Recruiting Online
A Guide for Decision Makers
April 2009
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Introduction
• This guide is intended to provide employers with an overview of online recruitment
and how it can be utilised to attract top talent effectively and efficiently.
• The guide is aimed at senior decision makers, including top management of
companies and those involved in setting and executing talent acquisition strategy.
• The data, insights and opinions presented in this guide are based primarily on the
Middle East market and may not be fully applicable in other countries or regions.
• This guide has been compiled by GulfTalent.com, the leading provider of online
recruitment services in the Middle East.
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Contents
• Online Recruitment Cost-Benefit Analysis…….................….. 3
• Developing an Online Recruitment Strategy………………….. 8
• Appendix – Analysis of Middle East Online Candidates…….. 16
• Glossary……………………………………………….…………. 23
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Online Recruitment Cost-Benefit Analysis
3
The Internet provides an ideal channel for employer branding,
candidate sourcing and efficient screening
Uses of Online Recruitment
Employer Branding
Candidate Sourcing
Screening & Selection
•
Promote the company as an employer of choice
•
Gather market intelligence that shapes recruitment strategy
•
Receive applications from active candidates
•
Headhunt passive candidates through targeted database search
•
Automate screening and filtering of applicant CVs
•
Organise the logistics and administration of the recruitment process
4
Online recruitment has proved an effective substitute for newspapers
as the primary channel for sourcing candidates
Overview of Recruitment Process
Online Recruitment
Portal
Candidates
Recruitment Agency
Employer
Newspaper
5
Online recruitment compares favourably with other channels in
terms of reach, effectiveness and speed of getting results
Recruitment Channels – Performance Comparison
Online
Recruitment
Product
• Product name
Job posting /
CV search
Geographic
Reach
• Locally-based candidates
3
• International candidates
3
Type of
Candidates
• Active candidates
3
• Passive candidates
3
• Sourcing candidates
3
• CV Filtering
3
Service
Coverage
Newspaper
Advertising
Advertising /
Classified
3
3
• Average time *
1-10 days
Executive
Search
Contingency
recruitment
Retained
search
3
3
3
3
3
3
3
• Interviewing
Speed
Recruitment
Agency
5-15 days **
3
3
3
3
3
3
3-30 days
30-60 days
* Defined as the total duration from the time a vacancy is sent to the HR team, until the HR team can provide matching CVs sourced from the supplier.
** Includes lead time required for an ad going into print, time to receive CVs and screening time
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Recruiting online is by far the most cost-effective method, with
total cost per hire as much as 90% lower than traditional channels
Recruitment Channels – Cost Comparison
(US$)
Typical Supplier Fee per Hire *
Supplier Fee Structure
Internal Cost
Per Hire **
Total Cost
Per Hire †
Online
Recruitment
$100 – 300
• Fixed fee, regardless of
number of hires
• Payable upfront
$1,500 – 3,000
$1,600 – 3,300
Newspaper
Advertising
$200 – 500
• Fixed fee for advertising,
regardless of number of hires
• Payable upfront
$2,000 – 4,000
$2,200 – 4,500
• 15-20% of annual salary per
candidate hired
• Payable upon successful hire
$1,000 – 2,000
$10,000 – 14,000
• 20-35% of annual salary per
candidate hired
• Payable 1/3 upfront, 1/3 on
short-list, 1/3 on hiring
$1,000 – 2,000
$13,000 – 23,000
Recruitment
Agency
Executive
Search
$9,000 – 12,000
$12,000 – 21,000
Source: Interviews with HR managers, supplier terms, GulfTalent.com analysis
* Estimated based on hiring a mid-level candidate with a compensation of US$ 5,000 per month
** Includes time of HR team, travel expenses of HR team and/or candidates, assessments and other associated costs
† Total cost per hire = Supplier fee per hire + Internal cost per hire
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Developing an Online Recruitment Strategy
8
To maximise the benefits of online recruitment, companies need to
address four key questions
Key Elements of an Online Recruitment Strategy
2 Which Suppliers?
Which online recruitment sites are
most appropriate for my needs?
1 Which Vacancies?
3 Which Products?
Which of my vacancies
Which online recruitment
are best filled through
products are most
online recruitment?
suitable for my needs?
4 What Organisational Model?
How should my HR team and process be
set up to use online recruitment effectively?
9
Vacancies suitable for recruiting online should be distinguished
from others
Segmentation of Vacancies
Professional /
Managerial
Examples
•
•
•
•
•
Finance
HR
Marketing
Engineering
General Management
Entry level /
Very Junior
•
•
•
Shop Assistant
Receptionist
Fresh graduate
Manual /
Unskilled
•
•
•
Labourer
Driver
Maid
Candidate
Presence Online
High presence online
High presence online
Limited online presence
Effectiveness of
Online Screening
Can be efficiently
screened using online
tools
Hard to screen online,
as core skills not in CV
CV insufficient for
screening, or no CV at all
Overall Fit For
Recruiting Online
Ideal for sourcing and
screening online
Can be sourced online,
but screening may still
be time-consuming
Unsuitable for recruiting
online
10
The appropriate online recruitment sites can be selected based on
objective criteria
Supplier Selection – Metrics for Evaluating Online Recruitment Sites
Key Metrics
•
Breakdown of candidate database
(by location, industry, etc.)
•
Size and freshness of CV database
•
Quality of CV presentation
•
Calibre of candidates
•
Quality of search and filtering tools
•
Simplicity and user-friendliness
Candidate
Availability
Candidate
Quality
Online Tools
Customer
Service
•
Responsiveness and professionalism
•
Familiarity with the online products
Method of Evaluation
•
Request references from peers in
other firms
•
Review brochure and official
statistics of the recruitment portal
•
Request a free live demonstration
of the site
•
Purchase a short-term
subscription to try out the service
•
Monitor number of interviews and
hires over a period of subscription
11
While most employers use both job posting and CV search, it is
important to understand the benefits and limitations of each product
Comparison of Online Recruitment Products
Job Posting
CV Database Search
Candidate Types
Reachable
Only Active candidates
(cannot reach those who do not apply)
Both Active and Passive candidates
(some of the best candidates are passive)
Input Parameters
Required
Need a full job description to start
Only need job title and/or key skills
(no need for a full job description)
Key HR Skills
Required
Ability to draft attractive job ads, filter
and screen CVs
Ability to do structured online search, and
to approach candidates persuasively
Time to Get
Good CVs
Days
(should wait for candidates to apply)
Minutes
(proactively target desired candidates)
Candidates very likely to accept
(they show interest first)
Candidates may or may not accept
(need to be persuaded)
Recruitment is publicly visible
(ideal for building an employer brand)
No public visibility or branding
(can be good for confidential vacancies)
Likelihood of Offer
Acceptance
Visibility and
Branding
12
Most firms operate a ‘centralised’ organisation for using online
recruitment, giving access to the HR team only
Organisational Model – Centralised
Key Features
HR Team
Line Manager
• Line managers communicate recruitment needs to
the HR team
• HR team source and screen CVs online, and
forward to line managers for review
• HR team follow up with approved candidates to
arrange interviews
• Line managers do not have direct access to the
site
Online Recruitment
Portal
• Common setup in the majority of companies
13
It is possible to adopt a ‘distributed’ model, giving access to the
line managers as well
Organisational Model – Distributed
Key Features
HR Team
Line Manager
• Both the HR team and line managers have direct
access to the site
• Line managers identify desired CVs directly and
mark them for further follow-up by the HR team
• Access permissions to the site are controlled by the
HR team – e.g. who can post jobs, search CV
database or view CVs online
• Used in a minority of firms, but adoption increasing
Online Recruitment
Portal
14
The choice of organisational model depends on the needs, priorities
and resources of the company
Comparison of Organisational Models for Recruiting Online
Centralised
Distributed
Control &
Standardisation
Fully controlled access and
compliance with standard procedures
Enforcing HR standards and procedures in
dealing with candidates needs more effort
and education
Scalability
HR team needs to expand in line with
the growth of recruitment needs
Easy to scale up; a small HR team can
support a large organisation
Process
Efficiency
Recruitment requires several exchanges
between HR and line managers
Less communication overhead; line
managers search and identify their target
CVs directly
Knowledge
Building
Central HR team can develop expertise
in online recruitment
Fragmented use may not allow deep online
recruitment expertise to be accumulated
Stakeholder
Adoption
The default setup in most companies;
consistent with pre-Internet boundaries
Unpopular with some line managers. Can
be offered on a voluntary opt-in basis
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Appendix – Analysis of Middle East Online Candidates
16
Many myths and misconceptions exist about online candidates
Common Myths about Middle East Online Candidates
Myths
“ Fewer people go online, compared to
Reality *
• The number of Internet users in the region is much
higher than the total newspaper print circulation
those who read newspapers ”
“ Job ads on a recruitment website do not
get as much exposure as print ads in
national newspapers ”
“ Online candidates are mostly
students and young people ”
“ Only technical candidates can be
found online ”
“ Arabic speakers, especially Gulf
nationals, do not look for jobs online ”
• An online job ad typically receives over 400
applications, compared with around 200 for a print
ad in a popular newspaper
• Half of the online candidates are aged over 30, and
37% hold managerial positions, including 8% who
are in top management
• Online candidates span all industries and functions,
with only 31% coming from IT and engineering roles
• Over 35% of online candidates are fluent Arabic
speakers, including 8% who are Gulf nationals
* Based on GulfTalent.com’s database and analysis of publicly available data
17
Internet penetration has reached critical mass and now far exceeds
newspaper print circulation across the region
Online vs. Print
Internet Penetration *
Newspaper Circulation **
43%
Qatar
40%
Lebanon
Bahrain
35%
Kuwait
35%
23%
Saudi Arabia
18%
Jordan
Egypt
Oman
18%
49%
UAE
13%
10%
Total Population
(millions, 2008 est.)
5.6
1.4
15%
10%
4.0
17%
1.1
27%
8%
5%
6%
9%
3.6
24.9
6.1
77.1
2.8
Sources: ITU, The World Factbook, Internet World Stats, Middle East Media Guide, Economist Intelligence Unit, GulfTalent.com Analysis
* Number of Internet users as a percentage of total population. Based on 2007, the most recent year for which data is available
** Sum of print circulation of all daily newspapers as a percentage of total population. Based on claimed (unaudited) circulation figures for 2008
18
Candidates found online have a higher level of education and better
language skills than the general population
Breakdown of Online Candidates *
By Language
By Level of Education
No University
Degree
12%
88%
With University
Degree
*
Arabic &
English
English
Only
35%
10%
55%
English &
Other language
Based on GulfTalent.com’s database of 1 million candidates
19
Online candidates include a significant proportion of mid-level and
senior professionals
Breakdown of Online Candidates *
By Age
By Seniority
Above 50
41-50
36-40
Director /
Executive
6%
15%
15%
Experienced
Professional
22%
29%
26-30
*
29%
Manager
31-35
Under 26
8%
13%
34%
Junior
Professional
Fresh Graduate /
Student
20%
9%
Based on GulfTalent.com’s database of 1 million candidates
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Online candidates include a diverse talent pool from different locations
Breakdown of Online Candidates *
By Country of Residence
Other
Asia
Europe / US
14%
13%
12%
Middle East
(excl. GCC)
4%
57%
GCC **
* Based on GulfTalent.com’s database of 1 million candidates
** Gulf Cooperation Council (GCC) countries include Saudi Arabia, Kuwait, Qatar, Bahrain, Oman and the United Arab Emirates
21
Candidates from all major industries and job categories can be
found online
Breakdown of Online Candidates *
By Job Category
By Industry
18%
Construction & Real Estate
16%
Banking & Finance
13%
IT & Telecom
8%
Oil & Gas
7%
Education
14%
Finance
13%
Sales & Customer Support
IT
10%
7%
Administration & Secretarial
Manufacturing
6%
General Management
6%
Retail & Consumer Goods
6%
Marketing and PR
6%
6%
Healthcare
5%
Education & Teaching
Marketing & Media
5%
Healthcare
4%
Human Resources
4%
4%
Transport & Logistics
Hospitality
3%
Logistics
Government & Public Sector
3%
Procurement
Recruitment
Other
*
21%
Engineering
Legal
1%
5%
Based on GulfTalent.com’s database of 1 million candidates
Other
3%
2%
1%
3%
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Glossary of Key Terms
Online recruitment portal
An Internet website where employers advertise their vacancies and candidates
register their CV to apply for those vacancies, or to be otherwise found by employers
for potential job opportunities.
Job posting
A job advertisement placed online on a recruitment portal, allowing candidates to
review and submit their applications directly to the employer advertising the vacancy.
CV database search
Active candidate
Passive candidate
Contingency recruitment
Retained search
An online facility allowing employers direct access to the CV database of a
recruitment portal, to search and find candidates with the desired profiles and to
contact them directly without the involvement of an intermediary.
Someone who is interested in changing employment and is actively searching and
applying for vacancies.
Someone who is potentially open to considering alternative employment opportunities,
but is not actively searching and applying for vacancies.
A type of recruitment service where the recruitment agent receives a fee only upon
successful placement of a candidate. The employer typically works with several
competing recruiters.
A recruitment service where the agency is exclusively retained by an employer, with
an upfront payment, to fill a particular vacancy. The agency typically uses a
headhunting approach to target passive candidates.
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About GulfTalent.com
GulfTalent.com is the Middle East’s leading online recruitment portal, with a database of
over 1 million professionals covering all sectors and job categories. It serves as the primary
source of both national and expatriate talent to over 2,000 employers and recruitment
agencies across the region.
Headquartered in Dubai, GulfTalent.com covers the markets of Saudi Arabia, Kuwait,
Qatar, Bahrain, Oman, Egypt, Lebanon, Jordan and the United Arab Emirates.
Further information is available at:
www.gulftalent.com
Tel: +971 4 367 2084
Disclaimer & Copyright
This document should be used for information purposes only. GulfTalent.com makes no claims or warranties regarding the accuracy or completeness of the
information provided, and accepts no liability for any use made thereof. The recipient is solely responsible for the use of the information contained herein.
© GulfTalent.com 2009. All rights reserved.
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