FUNDAMENTAL SHIFT ORFLASH-IN-THE-PAN?

The Use of Social Networking Sites in Recruitment

There is no constant butchange, as the sayinggoes, so much of thiswill continue to evolve

as social networkingsites find their role

amidst more traditionalrecruitment methods

“

”

Contents

Introduction 1

Research Objectives and Methodology 2

Current Usage of Social Networking Sites 3

Usefulness Ratings of Social Networking Sites 4

Outlook on the Value of Social Networking Sites in Recruitment 6

Introduction

Executives Online offers a unique, fast-trackapproach to executive resourcing and hasbeen a pioneer in the recruitment field, drivingand capitalising on key trends and trackingnew developments as technology and theInternet play an increasing role in job searchand recruitment.

It was thus with great interest that weundertook to survey our candidates andclients to gauge the impact that socialnetworking sites were having on the practiceof recruitment. We wanted to understand howcandidates were using social networking sitesto market themselves, and whether businesseswere making use of social networking sites tofind or research potential employees. Our first survey on this topic was conducted inSeptember 2009, and we have followed it withanother in September-October 2010 to trackchanges and identify trends.

There is no constant but change, as thesaying goes, so much of this will continue toevolve as social networking sites find theirrole amidst more traditional recruitmentmethods. In the meantime, it is fascinating towatch the process unfold.

Anne BeitelManaging DirectorExecutives Online

1

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Research Objectives and Methodology

OBJECTIVES

Our goal was to understand how both individualsand companies were currently using socialnetworking sites in their job search and/orrecruiting efforts, and specifically which sites theywere finding the most useful. Research questionsincluded:

• Which of the social networking sites do youuse?

• Please rate these sites in terms of theirusefulness in your professional life/job search.

• Have you ever searched for a job via a socialnetworking site?

• Have you ever actually found a job via asocial networking site?

• Have you ever tried to recruit via a socialnetworking site?

• Have you ever actually hired someone yourecruited via a social networking site?

• How would you describe your view of theimportance of social networking sites andtechnologies?

2

SURVEY METHODOLOGY AND TIMINGS

Our surveys were conducted online in September2009 and September-October 2010 among morethan 1,200 senior executives in the UK, who areeither registered with us as candidates for interimor permanent roles, or who have used orenquired about our services.

Current Usage of Social Networking Sites

Almost all sites showed an increase inpopularity and usage among the executivessurveyed, reflecting increasing adoption ofsocial networking generally. In 2010, LinkedInincreased its lead in popularity and use overother social networking sites, with 87% ofrespondents reporting using it, up from 61%last year. Facebook was the second mostpopular choice among executives surveyed,with 45% indicating they used the site, upfrom 33% a year ago. Twitter and Xing alsodoubled in usage, with new sites we askedabout for the first time used by less than 5%of those surveyed.

When we specified “in your professional life”,usage remained similar for LinkedIn, butdeclined to levels similar to last year for theless business-oriented sites. Some respondentsfound the use of social networking sites to bea phenomenon more relevant in the personalrealm than in the professional realm. As onerespondent commented, “It's mixing socialand professional lives, typically areas keptseparate for most people.”

3

87%

45%

0%4%

100%

80%

60%

40%

20%

0% LinkedIn Facebook Bebo Viadeo

Which of the following social networking sites do you use?

Percen

tage

of R

espo

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ts U

sing

5%

61%

33%

1%

11%

22%

Xing Twitter

5%10%

notasked

notasked

Experteer

Which of the following social networking sites doyou use IN YOUR PROFESSIONAL LIFE?

2009 2010

key

84%

6%0% 2%

100%

80%

60%

40%

20%

0% LinkedIn Facebook Bebo Viadeo

Percen

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5%

62%

7%0%

7%11%

Xing Twitter

3% 5% notasked

notasked

Experteer

2009 2010

key

Usefulness Ratings of Social Networking Sites

When respondents were asked to rate theusefulness of the various social networkingsites, LinkedIn once again garnered thehighest ratings for “usefulness.” For sites likeFacebook, Twitter, and Xing, even active userswere far more likely to rate those sites as“useless.” In 2010, more executives arefinding Twitter useful, although thepercentage who find it “highly valuable” stilltrails LinkedIn by several orders of magnitude.

4

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0% LinkedIn Facebook Xing Twitter

Please rate the following sites in terms of theirusefulness in your professional life/job search:

Percen

tage

of R

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2009 Highly valuable Useful Useless 2010 Highly valuable Useful Useless

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More detailed survey questions sought toassess how useful the social networking siteswere to the recruitment process itself. Morethan half of respondents indicated that theyhad searched for a job using socialnetworking sites, up from a third in 2009. In 2010, 14% report having found a job viasocial networking, double the prior year’spercentage. From an employer perspective,17% of respondents had tried using socialnetworking sites to recruit someone, and 7%had actually hired a candidate they’d foundthis way, up from 4% last year.

5

No(47%)

Yes(53%)

No(86%) No

(83%)

No(93%)

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%Have you ever

searched for a jobon a social

networking site?

Have you everactually found ajob via a socialnetworking site?

Have you evertried to recruit ajob via a socialnetworking site?

Have you everactually hiredsomeone you

have recruited viaa social

networking site?

Usage and Success of Social NetworkingSites in Job Searching and Hiring

Percen

tage

of R

espo

nden

ts

Yes(14%)

Yes(17%)

Yes (7%)

No(67%)

Yes(33%) No

(93%) No(90%)

No(96%)

Yes (7%) Yes(10%)

Yes (4%)

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Outlook on the Value of Social Networking Sites in Recruitment

Interestingly, despite the relatively low usage and successrates of social networking sites in the recruitment process todate, survey respondents were positive overall about theireventual role, with fully half believing “they will grow inimportance and will someday be how everyone hires andfinds work.” Some saw the use of social networking sites asa way that companies could save on recruitment costs, buteven more saw the benefit of social networking sites ascreating more open access to information for everyone.

Useful source of information, advice and comment onbusiness issues rather than a direct source of jobopportunities or candidates. Use as a recruitment aidto check background of interviewers, interviewees andother stakeholders

The market is imperfect, so anything that rounds thesquare will help.

The evidence is now overwhelming that recruiters referto LinkedIn especially as a research and screeningtool. Both LinkedIn and Xing are excellent for salesleads for interims and I am currently pursuing possibleassignments as a result of using both sites.

I think it's still early days yet. Users haven’t yet developeda workable recruitment model that everyone can buyinto or feel comfortable with. As a sector and function-specific notice board it has its merits but not enoughpeople are using it. I'm sure it will evolve with time.

I thought LinkedIn was fantastic, in my 4 month searchfor a job I had more interviews for roles from contacton LinkedIn than agencies or other approaches. In theend I had 5 offers for jobs at the same time, 3 throughLinkedIn.

One caveat that found some consensus is at which “levels”the value of social networking sites will be most critical.Over a third saw social networking sites as “fine for morejunior jobseekers and roles but not for executiverecruitment.”

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What best describes your view of the importanceof social networking sites and technologies?

50%

15%

They will grow in importance and willsomeday be how everyone hires and findswork – 50%

Fine for more junior jobseekers and roles butnot for executive recruitment – 35%

They're the lastest "flash in the pan," hot todaybut will be forgotten tomorrow – 15%

35%

Despite the majority positive outlook, somerespondents had a very negative view ofsocial networking sites in the recruitmentrealm, fearing potential dishonesty andunsavoury business practices among bothcandidates and recruiters.

They are becoming trawling ground forshady recruiters. Had a number ofbizarre communications on LinkedInlately, and have blocked the view of mycontacts and am not accepting any mailfrom people I don't know. Sad, but that'show it is.

Social networking sites are potentiallydangerous because they allow anyonefrom criminals to the security services tolearn an enormous amount about us tothe point where as individuals we willhave no privacy and where many peoplewill lose the art and skill of conversationand relationship building.

Credibility is doubtful; I have seenrecommendations being engineered.

The “time consumption” factor was anotherfear:

[Social networking sites] can absorbcolossal amounts of time and theireffectiveness is questionable.

Despite the increased popularity of LinkedInand other sites, many executive surveyed donot find them effective, or sufficiently intuitivesuch that they can be learned on one’s own:

I have never seen any benefitwhatsoever from my membership ofLinkedIn. Indeed, I am struggling to workout what I am supposed to be doingwith it and considering removing mydetails from it.

Please excuse my ignorance but I don'tunderstand how to effectively use thesesites for job searching and networkingso whilst I am a member I am actuallyonly reactive to others requests. Maybea tutorial or instructions to use thesemediums effectively would be helpful.

Ultimately, though, while a majority ofrespondents concurred that social networkingsites would have some role in recruitment,many noted that they would never fullyreplace more traditional recruitment methods,or become the “exclusive channel.” Severalmentioned that social networking sites willbecome a tool of the recruitment industry,rather than used by hiring managersthemselves. As one respondent wrote, socialnetworking sites will become part of “atoolbox of methods of hiring or researchingbusiness opportunities.”

Several respondents cited the generationalaspects of adoption of these new platformsand their impact on senior executiverecruitment.

I have not heard of any matureprofessional finding a job using Linked-In or any other social networking site.The sites have value for contactingindividuals but for anybody over 50 Idoubt whether social networking siteswill be the place to find a new role

Social networking sites have their place .. . they should be considered part of abalanced approach to job hunting, justanother advertising medium.

I think they will be useful to keep anonline CV, profile and networkingcontacts. I don't think they will replaceagencies completely. Everyone talks alot on these sites but not sure how much

7

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is accurate and how much they deliver. Isee my LinkedIn page as advertisingspace for my professional career.

I don't think they'll ever replace the needto meet people. Culture, fit and valuescan't be assessed from a site.

Respondents were quick to point out that thevalue of social networking sites was much likemany things in life: “what you get out of themreflects the effort you put in.” Noting the parallelsbetween one’s “real” social/professionalnetwork in the world and the one “online,” onerespondent pointed out that the sameconsiderations would apply:

I think they are useful for professionalheadhunters, but for people such asmyself looking to find a candidate to fill aspot in the organisation it is not asuseful, as it is very time consuming.

Finally, it’s important to note that mostrespondents considered LinkedIn to have fargreater value in the recruitment realm thanany of the other social networking sites. Onerespondent commented rather pointedly onthe topic: “some like Twitter and Bebo areflash in the pans, but LinkedIn will becomeincreasingly useful and survive.”

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About Executives Online

We offer a unique, full -service process with is a balanced blend of technologyand personal service.

Executives Online delivers fast-track executive resourcing – interim management, projectmanagement, and permanent recruitment – leveraging our 100,000-strong Talent Bank of seniorexecutives. We source talent globally, via the Talent Bank which is built and drawn upon byeach of our growing network of offices around the world.

We offer a unique, full-service process which is a balanced blend of technology and personalservice. Our approach attracts both the best candidates and the most challenging opportunities,and enables us to rapidly and effectively match then together in successful placements.

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Communities of interestwhich span across

companies, skill areas,and social groups will

become strongerproviding recruiters with

networks of talent

“

”

South of England

Staple House, 3rd FloorStaple Gardens, WinchesterHampshire, SO23 8SRT: +44 (0) 1962 893 300

London

Capital Tower, 91 Waterloo RoadLondon, SE1 8RT T: +44 (0) 845 053 1188

North of England

2 Victoria Street, WetherbyWest Yorkshire, LS22 6RE T: +44 (0) 1937 581900

North East of England

Rotterdam HouseQuaysideNewcastle upon Tyne, NE1 3DY T: +44 (0) 191 2064113

North West of England

82 King StreetManchester, M2 4WQT: +44 (0) 161 935 8246

Scotland

Dalgety Bay Business CentreRidgeway, Dalgety Bay, KY11 9JNT: +44 (0) 1383 828920

Midlands

West Walk Building 110 Regent Road Leicester, LE1 7LT T: +44 (0) 845 328 2370

South West and Wales

1 Friary, Temple QuayBristol, BS1 6EAT: +44 (0) 117 344 5128

Ireland

1st Floor, 43 Main StreetRathfarnham, Dublin, D14T: +353 (1) 492 5000

Belgium

Gentsesteenweg 1050, bus 121082 BrusselsT: +32 (0) 475 580 333

France

17 rue du Maréchal Lyautey95620 Parmain T: +33 (0)1 34 73 10 72

Germany

Dillenburger Strasse51105 Cologne T: +49 (0) 221-460 234 17

Italy

Via Senigallia 18/2 Torre A20161 MilanT: +39 (0) 2 6467 2632

The Netherlands

Atrium gebouwStrawinskylaan 30511077 ZX AmsterdamT: +31 (0)20 3012159

Australia

Level 6, 77 Pacific HighwayNorth Sydney, NSW 2060 T: +61 (02) 9460 3824

South Africa

West Block, Dunkeld Crescent Corner Jan Smuts and Albury Rd Dunkeld West 2196T: +27 (0)11 2432801