Extremism, Violence and Jihad 1

The Catalyst: Research Journal of Modern Sciences: Vol-I

E-RECRUITMENT AND ITS IMPACT ON HUMAN

RESOURCE SYSTEM:
EMPIRICAL EVIDENCE FROM SERVICE SECTOR OF
HYDERABAD, PAKISTAN

Mr. Ikramuddin Junejo 1

Mr. Arslan Khowaja 2
Abstract
Purpose: Recruitment is an essential tool to hire
candidates in organizations. The mediums for recruitment
have been drastically changed over the past years. It
started with the word of mouth and now is just a click away
due to advancement in technology and internet. With an
increase in use of online platforms, electronic recruitment
helps to attract and hire the best candidates to obtain
people-based competitive advantage.

Design/Method: This study has adapted quantitative

research approach to identify influence of attractiveness,
job fit, time, and cost on E-recruitment. Primary data has
been collected adopted and sample size obtained from 200
employees directly in questionnaire form service sector of
Hyderabad.

Findings: The findings reveal that large and desirable pool

of candidates as well as placing right candidates to right
job have direct relationship with Electronic recruitment.
The time and cost of recruitment has inverse relationship
with the e-recruitment performed as perceived by
employees in the selected service sector organizations of
Hyderabad.

1 Lecturer, Department of Management Sciences, SZABIST, Hyderabad Campus

2
Student of BBA, Department of Management Sciences, SZABIST, Hyderabad Campus.
50 The Catalyst

Practical Implications: The policy maker of organization

should apply newly developed concept of e-recruitment for
future hiring based on results of this study.

Key words: E-Recruitment, Job fit, Time, Cost

1. Introduction
Recruitment is a roller coaster, becoming more thrilling with advancement in
technology and innovations. It started with the word of mouth and now is just a
click far away. Recruitment involves practice and activities by companies with
main purpose of identifying and attracting the prospective potential employees. It
is a crucial segment of human resource management as it delivers the critical
function of drawing human assets in organization (Baber, 1998). Recruitment is
an essential tool to hire candidates in organizations. The mediums for recruitment
have been drastically changed over the past years. During industrial revolution, a
simple sign on factory front was prime recruitment media. Newspapers ruled as a
recruitment source from 1950’s – 1980’s by sourcing candidates over newspaper
advertisements. In 1980’s the recruitment consultants used telephone, local as
well as national newspapers and specialist job seekers to hire candidates. In
1990’s the World Wide Web was introduced. It revolutionized the recruitment
methods, sources and tools. Technology affected the entire recruitment process
and recruitment market modifying traditional recruitment to Electronic
recruitment or E-recruitment. Organizations changed their recruiting medium
from publishing job requirement in newspapers or magazines to posting job
descriptions and vacancies online. Since then online recruitment has grown
rapidly and is used widely by recruiters and job aspirants throughout the world
(Cobra and Brown, 2006). According to Kaur (2015), following are the
commonly used e-recruiting methods by organizations to acquire talent:

● Job Boards: A medium where employers post job and find the prospective
employees. The aspirants are notified about vacancy.
● Employer Website: The official website of the organization or employer
owned website.
● Professional Website: The websites specific for profession, talent, trait or
skill.

The influence of internet has impacted the service sector organizations working in
Hyderabad, Sindh. Many organizations have their own established human
resource departments. With an increase in use of online platforms, they are using
E-Recruitment 51

e-recruitment to attract and hire the best candidates to obtain people-based

competitive advantage over the competitors. Many employers are not only limited
to attracting the best candidates from Hyderabad but also from all over Sindh. The
same case is for the job seekers. Therefore, organizations in Hyderabad are using
internet for recruiting people to win the race of acquiring best talent. As e-
recruitment is considered as a recruiting tool for service companies in Hyderabad,
Sindh, it is fundamental to explore the factors influencing it. This research is
based on the perception of employees in identifying and understanding the impact
of factors that affect electronic recruitment in the organizations of Hyderabad,
Sindh.

1.2 E-Recruitment Employee Perspective

The job search intention and to attract the applications is the first stage of the
recruitment process. While in this stage individual perception matters a lot for the
organization’s success rate for the effective recruitment (Smith et al., 2001). Job
intention can be defined as candidate intention to purse job, in this behavior
various factors are covered such as applying for the vacant job, availability in
interview and wish to be a part of this whole process (Chapman et al., 2005). It is
very important to know for the effective recruitment the intention or perception of
applicant and firm would have to design their HR strategies with candidates’ point
of view for the win-win situation.

1.3 E-Recruitment Candidate Perspective

Nowadays, it has been noticed the growth of new technology and this growth can
be understood for many things likewise online banking, online shopping and no
doubt online job searching. This behavior is adopted by the individual for two key
reasons such as cost effective and save time. There are certain negative impacts of
e-recruitment on minority groups (Sylva and Mol, 2009), with estimate in many
papers it has been discussed that less than 5 percentages the e-recruitment to be
taken in account of candidate-oriented (Anderson et al., 2004). This the key
challenge for the applicants’ perception two words this emerging e-recruitment
matter a lot. There are certain factors in regard of applicants’ perception are
derived from literature review such as user friendless, fairness perception,
information provision and perceived efficiency (Cober et al., 2003).

Methods/Process of E-Recruitment
1. Company’s website: The firms can use their website for the positing of
vacant positions in organization and the future employee can follow this
provided link in order apply these vacant positions. HR department is
52 The Catalyst

mainly responsible for managing this activity through company’s website,

this act will attract to potential candidates for future hiring.
2. Job portals by commercial companies: Many companies use commercial
job portal for the vacant position into organization such as naukri.com and
jobee.com.pk so on for the posting of vacant position and finding the
talented and organizational fit candidates.

1.4 Motivation of Study

The e-recruitment has resolved the problems of old method of recruitment and it
is easy to find right person for the right job. Most of employers are not limited to
their cities or countries for the hiring the people according to their organizations’
vision statement. The Hyderabad is growing city with very limited pool of right
candidates available for the employer to fill vacant positions into their respective
organizations. This study will help firms which are operating in Hyderabad,
Pakistan by using internet, they can advertise for their vacant position after
understanding advantages or effectiveness of e-recruitment through this study.

2. Theoretical and Conceptual Framework

The resource-based view theory developed in 1990s, this theory helps to develop
all possible benefits can be driven from effective recruitment. According to
Barney and Wright (1998), there are five key performance indicators are used in
order to get completive advantage through resource-based view theory in context
of recruitment. First, the recruitment activity should add value in terms of labor
cost effectiveness especially in perspective of hiring. Second, it is job recruitment
to ensure to attractive the right person for right job which is rarer into labor
market. Third, the recruitment strategy should be unique which cannot inimitable
by the competitors in specific industry. Fourth, the recruitment might be
innovative to great extent or new way to recruit the needed employees for the
organization. Lastly, which is also important that the recruitment must be aligned
in terms of strategic fit with HR practices. Once, the firm is able to meet above
five important outcomes from recruitment than it will have impact on firm’s
financial performance at bottom line. Figure 1 depicts the impact e-recruitment,
(innovative way) among the constructs of current study.
E-Recruitment 53

Figure 1
Attractiveness

Job Fit
E-
recruitment
Cost

Time
Sources: Barney and Wright (1998)

3. Critical Literature Review

Today, the employer is using social media websites for the recruitment purpose
but most of time they are unable to get new information as through candidates’
resume (Reiners & Alexander, 2013). The advantage to employer is that through
social media the great pool of candidates can be obtained. The web process
ensures the easy of research to demanded applicant via search process in shorter
duration (Compton et al., 2009 and Torrington et al., 2004). The great portion of
work has been shifted to applicant from employer because nowadays, the
candidate has to ensure his or her availability on website and try to develop their
information in provided platform in well manner. Cost also reduced to great level
due to these social websites (Jacobs, 2009). The online recruitment has proved to
save up to 30 percent faster in rate than the old job filling methods (Worforce,
2000), this is possible due to elimination of middlemen and shorter the hiring
stages than pervious or old once.

The most time the information provided on social media in misleading or

incorrect that is provided by the jobseeker, this problem create barrier for the job
provider to select the right person for the right job (Brown & Vaughn, 2011). This
is very serious issue which seems to be smaller but it has huge consequences on
the overall image of firm or company. The exchange of key incorrect information
between both the recruiter or jobseekers will have negative impact on
psychological contract between both parties (Roberts & Roach, 2009).

The applicant usually updates their personal information on social media websites
that might leak the personal information to general public (Madejski et al., 2011).
Most of times, the candidates may be face the unusual comments on social media
websites and this create misunderstanding between both parties such as employer
and potential employees. When applicant sees the malpractices on these social
media websites the potential jobseekers left these website and personal
54 The Catalyst

information can be theft (Connerly et al., 2001). The employer may reject the
jobseeker based on provided information on these social media websites
(Kluemper, 2012). These reasons can be which are practically observed such as
inappropriate pictures, information related to drugs, poor communication skills
and sharing confidential information related to past organization so on.

2.1 Empirical Literature Review

Mindia and Hoque (2018), conducted an empirical study on multinational
companies of Bangladesh on finding the effects of e-recruitment and Internet on
recruitment process. Primary and secondary sources of data were gathered for the
study in form of questionnaires and interviews. The researched focused 120
respondents from 30 multinational companies with convenience sampling
technique. The findings revealed e-recruitment can award strategic contributions
to the organization if implemented by adequately trained recruiters for building
effective online recruitment system. Investment made by organization into job
portal and on their website is long run benefits can be driven and many companies
are considered online recruitment as an effective method and rising trend in future
too.

Nasreem (2016), researched technological advancement and improvement it has

brought in recruitment in the employment sector. This research specifically
explores the effect of E-recruitment in small and middle scaled IT based ventures
majorly located in Lahore. The researchers used descriptive analysis to support
the study. Advantages and disadvantages are the attributes to measure the
effectiveness of E-recruitment. The results show for small and medium IT
enterprises, HR Managers in Lahore Pakistan focus more on online recruitment to
earn high return on investment in a long run.

Pessis and Frederick (2012), focused different ways of electronic recruiting and
their impact on Human Resource Department in comparison of traditional
recruitment methods and tools. Secondary data was gathered from 529 businesses
of Auckland Rosebank Business Precinct. A random stratified cluster sample was
used for collecting the data. The research resulted that in job categories like cost-
time efficiency and wider audience targeting, e-recruitment is effective, while in
others like effective talent acquisition and quality applicants, electronic
recruitment has same impact as that of traditional recruitment. The online
recruitment has many benefits but key it can attract the suitable candidate for job
and this will help to firms for achieving their selective targets and goals in future.
E-Recruitment 55

Holm (2010), analyzed the undeniable effect E-recruitment has on design and
structure of recruitment process. This is a qualitative exploratory research
conducted in Human resource departments of 3 large organizations of Denmark in
2008-10. Findings of the study revealed that e-recruitment not only saves time but
also changes whole structure of recruitment process. Usefulness of e-recruitment
depends on certain factors that includes such as security, reliability, performance
and cost-effectiveness.

Ha (2003), objective was to measure e-recruitment effects on competency of

human resource management. Qualitative approach was employed for conducting
the research. The data was collected through structured questionnaire from HR
managers, middle managers and functional manager of multinational companies
in Vietnam. Studies summarize that the E-Recruitment reduces HRM stress by
minimizing cost to recruit and save huge time and reduce HRM burden by
actively recruiting staff and employees. In addition to e-recruitment, the
companies were trying to avoid and demolish traditional recruitment techniques.
Despite advantages, few negative impacts of e-recruitment cannot be neglected.
Based on findings, the study concludes that effective conduct of e-recruitment,
critical thinking and proper analyzing can lead to hire skilled employees in
companies.

Malik (2008), focused on problem of e-recruitment in number of applicants

applied, the cost associated with e-recruitment, reduction in recruitment cycle,
effectiveness in job provision, assistance in job provision and its effectiveness in
human resource departments in the private industries in Pakistan. The
methodology used was interviews and questionnaire sent to the Human resource
managers among prominent firms of Karachi, Lahore, Islamabad, Rawalpindi,
Faisalabad, Peshawar and Quetta. The result show that E-recruitment higher is
significantly determined by Effectiveness of HR Department, Finding better
quality of applicants, Cost Effectiveness, Reduced Recruitment Cycle, Consistent
Recruitment Process and Potential Job Seekers Facilitation.

Holme (2009) talks about the appropriate definition of E-recruitment and its
execution in recruitment process. The main objective of this research is to
understand whether E-recruitment is only limited to virtualizing of recruitment
process or something greater than that. Data for this exploratory research is
gathered from secondary as well as primary sources. The primary data was
collected through questionnaire and interviewing high-level managerial staff of
fourteen different types of multinational companies of Denmark. The research
describes all the possible elements of E-recruitment and how it is influenced by
56 The Catalyst

organizational structure and outer circumstances. Findings of the study indicated

that e-recruitment is not just limited to recruitment process but also requires
expansion of whole organizational structure. The tools and methods of online
recruitment can only work properly if integrated with other departments of
organization.

Parry (2008), explored the widespread use of online recruitment in organizations

in UK. However, it has not dominated the traditional recruitment. The aim was to
find out extent of usage of online recruitment. The methodology used was
qualitative and longitudinal large-scale survey of the activity of recruitment to
interrogate its ‘proposed success’ in commercial and corporate websites. The
respondents interviewed were 20 users of online recruitment website. The results
showed the strong positive impact and adaptation of online recruitment by the
practitioners in the UK.

Mar (2007), analyzed the source of E-recruitment that examines pre-hire criteria.
Longitudinal approach was used to focus pre-hire quality and quantity of
applicants. The total five hundred and thirteen respondents participated in the
research. The methods to assess source include secondary data, survey data and
interviews. Distributing questionnaires and surveys to real participants assessed
applicants, whereas the organizational perspective was obtained by interviewing
Human Resource practitioners. The findings show quality of applicant chosen by
E-recruitment process is equal to and less than other practices of recruitment.

Nike (2005), was getting around 800-900 resume’ per month for average 120
openings at Europe, Middle East and Africa (EMEA) Headquarter (HQ) in
Hilversum, the Netherlands. The task of handling applicants was challenging as
the head quarter increased in size. This created further issues to track the progress
of prospects rather than aimlessly circulating the resume’ among different
departments. The methodology used was to standardize the HR process, reduce
the cost associated and improve the quality hired. An integrated e-recruiting
mechanism ‘Active Recruiter’ was included in PeopleSoft software. These steps
helped Nike reduce 54 percent of the total recruiting cost, decrease average time
to fill vacancy up to 20 days and reducing the overall recruitment time.

3. Method and Measure

3.1 Method
The respondents of this research comprise 200 of employees of service sector
Hyderabad, Pakistan. The author of study determined the sample size used in this
E-Recruitment 57

thesis is calculated using rule of thumb the formula proposed by (Roscoe, 1975)
and is given as:

Sample size = Number of items in questioner * 10

= 12 * 10, Sample size = 120

In order to get better response and results optimal sample size determined is 120
but authors have distributed among 200 respondents in the service sector of
Hyderabad, Pakistan. In this study the participants were selected through
convenience sampling technique which is a form of non-probability sampling
technique. The data collection process continued for 1 month from 200
respondents. 250 copies were successfully completed, returned and utilized for
analysis out of 250. The response rate was 80%. The various service sectors such
as Telecom, Banking and Education industry has been considered for respondent
of this study.

3.2 Measure
The questioner included structured close-ended questions and consists of two
parts. In 1st part personal profile of respondent was needed to be filled while in the
2nd part both dependent and independent variables of was measured for testing the
hypotheses. The questioner is developed and adopted from (Singh, 2016). In this
study 5-Point Likert scale is used for determining the respondent’s response by
using negative to positive approach that ranges from 1 (strongly disagree) to 5
(Strongly agree).

4. Result and Discussion

4.1 Descriptive Analysis
The total questioners filled in this research were 200 out of 250 distributed to
service employee of Hyderabad. The 80% response rate includes both male and
female employees in which 52% were males and 48% were females, education
level were divided into three categories such as intermediate, Graduate and Post-
graduate. The percentage of each level of education was Intermediate, 13.5% and
Post-graduate 26.5%. In terms of occupation level authors of this study were
taken into two categories; Managers 9% and Lower employees 91%. The table 1
which explains respondent profile is summarized as under.
58 The Catalyst

Table 1
Respondent Profile Descriptive Analysis
Construct Category Frequency Percentage
Male 104 52%
Gender
Female 96 48%
Intermediate 27 13.5%
Education Graduate 120 60%
Post-graduate 53 26.5%
Managers 18 09%
Occupation level
Lower Employees 182 91%
Source: Author’s Estimation

4.2 Reliability Analysis

You can see in above table 2 the Reliability Statistics, the value of Cronbach’s
Alpha is used for final decisions about the reliability of studied data. On that
basis, we can level of reliability in terms of poor or good, in our case Cronbach’s
Alpha value of E-recruitment 0.776, N=3, Attractiveness 0.647, N=3,Job fit
0.705, N=3, Cost 0.753, N=3 and Time 0.806, N=3. All the studied variables are
found reliable and the conclusion for reliability can be drawn as data is reliable.

Table 2
Summarizes the results of Reliability analysis
Name of variable Cronbach's No of Items Remarks
Alpha
E-recruitment 0.776 3 Excellent

Attractiveness 0.647 3 Excellent

Job fit 0.705 3 Excellent

Cost 0.753 3 Good

Time 0.806 3 Good

Source: Author’s Estimation

E-Recruitment 59

4.3 Multiple Regression Analysis (Hypothesis Testing)

A multiple regression analysis table3 shows two important values, the value of
beta and p-value. The value of beta usually determines the relationship between
dependent variable with independent variables whereas p-value shows the level of
significance. In this study all independent variables such as Attractiveness
(β=0.230, p<0.05) and Job fit (β= 0.126, p<0.05) are found positive and
significant impact on dependent variable e-recruitment. However, two other
independent variables such as Cost (β=-0.359l, p<0.05) and Time (β=-0.106,
p<0.05) are found negative and significant impact on dependent variables e-
recruitment. The value of R2= 0.421, that indicate the total variation explained
this study independent variables such as Attractiveness, Job fit, Cost and Time in
dependent variable e-recruitment.

Table 3
Summarizes the results of multiple regression analysis
Dependent variable Independent variable β-value P-value
E-recruitment Attractiveness 0.230 .000**
Job fit 0.126 .000**
Cost -0.359 .001**
Time -0.106 .003**
R-Square 0.421
Note: **significance level at 0.05
Source: Author’s Estimations

5. Discussion on Findings
5.1 Attractiveness
Based on these results, hypotheses discussed in section and reproduced here are
accepted. That is:

Attracting large and desirable pool of candidates has significant effect on E-

recruitment in service sector of Hyderabad, Pakistan.

In this case null hypothesis is rejected and its alternative hypothesis is accepted.
This is because estimate of attractiveness is positive and significant. This implies
that attractiveness of job has positive and significant effect on e-recruitment.
Candidates data can be obtained automatically that is stored in server of
organization and this data may be utilized for other related vaccines within
60 The Catalyst

organization (Parry and Tyson, 2008). However, a large pool of candidate

depends on image of firm in the mind of potential candidate (Dutta, 2014). Due to
market saturation and hard competition for several reasons such as diversified
skills and high turnover can be addressed to great extend through this attractive
variable of this study.

5.2 Job Fit

: Placing right people to the right job has significant effect on E-recruitment
in service sector of Hyderabad, Pakistan.

As far as second hypothesis is concerned, null is rejected and its alternative that e-
recruitment places right people on the job is accepted. The basis of this conclusion
is that the estimated slope parameter of job fit is positive and significant. This
mean job fit does have significant positive effect on e-recruitment, which enables
us to reject that null that it is irrelevant determinants of e-recruitment. The
findings of this study strongly suggest that the e-recruitment in most of
organizations for hiring the right person for the right job. With respect to
traditional method of hiring the online method of recruitment develop appropriate
strategy for successful implementation and use of it in effective manner.

5.3 Cost
: Cost has significant negative effect on E-recruitment in service sector of
Hyderabad, Pakistan.

In case of third hypothesis, null is rejected, and its alternative is accepted.

Regression results display that estimate of cost is negative and significant. This
means recruiters reduce e-recruitment if it is expensive to them. Hence the null
that cost does not affect e-recruitment is rejected and its alternative that cost has
significant negative effect on e-recruitment is accepted. E-recruitment mostly
filters the unsuitable candidates at very early stage of hiring process to great level
(Barber, 2006). This can also be counted the success of online recruitment where
cost of hiring is addressed to dramatic or high level (Parry and Tyson, 2008) and
advertisement cost through various sources is also reduced such as newspaper so
on. Findings of this study can be concluded as the internet recruitment is much
less costly with respect to traditional way to hiring within firms.

5.4 Time
Time has significant negative effect on E-recruitment in service sector of
Hyderabad, Pakistan.
E-Recruitment 61

As far fourth hypothesis is concerned its, null is rejected, and alternative is

accepted. This is because; the estimate of time is negative and significant. It
means recruiters use e-recruitment because it saves their time to hire suitable on
vacant positions. Hence as time saved through e-recruitment increases, employers
give it more preference for recruitment instead of traditional recruitments
methods. The speed up recruitment process due to internet can be ignored and at
acceptable rate process of hiring of potential candidates is accelerated to at good
pace due to a large number of CVs through website portal and e-mails (Barber,
2006). Human resource department was burdened in past because lot of
middlemen were involved from line manager to HR manager so on in the
extensive screening process but due to online recruitment this burden is reduced
and HR department can spend this saved time on other HR functions within
company (Parry and Tyson, 2008).

6. Conclusion and Managerial Implications

6.1 Conclusion
In this study, we used primary data for finding out determinants of e-recruitment
in fifteen selected service sector organizations located in Hyderabad. Reliability
test results show that the collected data is relevant and can be used for evaluating
relationship of e-recruitment with attractiveness, job fit, cost and time. The
estimated of all independent variables are significant at five percent significance
level. Furthermore, result show that attractiveness and job fit affect e-recruitment
positively. Cost and time on the other hand, affect e-recruitment negatively in our
study. Nowadays, the Human resources department serves as competitive
advantages over to competitor into related industry. The internet through online
hiring has been helping to firms for filling vacant position with job fit candidates.
This study concludes that the online recruitment has added value to Human
resources hiring function with many benefits to firms in long run context and
traditional way of hiring is reduced in many firms. It became easier for findings,
right person in short time with acceptable cost.

6.2 Managerial Implications

To replace some proportion of traditional recruitment, if not all, with the modern
e-recruitment techniques. This will not only ensure attractiveness but mainly will
save the cost of the organization. To fortify that the existing employee staff is
qualified enough to make the best use of e-recruitment techniques. To rely more
up on designing web portals to reduce the time required to delivery jobs vacancies
conventionally. People looking for job can easily access web portals. Everyone
should be assigned a specific user ID and profile that contains his entire data;
from his credentials to the work experience. Every time when there’s a vacancy,
62 The Catalyst

individuals who fulfill the job requirements will be notified automatically this
could reduce time of e-recruitment. To partner or associate with online job
searching platforms like Rozee.pk and others. This will help the organizations
advertise as many job vacancies as they want on a platform that is accessed by
millions of users daily, which would save cost of posting jobs traditionally and
will reduce time to process e-recruitment strategy. To continue evaluating the
existing e-recruitment system and the employees hired through it to identify the
possible loopholes as early as possible. Making the necessary improvement in the
e-recruitment system should then rectify those loopholes.

6.3 Future Research

This research is limited to only service sector due to time, cost and other
constraints. Second limitation is that the research is limited to Hyderabad city
only because of financial restrictions. The third limitation is that the sample size
taken is only 200 due to time restraint and it was also hard to reach more than 200
employees within this small city. More over this research is restricted to only
employees’ perception working in service sector of Hyderabad because of very
less development of human resource management departments in Hyderabad it
was hard to reach HR officials in Hyderabad. Based on these limitations, it is
recommended that future researchers can extend this research by overcoming its
weaknesses.
E-Recruitment 63

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