF E-RECRUITMENT ON HR EFFICIENCY AND EFFECTIVENESS

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Table of Contents
Abstract................................................................................................................................2 1. Introduction......................................................................................................................3 1.1 Information Technology ...........................................................................................3 1.2 Pakistan, IT and HR...................................................................................................4 2.0 Objective........................................................................................................................5 Part 1.................................................................................................................................6 3. Literature Review.............................................................................................................6 3.1.1 Human Resource Information System....................................................................6 3.1.2 E-HRM....................................................................................................................9 3.1.3 E-Recruitment: What is e-recruitment? ...............................................................10 3.1.4 Why e-recruitment?..............................................................................................12 3.1.5 Views and attitudes towards e-recruitment ..........................................................13 3.1.6 E-Recruitment benefits at a glance....................................................................14 3.1.7 Organizations using E-Recruitment......................................................................16 3.1.8 Five steps to successful e-recruitment .................................................................18 3.1.9 E-recruitment advantages & disadvantages..........................................................18 3.1.10 E-Recruitment Advantages.................................................................................19 3.1.11 E-recruitment Disadvantages..............................................................................20 Hypothesis......................................................................................................................21 Part-2..................................................................................................................................22 4. Research Methodology..................................................................................................22 4.1 Plan of Research:.....................................................................................................22 Part-III................................................................................................................................25 5. Findings .........................................................................................................................25 6.0 Recommendations........................................................................................................39 7.0 Conclusion ..................................................................................................................40 8.0 Bibliography...............................................................................................................41 9.0 Appendix......................................................................................................................44 9.1 E-Recruitment Questionnaire.......................................................................................44

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Abstract
The focus of this study was to find out whether E-Recruitment is effectively being used by HR in recruitment. My primary findings are that usage effectiveness is 83%, reduce hiring cost 87%, save paper work 83%. In this research 5 organizations (Banks) were selected for survey based on literature survey. Multinational banks are using erecruitment (37%) and national banks are using traditional (not using e-recruitment) practices 63%. For testing the hypothesis information was collected through a closeended questionnaire based on nominal scale. The questionnaire contained 23 questions out of which 4 question were related to personal data and rests were related to subject study. Due to short time limitations 30 sample size (HR personnel) was selected and drawn from banking sector. Based on literature survey following 3 hypothesizes were described and tested. According to H1 findings, organizations are using IT in their HR functions. Mostly using HRIS in Recruitment 8%, Performance 29%, Compensation 27% and Training 25% functions. Organization using E-Recruitment in hiring process is 37%, however respondents said that E-Recruitment process is more effective than other ways of recruitment 83%. Meanwhile as per H2 findings, e-recruitment is mostly restricted to tasks like i.e. Posting vacancies on corporate web site 97%, External 73% and internal recruitment70% respectively, Receiving 67% and sifting 53% job application accordingly. This needs to be enhanced to exploit the capabilities of e -recruitment Our findings of H2 reveal that E-recruitment usage is being used only for administrative functions and the main reason for this is lack of expertise, inadequate budgets and non seriousness of management.

IMPACT OF E-RECRUITMENT ON HR EFFICIENCY AND EFFECTIVENESS


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IMPACT OF E-RECRUITMENT ON HR EFFICIENCY EFFECTIVENESS


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1. Introduction 1.1 Information Technology

Technology has changed the scope of work in organization and being used to increase employees efficiency, effectiveness and productivity and profitability. Looise, (2004) argues that there is lot of potential in organizations to mesh Information Technology with departments including HR. Teo, Lim, Ann Fedric (2001), stated that using IT, less staff needed for HR-related work which helps to increase productivity. In organizations they use technology are able to save costs and maintain quality of customer service by reducing the time and resources dedicated to administrative tasks. As competitive pressures for many organizations increase, the reliance on the strategic use of IT in HRM to manage the workforce is gaining increasing popularity. This can be attributed to the closer alignment of HR to business objectives which has demanded the use of IT. Use of IT in HR connects organizations employees and information resources, play vital success in the new economy (Richards-Carpenter, 1996). Walker (Walker, A.J. 'Best Practices in HR Technology' in Web-Based Human Resources, McGraw Hill, 2001) states that if HR technology is to be considered successful, it must achieve the following objectives:

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Strategic Alignment: Business intelligence:

Must help users in a way that supports the users. Must provide the user with relevant information and data, answer questions, and inspire new insights and learning. Must change the work performed by the Human Resources personnel by dramatically improving their level of service, allowing more time for work of higher value, and reducing their costs.

Efficiency and effectiveness:

1.2

Pakistan, IT and HR

According to Irfan (2006), use of IT in HR in Pharmaceutical sector of Pakistan is 86%. Earlier research which conducted by Hyder (1997), the use of IT in HR is under 20% in Pharmaceutical industry. Many Pharmaceutical companies now using web based applications. It is assumed that presently most of organizations in Pakistan are using IT in their business processes. The role of IT transferred from record keeping to decision making. Many Multinational companies (NCs) and National companies (NCs) in different business sector using IT in their business process like, Pharmaceutical, Banking, Fast Moving Consumer Goods (FMCGs) and Services. These companies now investing in IT infrastructure and enhancing the efficiency and effectiveness of employees, productivity and profitability of the organizations.

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2.0 Objective After review of literature survey it is observed that globally most of the organizations using online recruitment techniques to strengthen there HR and more focusing on strategic decision making objectives. Companies mostly now more focusing to outsource there recruitment functions to the recruitment services providing consultancy firms; they post advertisement and recruit talent, and headhunt skilled persons. In Pakistan companies not fully utilizing e-recruitment methods in their HR, and practicing conventional methods. However now most of the companies they designed their web portals and advertising new vacancies on their website, and some service providing firms using online recruitment techniques and providing services to their clients, who have subscribed their services in a good manner. The objective of this study is: a. Extent of usage of e-recruitment in Pakistani organizations b. Reasons why it has not been used in some of the organizations c. Recommend measures to enhance usage of e-recruitment. This research project report will be developed in the following sequence: Part-I Part-II Part-III Part-IV Part-VI Literature Review Methodology of the Research Findings Recommendations Conclusion

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Part 1 3. Literature Review

An emphasis on the role of technology cut down costs and administrative burdens, technology could have a significant impact and improve efficiency and effectiveness. According to Wayne Brockbank and Ulrich (1997), the use of IT supports and develops competency and increase effectiveness. First, IT is fully embedded in so many aspects of business management and enables communication. Second, the implementation of technology often leads to new ways of collaborating organizing work, building teams and developing new knowledge and skills, and this can help further build organizational and human capital. Finally, the effective use of technology can help streamline processes that once took up a greater proportion of the departments.

3.1.1 Human Resource Information System According to research conducted on Adoption and Impact of Human Resource Information Systems (HRIS) By Thompson S.H. Teo, Lim Ghee Soon & Sherin Ann Fedric (2001), stated that Human Resource (HR) or manpower development is vital and many organizations utilize IT in HRM, also known as HRIS, to gain a competitive edge. Organizations use HRIS as a strategic business partner to reduce cost, employee development, succession planning, training and development, selection of perfect right job and analyzing employee performance. According to the Sherin Ann Fedric (2001) research carried out in Singapore, the most popular applications of technology in HR are as under: Training and development (72.5%), Career development (60.8%) Performance appraisal/management (58.8%). 6

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Table-1 illustrates the most common HRIS applications currently in use in organizations are in research by Fedrics (2001).
Table-1 HRIS Applications
HRIS Applications Employee record-keeping Payroll Benefits Management Training & Development Performance Appraisal Compensation Management Turnover tracking/analysis Career Development Recruitment/selection Succession Planning Currently in Use (%) 96.8 90.5 57.1 41.3 38.1 38.1 29.0 25.4 11.1 7.9 Future Use (%) 43.1 41.2 41.3 72.5 58.8 45.1 49.0 60.8 49.0 47.1

Source: Adoption and Impact of HRIS, Thompson S.H. Teo, Lim Ghee Soon & Sherin Ann Fedric, (2001)

The table-1 also highlighted that previously the organizations are using IT extensively in Performance appraisal 38.1%, Compensations Management 38.1%, Turnover Tracking/analysis 29%, Career Development 25.4%, Recruitment/Selection 11.1% and Succession Planning 7.9%. However in the future it is going to assume a strategic role by usage in Performance appraisal 58.8%, Compensations Management 45.1%, Turnover Tracking/analysis 49%, Career Development 26.8%, Recruitment/Selection 49% and Succession Planning 47.1%. Adoption and Impact of HRIS he stated that to among the 47 Singaporean companies, non-adopters of HRIS, 18 (38.3%) said that they intended to adopt HRIS in their organizations within the next one to two years. According to Fedrics (2001) research a high percentage of respondents perceive that the HRIS provides them with better and more up-to-date HR information and improves the effectiveness of the HR department. However, organization-wide impacts are less observed. None of the respondents perceive the impact of the HRIS to be that of less expensive recruitment and only a small percentage of 7

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respondents (3.2%) feel that the HRIS results in increase in profit and quicker hiring. A vast majority of the survey respondents indicated that HRIS was used mainly for administrative purposes, that is, it played a traditional support role. Most organizations surveyed adopted more administrative HRIS applications like payroll and employee record keeping, rather than strategic applications like succession planning. Another significant finding of this survey is that the usage of HRIS in the area of Recruitment and Selection is the least (11%). This percentage is likely to enhance to 49% in the future. Therefore it can be concluded that the usage is most insignificant in recruitment even in developed countries. According to research in Singapore companies highlights that HRIS applied in organization from Johston and Carricos (1998) typology is as follows: Traditional: HRIS supports operations but is not strategy related. It is use mainly for administrative purposes (called Evolving: Integrated: EDP) Supporting corporate strategy companies using HRIS HRIS used for decision making and create new services, alter linkages with users and ultimately establish new standards of performance within the industry (called DSS) A wide majority of the organizations perceived that the HRIS provided better HR information and improved the effectiveness of the HR department by automating administrative tasks. However, other widely acclaimed benefits of quicker hiring increase in profit and better utilization of employee skills were not perceived by the organizations. System effectiveness as measured by user satisfaction and system usage or system efficiency as measured by cost efficiency can be used to measure the perceived impacts. Alternatively, financial measures such as profitability and return on investment can be used to evaluate the impact of the adoption of HRIS. 8

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Hypothesis 1 H1 : Pakistani companies are only using IT in traditional functions of the organization. Walker (2001) argues that, "The HRIS system is the primary transaction processor, editor, record-keeper, and functional application system which lies at the heart of all computerized HR work. Brockbank and Ulrich (1997) stated that the key areas HR professionals must learn to influence HR technology will be to "provide faster services to their internal clients on a global scale, reduce the costs per transaction, provide centralized services and information that will make it easier to manage and leverage the total workforce, spend more time focusing on making strategic contributions", whereas Kavanagh et al. (1990) that Dramatic advances in technology which necessitate the redesign of jobs and constant modifications in recruiting, selection, training and appraisal techniques, the globalization of businesses and the need to educate and train managers on dealing with the complexities of a global economy and the move towards a knowledge based economy, where value of the company depends on its employees skills and knowledge, are just some of the challenges facing the HR departments in many organizations.

3.1.2 E-HRM According to Looise, Jan Kees, (Management Revue, January-2004.), E-HRM will assume an active role for line management and for whom implementing HR strategies, policies, and practices. However, also with a relational e-HRM approach dominating, a smaller HR staff will be necessary if line management and employees pick up and use the HRM instruments provided by the HR intranet. There will still be HR experience necessary for the renewal of instruments and to prepare them for easy intranet-based use. Finally, with a 9

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more transformational e-HRM approach, strategic HRM expertise will be necessary in order to formulate adequate strategic HRM plans. According Brockbank and Ulrich (1997), the key ways HR professionals must learn to control HR technology to provide faster services, reduce the cost, provide centralized services and information and spend time focusing on making strategic decisions. Difference between HRIS and e-HR can be identified as the switch from the automation of HR services towards technological support of information on HR services. E-HRM is a way of implementing HR strategies, policies, and practices in organizations through a conscious and directed support of and/or with the full use of web-technology-based channels Looise, (2004).

3.1.3 E-Recruitment: What is e-recruitment? According to survey of Chartered Institute of Personnel and Development ( CIPD2005), stated that, the key drivers for e-recruitment identified in the survey among those making use of technology were: Reducing recruitment costs, cited by 71%, Broadening the selection pool, 60% and Increasing the speed of time to hire 47%.

Organizations use e-recruitment as a cost-effective method of recruiting new staff. It is important to remember when designing a recruitment campaign that online job hunting is not the first choice for all. According to Research conducted by Public Appointments Service in (2006), stated that: Significantly the role of e-Recruitment is becoming part of the recruitment strategy of organizations all around the world; 10

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E-recruitment is such method which candidates prefer for searching applying jobs.

CIPD (2005) survey also shows the use of e-recruitment that almost two-thirds of the organizations surveyed and found that organizations used, (Figure-1). 64% E-recruitment in 2005 84% of respondents have made greater use of email applications in the last three years. 72% Organizations also say they are advertising jobs on their corporate website and using online applications. 86% Increase in placing vacancies on websites is more prevalent in the public services sector and the voluntary. 72% Community and not-for-profit.

Irrespective of this growth in the use of technology to assist the recruitment process, many employers seem to be reluctant to carry out any form of selection online. More than eight in ten respondents making use of e-recruitment do not offer self-selection questionnaires via their website (84%) and almost three-quarters prefer not to use online testing (74%).

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Finger-1 Use of E-Recruitment in last three years.

3.1.4 Why e-recruitment? This survey also shows the results as in figure-2 confirm reducing recruitment costs to be the key objective for developing e-recruitment in the organization (71%).

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Figure-2: Business Objective for developing E-recruitment

3.1.5 Views and attitudes towards e-recruitment According the CIPD survey (2005), many employers may expect to gain as a result of e-recruitment practice. While nearly half the respondents strongly agree that e-recruitment will replace paper-based applications in the future, the same number thinks its use is increasing the number of unsuitable applications (47%). Furthermore, over a third of respondents admit that it hasnt freed up time to focus on other HR activities (38%). These findings indicate that there is still some way to go before organizations can effectively conduct most of their resource activities online.

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Strongly disagree

Strongl y Agree

(1)
The Internet is improving our recruitment process Our corporate website is an important marketing tool in attracting applicants E-Recruitment is most useful when recruitng new graduates E-Recruitment will replace paper-based applications in the future E-Recruitment is increasing the number of unsuitable applications received We have improved the functionality of our website to reduce the number unsuitable applications received Online testing filters out unsuitable applicants Using e-recruitment tends to attract applications from younger workers and acts as a barrier to older workers Using e-recruitment has freed up time to focus on other HR activities Email is a great way of giving feedback to unsuccessful candidates
Base: 800

(2)
6 8 15 20 21

(3)
31 17 53 25 27

(4)
40 39 16 30 30

(5)
24 34 10 17 17

1 4 6 9 6

18 9 11

26 15 27

33 49 36

16 19 24

7 7 3

10 19

28 25

34 28

22 21

5 7

Table-3 View on E-Recruitment, CIPD-2005

3.1.6 E-Recruitment benefits at a glance E-Recruitment Identify the best Spend less time on administration qualified candidates faster and quickly proceeds to interviews and reference checks by automating administrative tasks such as publishing, career portal, application management and pre Communicate with candidates more screening. HR staff can communicate through email to an unlimited number of 14

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professionally: Reduce publishing costs

candidates simultaneously. Publish a vacancy advertisement to website in one single mouse click. Reduce publishing cost dramatically by posting a smaller advertisement in the newspaper merely including name of the vacancy and website address. Through E-recruitment Identify candidates by competencies and qualifications and invite them to apply

Reduce the number of published vacancies:

Share information more easily:

your new project. All applications, resumes and notes can be saved in a shared location and accessible for all projects participants. This makes it is easy to cooperate with others on evaluating candidates.

Hypothesis 2 H2. Does use of E-Recruitment process is most efficient by performing the tasks i.e. advertise vacancies, email applications, online applications, select candidates, online testing, automate application processing and candidate database. Reference:
http://www.stepstonesolutions.com/Solutions/Screening_Selection/Screening_Selection.php

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3.1.7 Organizations using E-Recruitment Organizations looking to streamline hiring processes and reduce time, cost, while improving the quality. E-recruitment helps to web-enable recruitment process, right from requisition to hire and it brings tighter all the participants of recruitment process including employees and applicants. According to Theresa Minton-Eversole (Dec-2007), more sophisticated erecruiting tools are helping many companies achieve greater recruitment process efficiencies. According to the Society for Human Resource Management's (SHRM) 2007 Advances in E-Recruiting Survey Report, advancements in recruitment technologies, combined with the growing importance of niche job boards and social networking sites, help make the process of applying for jobs simpler. According to Richard Northedge, Large companies prefer direct erecruitment (June 2007) and big companies are increasingly using their web sites to recruit staff instead of employment agencies or newspaper advertising. A rising number of corporate sites now include a careers section that gives either general guidance on the sort of employees sought and the process for applying, or lists specific jobs available. The trend is particularly evident at organizations with strong brand names or which are perceived to be good employers or in popular industries. It is predicted that smaller companies will include a careers page however. Many firms operate an internal web-based list of vacancies. KPMGs outsourcing director, Rav Bains, said: E-recruitment has traditionally been a preserve of larger organizations but many smaller companies already have a career website and they will professionalize these sites. The internet will become an important tool for all employers, regardless of size. A 16

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number of major companies have launched recruitment websites in the last years with impressive results. According to Mary Cowlett, (June 2007) the number of companies investing on their corporate sites and use career links. According to the National Erecruitment Audience Survey (2006), back then the jobsites had a distinct advantage over most HR departments. In 2003 less than half (42%) of client companies had application forms on their own corporate websites. Shockingly, 85% of companies still sorted CVs by hand. Many large companies are investing in improving direct recruitment through their corporate sites. Firms including Superdrug, Adidas, Boots, Nike and Sainsbury's have all introduced erecruitment automation technology to improve efficiency; turnaround times and pull all recruitment information into one source. In Superdrug's case, the technology has reduced its cost per hire by 87%. The majority of employers believe that making better use of e-recruitment is the best way to save money when attracting new recruits, according to a study by Personnel Today's sister publication Employment Review by Nadia Williams. The findings show that altering one or two aspects of e-recruitment often yielded the most effective outcomes for candidate attraction. These included making greater and better use of corporate websites, general job boards and specialist job boards (56%), improving their use of intranets to advertise jobs on them more effectively (60%), and encouraging readers of printed job ads to go onto a nominated website to find out more information about the job and the employer (47%). The various elements of e-recruitment accounted for four of the employers' top five most effective ways of improving candidate attraction. However, the results were more varied when considering the best way to improve the suitability of candidates applying for vacancies. 17

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3.1.8 Five steps to successful e-recruitment Article September 2007: What are the keys to successful e-recruitment advertising? This article laid out the five steps to success in e-recruitment. Each step signifies not only a milestone on the road to a successful hire but also gives you pointers to the work or research that you must undertake to make a success of your e-recruitment campaign. Step1: What Job? First of all, offered vacancies must be identified trying to fill and Job specification Step2: What Person? will be prepared Define duties in e-recruitment process,

posting online ads, correspondence with Step3: Step4: What Job Site? What Ad Copy? applicants, sift CVs Choose the best e-recruitment site link. This should be ensured not only that candidate find jobs but also they want to Step5: Response? What apply for it. Check and monitor the response to your advertisement.

3.1.9 E-recruitment advantages & disadvantages E-recruitment and the use of new emerging technologies have many advantages for the modern recruiter. It makes the process of finding candidates and new business opportunities quicker, cheaper and more efficient. The one drawback, however, is that e-recruitment can appear to be a discouraging subject? The Internet, in fact, has completely revolutionized the role of the traditional recruiter. Now it's about searching through hundreds of thousands of CV's placed on personal web pages and browsing online corporate staff directories.

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Article (September 2007): advantages and disadvantages of e-recruitment and job board advertising when used as part of a recruitment strategy.

Hypothesis 3 H3 : E-Recruitment is only listed to collection of CV in Pakistan and not to speed up the Selection process.

3.1.10 E-Recruitment Advantages It's cost effective. Putting a job vacancy on website Cost: costs you nothing. Putting a job posting on a job site usually costs just a couple of hundred of Rupees. When you consider that a recruitment consultant fee for a candidate placement could be anything up to 1 month salary, and that advertising in a national newspaper can cost you thousands, you can immediately see the real financial advantages of e Speed: recruitment. It's quick. A job vacancy can be put on a job site in the morning, the first applications arrive by lunchtime, and a candidate interviewed by the end of the day. Of course, it isnt always like this. Indeed, it isn't often like this, but this gives an indication of just how quick Audience: e-recruitment can be. Traditional print advertising methods, be they

national, local or trade press face limitations: the success of your vacancy advertisement depends on the right people looking at your ad on that particular page in that particular issue. E-recruitment is different. It is 24 hours a day, 7 days a week, and 365 19

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Demographics : Its easy:

days a year. Many people new to e-recruitment think that using job sites is only effective for vacancies for young netsavvy Web2.0 people. It really is. Most job sites are user-friendly and you don't need to have an in-depth knowledge of IT to post a vacancy advertisement

3.1.11 E-recruitment Disadvantages Too many candidates: You may wonder how too many applicants would count as a disadvantage of erecruitment, but dealing with inappropriate and irrelevant candidates can waste a lot of It won't always work: time. E-recruitment board. For to wont tricky revert always jobs to work.

Organizations can not fill vacancy on a job organizations a recruitment may have

consultant or a headhunter.

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Hypothesis H1: Pakistani companies are only using IT in traditional functions of the organization. Does use of E-Recruitment result in additional efficiency in the performance of HR functions. E-Recruitment is only restricted to collection of CV in Pakistan and not to speed up the Selection process.

H2:

H3:

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Part-2

4. Research Methodology

The scope and requirement of this research is to find out the efficiency and effectiveness factors of recruitment by using E-Recruitment technique in HR department. The purpose of using e-Recruitment is to reduce cost, increasing efficiency, effectiveness of hiring staff and saving time and achieving desired objectives as emerged from literature. The scope and requirement of this research is to find out the usage of erecruitment in the selection process of the organizations, which increases the efficiency and effectiveness of HR department. The review of literature has amply justified the increased use of IT in developed countries. This research will focus on the usage within the Pakistani orgs and at the end of this research I should be able to identify the following a) Extent of usage in Pakistani organizations b) Reasons why it has not been used in some of the orgs c) Recommend measures to enhance usage of e-recruitment d) Reduce hiring cost and paper work.

4.1

Plan of Research:

There are many sectors in Pakistani business environment. This research mainly focuses on the banking sector. Since it has the highest growth as compared to other sectors, secondly due to paucity of time a complete survey may not be possible due to time constraints. Another study carried out by (Irfan-2006 has only been conducted in pharmaceutical sector). After the survey I shall be in 22

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positions to determine the extents of usage why it is not a preferred instrument in selection process. Within the banking sector, there are no. of banks are operating in Pakistan. Each bank has more than 150 branches in all over Pakistan. The requirement of fresh recruitment remains high at all times. 4 Public Banks 20 Private Banks 5 Islamic Banks 7 Foreign Banks

My plan is to survey 5 banks located in Karachi. I am also facilitated since most of the head offices of these banks are located in Karachi. I plan to survey the organizations through a questionnaire since it is convenient and not too time consuming; my sample will include 6 representatives from each bank. I will endeavor to choose respondents from HR department since they are most familiar with the e-recruitment. I have intentionally restricted my self to 6 respondents since I feel that the opinion would not differ much between the respondents from the same organization. During my literature search I have found an authentic instrument conducted by CIPD in 2005. This questionnaire has been tailored to meet my requirements. The questionnaire covers three aspects. recruitment 23 The usage of e-recruitment in different functions of selection process. The benefits which accrue to an org by using e-

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Why e-recruitment is not carried out by certain orgs for example: lack of competence, other modes of recruitment i.e. outsourcing, and lack of technology.

My dependent variable of this research study is E-recruitment

Independent variables Reduce hiring Cost Recruitment process Time Job offerings and job advertisement Level of use of E-Recruitment in organizations Online Job applications Efficiency of Recruitment and Selection Department Effectiveness of HR Department

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Part-III
5. Findings

I had distributed a questionnaire in 6 banks, HR employees of those banks responded, following analysis shows their opinion using e-recruitment. According to survey questionnaire qeuestion-1 to question-3 were related to identity and name of the bank asked about NAME and their respective BANKS. Q-2: Designation This question was asked to know about respondents positions, on what capacity they are working in their HR departments. Further more these positions have been categorized in 3 job levels, (1) Top Management Level (2) Middle Management level and (3) Operational Level employees responded. Accordingly figure-3 shows that the Management level of the respondents of this survey, Top Management Level 43%, Middle Management Level 37% and Operational Level 20%.

25 Figure-3: By Management Level Respondents

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Q-4:

What form of ownership does your (respondent) Company (Bank) have? In question-4 respondents were asked to say about their bank ownership. Figure-4 said that they are in Islamic Banking 20%, Private Banks 60% and public Banks 20%. The majority of respondents were from private banks 60%.

Figure-4 Respondents ownership in banking sector Q-5: Q-6: Was asked to know the no. of HR persons working in Banks. In which area of HR you are using HRIS? This question was asked to respondents that, what is the level of use of HRIS in their respective Banks, Survey shows that the share of Recruitment 8%, Performance 29%, Compensation 27%, Training 25% and Others 11% (figure-5).

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As we saw that the organization (banks) using IT in HR and share Recruitment 8% is very low, which means the organizations ARE using IT (HRIS) in other HR functions.

Figure-5: Use of HRIS in HR Functions According to this survey we have further found that the use of HRIS in banking sector, the share of Islamic Banking is 13%, Private Banks 75% and Public Banks 12%. Private level banks are fully using IT (HRIS) in their respective HR departments (figure-6)

Figure-6: Use of Recruitment in banking sector 27

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Q-7

Was asked for URL of respondents bank.

Non-Users of E-Recruitment: Q-8 to Q-12 were asked to respondents, who are not using E-Recruitment in there banks. Q-8: Are you using traditional methods of recruiting. This question was asked what methods are the organization using for hiring new staff members. Respondents said that they are using Traditional method 63% and using E-recruitment 37% in their Recruitment process. They are still relying on traditional methods.

Figure-7: Use of Recruitment Methods in HR Q-9: Planning to Use of E-Recruitment in Near Future? All 100% respondents agreed that usage of E-Recruitment is likely to enhance the efficiency of HR.

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Q-10 and Q-11 were mostly not replied in nature of confidentiality of ` information. Q-12: Reasons for not using the Internet as tool for recruiting? Respondents have responded why banks are not using erecruitment in HR. The reasons of not using e-recruitment were Discriminatory impact towards non-internet users 83%, Applications not suitable for the job offered 73%, Multiple job applications 53% and confidential and privacy issues 17% (figure-8).

Figure-8 Reasons, why Banks not using E-Recruitment

Use of E-Recruitment Q-13: In which area of Recruitment are you using E-Recruitment? 29

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The use of e-recruitment is recruitment process is as per this research survey respondents were of the opinion that e-recruitment is used in HR is posting applications 97%, External 73%, and Internal Recruitment 70% and Receiving applications 67%, (figure9)

Figure-9: Use of E-Recruitment in Banks

Q-14: In what form are usually applications received by your organization? According this survey finding respondents said that, Online Application 87% and Email Application 13% received by HR (figure10).

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IMPACT OF E-RECRUITMENT ON HR EFFICIENCY AND EFFECTIVENESS


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% Form of receiving job applications

email applications 13%

Online Applications 87%

Figure-10: form of receiving job applications Further more we see the form of receiving applications by sector (figure-11 and figure-12),
57%

Online Applications

Email Applications
20%

20% 3% 0% Pvt. Banks Islamic Banks Public Banks Public Banks Pvt. Banks 0% Islamic Banks

Figure-11: Online applications receiving by sector

Figure-12: Email applications receiving by sector

The Private Banks mostly we have seen, receiving candidates online applications 57% and Public banks receiving email applications 20%.

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IMPACT OF E-RECRUITMENT ON HR EFFICIENCY AND EFFECTIVENESS


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Q-15 and Q-16 Reduce Paper Work and Cost As per the respondents use of e-Recruitment leads to paper work is reduced 83% and cost reduced 67% (figure-13)

90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

83% 67%

33% 17%

AGREE Reduces Paper Work

NEUTRAL Reduces Cost

Figure-13: E-Recruitment Reduces paper work and recruitment cost Q-17: Candidates effectively hired in the last 12 months period through The respondents said that in last 12 months they have successfully hired through e-recruitment 48%, Newspaper Adds 31%, resume and references 14% respectively and Headhunting 3% (figure-14) which is a health sign.

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IMPACT OF E-RECRUITMENT ON HR EFFICIENCY AND EFFECTIVENESS


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effectively hired through


48%

31%

14%

14%

E-RECRUITMENT

REFERENCES

NEWSPAPER

Figure-14: Candidates effectively hired through Further more this question elaborated that Candidates hired in last 12 months by sector (figure-15)

Figure-15: candidates effectively hired in last 12 months by banking sector Q-18: Do you see E-Recruitment as being more effective for certain positions? 33

HEAD HUNT

3%

RESUMES

ADS

IMPACT OF E-RECRUITMENT ON HR EFFICIENCY AND EFFECTIVENESS


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Most of the respondents have opinion that the e-recruitment is not suitable for hiring in top management process which is 100% but there is mixed response that e-recruitment is very effective for hiring in Senior positions 20% and for junior positions 47%. Mean while 77% of respondents have said that e-recruitment is very suitable for hiring senior positions and suitable 23% (figure-16)

Figure-16: Use of e-recruitment more effective for certain positions Q-19: Effectiveness of E-Recruitment Respondents have given their opinion and participated in survey said that e-recruitment is very effective 83% in hiring and 17% had view that e-recruitment is not effective (figure-17).

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Figure-17: effectiveness of e-recruitment Q-21: Best Advantages of E-recruitment It show that best advantages of e-recruitment are Automatic process of hiring and Lower recruiting cost 83% and Electronic of Administration of candidates 60%. Automatic process 93%, Lower recruiting cost 87%, Electronic Administration of candidates 60%, Reduction of unqualified candidates 57%, Hiring top talent 43% Broad access is 23% and More opportunities for Smaller Companies 7% (figure-18).

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IMPACT OF E-RECRUITMENT ON HR EFFICIENCY AND EFFECTIVENESS


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Figure-16: best Advantages of E-Recruitment in banking sector Q-22: Percentage of Annual Recruitment Budget

This graph shows the amount of budget allocated for recruitment is low and organizations spend only an insignificant part on erecruitment. If the benefits of e-recruitment are to be exploited organizations must enhance recruitment. their spending budget on e-

Figure-17: Total annual recruitment budget in banking sector

Q-23: Extent Use of E-Recruitment for achieving objectives This table-2 shows that use of internet and website are important tools for enhancement of E-Recruitment. It is a medium for fresh 36

IMPACT OF E-RECRUITMENT ON HR EFFICIENCY AND EFFECTIVENESS


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graduates to apply quickly thus enhancing the database of pooled candidates. Recruitment sifting becomes easier. However most of the respondents were of the view that it does not lead to better control since lot of unsuitable candidates also apply. Maybe the control aspect of it is not being fully exploited by organizations.

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IMPACT OF E-RECRUITMENT ON HR EFFICIENCY AND EFFECTIVENESS


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Table-2
Strongly Agreed Agreed Satisfied Disagreed Strongly Disagreed

Internet improving our recruitment process Corporate website is an important marketing tool in attracting applicants E-Recruitment is most useful when recruiting new graduates E-Recruitment is most useful when recruiting Experienced candidates E-Recruitment is increasing sift unsuitable applications received Greater control on selection process Online Testing filters out unsuitable applicants Using E-Recruitment has freed up time to focus on other HR activities Emails is great ways of giving feedback to unsuccessful candidates

50% 50%

40% 50%

10% 0%

0% 0%

0% 0%

47% 3% 43% 0% 3% 23%

53% 7% 43% 17% 10% 60%

0% 30% 3% 40% 3% 7%

0% 47% 7% 43% 47% 10%

0% 13% 3% 0% 37% 0%

7%

33%

60%

0%

0%

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IMPACT OF E-RECRUITMENT ON HR EFFICIENCY AND EFFECTIVENESS


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6.0 Recommendations

The focus of this study was to find out whether the E-Recruitment is effectively being used by HR in recruitment process. Most of the respondents were of the view that effectiveness enhances by 83%, reduce hiring cost 87% and save paper work 83%. It was also found that MNC banks are using e-recruitment 37% and national banks are using traditional recruitment 63% (not using erecruitment) practices in hiring process. It is highly recommended that organizations must use e recruitment according my survey and finding I would like to emphasize and recommended HR must implement and use E-recruitment at large scale, however, currently the use of e-recruitment is 37%, which is very low with the exception of private banks using e-recruitment at large scale. It is also recommended that HR must use e-recruitment in functions like, Online testing which reduces paper work, advertising jobs on online on their corporate website, which reduce advertising cost, Design a standard online job application form, which meet the specifications of offered job. HR uses e-recruitment in External 73% and internal hiring 70% achieving efficient and effective candidates from entire workforce.

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IMPACT OF E-RECRUITMENT ON HR EFFICIENCY AND EFFECTIVENESS


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7.0

Conclusion

Although the respondent size in this survey was small yet the conclusion seems universal. All respondents who were mainly HR people agreed the effectiveness of e recruitment but the insignificant attention being given by organizations is note worthy. Some of the reasons are plausible but not having sufficient trained staff and low budget need to be addressed quickly. Banking sector is one of the growing sectors of Pakistan and recruitment is an on going activity through out the year. The number of applicants are ever on the increase therefore due attention should be directed to get the best and most appropriate employees. This is only possible if the technology is exploited to maximum for tedious and laborious tasks and management is available to think on other important activities of recruitment function.

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8.0 Bibliography

Reference: Berardine, T. (1997). Tips on buying off the shelf. Computing Canada, 23(13), 44. Boudrean, J. (1995). Growing role for managing human resources. The Age, August 24. Broderick, R. & Boudreau, J. W. (1992). Human resource management, information technology and the competitive edge. Academy of Management Executive, 6(2), 7-17 CIPD survey (2005). http://www.cipd.co.uk/surveys Dunivan, L. (1991). Implementing a user-driven human resource information system. Journal of Systems Management, 42(10), 13-15. Ein-Dor, P. & Segev, E. (1978). Organizational context and the success of management information systems. Management Science, 24(10), 1064-1077. Groe, G. M., Pyle, W. & Jamrog, J. J. (1996). Information technology and HR. Human Resource Planning, 19(1), 56-61. Haines, V. Y. & Petit. A. (1997). Conditions for successful human resource information systems. Human Resource Management, 36(2), 261-275. Irfan ul Hassan (2006). IT use and Management Processes in Korangi Pharma. Market Forces, 3(1), 46-47. Johnston, H. R. & Carrico, S. R. (1988). Developing capabilities to use information strategically. MIS Quarterly, 12(1), 37-50. Kavanagh, M. J., Gueutal, H. G. & Tannenbaum, S. I. (1990). Human Resource Information Systems: Development and Application . PWS-KENT Publishing Company, Boston, Massachusetts. Kovach, K. A. & Cathcart, C. E. Jr. (1999). Human resource information systems (URIS): Providing business with rapid data access, information exchange and strategic advantage. Public Personnel Management, 28(2), 275-282. Looise, Jan Kees, E-HRM, Innovation or Irritation: in Management Revue, (January 2004) Lepak, D. P./Snell, S. A. (1998): Virtual HR: strategic human resource management in the 21st century. In: Human Resource Management Review, 8, (3), 215-234. 41

IMPACT OF E-RECRUITMENT ON HR EFFICIENCY AND EFFECTIVENESS


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Martinsons, M. G. (1994). Benchmarking human resource information systems in Canada and Hong Kong. Information and Management, 26, 305-316. Martinsons, M. G. (1997). Human resource management applications of knowledge-based systems. International Journal of Infonnation Management , 17(1), 35-53. Phillips, L. W. (1981). Assessing measurement error in key informant reports: A methodological note on organizational analysis in marketing. Journal of Marketing Research, 16, 395-415. Richards-Carpenter, C. (1996). Make a difference by doing IT better. People Management, 2(12), 39. Shao, Y. P. (1998). Perceived Impact and Diffusion of Expert Systems in Banking: An Exploratory Investigation. International Journal of Information Management, 18(2), 139-156. Sirageldin, C. (1990). Training drives the HRIS. HR Focus, 67(5), 15-49. Theresa Minton-Eversole, E-recruitment tools, processes come of age, HR Magazine, Dec-07 Tye, E. M. W. & Chau, P. Y. K. (1995). A study of information technology adoption in Hong Kong. Journal of Information Science, 21(1), 11-19. Ulrich, D. (1997): Human Resource Champions. Boston, MA: Harvard Business School Press. Walker, A.J./Regan, M. (1997): 'Reinventing HR'. In: IHRIM. Link, 4. Wright, P. (1998): Introduction: strategic human resource management research in the 21st century. In: Human Resource Management Review, 8, (3), 187-191. Wright, P./Dyer, L. (2000): People in the e-business: new challenges, new solutions. Working paper 00-11, Center for Advanced Human Resource Studies, Cornell University. Yeh, C. Y. (1997). Human Resource Information Systems: Implementation in Taiwan. Research & Practice In Human Resource Management , 5(1), 57-72. http://www.stepstonesolutions.com/Solutions/Screening_Selection/Screening_S election.php

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9.0 Appendix

9.1 E-Recruitment Questionnaire


Please take a few minutes to complete this questionnaire. Your specific answers will be completely anonymous but extremely important. Please mark your choices using ().

General Questions 1. Name: 2. Designation: 3. Please indicate the name of your Bank: 4. What form of ownership does your company have? Public sector bank Private Banks Islamic Banks Banks 5. Number of HR persons employed in your Bank <= 25 Training 26-50 Foreign >= 50

6. In which areas of HR are you using HRIS? Recruitment Performance Compensation Specify) _________

Others (Please

7. What is your Web address or URL? _________________________________________ Non users of E-Recruitment 8. Are you using traditional methods of recruiting? (If yes, so please complete up to question 912). 9. Are you planning to use the Internet in the near future? Yes No Yes No

10. Do you think that e-Recruitment is more effective than other ways of recruiting? Yes No 11. If you were looking for a job yourself, would you look at the Internet? 12. Please mark reasons for not using the Internet as a tool for recruiting?
Confidentiality/Privacy issues Discriminatory impact towards noninternet users Multiple Job applications Lack of competence in Organization Applications not suitable for the job offered

Yes No

Use of E-Recruitment 13. In which area of Recruitment are your using E-Recruitment Receiving applications Posting vacancies on Web page Sifting Application Conducting Tests Online Answering questions of applicants

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IMPACT OF E-RECRUITMENT ON HR EFFICIENCY AND EFFECTIVENESS


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Carrying out analytical analysis Databank of Job Seekers

External Recruitment Internal Recruitment

14. In what form are usually applications received by your organization Email Application Online Application 15. Do you agree that using e-recruitment successfully reduces paper work and give speed in sifting? Agree Neutral Disagree 16. Do you agree that your organization has progressed towards reducing the HR recruitment costs by moving to e-recruitment? Agree Neutral Disagree 17. How many (in %) candidates have you effectively hired in the last 12 months period through. E-Recruitment Newspaper Advertisement Resumes Head Hunt References

18. Do you see e-Recruitment as being more effective for certain positions? Please order your preferences:
Very Effective Top Management Senior Positions Junior positions 19. Do you think that e-Recruitment is more effective than other ways of recruiting? Yes No 20. If you were looking for a job yourself, would you look at the Internet? Yes No 21. Please choose best advantages of on-line recruiting on a Corporate Web site according to your preferences: (Use multiple choices) Automatic processing Lower recruiting costs Electronic administration of the More Opportunities for smaller candidates companies Broad Access Hiring Top talent Reduction of unqualified candidates 22. What percentage of your annual recruitment advertising budget do you spend on internet recruitment? 10% 25% 50% 75% 100% Suitable Not Suitable

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IMPACT OF E-RECRUITMENT ON HR EFFICIENCY AND EFFECTIVENESS


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23. Why extent use of e-recruitment for achieving objectives?


Strongly Agreed Agreed Satisfied Disagreed Strongly Disagreed

a) Internet improving our recruitment process b) Corporate web site is an important marketing tool in attracting applicants c) E-Recruitment is most useful when recruiting new graduates d) E-Recruitment is most useful when recruiting experienced candidates e) E-Recruitment is increasing sift unsuitable applications received f) Grater control on selection process g) Online testing filters out unsuitable applicants h) Using E-Recruitment has freed up time to focus on other HR activities i) Email is great way of giving feedback to unsuccessful candidates.

5 5 5 5 5 5 5 5 5

4 4 4 4 4 4 4 4 4

3 3 3 3 3 3 3 3 3

2 2 2 2 2 2 2 2 2

1 1 1 1 1 1 1 1 1

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