Guide to Recruiting Online

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Recruiting OnlineA 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


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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


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Online recruitment has proved an effective substitute for newspapers

as the primary channel for sourcing candidates

Overview of Recruitment Process

Newspaper

Recruitment AgencyCandidates

Employer

Online RecruitmentPortal


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OnlineRecruitment

NewspaperAdvertising

Recruitment Channels Performance Comparison

RecruitmentAgency

ExecutiveSearch

Locally-based candidates

International candidates

Active candidates

Passive candidates

3-30 days1-10 days 30-60 days5-15 days **

Sourcing candidates CV Filtering

Interviewing

Geographic

Reach

Type of

Candidates

Service

Coverage

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

Contingencyrecruitment

Retainedsearch

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


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Internal CostPer Hire **Typical Supplier Fee per Hire *

Recruitment Channels Cost Comparison(US$)

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

Recruiting online is by far the most cost-effective method, with

total cost per hire as much as 90% lower than traditional channels

OnlineRecruitment

NewspaperAdvertising

RecruitmentAgency

ExecutiveSearch

$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 CostPer Hire Supplier Fee Structure

Fixed fee, regardless ofnumber of hires

Payable upfront

Fixed fee for advertising,regardless of number of hires

Payable upfront

15-20% of annual salary percandidate hired

Payable upon successful hire

20-35% of annual salary percandidate hired

Payable 1/3 upfront, 1/3 onshort-list, 1/3 on hiring


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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?

Key Elements of an Online Recruitment Strategy


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Key Metrics Method of Evaluation

Request references from peers inother firms

Review brochure and officialstatistics of the recruitment portal

Request a free live demonstrationof the site

Purchase a short-term

subscription to try out the service

Monitor number of interviews andhires over a period of subscription

CandidateQuality

The appropriate online recruitment sites can be selected based on

objective criteria

Supplier Selection Metrics for Evaluating Online Recruitment Sites

CustomerService

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

CandidateAvailability


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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 TypesReachable

Likelihood of OfferAcceptance

Input Parameters

Required

Job Posting CV Database Search

Ability to draft attractive job ads, filterand screen CVs

Ability to do structured online search, andto 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

(can be good for confidential vacancies)


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Most firms operate a centralised organisation for using online

recruitment, giving access to the HR team only

Organisational Model Centralised


HR Team Line Manager

Line managers communicate recruitment needs tothe HR team

HR team source and screen CVs online, andforward to line managers for review

HR team follow up with approved candidates toarrange 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


HR Team Line Manager

Both the HR team and line managers have directaccess to the site

Line managers identify desired CVs directly andmark them for further follow-up by the HR team

Access permissions to the site are controlled by theHR team e.g. who can post jobs, search CVdatabase 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 expertisein online recruitment

Fully controlled access andcompliance 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. Canbe offered on a voluntary opt-in basis

Enforcing HR standards and procedures indealing with candidates needs more effortand education

Fragmented use may not allow deep onlinerecruitment expertise to be accumulated

Comparison of Organisational Models for Recruiting Online

KnowledgeBuilding

Control &

Standardisation

Stakeholder

Adoption

Scalability

Centralised Distributed

Recruitment requires several exchangesbetween HR and line managers

Less communication overhead; linemanagers search and identify their targetCVs 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 mostlystudents and young people

Only technical candidates can befound 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, and37% hold managerial positions, including 8% whoare in top management

Common Myths about Middle East Online Candidates

Arabic speakers, especially Gulfnationals, 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 muchhigher than the total newspaper print circulation

Job ads on a recruitment website do not

get as much exposure as print ads innational newspapers

An online job ad typically receives over 400applications, compared with around 200 for a print

ad in a popular newspaper

Myths Reality *

* Based on GulfTalent.coms database and analysis of publicly available data


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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

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

Online vs. Print

Total Population(millions, 2008 est.)

24.9

5.6

4.0

6.1

3.6

1.4

2.8

1.1

77.1

Internet Penetration * Newspaper Circulation **


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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 &EnglishEnglish

Only

English &

Other language

By Level of Education

No UniversityDegree

With University

Degree

* Based on GulfTalent.coms database of 1 million candidates


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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%

ExperiencedProfessional

Junior

Professional

Fresh Graduate /Student

Director /Executive

Manager




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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


** Gulf Cooperation Council (GCC) countries include Saudi Arabia, Kuwait, Qatar, Bahrain, Oman and the United Arab Emirates

Other



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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 & GasEducation

Manufacturing

Retail & Consumer Goods

Healthcare

Marketing & Media

Transport & Logistics

Hospitality

Government & Public Sector

Recruitment

Other3%

1%

2%

3%

4%

4%

6%

6%

6%

7%10%

13%

14%

21%Engineering

Finance

Sales & Customer Support

ITAdministration & Secretarial

General Management

Marketing and PR

Education & Teaching

Healthcare

Human Resources

Logistics

Procurement

Legal

Other




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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 toreview 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 andapplying 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 Easts leading online recruitment portal, with a database of

over 1 million professionals covering all sectors and job categories. It serves as the primarysource 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 theinformation 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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