Virtual HRM: A Case of e-Recruitment

Anna B. Holm

Centre for Organizational Renewal and Evolution (CORE), Department of Management

Aarhus School of Business, University of Aarhus

Haslegaardsvej 10, DK-8210, Aarhus V, Denmark

Abstract. Although electronic recruitment is a widespread managerial practice

of acquiring personnel, it still remains unclear exactly which organisational

processes fall under its existing definitions. The research presented in this pa-

per attempts to answer the fundamental question whether e-recruitment should

be understood as means of automating the process of recruitment, or rather be

treated as a more complex organisational concept. To clarify this issue the pa-

per discusses the phenomenon from the open-system organisational perspective

of virtual organising. The paper draws on the results of the qualitative explora-

tory study conducted in Denmark in 2008-2009. It concludes that as organisa-

tional concept e-recruitment is not only about application of technology to re-

cruitment tasks. The process of e-recruiting spans organisational boundaries

and directed to and affected by external environment of organizations.

1 Introduction

The internet and the availability of supporting information and communication tech-

nologies (ICT) have brought radical change to corporate recruiting [4] by signifi-

cantly altering the traditional process of job advertising, CV screening, short-listing

and communication with candidates [5]. A contemporary recruitment process happens

often with the help of electronic recruitment systems called e–recruitment or e-

cruitment. Such systems are often connected to external online job and CV databases

available on 24/7 basis, which act as labour market intermediaries [10, p. 112]. Some

research suggests that e-recruitment generates higher application turnover [17], short-

ens by 2/3 the time taken from job being posted to it being offered to a candidate [23]

and is increasingly cost-effective [5].

Although there are already a number of research contributions to the subject of

electronic recruitment, it is still difficult to find a clear definition of what precisely

should be understood under the term e-recruitment. Dictionary of Human Resource

Management [10] defines e-recruitment as recruitment of employees on the internet.

According to the dictionary, e-recruitment assumes a number of different forms, i.e.

advertising vacancies on websites, internet job boards that act as labour market inter-

mediaries, internet directories that list job vacancies and allow free connection from

the directory to the company websites [10, p.112]. Lee [13] on the other hand in de-

fining e-recruitment emphasises the technological aspect by incorporating a more

Holm A. (2009).

Virtual HRM: A Case of e-Recruitment.

In Proceedings of the 3rd International Workshop on Human Resource Information Systems, pages 49-58

DOI: 10.5220/0002174600490058

 SciTePress

general notion of electronic means, which organisations utilise in their e-recruiting

practices and activities to “fill open positions effectively and efficiently”.

One of the purposes of the paper is to work out a clearer understanding of what

can be understood under the organisational concept of e-recruitment and define its

scope and elements. To fulfil this task, an exploratory study of recruitment practices

was conducted in Denmark in the years 2008 and 2009. The overall research question

guiding the study was whether e-recruitment should be viewed as a technological way

of supporting recruiting services, or a broader organisational phenomenon affecting

an overall HR practice and the organisation.

The paper argues that in order to unfold the essence of the concept of e-recruitment

it is necessary to view e-recruitment as an integral part of a broader e-HRM organisa-

tional phenomenon also called virtual HRM [14]. The paper also suggests classifying

e-recruitment as a case of virtual organising, which is characterised by three distinct

interdependent dimensions – technological, organisational and social-cognitive and

includes external environment in analysis [11].

The paper is structured as follows. First, it discusses the concepts on e-HRM, e-

recruitment and the concept of virtual organising. Second, it presents results of the

explorative study of recruitment practices conducted in Denmark in 2008-2009. Fi-

nally, it draws a number of general and specific conclusions and suggests some impli-

cations and areas for future research in the field of e-recruitment and e-HRM.

2 Theoretical Background

2.1 e-Recruitment and e-HRM

Recruitment of personnel in organisations is crucial for successful performance of

HRM [16, p. 179]. Therefore, viewing e-recruitment and supporting its activities from

a broader e-HRM umbrella appears to be reasonable and in line with existing defini-

tions of e-HRM. For example, Lepak and Snell [14] define e-HRM, which they also

call virtual HRM, as a network-based structure built on partnerships and typically

mediated by information technologies to help the organisation acquire, develop and

deploy intellectual capital, which allows considering e-recruitment to play an essen-

tial role in this process.

Other definitions of e-HRM also emphasise a crucial role of information and

communication technologies (ICT) and network structures. Strohmeier [21] defines e-

HRM as planning, implementation and application of information technology for both

networking and supporting at least two individual or collective actors in their shared

performing of HR activities. Ruël, Bondarouk & Looise [18] view e-HRM as a way

of implementing HR strategies, policies and practices in organisations through a con-

scious and directed support of and/or with the full use of web-technology-based

channels. Both definitions support the notion that e-recruitment should be viewed as

part of a broader e-HRM framework, and also as a part of a larger HR system [7].

2.2 The Process of Recruitment

Traditionally, the recruitment process includes repetitive phases such as: (i) job

analysis and identification of hiring needs, (ii) preparation of job description and

specifications, (iii) attracting applicants, (iv) receiving and screening applications, (v)

short-listing candidates, (vi) meeting, testing and interviewing candidates and finally

selecting and hiring employees. ICT were used in this traditional recruiting process

even before the introduction e-recruitment systems, but were limited to the automa-

tion of the internal process or advertising on a corporate website [13]. Various infor-

mation systems (IS) have already been employed by many HR departments for

streamlining operations and alleviating much of the administrative burden (ibid.), and

a good deal of research has already been carried out on HR information systems

(HRIS) [18]. HRIS is understood to be directed towards the HR department itself and

is to be used by HR staff (ibid.).

This operational use of ICT, however, does not turn HR tasks of recruiting person-

nel into e-recruitment systems for a number of reasons. First and foremost, one has to

include the processes initiated by organisations on the Web: attracting qualified can-

didates often takes place through internet-based intermediaries like external online

job databases and job boards. Contemporary e-recruitment systems allow practically

instant communication with applicants, and submission of applications and resumes

takes place in real-time and most often directly to the e-recruitment database located

internally in an organisation. Increasingly, e-recruitment is used as means of market-

ing of the organisation and even integrated in overall marketing campaigns [4]. Also

companies using e-recruiting are moving towards integrated HR systems of staffing,

career development, training, performance and other key activities, which often re-

quire reorganisation of the HR process and better alignment of HR information and

database architectures [7]. Using e-recruitment arrangements thus goes beyond the

goal of economic efficiency of recruitment as it leads to a wider consequence for the

organisation itself as well as its environment.

2.3 Open System Approach to Research in e-Recruitment

As it becomes apparent that the organisational environment, represented in case of

recruitment by labour markets, partners, intermediaries, users, and society in general,

plays an integral part in organising of e-recruitment, it makes it also adequate to in-

vestigate e-recruitment from an open-system perspective of organisations, which

include both organisations and their environments. Open-system theories treat organi-

sations as a complex set of dynamically intertwined and interconnected elements,

including inputs, processes, outputs, feedback loops and the environment in which it

operates [19, p. 477].

The idea of investigating traditional recruitment practices from an open-system

perspective is not new, particularly under a wider HRM level. For example, Wright

and Snell [24] used an open-system model for generating HRM strategies. They pro-

posed that the inputs in HR systems are competences, skills, abilities of individuals,

imported from external environments, the throughput process can be characterised by

the individuals’ behaviour, and the outputs consist of both performance variables (e.g.

productivity, efficiency) and affective outcomes (e.g. job satisfaction).

Wright and Snell’s model [24] however, does not place technology in the core of

the HRM strategies, yet technology embedded in the processes of e-recruitment can-

not simply be treated as contingency, as it may lead to different outcomes if embed-

ded in different ways in different social systems [2]. The challenge in studying e-

recruitment from an organisational perspective is hence in accommodating technol-

ogy, its users, organisations and their environment in a cohesive research framework.

2.4 The Concept of Virtual Organising

The task of studying recruitment with socially embedded technological systems can

be potentially solved with the application of the three-dimensional framework for

studying virtual organising suggested by Holm and Ulhøi [11, 12]. The framework

draws on the organisation and management theory and IS research and is based on the

presumption that virtual organising: 1) can be understood as organisation of activities

facilitating time- and space-independent interaction and collaboration; 2) requires

appropriate organisation, technology and human agents and cannot exist without all

three components; and 3) is a strategic choice characterised by directionality and

granularity, i.e. different levels of organising. Most important is that it allows study-

ing virtually organised activities beyond intra-organisational levels of analysis and

includes “external” levels like e.g. close-network relationships with various partners

(suppliers, customers and individuals) as well as a broader society in general.

If e-recruitment falls in the conceptual framework of virtual organising then it be-

comes possible to talk of e-recruitment as a case of virtual organising and a manifes-

tation of organisation virtualisation – a process through which parts or entire organi-

sations are becoming distributed in time and space, and where physical means little or

nothing [11].

3 Methodology and Approach

3.1 Research Design

In order to fulfil the purpose of the study, an explorative inquiry in contemporary

recruitment was undertaken, with data collection techniques stemming from qualita-

tive research methods [6]. The choice of the research design and method rests on the

presumption that social science exploration would permit a discovery of generalisa-

tions leading to descriptions and understanding of the researched phenomenon [20, p.

3] and can potentially lead to development of grounded theory [9].

The main reasoning for choosing grounded-theory inspired approach comes from

the believe that it is particularly useful at capturing complexity of contexts and facili-

tating theoretical work in substantive areas that have not been well researched by

others [15]. A grounded-theory approach also facilitates what can be described as an

iterative process, meaning that “data collection and primary analysis proceeded in

tandem, repeatedly referring back to each other” [3].

3.2 Research Framework

Although the underlying logic of an exploratory research is often an induction, the

proposition suggesting that e-recruitment should be treated as a case of virtual organ-

ising led to applying a deductive approach [8, p. 6], which could potentially allow

either confirming or rejecting this proposition.

The three-dimensional framework for studying virtual organising [12] was de-

ployed to make research operational as well as to gain a common direction, initial

insights and concepts [6]. As previously described, the framework rests on the propo-

sition that virtual organising comprises interdependent organisational, technological

and social-cognitive elements, which can be researched at different levels of an or-

ganisation. The framework also includes inter-organisational levels of analysis, like

partners and customers, as well as society in general.

Using the framework, a set of questions was developed for guiding the research

and conducting semi-structured interviews. In the course of iterative data collection

and analysis, some initial questions were reviewed and some of them reformulated,

and few either added or removed. It should be noted that in case of e-recruitment,

customers are assumed to be represented by job seekers in general as well as specific

job applicants and candidates.

3.3 Data

The acquisition of data followed the method of theoretical sampling based on con-

cepts and themes deriving from the data [6]. Qualitative interviewing was the main

technique used for collecting data.

In order to achieve higher validity of results, various sizes and types of organisa-

tions were included in the sample. More than half of the interviewed recruitment

professionals were either representatives of a Danish multinational corporation

(MNC) or a Danish branch of a foreign MNC. In total 14 organisations were included

in the study.

All interviews were conducted in the Danish language and in Denmark in 2008

and 2009. Most of the interviews were semi-structured interviews with a few excep-

tions of a number of exploratory in-depth interviews and one focus group discussion,

and lasted between one and two hours. Almost all interviewed respondents hold either

high level managerial positions or are executive recruitment partners. To date 16

interviews are fully transcribed for further analysis.

However, interviews are rarely a sole form of data collection, especially if the re-

search follows the path of developing-grounded theory [22], and some other types of

data, like industry reports, professional presentations, face-to-face conversation with

practitioners, corporate websites and brochures, professional forums, discussion

boards and testimonials were also taken with some advantage. For example, a num-

ber of professional presentations by HR practitioners at the 2008 Annual HR Fair

Traefpunkt in Copenhagen were recorded and transcribed for analysis.

3.4 Research Limitations

As mentioned earlier, most of the qualitative data were collected in Denmark in the

years of 2008 and 2009, and are in Danish. Using the framework for studying virtual

organising has also led to the realisation that the study was guided and framed by

some specific predefined concepts, but as pointed out by Gibbs [8], this problem is

often hard to eliminate completely, as researchers deduce particular explanations from

general theories and see if the researched phenomena actually correspond [ibid., p. 5].

3.5 Data Analysis

Only preliminary data analysis has been conducted with major concepts and themes

and their properties identified, but no theoretical comparisons [6] have been per-

formed yet. Preliminary findings of the study are presented in the next section.

4 Research Findings

4.1 General Findings

Whether or not e-recruitment systems are deployed, it appears that the process of

acquiring new personnel proceeds according to a similar cycle of phases as described

earlier, i.e. job analysis and identification of hiring needs, preparation of job descrip-

tion and specifications, attracting applicants, receiving and screening applications,

short-listing candidates, meeting, testing and interviewing candidates and selecting

and hiring employees. e-Recruitment arrangements are almost entirely limited to the

phases of attracting applicants, receiving and processing applications and to some

extent screening candidates.

Basically, all organisations in the sample, which use e-recruitment systems for

their staffing needs, did not experience substantial difficulties in acquiring and de-

ploying such systems. The e-recruitment systems deployed seem to live up to HR

managers initial expectations and needs.

Those recruiters, whose organisations do not deploy a dedicated e-recruitment sys-

tem, also use ICT for recruitment purposes although to a rather limited extent. The

practice of receiving applications and communications with the applicants through

email without a supporting database is widespread, particularly among smaller and

medium-sized organisations, and this practice cannot be called an e-recruitment sys-

tem. Nevertheless, many use internet-based intermediaries for advertising of available

vacancies.

It has been observed that there is a common believe that attracting best candidates

requires not just good organisational reputation and a well-known name, but a consis-

tent promotional effort often in conjunction with a promotional activity on a higher

and broader organisational level. Many respondents emphasise the importance of

their employer branding activities. The term employer branding basically represents

efforts to promote, both within and outside the firm, and a clear view of what makes it

different and desirable as an employer [1], and here e-recruitment plays for some

organisations a distinct role. Some organisations use creative online communications

promoting themselves as good employers and an exciting place to work. Few bigger

organisations facilitate video presentations of premises, recorded video testimonials

of existing employees, and even periodically organise online job dating in real time

with existing employees. Running of dedicated corporate recruitment websites is in

several cases a task performed by HR, IT and communication departments conjointly.

Staff members in research organisations engaged in recruitment with the help of

electronic means do not indicate any specific difficulties in using the provided tech-

nological solutions, and little or no initial training in using e-recruitment systems is

normally required. Most system interfaces are described as being well designed and

user-friendly.

In many cases larger-size organisations, which regularly receive a substantial

number of applications, have entirely given up traditional paper-based reception of

applications, requiring candidates to register and submit their data exclusively in

electronic form. In cases where the flow of applications is automated, the recruitment

personnel are particularly satisfied of not having to manually process incoming

documents. Automatic response to applicants, which replaces the traditional response

letter routine, also removes an undesirable burden from individual staff members.

Also communication with other recruiting staff members and line managers with the

help of e-recruitment systems allow quick and efficient processing of applications for

the next phases in the recruitment cycle.

Automated screening of applicants with use of software is used to a very little ex-

tent, and practically in all cases screening and identification of potential candidates is

done manually by recruitment personnel in cooperation with the managers responsi-

ble for the final hiring decision. E-recruitment systems at this stage are mainly used

for tracking, sorting and categorising applicants, as well as informing them whether

they are of any interest for the organisation or not. Telephone screening still seems to

be widely used, but the use of videoconferencing for screening and interviewing

tends is rather an exception than common practice.

Many interviewed organisations are in stable partnerships with internet-based job

intermediaries, which have become the main source of information for vacant posi-

tions and can attract a substantial amount of online traffic. Many online intermediar-

ies upkeep CV databases, which companies can access in search for a suitable candi-

dates. A number of studied companies have reported that up to 70% of employee

sourcing occurs through advertising on the internet-intermediaries’ job portals. Some

organisations have even automated the job posting procedure, where ready for sub-

mission job announcements are continuously fed onto the internet job databases.

Niche advertising of vacancies has also become an issue for some recruiters, in-

creasingly placing job ads on various portals belonging to online communities of

practice (COP) and professional networks. Another interesting social phenomenon,

also of relevance to e-recruitment, is an increasing use of social and professional

electronic networks like Facebook, LinkedIn and MySpace for job advertising and

employer branding, though some of the interviewed recruiters refuse using these

channels as unethical practice, while others consider them legitimate communication

channels.

4.2 The Framework of Virtual Organising of Recruitment

Preliminary analysis of the collected data allowed sketching overall elements of e-

recruitment from the perspective of virtual organising. The results presented in Table

1 are a composite picture of elements of e-recruitment, which are not necessarily fully

present in all researched organisations.

Table 1. Elements of virtual organising of recruitment.

Level Elements

Organisational Technological Social-cognitive

Employee Recruitment partner,

manager, assistant.

Client software, PC,

internet / intranet

connection, email

Basic technology

apprehension and

computer literacy.

Self moderation.

Groups /

Teams

Recruitment group,

part of HR department.

Well established re-

cruitment routines.

Groupware recruitment

software, CV database,

LAN, group servers.

Online cooperation,

communication and

interaction. Group

moderation.

Organisation Collaboration of HR,

IT, communication

departments and em-

ployer brand manager.

Part of Talent Man-

agement System.

Corporate website,

integration with e-

recruitment system,

mainframes and serv-

ers, connectivity with

talent management

system.

Various recruitment

policies, e.g. Diver-

sity and equal oppor-

tunity employer.

Governance by insti-

tutionalised corporate

ethics.

External

partners and

customers

Collaboration with

online job databases,

recruitment agencies,

public unemployment

agencies and trade

unions. Employer

branding.

Digital connectivity

with partner organisa-

tions thorough stan-

dardised protocols

(XML). Data inter-

exchange and sharing

(Web 2.0).

Mutual interests.

Trust, Confidentiality

of data guarantee.

Policy of corporate

social responsibility.

Society Communications

through online com-

munities, social net-

works (Facebook,

LinkedIn, My Space)

and virtual reality

spaces (SecondLlife).

Well-developed tech-

nological infrastruc-

ture, broadband con-

nectivity and overall

availability of World

Wide Web.

Cultural norms and

traditions, overall

educational level and

computer literacy of

population. Institu-

tionalised employ-

ment practices.

5 Conclusions and Implications

Since the presented study has not been fully completed yet, it is still a bit premature to

expect ”firm” conclusions, which can pass a stringent validity test. However, few

early conclusions can be drawn which might initiate and facilitate a valuable discus-

sion.

The conducted exploratory study has shown that e-recruitment as an organisational

concept and social phenomenon is not limited to the internal boundaries of an organi-

sation. It should not be perceived simply as some technological solution deployed in

support of a recruitment function. Studying e-recruitment on organisational level

requires a theoretical approach or framework taking into account the environment in

which the organisation operates. E-recruitment related activities are directed to and

performed with external partners and customers, as well as they are affected by a

broader society in which the organisation operates.

While traditional recruitment may not require any particular technology, e-

recruitment is reliant on a wide range of information and communication technologies

and access to them by the general public. Viewing technology just as contingency

will limit research to establishing economic rationality of automating recruitment

tasks and changes in routines, while technology in this case plays a wider societal

role, and may affect livelihoods of individuals and organisations.

The research has also confirmed that e-recruitment can be viewed and studied

through the framework of virtual organising. The framework does not only allow

identifying various elements of organising of e-recruitment, but may also help to

establish how far organisations have progressed in deploying and organising their e-

recruitment.

Recruiting with the help of electronic means does not alter, eliminate or replace

any traditional phases of the recruitment cycle; it rather modernises and advances the

whole process, bringing it to another level of organisational complexity. In other

words: a recruitment process with e-recruitment gains an additional dimension, which

is due to its direction towards external environment enhances the strategic signifi-

cance of how well the function is performed.

Research in e-recruitment and a wider concept of e-HRM might also question

whether the traditional classification of HRM types is applicable to e-HRM. Ad-

vances in e-HRM technologies and new organisational concepts, like talent manage-

ment and employer branding may lead to a blurred distinction of the purpose of each

HRM type. Advanced e-HRM solutions are already characterised by features and

activities corresponding to all three e-HRM types, i.e. operational manifested in ad-

ministrating applications, relational in its supportive function for acquiring human

resources, and transformational with its role in the process of HR development and

employer-branding activities.

A better understanding of the organisational concept of e-recruitment might be

achieved by studying how external environment and a society in general affect or-

ganisation of e-recruitment and it utilisation, and an institutional perspective can be

potentially beneficial. Also more studies of how different elements of organising of e-

recruitment add to efficiency and effectiveness of the recruitment process can shed

light on which elements are more crucial than others.

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