Social Media Use at Human Resource Management: The HRM Performance Effect

Abstract

Presence of qualified personnel is the main key for the productivity and performances of the enterprises. Thus, discovering and selecting the staff with the required qualifications and quantities have constituted the primary priority of HRM. Staffing process, covering the activities of attracting and selecting individuals for positions, has been affected by development of the technology. Today internet becomes one of the first places for application of the job seekers and the recruiters. Except interviewing process, social media has been effectively used almost in all the processes of staffing as like candidate pool, creation of social network, interview and reference investigation. However, there is very limited quantity of data and literature knowledge to compare the impacts of usage of social media since the practical results at this field have just been formed recently. In this context, this survey aimed to examine the impact of social media usage frequency at human resource management (SMU@HRM) –specifically at staffing process (SMU@HRM-Staffing)- on the HRM performance. To reveal the relationship between those two construct, SMU@HRM-Staffing and HRM performance, a field survey using questionnaires was conducted on human resource managers of 386 firms operating in manufacturing and service industry in Turkey. Descriptive analysis, exploratory factor analysis, reliability analysis, correlation and regression analyses have been conducted on data obtained from 374 complete questionnaires. Analyses results revealed that social media usage frequency at HRM-Staffing process affected HRM performance in a positive way.

Keywords: Social MediaStaffingHuman ResourcePerformanceLınkedIn

Introduction

High competition and prompt changing environment have been characteristics of today’s business world. In this world, qualified human source is one of the leading strategic sources enabling the enterprises to have competition advantages. Human Resource Management (HRM), as “ a process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health, safety and fairness concern ” (Dessler, 2013), has been playing a leading role to acquire the qualified human sources for the enterprise.

Presence of qualified personnel is the main key for the productivity and performances of the enterprises. In order to perform this task in a desired standard, they are required to possess some characteristics called as work requirements. If the staff does not possess these characteristics at the sufficient levels, it would not be possible to carry out the works and to produce the goods and services in a productive and qualitative manner. Thus, discovering and selecting the staff with the required qualifications and quantities have constituted the primary priority of HRM (Can et al., 2016). The staffing defined as “The set of activities aimed at attracting and selecting individuals for positions in a way that will facilitate the achievement of organizational goals” (Bartol and David, 1991) covers the activities as like announcements to attract the potential candidates, building social network and candidate pool, interviewing to candidates, investigating references, selecting the appropriate candidate, and offering the job.

As it has been in many different fields, development of the technology has resulted in changes in set of staffing related practices executed at HRM. Before the invention of internet as being one of the most important technological breakthroughs, the announcement of a vacancy had been traditionally carried via daily newspapers, announcement boards, and carrier days whereas today internet becomes one of the first places for application of the job seekers and the recruiters (Jansen et al., 2005). Many internet sites have come into operation; LinkedIn, Twitter and also other social networking sites are used for the purpose of staffing and job searches (Jacques, 2009). Social media, defined as “internet based applications groups structured on the basis of ideological and technological architecture on web 2.0 enabling that allows the user’s contents are produced and exchanged” (Kaplan and Heinlein 2010) has become the most crucial and indispensable devices of HR directors. Social media use at HRM (SMU@HRM), especially at staffing related practices, led to reduction of management cost and candidate selection time, increase in productivity, and has allowed to provide opportunity for the creation of larger candidate pool in terms of quality and quantity. Additionally it encourages candidate to seek jobs individually and it gives competitive edges for the enterprises to access to candidates especially in the markets where the employees are scare (Dogan 2012).

In literature, researches about the social media usage at HRM functions, especially at staffing function, have indicated that usage of social media has positive contributions to effectiveness and productivity. However, lack of numerical measurement of effectiveness and productivity in terms of SMU@HRM (unlike usage in the sales and marketing field) leads to matter of substance in this field. The other main issue can be indicated as lack of comparability in this field, stemming from limited researches and data in literature and insufficient practical results emerging recently (Sozer, 2013).

In this context, this study examining the impact of SMU@HRM-staffing practices on HRM performance will contribute to literature substantially. The most important feature differentiating this study from the others, is that the direct effect of social media usage frequency at staffing related practices (as like recruitment, candidate pool building, reference investigation, and social network formation) on HRM performance has been examined for the first time.

Literature Review and Theoretical Framework

Staffing is an activity to find the candidates for newly opened or vacant positions. It includes selection and placement activities such as forming job applications required for the vacant positions, accessing to the candidates, elimination of these candidates, and selection of the candidate having the required qualifications (Guncaglayan, 2007). The main aim of the recruitment process is to provide sustainability of the organizational activities by means of its available methods and applications in the competitive environment. The first step in staffing is to determine strategies of recruitment. After the plan on where and how and in which way is staff will be find out, investigation is made accordingly (Sabuncuoglu, 2000)

The enterprises apply to internal and external sources in order to meet the staff need. Internal source means the existing employees. In case that supply of personnel is materialized through internal sources, records, performance assessments, and labour inventories are taken into consideration. The importance of closing out the newly formed positions by utilization of the internal sources of the enterprise can be stated as finalization of this process in a short period of time, accessing the candidates easily, and showing the other employees that there is a possibility of carrier growth within the enterprise (Cetin, & Dinç-Özcan, 2014). In case that there are no such personnel having the required qualifications at the enterprise, external source is mandatorily used (Sabuncuoglu, 2000).

Recruitment processes covering the need of human resource for the enterprises have also been transformed with the wider use of internet. Before the invention of internet the announcement of a vacancy had been traditionally carried via daily newspapers, announcement boards, and carrier days but today internet becomes one of the first places for application of the job seekers and the recruiters (Jansen et al., 2005). Many internet sites have come into operation; LinkedIn, Twitter and also other social networking sites are also used for the purpose of recruitment and job searches (Jacques, 2009)

The huge success of social media is currently challenging organizations by requiring them to rethink their human resources management practices, specifically their staffing activities (Martin, Reddington, and Kneafsey, 2009). Except interviewing process, social media has been effectively used almost in all the processes of staffing as like candidate pool , creation of social network, interview and reference investigation .

The most efficient way to add the qualified job seekers into the candidate pool is the effective announcement and advertisement within the first stage of staffing, formation of candidate pool . The main objective of job announcement is to access the target audience for success. Here the integration of social networks incorporated into system enables accessing a lot of candidates over job search portals and interne, making easier for a candidate’s application process, and enhancing the quality and quantity characteristics of the candidate pool. On the other hand, enterprises may add various tests and questionnaires to their web based announcements by means of links and interconnections. These tests and questionnaires assess the candidates’ decision making techniques, their behaviours to be shown in different situations, their point of views, and their abilities for critical thinking and for acting, and these results can be used in interviews. Aim of this application is to assess the degree of matching between the corporate culture and the candidate’s behaviours (Oksuz, 2011).

Staffing process proceeds with accessing proper candidates with required knowledge, ability and qualification by utilising social networks, then continues with invitation to the interview . Interview process is completed by the selection of the most appropriate candidate within the held interviews and the assessment of the department executive who needs the candidate. The information given by the candidate during the interview shall be subject to the cross-control by means of reference investigation . In this control process, an assessment is made for the candidate’s relations with superiors, subordinates and other peripheral departments, job performances, reason of leave, wage information, and achievement regarding the job in the previous experience: and then the information provided by the candidate in the interview or in the application forms are matched with those information obtained from reference check of previous job experience (Ibicioglu, 2006). Candidates' reference investigation on past work experience reinforces all the information obtained about the candidate and makes a proper choice (Ozgen, and Yalcin 2010). Although it is argued whether consideration of information based on the social media platforms such as Facebook and Instagram is ethical or not during recruitment decision, social media has been used during reference investigation process by a lot of large scale companies as part of recruitment process especially for white collar candidates. As in the cases of other processes, one of the reasons to use social media frequently in the reference investigation is that the candidates are more honest in their profiles published open-to-all in the social media platforms such as LinkedIn. It was revealed that the resumes in LinkedIn contain less lies according to the study made by the Cornell University on this subject (Culculoglu, 2013). The reason of this honesty here is that misleading information written in these profiles published as open-to-all could also be noticed by the colleagues or the reference persons. This provides also great advantages for the companies seeking an employee (Culculoglu, 2013).

According to a research made in the U.S.A, 90 % of the job seekers believe that their social media accounts are checked prior to the companies’ invitation to the interview or job proposal (Koetsier, 2012). Indeed, 98% of the companies in U.S. check the social media sites during their personnel selection process as per the report published by the Research Company of Bullhorn. According to research data, LinkedIn is placed with 98% in the search, and after LinkedIn, Facebook with 51% is followed. As for Twitter, it is placed at the 3^rd rank with 49% (Culculoglu, 2013).

LinkedIn enabling business connections by creation of a detailed resume or company page is a social network focusing on business world with a fast growth in Turkey and in the world. As of May 2009 it was hosting 40 million registered users and over 170 business sectors, and today it became the biggest social network tool with approximately 500 million users (http://webrazzi.com/2013/05/06/linkedin-10-yil/). LinkedIn profiles provide important information on the users’ business backgrounds, their connections in the business world, and their activities in business environments. The whole of these data may affect positively or negatively in the decision making process of a person recruitment. At this context, it has been researched in this study that usage frequency of LinkedIn, one of the social media network and the platform most often used in business world at the staffing process out of HRM processes, and its impacts on HRM performance.

There is very limited quantity of data and literature knowledge to compare the impacts of usage of social media since the practical results at this field have just been formed recently (Sozer, 2013). Another issue in this field is measurement problem of effectiveness and productivity of social media use in HRM (unlike usage in the sales and marketing field). As a matter of fact, in this study, investigating the relationship between usage frequency of social media tool (LinkedIn) and effectiveness and productivity of HRM (namely HRM performance), a non-numerical method has been executed to measure HRM performance, and respondents were asked whether they agree or disagree with the statements about the contribution of social media use to decrease of recruitment costs, increase of quality and diversity of candidate pool, decrease of job leaving rate, increasing the efficiency of the company, and increasing the company's recognition in the terms of establishing the employer brand. Consequently this measurement based on the opinions and convictions of the respondents has been focused on the qualitative aspect of HRM performance.

Most studies on social media use in the past decade have focused on the impact of social media on enterprise performance. For example, Evans, in his survey in 2010, tackled the transition of social media from Web 1.0, where users can view only internet sites, to second generation Web 2.0, where they can interactively contribute content, and the impact of these transitions on performance businesses.

In the researches related to the use of social media in HRM, the usage of virtual social networks out of social media tools in the process of recruitment is mainly examined topic (Kluemper, & Rosen, 2009; Capa 2011; Arthur, 2012; Culculoglu, 2013; Oz, Keklik ve Kilic 2015). A study, conducted by Rees in 1966-before the invention of internet, has revealed that recruitment through social networks decreases the personnel circulation and increases the quality (Rees, 1966). Parallel to Rees, Lin et al (1981), after describing closed and off-line social networks, have revealed the positive roles of these networks at recruitment process. Considering previous studies, in this study it has been proposed that usage frequency of virtual social networks (LinkedIn usage- as an social network tool) at HRM processes, especially staffing process, would increase HRM performance.

H1: The frequency of social media (LinkedIn) use at staffing related HRM practices will increase the HRM performance.

Research Method

This survey aimed to examine the impact of social media usage frequency at human resource management (SMU@HRM) –specifically at staffing process (SMU@HRM-Staffing)- on the HRM performance. To reveal the relationship between those two construct, SMU@HRM-Staffing and HRM performance, a field survey using questionnaires was conducted

Analyses and Findings

Descriptive analysis results revealed that, social media is mostly used staffing related practices as like as like reference check, recruiting, creating social network and building candidate pool (Table 1 ). A huge number of respondents (230 respondents, 61,5 %) indicates they use social media predominantly at reference check process. Recruiting is another HRM practices that respondents use social media predominantly (113 respondents, 30,2 %). Briefly, about 96 % of respondents use social media predominantly at staffing related practices.

Exploratory factor analysis resulted in elimination of 5 items which did not loaded on any factor. Remaining 11 items are loaded on 3 factors named as SMU@HRM-Staffing, HR Staffing Performance, and HR Maintenance Performance. Those items with factor loadings and Cronbach’s Alpha values for each factors are depicted on the Table 2

Correlation analysis results explored a significant relation between SMU@HRM-Staffing and HR Staffing Performance. Although HR Maintenance Performance has a significant relation to HR Staffing Performance, the relation between SMU@HRM and HR Maintenance Performance was not statistically significant as seen at Table 3 .

In order to define the direction of relations and to test the hypotheses, linear regression analyses have been conducted through the SPSS 21.00 statistical packet program.

Regression analyses results revealed that the impact of social media use on the staffing related HRM performance is statistically significant ( β =,428; p= ,000; R ² =,181). However the effect of social media use on maintenance related HRM performance is not statistically significant ( β =-,094; p= ,069; R ² =,006). Thus our hypothesis indicating that “Social media use frequency at HRM will increase the HRM performance” is partially supported. On the other the significant effect of staffing-related-HRM performance on maintenance-related-HRM performance ( β =,115; p= ,026; R ² =,011) may refer to indirect relationship between SMU@HRM and HR-Maintenance Performance. In accordance with the regression analyses results, research model is being shaped as it has been shown at Figure 1 attached:

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Conclusion and Discussions

In this study the relationship between social media use at HRM, specifically at staffing process and HRM performance investigated. As Martin et al. (2009) indicated the success of social media compelled organizations to rethink human resources practices, specifically their staffing activities. Social media becomes one of the first places for applications of job seekers and the recruiters. Öz et al. (2015) found out a positive relation between social media use at recruitment process and quantity and quality of candidates. They stated that almost all of the companies use social media at recruitment process. This survey results have also verified the previous studies. Descriptive analysis results of this survey revealed that, social media is mostly used staffing related practices as like as like reference check, recruiting, creating social network and building candidate pool. About 96 % of respondents use social media predominantly at staffing related practices.

Moreover, correlation and regression analyses results explored a significant relation between SMU@HRM-Staffing and HR Staffing Performance. Human resources departments have increased their effectiveness throughout the social media use (Safko, 2012). Because quality and quantity of candidates increased thanks the social media networks use at staffing process, more qualified staff are recruited. So, recruitment through social media networks decreases the personnel circulation and increases the quality (Rees, 1966), which leads to higher performance in organizations.

Although there are noteworthy studies indicating a positive relationship between social media use and performance, the relationship between social media use and HRM performance has been examined rarely. Besides, measurement of HRM performance in terms of SMU@HRM has been fundamental problem in this field. Researchers have developed 9-item HRM Performance scale derived from the measures frequently used in literature (e.g. Khandwalla, 1977; Mowday, Porter and Steers, 1982; Huselid, 1995; Truss, 2001; Cho, 2004), which differentiates this study from the previous ones. Moreover the findings of this survey, indicating positive effect of social media network (LinkedIn) usage frequency at staffing process on HRM performance, contribute to literature substantially.

This survey focused on HRM performance in terms on staffing and maintenance, which was the fundamental limitation of this study. Moreover, social media use at staffing have been examined. Further researches may cover other functions of HRM, as like talent management, training and development, compensation, employee relations, in order to explore the impact of social media use at HRM on HRM performance as a whole.

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