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

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

Introduction

Building relationships and networking has always been one of the best ways for staffing professionals to source job candidates and for job seekers to find jobs. The technological frenzy of the 21st century is having a profound impact on recruiting strategies, whilst still allowing the human element of relationships to remain at the core. This survey investigated how staffing professionals are using online technologies, specifically social networking sites, for recruitment and screening of job candidates. Social networking sites provide a unique method of allowing staffing professionals to source, contact and screen both active and passive job candidates. Source: SHRM Staffing Research: Online Technologies and Their Impact on Recruitment Strategies (2008, July - September)

©SHRM 2008

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Figure 1: Recruiting Sources Primarily Used When Recruiting Job Candidates n=571 48%

Natio nal o nline jo b bo ards (e.g. careerbuilder.co m, ho tjo bs.co m etc.)

43%

Emplo yee referrals

35%

Career sectio n o f o rganizatio n's website

16%

Internal jo b po stings

13%

Industry-specific/ niche o nline jo b bo ards

12%

P rint advertising

8%

Jo b fairs

8%

On-campus co llege recruiting

5%

Regio nal o nline jo b bo ards

5%

Direct hire agencies/ search firms (excluding temp agencies) Info rmal netwo rking

3%

Tempo rary agencies

3% 3%

So cial netwo rking sites (Facebo o k, M ySpace, Friendster)

2%

Online campus recruiting

1%

Trade publicatio ns (print & o nline) Open ho use events

1%

Research/ so urcing firms

1%

TV advertising

0%

Radio advertising

0%

Other

0%

3% 10%

20%

30%

40%

50%

60%

Note: Percentages do not total 100% because multiple response options were used. Respondents were asked to select their top three primary recruiting sources. Source: SHRM Staffing Research: Online Technologies and Their Impact on Recruitment Strategies (2008, July - September)

• National online job boards, employee referrals and the career section of an organization’s website, are the primary sources used ©SHRM 2008 for recruiting.

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Table 1: Influences on a Hiring Decision From Information Implicitly or Explicitly Found on an Applicant's Social Networking Profile Would be much less likely to hire

Would be somewhat less likely to hire

Would be neither more likely nor less likely to hire

Would be somewhat more likely to hire

Would be much more likely to hire

Unusual hobbies (n=43)

2%

5%

93%

0%

0%

Information or pictures concerning romantic exploits (n=42)

26%

21%

52%

0%

0%

Involvement in volunteer or civic groups (n=44)

0%

2%

36%

52%

9%

Revealing private or confidential information about former or current employers (n=44)

52%

41%

7%

0%

0%

Personal views, values, and/ or morals contradictory to your own organization (n=44)

11%

43%

43%

2%

0%

Involvement in professional societies or organizations (n=44)

2%

0%

30%

59%

9%

Information on the applicant’s profile page contradicts that provided on the applicant’s resume, cover letter, or CV (n=44)

52%

41%

2%

5%

0%

Note: Percentages may not total 100% due to rounding. A subset of participants were surveyed. Those who don’t currently use social networking sites to screen job applicants were excluded. Source: SHRM Staffing Research: Online Technologies and Their Impact on Recruitment Strategies (2008, July - September)

©SHRM 2008

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Table 1: Influences on a Hiring Decision From Information Implicitly or Explicitly Found on an Applicant's Social Networking Profile (continued) Would be much less likely to hire

Would be somewhat less likely to hire

Would be neither more likely nor less likely to hire

Would be somewhat more likely to hire

Would be much more likely to hire

Information on the applicant’s profile page supports that provided on the applicant’s resume, cover letter, or CV (n=44)

0%

5%

34%

46%

16%

Slanderous or otherwise negative discussion of former or current employers (n=44)

43%

50%

5%

2%

0%

Negative or slanderous discussion of the applicant’s friends, peers, or coworkers (former or current) (n=44)

41%

46%

11%

2%

0%

Excessive alcohol use (n=44)

41%

39%

21%

0%

0%

Personal views, values, and/ or morals similar to your own organization (n=43)

2%

5%

51%

37%

5%

Illegal drug use (n=44)

80%

18%

2%

0%

0%

Positive or complimentary discussion of former employers (n=44)

0%

7%

55%

30%

9%

Note: Percentages may not total 100% due to rounding. A subset of participants were surveyed. Those who don’t currently use social networking sites to screen job applicants were excluded. Source: SHRM Staffing Research: Online Technologies and Their Impact on Recruitment Strategies (2008, July - September)

• Negative information has a greater influence on hiring decisions, than positive information. ©SHRM 2008

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Figure 2: Usage of Social Networking Sites as an HR Tool

90% 79%

80% 70% 60%

56%

50% 40% 30% 18%

20% 13% 9%

10%

4% 0%

12%

7%

2%

0% Always

Frequently

Occasionally

2006 (n=297)

Seldom

Never

2008 (n=529)

Source: SHRM Staffing Research: Online Technologies and Their Impact on Recruitment Strategies (2008, July - September)

• Social networking sites are being used more frequently now as an HR tool, than they were two years ago. ©SHRM 2008

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Figure 3: Usage of Online Search Engines as an HR Tool

30%

29% 27%

26%

23%

22%

21%

20% 16% 13%

12% 10%

10%

0% Always

Frequently

Occasionally 2006 (n=297)

Seldom

Never

2008 (n=533)

Note: Percentages may not total 100% due to rounding. Source: SHRM Staffing Research: Online Technologies and Their Impact on Recruitment Strategies (2008, July - September)

• Online search engines are being used more frequently now as an HR tool, than they were two years ago. ©SHRM 2008

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Figure 4: Average Number of Hours Spent per Week on Social Networking Sites Related to Recruiting and Screening Applicants 100% 90% 80% 70% 60% 50%

49%51%

40% 28% 24%

30% 20%

13% 10%

10%

2%

5%

6%

3%

3%

3%

3%

0% 0-2

3-5

6-10

11-15

16-20

21-30

31-40

over 41

Number of Hours Recruiting Applicants (n=94)

Screening Applicants (n=39)

Note: Percentages may not total 100% due to rounding. A subset of participants were surveyed. Those who don’t currently use social networking sites to screen or recruit job applicants were excluded. Source: SHRM Staffing Research: Online Technologies and Their Impact on Recruitment Strategies (2008, July - September)

• A few hours a week are spent recruiting and screening applicants on social networking sites. ©SHRM 2008

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Figure 5: Usage and Intention of Using Online Search Engines and Social Networking Sites to Screen Job Applicants at Any Point in the Hiring Process 80% 67%

70% 60% 53% 50% 40%

34% 30% 18%

20%

13% 9%

10%

4%

2%

0% No, we have never and do not plan to

No, we have never, but plan to

Online Search Engines (n=381)

Yes, we did previously, but do not plan to again

Yes, we currently use this online tool to screen applicants

Social Networking Sites (n=388)

Source: SHRM Staffing Research: Online Technologies and Their Impact on Recruitment Strategies (2008, July - September)

• Most organizations do not use online search engines and social networking sites to screen applicants. ©SHRM 2008

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Figure 6: Usage and Intention of Using Social Networking Sites to Recruit or Contact Potential Job Applicants n=371 No, we have never and do not plan to in the future

45%

Yes, we currently use these sites to recruit/ attract potential applicants

34%

No, we have never, but plan to in the future

Yes, we did previously, but do not plan to again in the future

19%

3%

0%

10%

20%

30%

40%

50%

Note: Percentages may not total 100% due to rounding. A subset of participants were surveyed. Those who don’t currently use social networking sites to recruit job applicants were excluded. Source: SHRM Staffing Research: Online Technologies and Their Impact on Recruitment Strategies (2008, July - September)

• Close to one-half of organizations do not use social networking sites to recruit/contact applicants. ©SHRM 2008

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Figure 7: Methods Used on Social Networking Sites to Recruit or Contact Potential Applicants n=103 Search for passive recruits or applicants by using the social netw orking w ebsite's search feature

53%

Both create a group or page w ith information about your organization and search for passive applicants using the social netw orking w ebsite's search feature

24%

Create a group or page for your organization to post information and career opportunities

Other

0%

16%

7%

10%

20%

30%

40%

50%

60%

Note: A subset of participants were surveyed. Those who don’t currently use social networking sites to recruit job applicants were excluded. Source: SHRM Staffing Research: Online Technologies and Their Impact on Recruitment Strategies (2008, July - September)

• For recruiting/contacting potential applicants, social networking sites are primarily used to search for passive applicants. ©SHRM 2008

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Figure 8: Points in the Hiring Process Where Social Networking Sites are Used to Screen Applicants Prior to actually contacting the applicant for the first time

47%

n=51 After initially contacting the applicant, but before offering a formal interview to the applicant

41%

After offering a formal interview, but prior to extending an offer for employment to the applicant

After extending an offer for employment to the applicant

Other

0%

37%

8%

6%

10%

20%

30%

40%

50%

Note: Percentages may not total 100% due to rounding. A subset of participants were surveyed. Those who don’t currently use social networking sites to screen job applicants were excluded. Source: SHRM Staffing Research: Online Technologies and Their Impact on Recruitment Strategies (2008, July - September)

• Social networking sites are mainly used prior to contacting the applicant for the first time, prior to an interview and before extending a formal offer to the applicant. ©SHRM 2008

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Figure 9: Existence of a Formal Policy for Using Social Networking Sites to Screen Applicants n=471 No, there is no formal or informal policy at all with regards to use of these sites

72%

No, there is no formal policy but there is an informal policy against use of these sites

13%

No, there is no formal policy but there is an informal policy allowing use of these sites

Yes, formal policy against use of these sites

10%

3%

Yes, formal policy allowing use of these sites

0%

2%

10%

20%

30%

40%

50%

60%

70%

80%

Source: SHRM Staffing Research: Online Technologies and Their Impact on Recruitment Strategies (2008, July - September)

• Most organizations do not have a formal policy regarding the use of social networking sites for screening applicants. ©SHRM 2008

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Figure 10: Intention to Implement a Formal Policy for Use of Social Networking Sites to Screen Applicants n=208

No, our organization does not have plans to implement a policy

89%

Yes, our organization plans to implement a policy within the next 12 months.

11%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Note: A subset of participants were surveyed. Those who have a formal plan regarding the use of social networking sites were excluded. Source: SHRM Staffing Research: Online Technologies and Their Impact on Recruitment Strategies (2008, July - September)

• Most organizations don’t plan to implement a formal policy for the use of social networking sites for screening applicants. ©SHRM 2008

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Figure 11: Job Levels Social Networking Sites are Used for to Recruit or Contact Potential Applicants n=125 Exempt/ Non-management (e.g., coordinator, specialist)

58%

Middle management (e.g., director, manager, supervisor)

54%

Non-exempt employees/ Non-management (e.g., assistant, secretary, retail. hospitality, etc.)

32%

Executive level (e.g., CEO, CFO)

27%

Consultants

15%

0%

10%

20%

30%

40%

50%

60%

70%

Note: Percentages may not total 100% because multiple response options were used. A subset of participants were surveyed. Those who don’t currently use social networking sites to recruit job applicants were excluded. Source: SHRM Staffing Research: Online Technologies and Their Impact on Recruitment Strategies (2008, July - September)

• Social networking sites are primarily used to recruit exempt/nonmanagement and middle management applicants. ©SHRM 2008

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Table 2: Effectiveness of Social Networking Sites for Recruiting Applicants at Each Job Level in the Past 12 Months Very ineffective

Somewhat ineffective

Neither effective nor ineffective

Somewhat effective

Very effective

Non-exempt employees/ Nonmanagement (e.g., assistant, secretary, retail, hospitality, etc.) (n=60)

10%

12%

40%

32%

7%

Exempt/ Non-management (e.g., coordinator, specialist) (n=86)

4%

11%

26%

49%

12%

Middle management (e.g., director, manager, supervisor) (n=75)

4%

9%

23%

44%

20%

Executive level (e.g., CEO, CFO) (n=52)

12%

14%

29%

31%

15%

Note: Percentages may not total 100% because multiple response options were used. A subset of participants were surveyed. Those who don’t currently use social networking sites to recruit job applicants were excluded. Source: SHRM Staffing Research: Online Technologies and Their Impact on Recruitment Strategies (2008, July - September)

• Social networking sites are effective in recruiting applicants of all job levels, they are most effective for exempt/non-management and middle management positions. ©SHRM 2008

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Figure 12: Why Organizations Use Social Networking Websites to Recruit or Contact Applicants n=125

Able to recruit passive applicants which might not otherwise apply or be contacted by your organization

69%

Able to target a specific job level to recruit or contact (i.e., entry level, managers, executives, etc.)

40% 38%

Can target applicants with a very specific set of skills

35%

To increase employer brand and recognition

31%

Able to target a specific geographic region in which to recruit applicants Allows for potential applicants to easily contact your organization about employment

29%

Results in more qualified applicants relative to the amount of time and effort invested

27% 25%

Able to identify potential applicants in other geographic regions Results in a large quantity of applicants relative to the amount of time and effort invested

20%

To create an online community focused on my organization

18%

Allows for effective dissemination of job and organization related information

18%

Other

3%

0% 10% 20% 30% 40% 50% 60% 70% Note: Percentages may not total 100% because multiple response options were used. A subset of participants were surveyed. Those who don’t currently use social networking sites to recruit job applicants were excluded. Source: SHRM Staffing Research: Online Technologies and Their Impact on Recruitment Strategies (2008, July - September)

• The number one reason social networking sites are used is to recruit passive applicants who might not otherwise apply or be contacted by an organization. ©SHRM 2008

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Figure 13: Why Organizations Do Not Use Social Networking Websites to Recruit or Contact Applicants n=246 Do not have enough HR staff time to use this recruiting method in addition to others

49%

Questions about the veracity of the information contained in these pages

42%

Social netw orking sites do not have applicants at the job level w hich w e are targeting

22%

Results in less qualified applicants relative to the amount of time and effort invested

21%

Results in a smaller quantity of applicants relative to the amount of time and effort invested

21%

HR staff does not have the know ledge or skills to recruit using this method

19%

Other

0%

15%

10%

20%

30%

40%

50%

60%

Note: Percentages do not total 100% because multiple response options were used. A subset of participants were surveyed. Those who currently used social networking sites to recruit job applicants were excluded. “Other” includes reasons such as IT restrictions on these sites, legal ramifications for using these sites and having not considered using them as an option. Source: SHRM Staffing Research: Online Technologies and Their Impact on Recruitment Strategies (2008, July - September)

• Not having enough staff time to recruit via social networking sites and questions about the veracity of the information obtained, prevents organizations from using such sites for recruitment purposes. ©SHRM 2008

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Figure 14: Why Organizations Use Social Networking Websites to Screen Applicants n=51 Takes little time and effort in relation to information gained

51%

Able to obtain more information about an applicant than would be provided by just a resume, cover letter, or CV

49%

Able to easily verify information from an applicant's resume, cover letter, or CV

26%

Able to assess whether the applicant is a good fit with the organization

26%

Able to assess the applicant's work related potential or performance

20%

Less expensive than other methods of screening applicants

16%

Other

16% 0%

10%

20%

30%

40%

50%

60%

Note: Percentages may not total 100% because multiple response options were used. A subset of participants were surveyed. Those who don’t currently use social networking sites to screen job applicants were excluded. “Other” includes reasons such as discovering the applicant’s character. Source: SHRM Staffing Research: Online Technologies and Their Impact on Recruitment Strategies (2008, July - September)

• Social networking sites are used for screening because compared to the information that is gained little time/effort is needed and more information is gained about an applicant than through traditional methods. ©SHRM 2008

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Figure 15: Why Organizations Do Not Use Social Networking Websites to Screen Applicants n=337 54%

Questions about the legality of the process

Not able to verify w ith confidence information from an applicant's profile

43% 40%

Concerns about unethically invading the privacy of applicants

Information about applicants taken from these sites is not relevant to their w ork related potential or performance

36%

Information about applicants taken from these sites is not relevant to w hether they w illl be a good fit w ith the organization

26% 19%

Takes too much time and effort in relation to information gained.

16%

Other

Applicants might be less likely to apply if they knew your organization screened applicants in this manner. N/A - Organization does not screen applicants in any manner w hatsoever

0%

9% 4% 10%

20%

30%

40%

50%

60%

Note: Percentages do not total 100% because multiple response options were used. A subset of participants were surveyed. Those who currently used social networking sites to screen job applicants were excluded. Source: SHRM Staffing Research: Online Technologies and Their Impact on Recruitment Strategies (2008, July - September)

• Questions about the legality of using social networking sites and not being able to verify the information on applicant’s profile pages with confidence prevents organizations from using such sites for ©SHRM 2008 screening purposes.

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Figure 16: Percentage of Organizations Collecting Data on Quality/Quantity of Candidates Sources Through Various Methods 80% 71% 70% 61% 60%

50% 39%

40%

30%

29%

20%

10%

0%

No

Yes

Number of Qualified Candidates (n=381)

Quality of Qualified Candidates (n=372)

Source: SHRM Staffing Research: Online Technologies and Their Impact on Recruitment Strategies (2008, July - September)

• More organizations track the number of qualified candidates sourced through various methods rather than the quality of qualified candidates. ©SHRM 2008

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Table 3: Comparison in Quality of Applicants Recruited From Social Networking Sites and Other Sources Much worse

Somewhat worse

Neither worse nor better

Somewhat better

Much better

Direct hire agencies/ search firms (excluding temp agencies) (n=75)

7%

28%

43%

13%

9%

Regional online job boards (n=74)

3%

14%

51%

24%

8%

Internal job postings (n=82)

9%

26%

44%

20%

2%

Radio advertising (n=41)

0%

7%

63%

22%

7%

Open house events (n=57)

9%

12%

53%

18%

9%

Print advertising (n=72)

4%

15%

36%

24%

21%

Industry-specific/ niche online job boards (n=84)

8%

18%

46%

19%

8%

Informal networking (n=83)

6%

23%

49%

11%

11%

Temporary agencies (n=66)

3%

17%

38%

21%

21%

Trade publications (print & online) (n=65)

5%

15%

49%

20%

11%

Research/ sourcing firms (n=74)

1%

24%

50%

14%

11%

©SHRM 2008

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Table 3: Comparison in Quality of Applicants Recruited From Social Networking Sites and Other Sources (continued) Much worse

Somewhat worse

Neither worse nor better

Somewhat better

Much better

National online job boards (e.g., careerbuilder.com, hotjobs.com etc.) (n=85)

4%

20%

42%

24%

11%

Career section of organization’s websites (n=86)

9%

21%

49%

14%

7%

Employee referrals (n=85)

15%

37%

33%

9%

6%

Job fairs (n=79)

4%

17%

48%

20%

11%

Online college recruiting (n=64)

6%

9%

56%

23%

5%

On-campus college recruiting (n=66)

11%

24%

38%

20%

8%

TV advertising (n=40)

3%

5%

68%

15%

10%

Note: Row percentages may not total 100% due to rounding A subset of participants were surveyed. Those who don’t currently use social networking sites to recruit job applicants were excluded. Source: SHRM Staffing Research: Online Technologies and Their Impact on Recruitment Strategies (2008, July - September)

• The quality of applicant’s recruited from social networking sites is predominantly “neither worse nor better” than other recruiting methods.

©SHRM 2008

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Figure 17: Do Applicant's Social Networking Site Profiles Provide Important Information About an Applicant's Work Related Potential or Performance? n=402 Strongly disagree

16%

Somewhat disagree

24%

Neither agree nor disagree

30%

Somewhat agree

27%

Strongly agree

3%

0%

10%

20%

30%

40%

Source: SHRM Staffing Research: Online Technologies and Their Impact on Recruitment Strategies (2008, July - September)

• Three out of 10 recruiters agree that examining an applicant’s profile can provide important information about their work related potential or performance. ©SHRM 2008

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Figure 18: Do Applicant's Social Networking Site Profiles Provide Important Information About Whether or Not an Applicant is a Good Fit for an Organization? n=400 Strongly disagree

11%

Somewhat disagree

19%

Neither agree nor disagree

31%

Somewhat agree

Strongly agree

0%

36%

4%

10%

20%

30%

40%

Note: Percentages may not total 100% due to rounding. Source: SHRM Staffing Research: Online Technologies and Their Impact on Recruitment Strategies (2008, July - September)

• Four out of 10 recruiters indicate that examining an applicant’s profile can provide important information about whether or not an applicant is a good fit for an organization. ©SHRM 2008

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Figure 19: Organizational Industry n=403 Organizational Industry Services (profit)

15%

Health

13%

Manufacturing (durable goods)

7%

Finance

7%

Educational services

6%

Government

5%

Wholesale/retail trade

4%

Manufacturing (nondurable goods)

4%

Insurance

4%

High-tech

4%

Construction & mining/oil & gas

3%

Transportation

3%

Services (nonprofit)

2%

Telecommunications

2%

Utilities

2%

Newspaper publishing/broadcasting

1%

Other

18%

Note: Percentages do not total 100% because multiple response options were used. Source: SHRM Staffing Research: Online Technologies and Their Impact on Recruitment Strategies (2008, July September)

• Several industries were represented, especially services (profit) and health. ©SHRM 2008

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Figure 20: Organizational Sector n=402 Privately owned for profit

41%

Publically owned for profit

28%

Nonprofit organization

18%

Government sector

Other

0%

10%

3%

10%

20%

30%

40%

50%

Source: SHRM Staffing Research: Online Technologies and Their Impact on Recruitment Strategies (2008, July - September)

• Most organizations that participated in the survey were either privately owned for profit or publically owned for profit.

©SHRM 2008

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Figure 21: Organization Staff Size n=386

Large (500 and more employees)

50%

Medium (100-499 employees)

30%

Small (Fewer than 100 employees)

0%

20%

10%

20%

30%

40%

50%

60%

Source: SHRM Staffing Research: Online Technologies and Their Impact on Recruitment Strategies (2008, July - September)

• One-half of organizations that participated in the survey had more than 500 employees. ©SHRM 2008

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Methodology

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

Source: SHRM Staffing Research: Online Technologies and Their Impact on Recruitment Strategies (2008, July - September)

©SHRM 2008

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