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The Advantages of Online Recruitment and Selection: A
Systematic Review of Cost and Time Efficiency
Md Arman
University of Louisiana at Lafayette, USA. E-mail: rubelengfrcn@gmail.com
Received: February 1, 2023 Accepted: May 2, 2023 Published: November 19, 2023
doi:10.5296/bms.v14i1.21479 URL: https://doi.org/10.5296/bms.v14i1.21479
Abstract
This article aims to discuss the benefits of online recruitment and selection in organizations.
The research shows how the key benefits of online recruitment and selection can be taken and
used for the company’s interest by finding the right person for the right job. This paper tends
to content analysis focusing on the benefits of online recruitment process using meta-data.
The present trends of recruitment and selection process is very unexpected. Additionally, the
characteristics of online recruitment sites are also discussed briefly to illustrate a complete
overview of newly formed recruitment system though the primary objective of the paper is to
demonstrate the superiority of time and money saving approach. The researcher took social
media to exemplify, describing both pros and cons, the present recruiting system. However,
there are also some drawbacks to online recruitment and selection which are addressed in this
paper. Online recruitment and selection can be a valuable tool for companies looking to reach
a wider pool of candidates and streamline the recruitment process. It is important to be aware
of the potential drawbacks and take steps to mitigate them in order to ensure the best results.
Using meta-analysis, the researcher scratched the advantages of online recruitment and
selection process. This paper indicates how the online recruitment process should be done in
organizational practice.
Keywords: online, recruitment, selection, process, organization, candidate, benefit, drawback
1. Introduction
“We enter a new world.” (O´Reilly, 2007)
Before the beginning of the World Wide Web (WWW), two ground-breaking researchers
Kiesler and Sproull (1986) discussed the possibility of using computers for collecting data in
the future. Although they were optimistic about the potentiality of computers and the internet,
they warned “Until such time as computers and networks spread throughout society, the
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electronic survey will probably be infeasible”. Immediately after their prediction, the web
revolution of the 1990s rose and vitalized the huge interconnection of tech-advanced societies
via computers, and the internet, which made it possible to begin realizing the potential
benefits envisioned by Kiesler and Sproull. This dramatic rise of the internet made the
dot-com bubble in the 1990s and some of the competitors from the bubble time survived and
reign in the tech world today. The Internet model offers a variety of mundanes, but it is
practically significant. The benefits such as dispensing with the need for data entry are
relatively inexpensive (Gosling et al., 2004).
1.1 Background
We have already entered a world where technology is changing rapidly. In today ’ s world,
technology is being just doubled every twenty-four hours and this change is opening up new
opportunities for organizations and for would-be employees to communicate with each other
and work at a distance. This change and the growing opportunities have multiple effects
because organizations and people both are accepting new technologies and the demands for
newer ones are increasing. As a result, companies are enjoying the most advanced tech
advantages. As a consequence, tech companies are offering newer and newer tech services
with up-to-date supremacy. The most important result of the growing tech demands is the rise
of Web 2.0. The idea of Web 2.0 came to the light from the brainstorming session between
Tim O’Reilly and MediaLive International in 2001. The California-based computer book
published by O’Reilly is considered to be one of the leading figures of Web 2.0. The main
principle of Web 2.0 has also multiple effects and results. It has the active usages of the
internet and the possibility to help shape the web which means the principle is a cycle. Active
using will increase the possibility of shaping the web. So, it creates a cycle like “the more
possibilities, the more users” and “the more users, the more possibilities”. The users do not
only surf the internet, they also generate content. Most of the young people today, defined as
the Y Generation, grew up with the computer and accept that electronic gadgets are part of
daily life (Yeaton, 2008). This Y generation is connected to the internet 24 hours a day and 7
days a week. They spend plenty of time online and make use of a uncountable numbers of
Web 2.0 applications. This popular term Web 2.0 is described as an arrangement of technical
and social development that leads to change in the behavior of internet users. As a result,
organizations take Web 2.0 in serious regard and use these applications, for example, for
marketing or for recruiting new employees. Additionally, social media have become
extraordinarily popular, and nowadays millions of internet users communicate through social
media networks (Kim et al., 2012). For the availability and budget-friendly price of data, the
internet has its popularity sky-high today. Young people, in particular, cannot pass a single
day without the use of the internet. Moreover, communication became easier with the grace
of the internet. Gosling et al. (2004) noted that internet samples are shown relatively diverse
with respect to age, race, gender, socioeconomic status, geographic region, and more.
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1.2 Research Problem
Although the financial crisis prevails in society, the recruitment authorities face the war of
talent every time they approach to hire someone and it confuses organizations in finding the
right person with the right qualifications for the company. It makes them expense more than
they should. Online recruitment process saves their time and money because they do not need
to hire or use any place for conducting traditional style recruitment activities, for example,
paper-pencil drills. A company needs employees to survive, and talented people are the only
source for a company to stay in the market because they are the potential elements of the
competitive advantage of an organization. However, the problem is that there is always a
scarcity of well-skilled and talented people. Job seekers with graduate certificates, sometimes,
are ignorant about the necessary computerized office programs, e.g., Excel, or LaTeX, etc. So,
the search for the best and the brightest employee is a continuous battle for companies, and
this is the reason they have to develop meticulous strategies to find the cream out of the
crowd. Michaels et al (2001) claim that there is a new business strategy. For all of those
reasons, well-designed, strategic, and reasonable questions, and questionnaires of finding,
attracting, and recruiting the best persons have become crucial issues for companies in recent
years. Moreover, the internet has changed the way people communicate and work (Giles,
2010). The Internet has become a jungle of both feasible and implausible sources of
recruitment materials. There are hundreds of millions of necessary and unnecessary questions,
questionnaires, and other digital materials online. Companies have to face this ocean to find
out the best materials for their recruitment process which is, too, a continuous journey
because those sites are increasing every moment. The researcher was looking for some of
those sites for research purposes but it was very confusing to choose one. Recruiting agencies
or companies also get confused about finding the best site/s for their operation. Additionally,
the recent addition is the social networking sites which are moving forward very fast, and it is
too difficult to monitor their impact on recruitment. Finding out a trustworthy recruitment site
with the availability of recruitment materials is a very time-consuming process and it is,
sometimes, costly too.
Research objective
The principal objective of this study is to review and summarize the benefits, (time and
money savings, in particular) of online recruitment and selection from the previously
documented literature.
Research questions
1. To what extent the ‘online recruitment and selection ’is cost and time effective?
2. Is this process a better alternative to the traditional recruitment process? How?
In order to answer the central research questions, some sub-fields have to be examined and
introduced. The characteristics of e-recruitment, social media recruitment, and its merits and
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demerits are highly relevant to this study. Then researcher also makes a list of social media,
as an example, that are used, in general, to recruit and select employees.
2. Literature Review
2.1 Online Recruitment and Selection
Rynes et al. (1991), Breaugh (2008), and Barber et al. (2005) mentioned in their
groundbreaking research that recruitment and selection is a critical issues for organizational
success. So. The question arrives, what is online recruitment? Galanaki (2002) presented
several terminologies for Online Recruitment and Selection (ORS); e-cruiting, cybercruiting,
or internet recruiting. Another terminology can be added which makes it more vivid about the
process; e-recruitment. Green recruitment can also be used as a synonymous phrase. All of
the mentioned terminologies imply the formal sourcing of job information online from the
candidates ’point of view and hiring people by using the internet from the perspective of
recruiters. Recruitment is “those practices and activities carried on by the organization with
the primary purpose of identifying and attracting potential employees” (Barber, 2006). With
the emergence of WWW, it is fairly a new practice to hire people online for organizations.
The first reference to ORS appeared in the articles of the mid-1980s (Gentner, 1984; Casper,
1985) but the use of the internet for recruitment was well-established in the 1990s. Due to the
novelty of the term, authors have different concepts of what ORS consists of. ORS is a
process in which the right candidates with the right qualifications are selected for the right
job and all the processes are done using a computer connecting internet where the candidates
do not know the people in front of the computer screens and vice versa. Everyone remains
anonymous to each other. Whitehall (1991) mentions that recruitment is a source through
which the right candidate is selected from the pool of candidates. So, ORS is an online
process through which the right candidates are electrically selected from the crowd. Subhani
et al. (2012) noted that the process cost of ORS is less than any other technique and this novel
process makes the recruitment shorter and quicker. To make the process effective “companies
need to become more aggressive and creative in their recruitment efforts to maintain a
competitive edge (Adler, 2006).
2.2 Characteristics of ORS Sites
Lievens & Harris (2003) noted that over the last ten years, the internet has changed the way
organizations do business. One way that numerous organizations are using internet
technology is as a trusted platform for recruiting and selecting candidates (Giumetti, G &
Perkl, 2009). Recruitment websites allow companies to process large numbers of applicants
at a time and it also helps organizations save time and money (Anderson, 2003). Capelli,
(2001) mentioned that the last five years witnessed a dramatic rise in ORS with an estimation
of 90% of large US firms utilizing established organizational recruitment websites and this
trend is most likely to increase in the near future (Bartram, 2000). While little is known about
what characteristics of ORS websites are important to job seekers. Cober et al. (2004)
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described a model of two condensed variables for ORS sites: aesthetics and usability. This
model may affect applicant attraction.
2.2.1 Aesthetics
Aesthetics is conceptualized in terms of a motivational process based on the initial affective
reactions to a form of media (Breaugh & Starke, 2000; Cober et al., 2004). Aesthetics is
thought to include color, font, picture, resolution, and the use of white space (Giumetti &
Perkl, 2009). Cober et al. (2004) stated that before applying for a particular job, a job seeker
thinks if he/she should invest cognitive effort in an employer’s website or not. Aesthetics is
also thought to have an influence on longer-term information recall by capturing initial
attention (Childers & Houston, 1984). Giumetti & Perkl (2009) classified aesthetics is several
sub-divisions: general aesthetics, aesthetic features, personableness, perceived attractiveness,
and website quality. Thomas et al. (2004) said that the term personableness includes items
that assess how friendly the company appeared to the applicant and how comfortable they
were with the company based on their experience with the website. Konradt & Rack, (2006)
includes a study that measured experienced website quality by rating it overall.
2.2.2 Usability
Braddy, Thompson, Wuensch, & Grossnickle (2003); Cober et al. (2003); Ehrhart et al. (2005)
examined website usability characteristics and their impact on job seekers ’attraction. Nielsen,
(2000) typically defines usability as the perceived ease of acquiring information and using a
website to meet desired objectives. While aesthetics predisposes users to process information,
applicant attention is more affected by the availability of information (Cober et al.,2003). The
website must be structured so that users can easily navigate through the web page to find the
information they want (Cober et al., 2003). Since, users are free to navigate through
organizational sites at will (Hoffman & Novak, 1996), the usability of a website will most
likely impact a user’s reactions to a website which may also impact the level of attraction an
applicant feels toward an organization. Poor usability reflects negatively on an organization
(Zona Research, 1998), whether the relatively ease of navigation of a website leads to higher
user engagement (Hoffman & Novak, 1996; Webster & Ahuja, 2003). Lyons (2007)
conceptualized usability as navigability.
2.3 Advantages of ORS
2.3.1 Low Cost
In her discussion of the advantages of ORS, Galanaki (2002) highlighted the low cost as a
key benefit. The cost-effectiveness of ORS is affected by the method of e-mailing used. For
example, posting job openings on the organization's website are inexpensive, while using
dedicated recruitment sites may incur costs based on the site's reach. Additionally, ORS
achieves cost savings through economies of scale in terms of the number of words used, as
there are no limitations or charges for internet usage. Overall, ORS is seen to reduce costs
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associated with recruitment, selection, and lost productivity caused by unfilled positions.
(CIPD, 1999; Williams & Klay, 1997).
2.3.2 Shorter and Quicker Recruiting Cycle Time
It is widely believed that ORS can reduce HR time by 25-30% (Workforce, 2000a). Online
recruitment streamlines the process and makes it faster. Rather than using traditional methods
like newspaper ads, the internet allows for recruiting on a global scale, with the ability to
reach a large pool of candidates from around the world (CIPD, 1999; Workforce, 2000a;
Galanaki, 2002; Williams & Klau, 1997).
2.3.3 Reaches a Wider Range of Applicants
Because the internet has a global reach (CIPD, 1999), online recruitment advertisements can
circulate worldwide, resulting in a larger pool of potential candidates for the organization.
ORS is a borderless system, which allows companies to reach a large number of internet
users to find the best candidates. Many companies have taken advantage of this aspect to
make the recruitment process more efficient for their overseas operations. Tools such as
online questionnaires, psychometric tests, or video-conferencing can be used at the early
stages of the ORS process, making the whole international staffing effort more manageable
from a distance.
2.3.4 Better Quality of Response
Applicants who use the internet to apply for jobs are typically young, computer-savvy,
educated, and have some level of interest in the company they are applying to, especially
when they apply through the company's website (Baillie, 1996; Frost, 1997). They are often
more open to change and can potentially help the business grow and adapt (Thaler-Carter,
1998). Recently, the number of older, non-IT staff using the internet to find jobs has also
been on the rise (Welch, 1999).
2.3.5 More Up-to-date Image (CIPD. 1999)
When creating a corporate recruitment website, ORS can contribute to the company's image
as being innovative and adaptable (Fister, 1999). The fear of falling behind can drive many
HR managers to recruit candidates through the internet (Hays, 1999).
2.3.6 Opportunity to Address Specific Labor Market Niches
Practices such as sending job openings as an email to specific discussion groups or electronic
forums can increase the targeting capabilities of the medium (Baillie, 1996), and the
existence of niche sites like bdjobs.com, bdjobstoday.com, or asia-net.com allows for
unprecedented fragmentation of ORS labor market targets (Greengard, 1998; Thaler-Carter,
1998).
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2.3.7 Attracts the Passive Job-Seekers
The ORS process serves as a tool to attract the attention of highly skilled individuals who are
not actively looking for a job. These individuals are considered the most highly sought-after
candidates by recruiters (Shane, 2000; Hansen, 1998) because of their interest in the
company's activities.
2.4 Disadvantages of ORS
2.4.1 Needs to Be Applied as Part of an Integrated Recruitment Process
Many organizations may not have the resources or expertise to achieve this (CIPD, 1999).
Organizations must be prepared to use relevant IT tools such as search engines, databases, or
CV screening and undertake a change management effort to help employees become familiar
with the implementation of the necessary tools (Workforce, 2000a).
2.4.2 Internet Is Not Yet the First Option for the Majority of Job Seekers
The assumption that all qualified young people have strong internet connections is not always
accurate as the reality can be different. This unbalanced assumption should be revised in the
near future.
2.4.3 Suitable for IT Jobs and for Young Graduates
Online recruitment (OR) may not be as effective for finding specialized or highly
accomplished professionals, according to the Chartered Institute of Personnel and
Development (CIPD, 1999). This perception dates back to the early and mid-1990s when few
people had the skills or access to effectively search for work online (Baillie, 1996). Some
believe that OR is best suited for initial evaluations of junior-level positions where little
expertise is required for shifting candidates (People Management, 2000), and many
companies that have recruitment websites only focus on graduate recruitment (Lamb, 2000).
However, using OR for professional and managerial positions may give the impression that
the company is in a desperate situation to fill the position (Useem, 1999).
2.4.4 Effective for Already-Known Companies (Greengard, 1998; Williams & Klau, 1997)
A study in 1996 highlighted the relationship between the success of online recruitment
services and the use of advertising to promote the company's website. Additionally, it has
been suggested that online recruitment is particularly beneficial for smaller businesses,
particularly if they choose to use the services of online recruitment advertising companies or
job boards instead of managing their own website (Hansen, 1998).
2.4.5 Involves Higher Risk of Overload of Answers
The absence of geographic and temporal limitations, as well as the ease of submitting
candidate information, increases the risk of an excessive number of responses. Utilizing
internal software for tracking resumes can aid in managing the volume of responses (Hays,
1999).
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2.4.6 ORS Implementation Implies an Extra Effort
Indicatively, some large organizations have already found it necessary to officially dedicate
one or more recruitment staff to focus exclusively on ORS (Thaler-Carter, 1998).
2.5 Interface Between Advantages and Disadvantages of ORS (Gosling et al., 2004)
Perception
Finding
Internet samples are not demographically
diverse
The population reached through online
recruitment methods is more diverse in many
ways compared to traditional recruitment
methods, but it is not completely representative
of the entire population.
Internet samples are maladjusted, socially
isolated, or depressed
The population of internet users is not
significantly different from non-users in terms
of economic conditions such as job market
conditions and economic downturns.
Internet data do not generalize across
presentation formats
The results of internet research were consistent
when the Big Five Inventory was presented in
two different formats.
Internet participants are unmotivated
Internet-based methods can be used to provide
incentives or encouragement to participants,
increasing their motivation to participate in a
study or research.
Internet data are compromised by the
anonymity of participants
However, Internet researchers can take steps to
eliminate repeat responders
Internet-based findings differ from those
obtained with other methods
This suggests that Internet-based research
methods provide reliable and valid results that
are comparable to those obtained through more
traditional methods. However, it is important to
consider the limitations of Internet-based
research and take steps to eliminate potential
biases and errors.
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2.6 Social Networking Sites and ORS
2.6.1 A Short List of Social Networking Sites for ORS
a. LinkedIn
b. Dribble (for designers)
c. GitHub (for software developers)
d. Pinterest
e. Facebook
f. Tweeter etc.
2.6.2 Social Media Recruitment (SMR)
Although researchers have at their disposal a variety of online recruitment methods, social
media present unique opportunities for rapid, cost-effective data collection from populations
with very specific demographics or interests. What’s more, social media are no longer
restricted to technology enthusiasts or younger generations (Oliveira, 2013). The
omnipresence of social media and its growing integration into daily life make resources like
Facebook uniquely positioned for recruitment, even from highly circumscribed populations.
2.6.3 Pros of SMR
Users tend to scroll through social media in times of boredom or when they need a brief
distraction (Whiting & William, 2003). If a social media user possesses a smartphone, she/he
receives real-time alerts, drawing attention to new messages, posts in interest groups, or
tagged posts. Stokes et al. (2019) mentioned that the real-time messaging capacity enabled us
to rapidly clarify eligibility requirements and assist with technical difficulties. These prompts
are likely to facilitate immediate action because of the instant gratification they provide
(Conner, 2014). Profiles in social networking sites allow recruiters to gain information about
their education and professional career in general. In addition, recruiters have the possibility
to contact potential candidates and communicate with them in a noncommittal manner. By
using social networking sites, recruiters can search for possible candidates and build
long-term relationships with them (Abel, 2011). Recruiters can filter and search for
candidates with special backgrounds which can lead to a time reduction for the search and
can also improve the chance of finding the right candidates. Besides this, companies can keep
in touch with interns, alumni, and so forth (Abel, 2011). Facebook, for example, is a social
community that offers a lot of features to recruiters for finding the right people for their
vacancies, however, Eldon (2009) noted that Facebook is not the easiest way for recruiters to
search for candidates, but a great opportunity. Applicants use social networking sites as a
source of information about companies and vice versa. This has become a common procedure
for the recruiting process (Jäger & Porr, 2008). Social networking sites, along with
possessing the qualities of being cost-effective for the recruitment process and quick in hiring
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and selecting also help in promoting employer branding effectively to prospective and current
employees (Subhani et al., 1012).
2.6.4 Cons of SMR
First, the exploitation of information could be one disadvantage that the applicants and
employers both can try where many of them are unaware of this corruption which means the
employers may use social media to check the background of applicants and become biased
before they recruit the job seekers (Clark & Roberts, 2010; Abel, 2011). They argue that
applicants use social networking sites for social interaction and they are unconscious that
employers use these sites to collect character information. Second, companies will face
amendments and challenges to extend new strategies in order to take up the new recruitment
techniques (Subhani et al., 1012). Third, the seclusion of data and ethics plays a great role but
most organizations do not take these vital issues into contemplation. Fourth, many
organizations work in a biased way while taking information from the online profiles of the
applicants. Some companies may not prefer people from diverse regions which results the
lacks of diversity in the organizational culture. Fifth, transparency of information is another
issue. There is always a doubt about the information gained; fact or fake. Finally, in the
profiles of social networking sites, the information is limited and restricted by the candidate
and how much he/she wants to share can only be exposed. So, the judging the social media
profile, it is sometimes difficult to judge the candidates but organizations may walk this way.
2.7 Time and Money Saving Approach
Galanaki, (2002) stated that the research did not agree with the eminent assumption that the
ORS process saves time. She also mentioned that one manager characteristically said that the
savings in time are probably exaggerated because the company has not experienced such an
effect since they adopted the practice of e-cruiting. A general inference from the analysis is
that the ORS decision is mostly a matter of cost. Low cost is the major factor of ORS
attractiveness, since it eases the companies ’decision-making, by minimizing the risk
involved in the difficult step of changing established recruitment practices. Galanaki, (2002)
designs an equation about cost-effectiveness. Online Recruitment = Low Cost (OR=LC).
2.8 Trends and Usage of ORS in Bangladesh
In Bangladesh, most organizations have realized the importance of ORS and started taking it
into practice. Internet access in Bangladesh existed since the beginning of the 1990s. Today,
the number of internet subscribers is 123.74 million as of July 2021 (statista.com). Job
seekers in this country were focusing on online sources extensively to obtain better job
opportunities. The easy access to the internet in universities and offices enabled the
individual to apply online and submit their credentials. The use of the internet by western
organizations has completely changed the mindset of Bangladeshi employers. Generally, the
ORS process is used to find out candidates with a high level of efficiency and productivity. A
few organizations in Bangladesh, Public Service Commission, example, are not showing high
interest to use technology for recruiting their employees through the Bangladesh
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government ’ s motto “Digital Bangladesh”. This sector is accepting this new venture of
recruitment very slowly. Before the rise of the dot-com bubble, each and every recruitment
was done manually without doubt but this trend is reversing its way in Bangladesh too.
Bangladeshi ORS process can be divided into four phases. Phase 1 is from the 1990s to 2000.
During the time of internet jumped up, western organizations operating in Bangladesh took
the ORS opportunities and some of the regional organizations started following them. Phase 2
is from 2000 to 2010 when data and the internet started becoming available for every
individual. In phase 3 from 2010 to 2020, it was the internet boom in this nation where 52.58
million people use the internet, 31.62% of the total population (statista.com). And finally,
phase No. 4 started in 2020 and is continuing. This phase also can be defined as the
post-Covid-19 phase. After Covid-19, almost every organization (small and large) is
practicing ORS in Bangladesh.
3. Methodology
Qualitative research was conducted using meta-data from past research activities and
scholarly articles. To identify previous research studies for inclusion in the meta-analysis, the
researcher searched several databases, mostly business and computer oriented, as well as
international conference programs and the available in-press sections of major journals using
combinations of related keywords: Internet, website, online, attraction, work, online
recruitment and selection, and applicant. The researcher is well aware of the content validity
because it is one of the key concerns in meta-data analysis (Schriesheim et al., 1993). The
deductive approach was used to generate the list of proposed items through the review of the
previous literature (Aboul-Ela, 2014). The researcher specially searched ResearchGate,
CrossMark, and some publishing platforms like Springer, Elsevier, academia.edu, Emerald
Insight, and Sage Journals for relevant studies as well as doing a search through all available
EBSCOHost databases. These platforms are used because of their resource diversity and and
authentication in research world. The journals published from the mentioned platforms have a
wider acceptance. The researcher also reviewed the reference lists of other summaries
(Chapman & Webster, 2003; Cober, et al., 2004) to identify relevant articles missed in the
computerized search.
Using these search procedures, the researcher randomly identified over 110 studies, then
screened them to determine their relevance. The researcher excluded most non-empirical
studies and those which are repeated in the topics. Non-empirical studies were excluded
because the analysis of data or information are well described in the empirical/original
research works. So, from this point of view, those non-empirical published papers are
repeated too. After evaluating the studies based on the inclusion criteria, 67 studies and a
website were selected. All studies included in the meta-analysis are appended in the reference
section and vice -versa. The journals for reference were selected manually depending on their
scope of publications.
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4. Findings
Cost and time are independent variables for ORS.
In comparison to traditional methods of recruitment and selection, i.e. the use of magazines
and daily newspapers, as well as employment agencies, posting jobs and, enlisting and
selecting candidates on the internet is essentially free (Shirazi, 2013). This method promotes
efficiency as well as return on investment (ROI). The goal of ORS is to make the recruitment
process more concise, compelling, and cost-effective (Afroz & Shafi, 2021). Afroz & Shafi
(2021) stated that almost all interviews agreed that ORS is significantly more cost-effective
and proficient than traditional methods because it reduces operational costs, printed material
costs, and authoritative costs. Kumar & Priyanka, (2014) marked down that this method of
finding candidates online replaces the traditional recruitment process of advertising,
collecting resumes, and selecting the best candidates in a simple and cost-effective manner.
ORS method also allows a significant amount of savings for the application process by the
candidate’s side.
Posting a job vacancy on the company's own website does not cost anything while putting on
a job board usually costs thousands of dollars. For recruitment through head hunters, the
consultant fee for a candidate could be anything up to 20% of the first year's salary, and
advertising in a national newspaper can cost thousands, it is immediately noticed for cost
savings with online recruitment for this purpose, the advertisement needs to be done in the
own portal of the company (Islam, 2016).
ORS with the use of a dedicated platform offers not only benefits but also bears the cost of
building such a platform. Significant savings are in terms of money allocated which are
presented below.
Measuring the efficiency of savings.
Assuming that:
Cτ = average time of traditional recruitment
Cg = average time of online recruitment
Kp = total cost of recruitment platform preparation
K = remuneration per hour for a recruitment specialist
∆= per hour savings
N = number of potential candidates
The per-hour savings can be achieved with the use of ORS over the traditional one which can
be expressed on the basis of an equation.
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Equation 1.
∆ = (Cτ - Cg). K
Taking into consideration N taking part in the process of recruitment, the total saving (∆*)
can be estimated as follows.
Equation 2.
∆* = (Cτ - Cg). K. N
Including the total cost of creating the recruitment platform (Kp), the total savings (∆**) can
be calculated as follows.
Equation 3.
∆** = (Cτ - Cg - Kp/N). K . N
Assessing the break-even point of creating a recruitment platform, it makes sense when the
number of potential candidates N meets the following criteria.
Equation 4.
N > (Cτ - Cg)/{(∆**/ K) + Kp}
The numbers and the calculation state that ORS makes sense when a large pool of candidates
is considered to be recruited. It saves organizational money because it allows recruiting a
large number of employees in a short period of time.
An important factor of this process is the time it takes to finish the recruiting process from
beginning to end. As in other sources, one must revise the schedule for advertisement
constantly but it does not apply to the internet (Afroz & Shafi, 2021). They continue that this
process reduces the amount of time it took to communicate with job seekers in the past. But
today for the ORS process, recruitment occurs without any delay because the response is
direct, faster, and immediate. Before the postal service, the fax was a one-way
communication method that was time-consuming. The revolutionary two-way
communication was brought about by the invention of the phone but résumé management and
global communication were not possible. Since every procedure is done electronically in
ORS system, paperwork or manual documentation has been reduced.
Veger (2006) said that recruiters can post jobs 24 hours a day and they can post it to more
than one recruitment sources at a time, and also potential job applicants can post their
resumes 24 hours. By using online application procedures, primary and basic requirements
requirements can be checked electronically and so the first filtering of applicants is done to
the application pool. Research by Bartram (2000) in the US indicated that a typical time from
job posting online to hire a candidate takes 16 days from Internet-based recruitment as
opposed to 32 days or more from traditional methods. The Internet has the capacity to make
posting and updating job ads easy for recruiters (Bartram, 2000). Also, posting résumés and
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reacting can be done faster by the the job applicant in the recruitment process. If online job
postings are extended with an online application procedure, this can also save time by
collecting, storing, and retrieving information about applicants centrally.
Mathematical Framework
The equation is:
V = A + BX
Where:
V = the value of the dependent variable (Adopting the ORS process)
A = (Alpha) the intercept or constant
B = the slope (Beta Coefficient) for X
X = independent variable (Minimizing recruitment Cost & Time)
The framework describes how dependent variables are related to independent variables.
5. Discussion
5.1 Discussion of the Finding
The first and foremost condition of ORS system is to recruit a large number of candidates
from the pool. If a huge number can be selected at a time, only then the cost of website
maintenance can be well utilized and only then it can bring the ROI. One the other hand,
creating a website only for recruiting a nominal number of candidates can not be feasible and
it can not reduce cost. So, the condition must be fulfilled to extract profit for ORS process.
When previous researchers were discussing about the money-saving approach, they most like
tend to mention that the ORS is free of cost. It implies that the recruiters need not maintain a
website or recruiting site. Based on their discussions, it can be noted that they are either
discussing the one-sided effect leaving the other side aside, or ignoring it. This way of
recruitment and selection is not free of cost at all. Creating a recruitment website and
maintaining it, or posting an advertisement on social media network, it cost, sometimes, more
than the traditional recruitment methods. Every year, thousands of millions of dollars are
collected from internet gateways and online portals only from the recruitment activities. If
there are goals, it is to be achieved. The goal of ORS is to reduce cost which implies that still
there is cost. Researchers mentioned the material cost or resource limitation. Online method
may have more word limit than the traditional ones but it is not unlimited.
While talking about the time reduction of ORS, researchers advocated that it reduced the time
of recruitment and selection. Some executives shouted that “saving time” from ORS is
somehow exaggerated because the online process, too, takes some time to be proceeded. It
may screen faster than humans but it is not done within moments. If the professionals of a
particular organization are not well skilled in technology, using the internet for ORS may
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demand much more time than the traditional one. On the other hand, the fittest person for the
organization with the right qualification may not have or may not be willing to have internet
access. If so, this system would not work.
5.2 Limitation of the Study
This study has some general limitations. First of all, this paper deals with the overall ORS but
not from the point of view of any particular country or company. A generalization may be
found which, sometimes, may lead the reader to abstract observation. Second, the researcher
focuses only on the time and money-saving approaches of ORS in findings but besides these
two leading focuses (the title indicates), there are other variables related to this study that are
kept aside. However, the researcher found literature and reviewed it briefly to make the sense
of what is ORS and how it works. Third, the data and discussions were taken from the
randomly chosen previously published research. Questions may arise about the validity of
those studies although the researcher toiled to reduce the suspicion on the validity of
literature. Fourth, this study was conducted on the theoretical level, not on the on-ground
practice and it is not an empirical research work. Fifth, a limited number of research was
chosen for analyzing meta-data, which can narrow down this study. Sixth, only meta-data are
discussed and analyzed. No interview nor questionnaire approach to data collection was
conducted.
5.3 Recommendations for Further Research
The current study presents an overall outline of to what extent the use of the internet for
recruitment leads organizations to reduce time and money. However, the researcher of this
study thinks that this field still needs further empirical research because the current
knowledge on the tentative hazard of algorithm decision-making in HR is still in its primary
stage (Köchling & Wehner, 2020), though recently fairness and discrimination attention has
been identified. Thus, the question may arise about what the most future research should be.
Most of the studies which were chosen for this research concerning ORS are non-empirical.
One of the reasons for this scarcity of empirical research may be that it is a recent
phenomenon in the field of HR. Köchling & Wehner (2020) noted that there is a need for
more sophisticated, theoretically, quantitative studies, especially in HR recruitment, selection,
and development process. However, most of the research is concerned about the advantages
and disadvantages of ORS but a few studies were spotted which are discussing the fairness
and discrimination made by the algorithm used for ORS. It implies that the awareness of
fairness and biases in HR recruitment and selection receives little attention (Köchling &
Wehner, 2020).
Another research field may focus on the individual’s perspective and acceptance of the
algorithmic decision. Only a few studies analyzed people’s decisions about the acceptance of
algorithms. Everyone may not be willing to accept the new trend, or it might be inconvenient
to someone but the degree is unknown. The emotional reactions of candidates may differ
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which may affect them severely in the future because the candidates react negatively to a
decision taken by an algorithm (Kaibel et al. 2019).
Another recommended research avenue could be the liability and reliability of ORS. If the
algorithm of the recruitment selection site is bugged, it could make a downfall in the ORS
process. The more technology is advancing, the more its disadvantages are increasing. So, it
is a continuous research area because of the continuous development of technology.
6. Conclusions
Most of the inspections on ORS that appear in this study are not new in the literature. The
independent variables are actually traditional concerns of business scholars and
business-savvy people. In reality, some factors are considered as the flaws of ORS because of
its symptoms of poor recruitment practice. However, the internet helps recruiters to reach
wider geographical, social, and culturally diverse contexts that traditional methods could not.
It supplies better information for the applicant on the job description. Griffeth et al (1997)
think that better job information creates a “realism hypothesis” which increases the
effectiveness of recruiting resources. Galanaki (2002) thinks that ORS will hold its use in the
future as it is doing now by following the advancement in the arena of technology. All these
processes need more technical professionals for successful practice. With the multiple effects
of technological development and HR advancement, the exercise of ORS is becoming more
rapid, sophisticated, and accurate.
Acknowledgement
The author would like to thank Umama Rashid Lamiya (MSc student, Department of Soil
Water and Environment, University of Dhaka) for helping screen the materials and find out
the best resources for this paper.
Funding information and consent
No funding was taken for conducting this meta-data analysis and the author gives full consent
to publish this paper.
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