usage of social media in employee sourcing and its impact...

SUMEDHA Journal of Management

34

Abstract

Social media tools and social networking sites have revolutionized methods of

communication both for professional and personal use. With an increase in number of people

engaging in communication through social media, and also an increase in the number of HR

professionals using social media to source candidates, it has become imperative to study the

relevance of social media to the recruitment process. Employer branding via social media has

also gained attention, and it has been recognized as the most promising medium. However, there

is a lack of understanding regarding the role of social media in building the image of an

organization. This paper attempts to study the impact of social media in sourcing candidates and

its role in creating an employer brand. The study has been conducted by using survey methodology

in an IT company based at Hyderabad. This paper also examines the platforms which are best

suited to hosting job search information, which can help achieve recruitment goals and how they

are used by employers and candidates.

Introduction

The 21st century organizations are facingseveral challenges due to a number of factors such as

changing technology,increased competition, changing consumer preferences, high employee mobility

and a very dynamic environment. The volatile and complex environment in which organizations operate

have made them recognize the importance of human resources in providing competitive advantage.

The competitive marketplacewhich is associated with rising costs of sourcing and hiring qualified

staffhas resulted in an increase in demand for talent. The supply of highly talented manpower had

always been scarce and recruiters need to look at new methods which can attract, which are faster

and have a larger reach to connect with potential candidates. A survey conducted by Jobvite's Social

Recruiting (2014) found that 93 percent of the 1,855 recruiting professionals use or plan to use social

media in their recruiting efforts. With more number of people accessing social media, the usage of

social media to source candidates has become an obvious choiceand it is worth investigating its

relevance with recruitment process.

* Assistant Professor, Hyderabad Business School, GITAM University, Hyderabad. Email : [email protected]

** Research Scholar, XLRI, Jamshedpur. Email : [email protected]

Usage of Social Media in Employee Sourcing and

its Impact in Creating an Employer Brand

– Dr. Sunita Mehta*

– Dr. Suryakant Sharma**

Vol.5, No.4, October-December 2016

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Employer branding has become the latest buzz word in corporate parlance and organizations

have been expending considerable resources on employer branding campaigns in the recent past.It has

been found that a high value of employer brand helps in attracting and retaining employees (Ambler

and Barrow, 1996). Thisalso helps in internalizing company values leading to competitive advantage

(Conference Board, 2001). With the enhanced usage of social media, itprovides a huge opportunity to

employers in building a strong employer brand.

Despite the growing popularity of the employer branding practices, academic research on the

topic is limited.Especially, there is not much researchin the area of relevance of social media in the

recruitment process and the impact of social media on employer branding. This study attempts to

study the impact of social media on sourcing candidates and on employer branding.

What is Social Media?

Kaplan and Haenlien (2010) defined social media as "a group of internet based applications that

are based on ideological and technological foundations of web 2.0 and allowed the creation and exchange

of user generated content". Communication through social media entails the use of social networking

sites like Facebook, Twitter, LinkedIn, etc, that enable people to communicate and interact generally

for social reasons. Sourcing in HR is primarily a process of identifying the potential candidates available

in the job market. Social Media sourcing is a type of e- recruitment in which recruiters and HR

managers engage with the potential candidates on social networking sites and identify the right talent

directly or through referrals.

Employer Branding

In the last decade Employer Branding generated a lot of attention in the academic circles and in

the practitioners' community.An enhanced focus on innovation due to increasing competition and

changing technologyhad resulted in companies struggling for filling up positions with the right talent.

It has been found that companies which have an appealing employer brand are able to attract the right

talent easily.

The term 'Employer Branding' was coined by Ambler and Barrow (1996) who defined it as the

"package of functional, economic, and psychological benefits provided by employment, and identified

with the employing company".

As per SHRM (2008), "Employer branding is defined as the image of the organization which

makes it a great place to work in the minds of current employees and key stakeholders in the external

market (active and passive candidates, clients, customers and other key stakeholders)".

Backhaus and Tikoo (2004) defined employer branding as "a process of building an identifiable

and unique employer identity, and the employer brand as a concept of the firm that differentiates it

from the competitors".


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The various factors which can determine employer brand of an organization are: attractiveness

of the sector, company's reputation, quality of products and service, location, work environment, pay,

economic conditions, employee benefits, people and culture, work/life balance and corporate social

responsibility (Sparrow &Otaye, 2015). It is important for companies to enhance its image by working

on each of the above factors or it would have no control over how it is perceived as an employer. In

simple words, employer branding is the way an organization's prospective applicants, candidates, and

employees perceive the organization as an employer.Organizations have recognized the importance of

employer branding and consider it as a useful tool in the recruitment market and apply traditional

marketing techniques to differentiate itself in the labor market in order to successfully attract and

retain talent.

A study conducted byManpowerGroup Solutions' (2014) found that one in four job seekers or

candidates considered brand/company reputation to be one of the three most important factors in

making career decisions. It was also found that 86 percent of the candidates used company websites

as a primary source of information about a company and 52 percent used search engine results, 45

percent relied on peers and 30 percent used social media (ManpowerGroup Solutions, 2014). Another

study by CareerBuilder (2010) found that companies with a strong employment brand attracted at least

3.5 times more applications per job posting than do other companies in the same industry. A study

conducted by Sivertzen, et.al. (2013) found that the use of social media in employer branding campaign

was helpful in building a good reputation and there was a clear link between a positive corporate

reputation and intentions to apply for a job.

Organizations with a strong employer brand enjoy a number of benefits as given below:

• Better Quality Candidates: Organizations that can attract the best talent would be able to have

a competitive advantage (Harari, 1998).Organizations find it easier to recruit qualified candidates

as the candidates tend to know what the organization stands for, as an employer. They understand

andidentify with the organization's culture that attracts them and makes them to feel a part of the

organization. An employer brand which is clear and has no ambiguity also eliminates job seekers

who understand that they would not be a good match for the organization saving them the troubleof

applying and the organization the time for sorting through irrelevant resume.

• Attracts Passive Candidates: A clearly articulated employer brand helps attract candidateswho

are not actively looking to change jobs but would consider a good opportunity if it came their

way.A global study conducted by Corporate Leadership Council (CLC) in 2006 found that

effective employer branding enables organizations to reach into a deeper pool of talent.

• Move towards Psychological Contract : Chabbra& Sharma (2011) stated that a high employer

brand results in moving employees from employment contract to psychological contract. These

employees prefer to remain committed to the organization for longer duration even if the

circumstances demand exploring other employment opportunities. This results in low attrition


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rates and reduced associated costs. In fact, CareerBuilder survey (2010) found that 35 percent

of workers cited the company as the main reason on deciding to voluntarily leave a previous

position, while only 28 percent cited the job itself.

• Reduced Recruitment Costs: Organizations'compelling andwell-communicated employer brand

messageis likely to draw candidates to inquireabout open positions. This reduces the need of

organizations to advertise open positions and wait for applications to come in and saves the

organization the time and trouble of sourcing candidates from scratch.

• Brand Ambassadors : When employees love their jobs, theytend to be vocal about it and are

not only committed to the organization objectives, but also help in filling the talent pool by

spreading a good word about the organization to their peers.

• Enhanced Profitability: A great employer brand attracts the best and most diverse talent and

therefore increases productivity and profitability. It has been found that diverse groups create

better results, like more sales, better service, more compelling R&D, or more efficient business

processes. All that leads to a virtuous cycle of increasing returns (Solmonese, 2016).

With increase in the use of social media for professional and personal use, social media is having

an explosive impact on employer branding. People as employees, ex-employees or potential employees

tend to share their experiences with the company on social media. Reputation of the company can be

at stake, depending on what an advocate or critic might say - or might not say. Despitethe negative

issues of social media, employers can strategically use this tool for building a strong employer brand.

The way social networking sites allow the users to make a public profile and make their social networks

visible to others is what makes it unique. The employers can tap these extended networks to communicate

and build a positive brand image of the company as an employer (Boyd and Ellison, 2008). These

connections certainly provide the opportunity to expand the social network, which can help active job

seekers find a job and help employers find both active and passive job seekers. In fact, organisations

are creating their own profile pages on LinkedIn,Facebook and Twitter; and recruiters are tapping their

ownprivate Facebook and LinkedIn networks to reach out toprospective candidates.

Using Social Media as a tool for recruitment

Like any other technological innovation, the use of social media as a recruitment tool throws up

some opportunities and challenges for employers as well as potential candidates. However, it is important

for employers to understand the various pros and cons of using social media and theneed to use the

tool strategically to take advantage in building a strong employer brand.

The social media primarily as a platform to build social networks, has raised an ethical dilemmawith

regard to privacy of employees and the extent to which it is appropriate and relevant for employers to

seek information about employees' private lives for professional use. A survey conducted by Career

Builder (2010) in United Kingdom found that the most common reason for not short listing and


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rejecting candidates was based on 'lifestyle' rather than on employment-related information. The survey

also found that 53 % of the HR managersdid not hire a job candidate for posting provocative posts or

inappropriate photographs. These reasons may not be relevant for employment and may result in

employers losing out on talent. It is thus, imperative for employers to ensure that information from

individual social media profiles does not detract from securing top talent.

Social media has information like sexual orientation, ethnicity, religion, marital status, age and

political views of potential candidates and using it may leave employers open to charges of discrimination.

This would also possibly discriminate against those who do not have access to social media. It is also

difficult to ascertain the authenticity of the information posted on a candidates' profile which may

eventually influence the hiring decision. Further, there is always a risk of bias creeping in, due to

personal information of potential candidates being available on social media (Jones and Behling,

2010).Sivertzen, et.al (2013) opined that there was some uncertaintyrelated to social media as the use

of social media may lead to ahigher number of not qualified applicants.

The social media certainly has various advantages for employers as well as prospective candidates.

Sourcing through social media offered speed, efficiency and the ability to target and attract specific

and particularly relevant candidates. In addition, social media providedemployers' useful additional

information of potential job candidates, which otherwise would not have been generated for the purpose

of recruitment. For candidates also, the medium offered multiple sources of information about the

organization, work culture, employee benefits, and the possibility of contact with existing employees

to gain a more realistic job preview. This helps the candidate in having a better understanding and

taking a decision after matching the fit of the job with the organization resulting in reduced turnover

within few months of joining.

Despite ethical concerns,social media allowedemployers to access information of candidates'

lifestyle, values and their cultural fit with the organization. The information on values and beliefs of

candidates is crucial for organizations looking not just to hire employees, but also to have the right fit

with the organization to build a committed and engagedworkforce. The Jobvite survey (2014) revealed

that 80 percent of recruiters used social media to evaluate a candidate's culturalfit. The emphasis on

cultural fit was an important reason for recruiters to enhance usage of social media as a sourcing tool.

Employers use social networking sites for management of corporate social media pages and

career sites, including posting and tweeting for clients. Some employers also provide various company

updates, news posting and use social media for targeted identification and profiling of top talent for

scarce skills.Organizations like Deloitte have used social media not only for recruitment efforts but

also for employer branding by engaging with employees through social media to generate content and

a good buzz. Deloitte identified bloggers within the company to write about what they do or what they

feel like. They also identified employees on Twitter and asked them to have their Twitter feed displayed

on Deloitte career website which served the purpose of employee testimonials. In July 2014,Deloitte

also ran a contest for employees on social media for employer branding aimed at students.


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Thus, using social media, the employers are able tobuild a positive brand image of the company

by marketing and promoting themselves. Social media sourcing if used effectively can be a win-win

for both employer and potential candidates, as the employer can track thecandidates and the candidates

can identify with the company.

Different Social Media Sites

Some of the prominent social media sites which are used by employers for the purpose of

sourcing or creating an employer brand are as given below:

Twitter is used to post jobs and events and alert people to new blog posts. Most of the companies

have a twitter account and they tweet regarding the various events or any issue which requires public

attention.

Facebook page focuses on potential candidates. The company makes contact with passive

candidates by sharing knowledge, building a relationship and keeping them informed about the various

events held in the company.

LinkedIn is used to source experienced candidates. The recruitment team can search for

professionals by looking at their network and recommendations. The companycan also post vacancies

in the LinkedIn group.

YouTubeis used by many companies as a way to communicate their employee testimonials and

these videos which are at times embedded on the actual career website.

Instagram is an online mobile photo-sharing, video-sharing, and social networking service that

enables its users to take pictures and videos, and share them either publicly or privately on the app.

Companies use Instagram to build brand awareness by following a theme and using and owning hashtags.

Myspace is a social networking website offering an interactive, user-submitted network of

friends, personal profiles, blogs, groups, photos, music, and videos. MySpace is huge and is growing

and registering more than 150,000 new users each day. Groups are segmented by categories and can

be used to connect to industry-specific individuals.

Objectives of the Study

The objective of this study is to understand the importance of social media in promoting the

employer brand. This study attempts to assess the effectiveness of social media in creating an employer

brand and to assess the usage of social networking sites for sourcing employees in an IT company and

also to analyze the effectiveness of social media sourcing.

Research Design

The study was conducted in an IT company in Hyderabad having over 6000 employees and

around 35 employees in the HR department. A survey was conducted by means of a structured


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questionnaire for this study. As the objective of the study was to collect information on the sourcing

practices and its impact on employer branding, the data was collected from HR employees of the

organization. The sample size was 35 which were all employees in the HR department. The questionnaire

was sent online using Google documents and the responses were analyzed using MS Excel.

Data Analysis

Demographics Summary

The questionnaires were sent to 35 employees of the HR department in the IT company using

internet and 33 questionnaires were received back, yielding a 94.2 % response rate of usable

questionnaires. The sample consisted of 25 male (75.7%) and 8 female (24.3%) respondents. The

respondents were in the following age groups:

i) 20-30 years- 28 (84.8 %)

ii) 31-40 years- 5 (15.2 %)

Percentage Analysis

Figure 1: Do you use social media for sourcing

Figure 1

Analysis: 97% percent of the employees stated that they used social media for sourcing and

3% of the employees did not use social media for sourcing candidates.

Figure 2: What is the Social media tool used for sourcing the candidates for the company?

Figure 2


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Analysis:The LinkedIn social networking site was the most used social media site, with 94%

of respondents using it for sourcing candidates for the company. Facebook and Twitter were cited as

the second (76%) and third (67%) most popular options. 61% of respondents had a profile with

Google+, 9% with Instagram and 12% with Tumblr. There was one respondent who did not use any

social networking site. The survey suggested that a large percentage of HR employees used social

media for sourcing candidates.

Figure 3: How long have you been using social media for personal or professional use?

Figure 3

Analysis:3 % of HR employees had been using social media from the last ten years and 27 %

had been using from the past 5 years and 9 % of the HR employees started using social media recently.


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A significant increase in the usage of social media from the past five years was noticed and was

predominantly high from a year.

Figure 4: What would be your preferred method of advertising a new role?

Figure 4

Analysis: 26% of the HR employees preferred to advertise on the organization's website and 14

% on professional social networking site like LinkedIn and only 8% on personal social media websites

like Facebook, Twitter and Instagram.

Figure 5: What is your view point towards researching prospective candidates on personal

social media (eg Facebook and Twitter)?

Figure 5

Analysis: 14% of the HR employees regularly checked candidates on personal social networking

sites, 62% rarely checked and 24% did not check the social networking sites during the recruitment

process.


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Figure 6: If you use professional social networking sites during the recruitment process, at

what stage do you do so?

Figure 6

Analysis: 34% of the HR employees checked candidates on professional social networking

sites during application process, 22% checked during the process of Interview and 5% checked

during reference checks.

Figure 7: Do you agree that the posts you make as an employee of the company made on social

media while sourcing will impact the employer brand of the company.

Figure 7

Analysis: 90.9% of the HR employees felt that posts made on social media impacted the

employer brand and 9.1% felt against it.

Figure 8: You take an initiative to make the students, passive candidates and other job seekers to

join your company on social media.


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Figure 8

Analysis:12.2% of the HR employees stated that they took initiative to make students, passive

candidates and other job seekers join the company, however, 87.8% stated against it.

Figure 9: Which of the following activities do you do on social media sites with regard to

potential candidates.

Figure 9

Analysis:57.57% of the HR employees only broadcasted the job vacancies, 35.5% promoted

and connected with others,21.2% listened to the job seekers, 10.2% inspiredpotential candidates and

15.5% were involved in educating them.

Figure 10: Do you agree that addressing the queries by replying to the tweets, comments and

reviews on social media will create a positive impact on your employer brand.


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Figure 10

Analysis:87.88 % of the HR employees agreed that addressing the queries on social media by

replying to the tweets, comments and reviews created a positive impact on the employer brand and

12.12% disagreed to it.

Figure 11: Do you agree that posting reviews and encouraging other employees (past & present)

to post positive reviews on glass door or mouth shut is part of social media sourcing activity and

results in building employer brand.

Figure 11

Analysis: 63.63 % of the HR employees agreed that posting reviews and encouraging other

employees (past & present) to post positive reviews on glass door or mouth shut was a part of social

media sourcing activity and resulted in building employer brand and 36.37 % disagreed to it.

Figure 12: Do you publish videos and photographs about the events in your company and the

benefits your company provides for the employees on social media?


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Figure 12

Analysis: 72.72 % of the HR employees stated that they published videos and photographs

about the events in the company and the benefits the company provided for the employees on social

media and 27.28 % disagreed to it.

Figure 13: Choose the various activities you do on Twitter.

Figure 13

Analysis: 22.33 % of the HR employees stated that they posted jobs on Twitter, 14.35% stated

that they followed associates and other recruiters, 11.42 % stated that they searched job seekers,

42.81% stated they did nothing of the above on Twitter.

Figure 14: Choose the activities you perform on LinkedIn.


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Figure 14

Analysis: 93.93 % of the HR employees stated that they posted jobs on LinkedIn, 60.6 % of

the respondents stated that they highlighted the career opportunities at the company and shared

information about the company, 30.3 % stated that they linked their profile to other social media,

18.18% stated they showcased the company employees and testimonials on LinkedIn.

Figure 15: Which of the following features do you use on LinkedIn to make the sourcing

process more efficient? Please select one or more options.

Figure 15

Analysis: 75.75% of the HR employees used a common feature i.e., LinkedIn recruiter and

57.57% of the employees used LinkedIn groups to post positions. The other features were used by

less than 30% of the employees.

Figure 16: Do you make connections on Facebook to reach out to desired candidates and thus

building a network during social media sourcing.


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Figure 16

Analysis:63.64% of the HR employees stated that they made connections on Facebook and

build networks and remaining employees stated against it.

Figure 17: As per Glass door U.S. Site Survey (2016), 69% of active job seekers arelikely to

apply to a job if the employer actively manages its employer brand (e.g., responds to reviews, updates

their profile, share info on culture and work environment). Based on the above information what

activities do you do to manage the employer brand of your company?

Figure 17

Analysis:54.54% of HR employees responded to the reviews, 42.42% of the employees updated

their profiles frequently, 39.39% provided basic information of their company, 39.39% talked and

sharedmission and values of the company, 30.30% shared updates on the culture and work, 39.39%

provided details on compensation packages, 18.18% shared details on benefit packages and 15.15%

provided details on what makes the company an attractive place to work.


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Figure 18: What is the level of your skill in social recruiting?

Figure 18

Analysis: Only 14 % of the HR employees considered themselves to be expert in sourcing

through social media and 41% considered themselves to be having proficient skills.

Figure 19: There is a need for training the recruiters of the company in using social media tools

for efficient sourcing.

Figure 19

Analysis: About 80% of the employees stated that there was a strong need for training the

employees.

Figure 20: Is there any company policy with regard to using social media for sourcing candidates

or employer branding in the company.


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Figure 20

Analysis: 97% of the HR employees stated that there was no company policy with regard to

using social media for sourcing candidates or employer branding in the company.

Findings

• 97% of the HR employees used social media for sourcing and a significant number stated that

they have been using social media since a year. There has been found to be a significant increase

in the usage of social media by the HR employees since the past 3 years.

• 67% of the HR employees used Twitter, 76% of the employees used Facebook, 94% of the

employees used LinkedIn, 61% used Google +, 12% used Tumblr, 9% of the employees

usedWordpress, 45% used You tube, 9% used Instagram, 6% used Pinterest, 3% of the HR

employees did not use any social media tool for sourcing and promoting the employer brand.

• About 90.90% of the HR employees agreed that the posts they made on social media while

sourcing would impact the employer brand of their company.

• 57.57% of the HR employees used social media for only broadcasting the job vacancies, 35.5%

promoted and connected with others and only 10.2 % inspired candidates.

• 88% of the HR employees agreed that addressing queries on social media would create a positive

impact on the employer brand and 72.72% stated that they were involved in publishing videos

and photographs about events in the company.

• 54.54% of the HR employees responded to the reviews, 42.42% updated their profiles frequently,

39.39% provided basic information of their company, 39.39% talked and shared mission and

values of the company, 30.30% shared updates on the culture and work, 39.39% provided

details on compensation packages, 18.18% shared details on benefit packages and 15.15%

provided details on what made the company an attractive place to work.


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• 63.64% of the HR employees said that they made connections on Facebook and build networks

and remaining employees stated against it.

• 63.63 % of the HR employees agreed that posting reviews and encouraging other employees

(past & present) to post positive reviews on glass door or mouth shut was a part of social media

sourcing activity and resulted in building employer brand.

• 22.33 % of the HR employees stated that they posted jobs on Twitter, 14.35% stated that they

followed associates and other recruiters and 11.42 % stated that they searched job seekers.

• 75.75% of the HR employees used a common feature i.e. LinkedIn recruiter and 57.57% used

LinkedIn groups.

• 12.2% of the HR employees stated that they took initiative to make students, passive candidates

and other job seekers join the company, however, 87.8% of the HR employees stated against it.

• About 80% of the employees stated that there was a strong need for training the employees to

use social media for sourcing as well as employer branding activities.

Conclusion

Social media tools are only as good as the efforts put in by recruiters for sourcing candidates or

building an employer brand. Recruiters need to understand the need to use social media and also they

have to participate and take out the time to develop and become part of communities to source specific

talent. This study brings out that most of the recruiters understand the significance of using social

media in current times for sourcing candidates; however, most of the recruiters are not taking complete

advantages of social media and are using some ofthe tools only. Also, using social media for employer

branding is still at a nascent stage and employers are focused more on sourcing and identifying the

talent than on building an employer brand. Presently, the usage of social media by recruiters depends

mostly on personal competency/interest as generally no recruitment/employer branding policies exist

with regard to usage of social media. The company should identify the need for improving the employer

brand of the company using social media and formulate specific policies so as to avoid hurting the

company's brand image. The company should provide access to the employees as requested by them

and should provide them with adequate training so as to reap the benefits of social media.

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