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WHATT 2,1

An HR perspective: the global hunt for talent in the digital age

Duncan R. Dickson and Khaldoon Nusair
Rosen College of Hospitality Management, University of Central Florida, Orlando, Florida, USA
Abstract
Purpose The purpose of this paper is to provide the reader with a practical understanding of the dynamic changes in how resumes are handled by recruiters and the application of technology to the human resource (HR) functions not only of reading resumes, but also of how technology is making some of the initial decisions on how they are passed on to hiring managers. HR information system has changed the way talent is accessed, prescreened, sorted, and stored. Knowledge of these systems is imperative for the twenty-rst century job-seeker. Design/methodology/approach The authors interview industry practitioners regarding the use of resume scanning and identify the pros and cons of the systems from an industry perspective. Findings These discussions nd that technology will continue to impact HR group in the hospitality industry. As the HR teams nd more and better ways to utilize the technology the applicant pool will have to adjust to ensure that they are not screened out because they are missing a key word. Research limitations/implications The ever changing technology makes the information dated immediately on publication. The implication is that the search and hiring process has changed so dramatically that awareness of technology is important. Practical implications Recruiters and job seekers must be aware of articial intelligence, optical character recognition, and other scanning technologies. Understanding how technology is changing, even the most basic of HR practices is crucial. Originality/value The paper presents a discussion about the new technologies being used in the job search and resume-handling process, as well as the industry practitioner opinion of the uses and benets of the technology. Keywords Human resource management, Recruitment, Job applications, Communication technologies, Information systems Paper type Research paper

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Worldwide Hospitality and Tourism Themes Vol. 2 No. 1, 2010 pp. 86-93 q Emerald Group Publishing Limited 1755-4217 DOI 10.1108/17554211011012612

Introduction Over the past two decades, the hospitality recruiting process has grown in complexity putting tremendous pressure on human resource (HR) practitioners to nd innovative ways to handle the recruiting function. Traditionally, hospitality organizations relied on fairly low-tech methods to attract capable employees. Such hiring practices have resulted over the years in operational inefciencies. The recruitment function plays a major role in enhancing organizational survival and success in the extremely competitive business environment that exists today. As a result, many organizations have realized the need to implement HR information systems (HRIS) (Nusair and Parsa, 2007). Computer-based information technology has introduced a wide variety of HRIS applications that are helping to improve the efciency and the effectiveness of the HR function. The introduction of these systems has made a strategic contribution to the hospitality industry. Technology-based recruitment systems are becoming one of the

most crucial applications in HRIS. Recruiting systems aim to help hospitality enterprises to save costs by streamlining the hiring process. Recruiting systems are touted to improve the process of hiring by quickly prescreening, sorting, and storing resumes, and matching those resumes to available job openings (Santosus, 2005). Thus, managers are capable of quickly and efciently nding qualied candidates to ll a variety of job postings within the USA and overseas (Lin and Stansinskaya, 2002). This paper examines the resume scanning systems that improve the efciency and the effectiveness of the HR recruiting function. In the traditional method of nding employees, resumes are usually sent to employers in response to job postings via e-mail, mail, or fax. The time wasted by HR employees trying to decipher these resumes is very costly. The resulting inux of resumes has made it more difcult than ever to choose promising candidates from the mass of applicants. This exerted pressure on HR departments to hire more HR staff to sort, review, and keep track of attractive candidates. In an effort to increase efciency and to overcome the challenge associated with the traditional way of processing resumes, many companies are now using scanning technology. This technology is playing a vital role in HRIS (Baker et al., 1998). The scanning software has the capability of scanning an incoming resume with optical character recognition (OCR) (Guffey, 2007) looking for keywords to achieve a match between applicants qualications and job requirements. More advanced scanning software enable recruiting staff to search for keywords, rank resumes based on the number of matches or hits, and generate reports based on those hits (Guffey, 2007). Once resumes are scanned, then data are stored in the database for six months to a year. According to Dave Schmidt, a Director of operations for a fast food franchise in the Midwest, there are benets to using an online application screening process for the employer as well as the potential employee. The company has been using the online application process for over two years and he says that the benets are that there is easy access to the applications and that therefore the manager or supervisor can send a quick response back to the potential employee or manager. Along with this quick response, it is easier to get a response back from them regarding an interview rather than waiting for the phone messages to be returned. He believes that people now respond much quicker to e-mails rather than playing phone tag with each other. Schmidt says:
The company uses online applications for both managers and employees. The only negative I have heard from the managers is that they only get to see the online application before they call them for an interview they dont get to see them in person.

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After working in HR and operations for over 25 years, he does not see any negative in the online application process. He is able to check references before calling someone for an interview, he is better prepared for interviews because he has access to all of the information, and he can ask more pointed questions during an interview to address issues that were posted on the online application. These sentiments were echoed by others in the restaurant and lodging industries. Rose Welindt from the Hilton stated that online applications are more efcient than older methods and applications are able to be sent from property to property as the need arises. This eliminates the need for faxing and possibly losing information

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between properties. Overall, the use of online applications and screening processes allows industry HR practitioners to do their jobs better and with more accuracy. Although the resume scanning systems grew in importance over the past decade, there is lack of academic research in hospitality in this topic. This paper will look at the factors that contribute to the decision to adopt resume scanning systems, and, will to explore the benets of resume scanning systems adoption. This paper sheds light into the extent to which resume scanning systems are utilized in the hiring process in hospitality hotels and it examines the benets of adoption. Consequently, it contributes signicantly to the body of academic knowledge and to industry practices as well. In addition, the ndings of this research paper open new avenues of research within the area of resume scanning systems in hospitality. Literature review Using articial intelligence to improve the HR process The purpose of articial intelligence (AI) is making HR positions easier for recruitment, assignment of personnel, personnel management, and retention. AI is streamlining the HR process and thus lowering costs. The rst AI programs focused on human tasks, such as playing chess/checkers or responding to simple instructions, but have recently become more complex (Buchanan, 2005). Mehrabad and Brojeny (2007) found that AI would help the managers for optimal decision making in respect to selection process, recruitment, job rotation, training, payment system, job classication, evaluation, and the other personnel operations. Singh and Finn (2003) found that an organizations ability to attract and retain capable employees may be the single most important determinant of organizational effectiveness and that using a procedure that could help streamline this process would be benecial to HR practitioners. AI is a great asset to narrow down the candidate pool through resume scanning. Singh and Finn (2003) explained the way the system works as the following: Once a resume is received via a scanner, a fax, or an e-mail, an OCR device converts the scanned material into basic format (American standard code for information interchange (ASCII)). Once it is scanned, the systems articial intelligence reads the text and extracts key data, such as name, address, education, skills, qualications, and experience. The computer then organizes this information into a standard summary form dictated by the recruiter. After that, the system compares every vacancy in the organization and notes any/all matches. The system is also capable of creating rank order lists of all resumes eliminating the need for the recruiter to review all resumes submitted. If no match occurs, the information is kept in the database until an appropriate opening occurs. The resume is kept in the system for a dened amount of time which cuts back on resubmissions, and the time HR employees spend rereading the same resume. In addition, AI could be used to improve HR management with regard to creating teams in the workplace by pairing members (Malinowski et al., 2007) who might possess complementary skills and talents. Moreover, AI can also be used to optimize the retention of HR. This can be utilized by HR management to determine what their turnover rate is, and who is likely to leave the company because of the constraints inserted into the AI program. Being able to target these individuals, and trying to raise their overall happiness with the company, HR managers can lower their turnover rate, therefore creating a stable work environment. While the AI program cannot predict all

turnover, it was successful in a moderate decrease in turnover rate (Sexton et al., 2005). Furthermore, the AI program can also list common complaints and solutions to those complaints, as well as possible outcomes of all solutions to the issues. There are many advantages for using IT to recruit. In a survey by Kay (2000), respondents identied the following as the most important reasons to use technology for recruiting purposes: access to more candidates, improved ability to target specic audience, cost of placing job posting, speed, absence of middlemen, convenience, wide distribution of postings, quality of candidates, less paper work, better resume management, and better service. As a result of such benets, hospitality organizations are increasingly turning to IT to supplement the recruitment function. Resume scanning system is an example of such technologies. Resume scanning Resume scanning systems are not new. They have been around for over 15 years. However, the hospitality industry has been slow in adopting this new technology. The review of current literature on this subject reveals a lack of research addressing the benets that are associated with implementing the resume scanning systems in the hospitality industry. Therefore, the objective of this paper is to examine the pros and cons to using this technology from a practitioners perspective. It will also help HR practitioners have a better understanding of the benets of implementing a resume scanning system. The sheer volume of resumes submitted in response to a single or few job openings continues to be a signicant challenge for HR leaders. Using a resume scanning system is considered a strategic way to develop a new philosophy towards the way in which the best candidates are screened for a specic job. Resume scanning system is basically a system that scans resumes for prospects. Once a resume is scanned it is automatically stored in a database. The resume is scanned into the computer as an image, then OCR software looks at the image to recognize every character, symbol, and number and creates a text le (ASCII). The articial intelligence scans the text and uses keywords to select a few candidates from the thousands of applicants for the job (Bensson, 1997) that best t the criteria established by the recruiter. There are three primary methods to populate a database via optical scanning and there are specialized rms that can do that. The main ways of submitting resumes are: mail, fax, and electronically. Mailed and faxed resumes are scanned and the accuracy of the data is 85 percent while those submitted electronically have 100 percent validity (personal conversation bluepoint resume scanning, April 17, 2008). The capabilities of resume scanning systems vary in sophistication. For example, some can scan any resume in any format, including those with italics, underlining and bullets, on the other hand, other software might not recognize even the slightest differences from plain text such as bolding (Bensson, 1997). In an industry beset chronically by high employee turnover rates, web-based hiring programs aid in improving the hiring decisions. Hiring the right candidates can increase retention rates and save money. For example, hourly turnover at the Mainstreet Grill was down by 50 percent since it started using the TraitSet program (Berta, 2007). The TraitSet program is a selection tool that uses standardized questions to assess potential candidates on various personality traits that are preselected as critical by industry practitioners. HR practitioners can use this tool to screen potential

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candidates for t in the job prior to the interview process and it allows everyone to be viewed from the same lens with regard to job qualications and chosen criteria. As paperless recruiting systems become more prevalent, it is more incumbent on educators to teach the latest methods of the hiring process. Some professionals believe that as many as 90 percent of candidates use some type of web interface to apply for positions (Oracle, 2008). This means that educators need to prepare their students in how to apply for positions in the new technology enhanced world that society is transitioning towards at a very rapid pace. Every day there seems to be a new networking tool such as Linkedin, Plaxo, Tagged, Myspace, Facebook, etc. that the students entering the workforce in the second decade of the twenty-rst century need to understand. It is also critical for industry practitioners to keep you with current trends in technology to obtain applicants and to connect with them at various levels. Almost gone are the days of newspaper advertising to bring in youth to apply for jobs. Today is the electronic mainstream of information that organizations need to catch up with. Importance to hospitality educators Many hospitality educators may be asking why this is just not a foot note to discuss in the typically cursory HR class taught in most hospitality management curricula. The answer can be found in the literature that is predominant talking about the Global war for talent prevalent due to emerging economies (India, China, Dubai, etc.) and the coming mass departure from the workforce of the generation termed the Baby boomers (Zemke et al., 2000). As we see the growth of hospitality in places like Dubai, Macao, and Shanghai, educators need to be able to prepare students to be competitive for opportunities that may be far from where they can conveniently interview in a global economy. The US Bureau of Labor Statistics indicates that the young adult workforce (25-40) will decline by 1.7 million and by 2010 the USA will face a shortage of close to ten million workers. Other developed countries will see similar declines (Taleo, 2008). These numbers show that companies (and especially hospitality companies) need to nd systems that can process information and extract salient attributes from that information so they are able to respond to the talent shortage as quickly as possible. Educators need to equip students with the skills to be successful in a technologically inuenced selection process. It creates more efciencies, but it is a less personal HR process. The trend toward using scanning software seems indisputable; thus it is incumbent upon us as educators to insure that our students are prepared to meet the challenges of applying for career positions using the most up to date technologies. Knowing that their curriculum vitae (CV) will be scanned and reviewed using OCR technology means that they will have to imbed key words from the position announcement in their documents to insure that the query system picks them from the group of applicants. No longer will humans be looking at the CVs and perhaps picking that diamond in the rough to interview. The technology will choose from all the candidates and provide the recruiter a list of the ten most qualied based on the information that the system is provided. This may seem sterile and cold; but it is the future. To be competitive in the future, applicants must be able to express their skills in methods that have not previously been typical. The world is changing rapidly and

hiring (or at least call in for interview) decisions are being made on parameters that could not even be dreamt of 20 years ago. Not only are cell phones a way of life, information exchange is being done via multiple means that include, but are not limited to, the internet, cell phones, facebook, twitter, etc. Consequently, as the transformation of information multiplies formats the handling of this information must adapt to the inux. That is what AI is going to do; it will allow us to process candidate information more rapidly and produce short lists virtually without any human oversight. Importance to practitioners The war for talent was eloquently expressed by the Wall Street Journal when they said (Ready and Conger, 2007, paragraph 3):
To meet the challenge, companies must rethink how they hire, train, and reward their employees, placing those tasks at the heart of their business plans. In doing so, they have an opportunity to address all these separate problems with a unied plan, rather than waste time and resources attacking each of the issues individually.

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To assist with the war on talent, it is imperative that companies nd ways to handle applicants from all over the world in quick and expedient ways. Using technological HR applications, organizations will be able to compete for talent on a global basis. No longer do applicants have to physically take their application to the employer, there are opportunities online for the delivery of applications selection tools. Technology will allow those in search of talent to handle and process applicant information in a phenomenally faster way. They can also establish certain response mechanisms that generate communication parameters to applicants that save money (responses automatically generated to applicant e-mails that are pulled from scanned resumes will save in stationary and postage costs). Simple letter generated responses can cost up to $2.50 per letter (on an automatic letter reply system); thus the savings in a large-scale employment operation can be huge. The use of technology does not come without a cost. This cost is not just the systems and software cost. There is a human cost as well. This is where further research needs to be performed. By moving the application process to a purely transactional model, do we lose the analytical touch that a human review could perform? For example, let us assume that we are searching for a hotel assistant general manager or resident manager to groom into the next general manager for our 750 room convention hotel. In our specications that we provide our scanning system and AI query, it is said that a college degree is required (a common and simple request). A resume comes through of an individual with 15 years of experience (ve each in leadership positions in hotel marketing and sales, F&B, and rooms/housekeeping). In addition, the individual is uent in Japanese (18 percent of our group business is with Japanese tour operators). However, the individual does not have a college degree. Using the scanning system this resume would never see the recruiter. Had the recruiter seen the physical resume, it is very likely that the candidate would have at the very least received a telephone interview. As we move forward, the loss of human oversight of such an important function could be detrimental. Researchers need to take a look at this issue; especially in the light of the fact that the global war for talent is going to be one of our biggest challenges as we move forward into the twenty-rst century (Ready and Conger, 2007).

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Conclusions As discussed by hospitality industry practitioners, technology aided resume scanning and recruiting can be advantageous as it allows applicants from various locations to submit consistent information. It helps that information get into the HR practitioners hands much quicker and allows for easy storage of the information. The electronic resume scanning also allows for screening for key words prior to submission to the HR personnel that would then proceed with interviews if needed. Technology can be a boon to the HR practitioner. The HR professional must be cognizant of both the benets and the pitfalls of the technology solution. By removing the human factor from the resume review process, is HR giving up more than they get? In any event, that question must continue to be addressed and analyzed.
References Baker, W., Detienne, K. and Smart, K. (1998), How Fortune 500 companies are using electronic resume management systems, Business Communication Quarterly, Vol. 61 No. 3, pp. 8-19. Bensson, T. (1997), The artful resume and cover letter: how to ensure that yours are read, The Black Collegian Online, available at: www.black.collegian.com/issues/1997-10artful. shtml Berta, D. (2007), Operators: web-based tests aid in hiring right to cut turnover costs, Nations Restaurant News, Vol. 41 No. 28, pp. 1-14. Buchanan, B.G. (2005), A (very) brief history of articial intelligence, AI Magazine, pp. 53-60, Winter, available at: www.aaai.org/AITopics/assets/PDF/AIMag26-04-016.pdf (accessed August 30, 2007). Guffey, M.E. (2007), Essentials of Business Communication, 7th ed., Thomson South-Western, Mason, OH. Kay, A. (2000), Recruiting embrace the internet, Information Week, Vol. 778, pp. 72-80. Lin, B. and Stansinskaya, V.S. (2002), Data warehousing management issues in online recruiting, Human Systems Management, Vol. 21, pp. 1-8. Malinowski, J., Weitzel, T. and Keim, T. (2007), Decision support for team stafng: an automated relational recommendation approach, Decision Support Systems, Vol. 45 No. 3, pp. 429-47. Mehrabad, M.S. and Brojeny, M.F. (2007), The development of an expert system for effective selection and appointment of the jobs applicants in human resource management, Computers & Industrial Engineering, Vol. 53 No. 2, pp. 306-12. Nusair, K. and Parsa, H.G. (2007), Critical factors in implementing HRIS (human resource information systems) in restaurant chains: a case study analysis, Advances in Hospitality and Tourism, Vol. 1 No. 3. Oracle (2008), Peoplesoft Enterprise Candidate Gateway, available at: www.oracle.com (accessed March 16, 2008). Ready, D.A. and Conger, J.A. (2007), How to ll the talent gap, The Wall Street Journal, p. 3, available at: wsj.com/public/article_print/SB118841695428712511.html Santosus, M. (2005), The human-capital factor, CFO, Vol. 21 No. 13, pp. 26-7. Sexton, R.S., McMurtrey, S., Michalopoulos, J.O. and Smith, A.M. (2005), Employee turnover: a neural network solution, Computers & Operations Research, Vol. 32, pp. 2635-51. Singh, P. and Finn, D. (2003), The effects of information technology, Journal of Labor Research, Vol. XXIV No. 3, pp. 395-410.

Taleo (2008), What SMBs should look for in an applicant tracking system, available at: www. taleo.com (accessed March 18, 2007). Zemke, R., Raines, C. and Filipczak, B. (2000), Generations at Work, American Management Association, New York, NY. Further reading Schmidt, D. (2009), personal communication, July 15. Welindt, R. (2009), personal communication, July 15. Corresponding author Duncan R. Dickson can be contacted at: ddickson@mail.ucf.edu

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