“The Internet will help achieve ‘friction free capitalism’ by putting buyer and seller in direct contact and providing more information to both about each other.”—Bill Gates
As Yioula Melanthiou, Fotis Pavlou and Eleni Constantinou (2014) support, e-recruitment is a process in which companies discover and recruit new talented individuals from the internet. In a society where social media keeps evolving this process becomes a fast-growing and one that all companies have to jump on. With the convergence of the traditional media to the “online media”, as Stanley Baran (2016) argues, the audience has left behind the traditional ways of informing themselves. Now people don’t go out every morning to buy their newspaper or get it delivered home by the “paper boy”. Now the people go online through different mediums to stay informed. This convergence has also changed the way we apply and get picked up for jobs. Which means that it is imperative for companies to stay ahead and jump on the bandwagon of e-recruitment. For small companies who before didn’t have all the means to follow a traditional hiring method, this new and fast-growing one is more effective. For big companies, they still get to spend money but it is much less when this new procedure is followed and the time consuming problem (which we talked in the previous post) becomes a not-so-imminent problem.
Today as Melanthiou et al. (2014) suggest, there are two types of online recruiters:
- Corporate Recruiters- companies searching for applicants online.
- Third-Party Recruiters- Companies that offer expert services and serve as a medium between applicants and companies (LinkedIn, Simply Hired, Indeed, etc.)
Steven D. Maurer and Yuping Liu (2007) argue that indeed the internet reduces the inefficiencies in the marketplace by enhancing the information exchanged. This can be seen with job hiring when studies show that the internet (up until 2007) had 110 millions of jobs and over 20 million different resumes. This is all thanks to the fact that e-recruitment has changed the process from a “batch mode” to a continuous one which in the end has reduced the hiring cost to 87% compared to traditional hiring. With these facts it is obvious that e-recruitment is here to stay.
Now ask yourself this: If e-recruitment is so successful, where can companies find a broader audience? Your answer should be: social media. Just as Zephoria (www.zephoria.com) points out, there are over 1.94 billions of monthly active users on Facebook. With statistics like this, who can blame the companies for searching prospect candidates in social media. With more and more companies following trends and technological advancements that people enter to in our digital times a new term had to be created: Corporate Social Media. This new term aims at the fact that big and small companies now use social media as well. Now it turned from people using social media for personal space to networking and reaching companies that with traditional media was impossible. Remember the post where I talk about: “What is social media”? The key to social media is in one sentence: create connections and share information. With the years this connection has evolved into a more professional one, especially with the help of website like LinkedIn (www.linkedin.com) since it’s release in 2002 has been revolutionizing the connection of online interaction. Just as Melanthiou et al. (2014) mentions, where the people fly to, companies follow not so far behind. With the constant use of social media everyday corporations turn to this source. Yet is is important to mention what can be the risks and benefits for such exposure whether it is for the applicant or corporation.
Tell me what you think! Do you think companies should uphold this method for applicants or do you believe there should be a new method? Do you have any experiences that you want to share where e-recruitment has been positive or negative? Don’t be shy and comment below, I want to hear from you!
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