Recruiting Online
A Guide for Decision Makers
1
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, 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
4
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
5
Online recruitment has proved an effective substitute for newspapers
as the primary channel for sourcing candidates
Overview of Recruitment Process
Newspaper Recruitment Agency Candidates Employer Online Recruitment Portal
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Online Recruitment
Newspaper Advertising
Recruitment Channels – Performance Comparison
Recruitment Agency Executive Search 3 3 3 • Locally-based candidates • International candidates • Active candidates • Passive candidates 3 3 3-30 days
1-10 days 5-15 days ** 30-60 days
3 3 3 • Sourcing candidates • CV Filtering • Interviewing 3 3 3 3 3 3 3 3 3 3 Geographic Reach Type of Candidates Service Coverage 3 3 3
Speed • Average time *
Online recruitment compares favourably with other channels in
terms of reach, effectiveness and speed of getting results
Job posting / CV search Advertising / Classified Contingency recruitment Retained search
Product • Product name
* 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
7
Internal Cost Per Hire ** Typical Supplier Fee per Hire *
Recruitment Channels – Cost Comparison
(US$)
Recruiting online is by far the most cost-effective method, with
total cost per hire as much as 90% lower than traditional channels
Online Recruitment Newspaper Advertising Recruitment Agency Executive Search $9,000 – 12,000 $100 – 300 $200 – 500 $12,000 – 21,000 $1,000 – 2,000 $1,500 – 3,000 $2,000 – 4,000 $1,000 – 2,000 $10,000 – 14,000 $1,600 – 3,300 $2,200 – 4,500 $13,000 – 23,000 Total Cost Per Hire † Supplier Fee Structure
• Fixed fee, regardless of number of hires
• Payable upfront
• Fixed fee for advertising, regardless of number of hires • Payable upfront
• 15-20% of annual salary per candidate hired
• Payable upon successful hire
• 20-35% of annual salary per candidate hired
• Payable 1/3 upfront, 1/3 on short-list, 1/3 on hiring
Source: Interviews with HR managers, supplier terms, GulfTalent analysis
* Estimated based on hiring a mid-level candidate with a compensation of US$ 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
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3 Which Products? Which online recruitment products are most suitable for my needs?
To maximise the benefits of online recruitment, companies need to
address four key questions
1 Which Vacancies? Which of my vacancies are best filled through online recruitment?
4 What Organisational Model?
How should my HR team and process be set up to use online recruitment effectively? 2 Which Suppliers?
Which online recruitment sites are most appropriate for my needs?
10 Professional / Managerial
Effectiveness of
Online Screening
Candidate
Presence Online
Entry level / Very Junior Manual / UnskilledHigh presence online High presence online Limited online presence
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
Ideal for sourcing and screening online
Can be sourced online, but screening may still be time-consuming
Unsuitable for recruiting online
Overall Fit For
Recruiting Online
Segmentation of Vacancies
Vacancies suitable for recruiting online should be distinguished
from others
Examples
• Finance • HR • Marketing • Engineering • General Management • Shop Assistant • Receptionist • Fresh graduate • Labourer • Driver • Maid11
Key Metrics 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
Candidate
Quality
The appropriate online recruitment sites can be selected based on
objective criteria
Supplier Selection – Metrics for Evaluating Online Recruitment Sites
Customer
Service
• Quality of CV presentation • Calibre of candidates
• Responsiveness and professionalism • Familiarity with the online products
Online Tools
• Quality of search and filtering tools • Simplicity and user-friendliness • Breakdown of candidate database
(by location, industry, etc.)
• Size and freshness of CV database
Candidate
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While most employers use both job posting and CV search, it is
important to understand the benefits and limitations of each product
Days
(should wait for candidates to apply) Only Active candidates
(cannot reach those who do not apply)
Candidates very likely to accept (they show interest first)
Need a full job description to start Only need job title and/or key skills (no need for a full job description)
Candidates may or may not accept (need to be persuaded)
Both Active and Passive candidates (some of the best candidates are passive)
Minutes
(proactively target desired candidates)
Comparison of Online Recruitment Products
Time to Get Good CVs Candidate Types Reachable Likelihood of Offer Acceptance Input Parameters Required
Job Posting CV Database Search
Ability to draft attractive job ads, filter and screen CVs
Ability to do structured online search, and to approach candidates persuasively
Key HR Skills Required
Visibility and Branding
Recruitment is publicly visible
(ideal for building an employer brand)
No public visibility or branding
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Most firms operate a ‘centralised’ organisation for using online
recruitment, giving access to the HR team only
Organisational Model – Centralised
Online Recruitment Portal
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
• Common setup in the majority of companies Key Features
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It is possible to adopt a ‘distributed’ model, giving access to the
line managers as well
Organisational Model – Distributed
Online Recruitment Portal
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 Key Features
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The choice of organisational model depends on the needs, priorities
and resources of the company
Central HR team can develop expertise in online recruitment
Fully controlled access and
compliance with standard procedures
The default setup in most companies; consistent with pre-Internet boundaries 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
Unpopular with some line managers. Can be offered on a voluntary opt-in basis Enforcing HR standards and procedures in dealing with candidates needs more effort and education
Fragmented use may not allow deep online recruitment expertise to be accumulated
Comparison of Organisational Models for Recruiting Online
Knowledge Building Control & Standardisation Stakeholder Adoption Scalability Centralised Distributed
Recruitment requires several exchanges between HR and line managers
Less communication overhead; line managers search and identify their target CVs directly
Process Efficiency
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Appendix – Analysis of Middle East Online Candidates
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Many myths and misconceptions exist about online candidates
“ Online candidates are mostly students and young people ”
“ Only technical candidates can be
found online ” • Online candidates span all industries and functions,
with only 31% coming from IT and engineering roles • Half of the online candidates are aged over 30, and
37% hold managerial positions, including 8% who are in top management
Common Myths about Middle East Online Candidates
“ Arabic speakers, especially Gulf
nationals, do not look for jobs online ” • Over 35% of online candidates are fluent Arabic
speakers, including 8% who are Gulf nationals
“
Fewer people go online, compared tothose who read newspapers ”
• The number of Internet users in the region is much higher than the total newspaper print circulation
“ Job ads on a recruitment website do not get as much exposure as print ads in national newspapers ”
• An online job ad typically receives over 400
applications, compared with around 200 for a print ad in a popular newspaper
Myths
Reality *
18 10% 13% 18% 23% 35% 35% 40% 43% 49% UAE Qatar Lebanon Bahrain Kuwait Saudi Arabia Jordan Egypt Oman 9% 6% 5% 8% 27% 17% 10% 15% 18%
Internet penetration has reached critical mass and now far exceeds
newspaper print circulation across the region
* 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
Online vs. Print
Total Population (millions, 2008 est.) 24.9 5.6 4.0 6.1 3.6 1.4 2.8 1.1 77.1Internet Penetration *
Newspaper Circulation **
19 55%
10% 35%
12% 88%
Candidates found online have a higher level of education and better
language skills than the general population
By Language
Breakdown of Online Candidates *
Arabic & English English Only English & Other language
By Level of Education
No University Degree With University De gree * B a s e d o n G u lf T a le n t’ s d a ta b a s e o f 1 m ill io n c a n d id a te s20
Online candidates include a significant proportion of mid-level and
senior professionals
By Age
By Seniority
13% 29% 22% 15% 15% 6% Under 26 26-30 31-35 36-40 41-50 Above 50 9% 20% 34% 29% 8% Experienced Professional Junior Professional Fresh Graduate / Student Director / Executive ManagerBreakdown of Online Candidates *
21 57%
12% 13%
14% 4%
Online candidates include a diverse talent pool from different locations
By Country of Residence
Asia GCC ** Middle East (excl. GCC) Europe / US OtherBreakdown of Online Candidates *
* Based on GulfTalent’s database of 1 million candidates
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Candidates from all major industries and job categories can be
found online
By Industry
By Job Category
5% 1% 3% 3% 4% 5% 5% 6% 6% 7% 8% 13% 16% 18% Construction & Real Estate
Banking & Finance IT & Telecom Oil & Gas Education Manufacturing Retail & Consumer Goods Healthcare Marketing & Media Transport & Logistics Hospitality Government & Public Sector Recruitment Other 3% 1% 2% 3% 4% 4% 6% 6% 6% 7% 10% 13% 14% 21% Engineering Finance Sales & Customer Support IT Administration & Secretarial General Management Marketing and PR Education & Teaching Healthcare Human Resources Logistics Procurement Legal Other
Breakdown of Online Candidates *
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Glossary of Key Terms
Online recruitment portal
Job posting CV database search Active candidate Passive candidate Contingency recruitment Retained search
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.
A job advertisement placed online on a recruitment portal, allowing candidates to review and submit their applications directly to the employer advertising the vacancy. 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
24 Further information is available at: www.gulftalent.com
Tel: +971 4 367 2084
Disclaimer & Copyright
About GulfTalent
Headquartered in Dubai, GulfTalent covers the markets of Saudi Arabia, Kuwait, Qatar, Bahrain, Oman, Egypt, Lebanon, Jordan and the United Arab Emirates.
This document should be used for information purposes only. GulfTalent 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 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.
