The Power of Social Networking Sites in the context of Online Recruitment Abstract

Social Networking Sites are experiencing a rapid growth; there seems to be no limit to their size. Many Social Networking Sites boast with millions of members using their networks on regular basis to communicate, share, create, and collaborate with others. Popular examples of these Social Networking Sites are Facebook, LinkedIn and Bebo. Although most of these sites lack decent business models, they are valued at millions of pounds . Google paid 1.5 billion dollar for YouTube when it wasnt even earning a single penny. The reason successful Social Networking Sites have become so valuable is due to the amount of people that are using it; and people are exactly what organisations are after. This report aims to find out whether Social Networking Sites have the same value in the context of recruitment. Academic literature extensively discusses online recruitment, however not much is said about recruitment on Social Networking Sites:

Sociocruitment.
Research revealed that professionals are quite optimistic about Sociocruitment. Although users of Social Networking Sites had a disperse opinion on organisations contacting them on these websites; not many were negative. The contemporary research furthermore harvested information from a range of sources to create understanding of key issues allowing readers to familiarise themselves with the concept. Finally the report makes suggestions on how organisations can engage in this new media

Introduction
The Power of Social Networking Sites in the context of Online Recruitment

Preface
User generated content has grown exponentially. Websites allowing its users to share content are increasing rapidly. Companies such as Facebook, Bebo, and Twitter are valued at millions of pounds. Google even paid 1.5 billion dollar for YouTube; one the largest websites offering user generated content. The primary service offered by Social Networking Sites is the possibility to connect to people and create, share and collaborate. The extensive use of Social Networking Sites by individuals has allowed organisations to use it effectively for other activities. Companies are willing to pay a lot of money to advertise on these websites and access the information made available by its users. Other organisations are using these websites to extend their marketing efforts and create loyalty among their customers. This report aims to investigate a neglected use of Social Networking Sites; it will focus on how these enormously popular websites can be used by organisations to recruit people.

Rationale

The growth of Social Networking Sites has not gone unnoticed; within a few years, they have entirely changed the landscape of internet. The media is constantly reporting the growth and the use of Social Networking Sites, while investors are willing to invest millions of pounds in companies that lack event the most basic principles of business models However there are two things that seem to make all the difference, the users and their content. Online communities receive great attention from their users and offer many business opportunities for organisations. Marketing literature has always associated high value to word-of-mouth promotions, with Social Networking Sites, this concept has revolutionised. Allowing content to be shared immediately around to globe with millions of other people, hence it may come as no surprise that academics and professionals are extensively discussing the use of Social Networking Sites as a marketing tool. Other business disciplines seem to be somewhat ignored. One of the neglected aspects is recruitment; Social Networking Sites and Recruitment are one main thing in common: They both revolve around people. Organisations are not fully aware of the potential that Social Networking Sites have in the context of Recruitment. Other organisations do not fully understand the concept or are reluctant to the changes that are occurring. Provided with relevant data, these organisations can determine whether Social Networking is applicable within their recruitment practises. This study aims to fill that knowledge gap, by researching existing literature from a range of sources and by conducting primary research among the users of Social Networking Sites; the study will assist organisations in understanding this new technology and identify opportunities in their own environment.

Statement of Research Question

To analyse how Social Networking Sites can be used by organisations to enhance recruitment activities and to identify the perception of users engaged by this approach

Aim of Research
The aim of this study is to research how the increased use of Social Networking Site scan allow organisations to exploit these modern resources.

Objectives
The following research objectives will be set for this study To describe the concept of Web 2.0 and why Social Networking Sites play a major role in present times. The aim of this objective is to create an understanding of Social Networking Sites and the fundamental technology that has contributed to the success of Social Networking Sites. To perform a research into existing literature concerning (On-line)Recruitment, Web 2.0 and Social Networking Sites.

The aim of this objective is to gather data relevant to Social Networking Sites, Recruitment and Web 2.0. Investigating current literature will allow a better understanding of the research problem and the related issues. A wide range of (Incomplete

statement)

To investigate the opinion and perception of Professionals on the use of Social Networking Sites. The aim of this objective is to investigate through primary research how professionals dealing with recruitment and Social Networking concepts perceive the technology. To identify the use, opinion and perception of members of Social Networking Sites in the context of organisations approaching them regarding recruitment. The aim of this objective is to understand how individuals use Social Networking Sites and their stance towards communicating with organisations through the use of Social Networking Sites. To recommend initiatives based on the findings allowing organisations to identify opportunities in their own environment and indicate further area of research. The aim of this objective is to assist organisations in understanding the use of Social Networking Sites by making recommendations based on the findings. Furthermore, the author intends to identify further areas of research. 1.6

Outline of the Chapters

This section provides a brief outline of the overall structure applied to this these

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Literature review 10 10 The Power of Social Networking Sites in the context of Online Recruitment
1994). Whitehill (1991) describes the recruitment process as the positive part where one is creating a pool of potentially qualified people, and describes the selection as the negative part, where a few are selected from many. Newell and Shackleton (2000p.113) specifically describe the act of recruiting as: process of attracting people who might make a contribution to the particular organisation.

Gold (2003) identifies two crucial issues within this definition, firstly he claims: there is a need to attract people, this implying that people do have a choice about which organisation they wish to work for and the second issue Gold identifies is: the contribution that people will make to an organisation is not totally predictable. The response of Gold was aimed at organisations believing firmly that it is the organisation that selects the people and not people selecting organisations. One may argue that the power balance in each situation is affected by many factors such as the supply and demand of particular type of people. In the recent years, academics have discussed a more complicated recruitment process. For instance, there is growing evidence that having a positive psychological contact with employees can lead to increased motivation and higher loyalty towards the organisation (Guest, Davey and Patch 1988). Some large organisations are using organisational psychologists or consultants to improve the reliability and validity of the selection decision (Marchington and Wilkinson 1997). Guest (2002) has developed a model of the psychological contract (see Table 1).

Inputs

Contents

Contents

Employee Characteristics Fairness Employee behaviour Organisation Characteristics Trust Performance HR practises Delivery Table 1

Model of Psychological Contract (Guest 2002) Literature review 11 11

The Power of Social Networking Sites in the context of Online Recruitment But what exactly is a psychological contract. Psychological contracts can be described as the set of expectations held by the individual employee who specifies what the individual and the organisation expect to give to and receive from each other in the course of their working relationship (Sims, 1994).

Guest (1998 p. 650) states: The contract resides in the interaction rather than in the individual or the organization. Schein (1965, 1980) also pays attention to the psychological contract, defining it as a set of unwritten expectations present at each moment between each member of the organization and others in the organisation. As defined by the authors, the psychological contracts are an important component of the employees and their organisations (Maguire 2002). The reason for it being so important is that we live in an era of employee relations and not industrial relations (Guest 1998). Hence care must be taken when contracts are drawn and people are being attracted towards the organisation. Gold highlights the importance of attracting people, as recruitment is usually for a great deal considered to be seen from the organisations perspective. Torrington et al(1996) argue that it is essential for organisations to realise that the process of recruitment and selection is not a one-way system. They continue by stating: Recruitment is now recognised as a two-way process: candidates often need to be convinced that the organisation, the position being offered, remuneration and any additional perquisites and the future prospects fit in with their individual career plans (Torrington et al. 1996 p.172) Cascio (1995) describes two approaches to recruitment, the first where recruitment is considered to be a one way process can be termed as prospecting, whereas the two-way approach can be termed as mating. In the present times the mating strategy (Incomplete

statement)

Literature review 12 12 The Power of Social Networking Sites in the context of Online Recruitment
seems to be more common, where companies put much effort in marketing themselves. As Human Resource Management has become more sophisticated, recruitment practises exist of a wide variety, reflecting the organisations strategy and its philosophy towards people (Gold 2003). A recruiter now needs to consider several elements and factors to create a perfect match between the employer and employee. The act of recruitment is defined and what should be taken into account, but what is the aim of recruitment practises, Armstrong (1996 p. 443) states:The overall aim of the recruitment and selection process should be to obtain at minimum cost the number and quality of employees required to satisfy the human resource needs of the company The aim of recruiting is not only to attract and select people, it should also be done in a cost effective way. Hook and Foot (2008 p.143) consider the following points to be the aims of recruitment: -To obtain a pool of suitable candidates for vacant posts -To use a fair process and be able to demonstrate that the process was fair

- To ensure that all recruitment activities contribute to organisational goals and a desirable organisational image -To conduct recruitment activities in an efficient and cost-effective manner With the information provided by these authors, it can be confirmed that recruitment starts with creating a pool of people which are then filtered based on the requirements set by the organisation. In order to create this pool, HRM literature covers many tools and methods that can be used by recruiters to create a pool and filter them according to set criterias. Stages involving recruitment and selection are extensively described by academic literature; they are either very detailed or very simplified. Cornelius (2001 p. 31, Figure1.2) identifies eight key steps in the recruitment and selection process. The recruitment process consists of two major stages, job analysis and advertising (Martin and Jackson 1997). The other steps are part of selection. For the sake of relevance, only the recruitment part will be discussed. The process starts with identifying the need to recruit. According to the traditional methods it is then common to write a comprehensive job description, which will allow the recruiter to exactly know what the purpose, duties and responsibilities of the vacant position are (Beardwell and Claydon 2007). The job description is used to set the selection criteria After the basic information on the vacancy is available, an organisation then must decide which recruitment method will serve them best. A recruitment process that generates insufficient applications or too many unsuitable ones, the process will become expensive (Marchington and Wilkinson 2005).To generate the initial pool of candidates, the available job must be advertised. Martin and Jackson (1997) state: advertising can be a very expensive activity, especially if we get it wrong. The Chartered Institute of Personnel and Development (CIPD) each year investigates the most popular recruitment methods (see Table 2). The most appropriate source depends on the group the organisations wishes to target (Martin and Jackson 1997). From the figures provided by CIPD (2005); local newspaper adverts, recruitment agencies and own website are the most used methods. E-recruitment is not a separate category in their research. Even though there E-recruitment is not a separate category in their research. Even though there has been a rapid growth in online recruitment (Gold 2003)

Social Networking Sites 2.4.1

SNS's the Basics

The latest trend in online world is social networking portals (Marchu, Breslin and Decker 2004) Social networking sites have rapidly gained popularity, with Twitter posting growth rates exceeding 1300% (Seeking Alpha 2009). Globally the active memberships on Social Networking Sites were expected to reach 230 million by the end of 2007 (Data Monitor 2007), Today Facebook alone boasts with more than 200million members. Social Networking Sites are considered to be one the most prominent activities within the Web 2.0 arena. Although they have become increasingly interesting in marketing context, literature is still limited. A definition of Social Network Sites is provided by Boyd and Ellison (2008 p.210) in which they state:We define social network sites as web-based services that allow individuals to(1) construct a public or a semi-public profile within a bounded, system, (2)articulate a list of other users with whom they share a connection, and (3) view and traverse their list of connections and those made by others within the system What must be noted is that Boyd and Ellison use the term Social Network Site rather than Social Networking Site. They justify this by saying that networking is usually done between strangers, while a network is the people already familiar to the person. Although networking is possible on these websites, it is commonly not their primary intention (Boyd and Ellison 2008). The definition provided by Weaver and Morrison(2008 p.97) does focus on social networking stating : In the context of todays electronic media, social networking has come to mean individuals using the Internet and Web applications to communicate in previously impossible ways.

Characteristics of Social Networking Sites

Social Networking Sites tend to support the maintenance of pre-existing networks, others help strangers meet online based on their interests, political views, or activities. Some sites attract a range of audiences based on common language or shared racial, sexual, and religious or nationality based identities. The difference between Social Networking Sites can also differ in which information and communication tools they offer, such as mobile connectivity, blogging, and photo/video-sharing (Boyd and Ellison2008).Gerbranda (2007) concluded that although differences exist between Social Networking Sites, they are all considered to be Social Networking Sites. However he continues with stating that when these websites are evaluated on their purpose and technology; it is possible to make three categories (see Figure 5).

Social Networking Sites

Currently there are hundreds of active Social Networking Sites. They each serve a different market as stated by Boyd and Ellison in 2008. Some of the key Social Networking Sites will be described to demonstrate the differences. 2.4.3.1

LinkedIn

LinkedIn is an interconnected network of experienced professionals from around the world, representing 170 industries and 200 countries. You can find, be introduced to, and collaborate with qualified professionals that you need to work with to accomplish your goals (Linkedin 2009). The Networks currently has nearly 40 million members around the world. It is a professional community, where according to Linkedin a new member is received roughly every second. 2.4.3.2

Facebook
Facebook is a Social Networking Site where users can join networks organized by city, workplace, school, and region to connect and interact with other people. People can also add friends and send them messages, and update their personal profiles to notify friends about themselves. Facebook is the largest Social Networking Site, currently attracting most of the traffic among its competitors. Just recently Facebook hit a milestone having more than 200 million members. Facebook offers all kinds of services to its members, although the basic features are provided by the host organisation, the biggest increase in the usability and features come from third-party developers. Currently Facebook hosts more than 30.000 applications (Ustinova 2008). The growth of Facebook is immense and there are currently no sign that this will stop very soon.

Literature review 31 31 The Power of Social Networking Sites in the context of Online Recruitment
2.4.3.3

MySpace
MySpace is a personal online community that lets you meet your friends' friends(MySpace 2009). Users of MySpace can create a community and can share photos, journals and interests with people in their network. It is believed that the company ledthe Web 2.0 revolution in which users could create their profiles, however due to therise of its younger rival Facebook; MySpace has seen a significant decrease in visitors(Smith 2009). 2.4.3.4

Twitter
Twitter is one of the latest popular Social Networking Site. Twitter is a free micro-blogging service that allows its users to send and read other users update which are also known as tweets; which are only 140 characters in length. Twitter stands out from all other large Social Networking Sites due to its simplicity. It does not offer any advanced sharing tools,

i.e. photo or video sharing. However by using Web 2.0 tools, Twitter allows users to share their tweets on any other website; this has contributed enormously to the success of Twitter.

Recruitment on Social Networking Sites

The reach of Social Networking Sites is getting wider, and it offers companies to raise their profile, directly communicate with clients and potential clients, create natural web links back to their site and engage in free marketing (Gupta 2008; new business 2009) Organizations till present have found the most value in using social networking sites as sources of candidate information (Santonocito 2009), however the business oriented Social Networking Sites, as they provide instant credibility to a professionals profile, with referrals and recommendations of the person, aiding recruiters in captivating their mindshare can be very useful (Gupta 2008). Gupta (2008) provides an overview of the advantages and disadvantages of recruitment on Social Networking Sites which can be seen in Table 8andTable 9, this unlike earlier comparison provided by the Chartered Institute of Personnel and Development on Erecruitment which can be found in Table 6andTable 7.

Advantages
Wider reach as large number of people post their profiles online Ability to identify both, active (job portals) and passive (SNS) job seekers Attains significant cost reduction Assess the candidates to greater extent, like behavioural attributes, as individuals tend to be more open on SNS Reach out to candidates with niche skills Access to different international talent pools Provides instant credibility to a professional's profile with the referrals and recommendations on the person

Table 8 Advantages of using SNS for recruitment (Gupta 2008 p. 2) Disadvantages

Job portal search can yield immediate results Passive headhunting through SNS can be time consuming Pointed searches either not possible or do not yield accurate results

Table 9 Disadvantages of using SNS for recruitment (Gupta 2008 p. 2 Conclusion 98 98

The Power of Social Networking Sites in the context of Online Recruitment

Social Networking Sites are growing and growing, there seems to be no limit to their size. Currently many online communities have millions of members using online networks on a regular basis to communicate, share, create, and collaborate with others. Not many people these days can claim to have an off-line social network which is not part of any on-line network. Being and staying connected is the way to go. 5.1

The report
This report aims to inform its reader on the basics of recruitment, Social Networking Sites and how online recruitment is currently perceived. Cascio (1995) states:recruitment is not only business, it is big business and so are Social Networking Sites. Successful Social Networking Sites are valued at millions of pounds, simply based on how many people use them, and people are exactly what organisations are after. People can be different types of stakeholders; they can for instance be customers or employees. The latter is where this report will focus on. The contemporary research has gathered data from current literature, users of Social Networking Sites and professionals to create an overview of how Social Networking Sites are assessed in the context of recruitment; offering an insight on the different aspects. 5.2

Social Networking Sites

The study highlights the rise of Social Networking Sites. Social Networking has allowed individuals to use the internet and web applications in previously impossible ways(Weaver and Morrison 2008). In chapter 2.4, Social Networks are evaluated based on the perceptions and opinions of a range of authors. Boyd and Ellison (2008) suggested that Social Networking Sites should be named Social Network Sites, as Networking is done between strangers, while Social Networking Sites primarily seem to encourage to link with people already known. The growth of Social Networking Sites has been endorsed by Web 2.0; the fundament of all web applications encouraging a collective environment in which user generated content is highly valued. Web 2.0 offers users to share and connect across several platforms, allowing increased participation from users. Contemporary research revealed that connecting with friends is the second most popular use of the internet, only being preceded by e-mail. With more than half of the people responding to questionnaire indicating that they visit Social Networking Sites several times a day, it seems to be a very interesting place to be. Professionals seem to agree, although there is some discussion about their use. Remarks on the use include that being on Social Networking Sites can be time consuming, however it is argued that more value is gained when done properly. 5.3

Sociocruitment

Online recruitment has shown significant growth. This is not very surprising according to Strategic Direction (2009) which states that the current generation is the best connected in history. Organisations seem to embrace online recruitment due to the cost efficiency, wider reach and integration with existing HR systems. Professionals indicate that the use of job portals can be a great tool in assisting organisation infinding the right candidates. However job portals still focus on a one way process, which is described as prospecting by Cascio (1995), mating however is described by Cascio as a two way approach to recruitment, something that can be enabled by recruitment practises on Social Networking Sites

During the course of this study, the author found many names for online recruitment; including: e-cruiting, e-recruitment, cybercruitment and others. However, although there is a lift in recruitment practises on Social Networking Sites, there does not seem to be single word to refer to it. Hence the author decided to create one, after a brainstorm session with Elfezy, the name for recruitment practises on the Social Networking Sites determined to be named: Sociocruitment, with Socio referring to the involvement of a society or community. According to literature Sociocruitment can be very useful as it allows organisations to access passive jobseekers. Findings revealed that indeed the majority of respondents identified themselves as passive jobseekers. Accessing these passive jobseekers however requires organisations to invest time in understanding how these networks work, as the users seemed to be dispersed when asked whether they would allow organisations to contact them, although only a minor part taking a negative stance, there is plenty of opportunity for organisations. In order for organisations to successfully exploit any of the opportunities Sociocruitment offers, it will require them to make greater investment of time, understanding and effort; in case organisations are not willing to fully commit, they should remain using their established methods, as other recruitment methods are tested and have proven effectiveness.

Limitations
Time and access restrictions, caused the research to have certain limitations, these limitations are outline in chapter3.12,it was further felt that further research could be conducted to enhance the understanding, recommendations are made in chapter6.3.

Use of traditional Channels of Recruitment

60% 50% 40% 30% 20% 10% 0% Manufacturing Hotel Industry IT Industry

USE OF WEBSITE (job search engine)

80% 70% 60% 50% 40% 30% 20% 10% 0% Manufacturing Hotel Ind. IT Ind Series 1

USE OF WEBITE (social networking site)

35% 30% 25% 20% 15% 10% 5% 0% Manufacturing Hotel Ind IT Ind. Series 1