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Bargerstock, Andrew Stephen
Measuring the impact of computerizing the recruitment information system: improved utilization of inner resources through organizational self-referral mechanisms

Order No. 9605337

Business process improvement teams frequently engage computers to improve the quality and cost effectiveness of internal services. Prior surveys indicate that less than half of organizational employment departments have computerized their recruitment information systems. This survey of 225 U.S. organizations explores both the reasons for lack of computerization and the impact of installing a computerized recruitment information system (CRIS). Mailed questionnaires were sent to a sample of employment managers throughout the U.S.A.

Responses from the 120 non-computerized organizations reveal that uncertainty about estimating costs and benefits of computerization is a major obstacle for investment decisions.

Data from 105 CRIS respondents offers insights about how automation affects the cost and quality of internal employment services. The researcher predicted significant differences in hiring cost efficiency and recruiting response time between two computerized groups, HI profilers and LO profilers. HI profilers are characterized by regular search of their database of past applicants to resurrect candidates for current job vacancies. LO profilers do not or can not utilize their database in the same manner.

Compared to LO profilers, HI profilers report significantly superior improvements in cost of hiring and recruiter response time. HI profilers report a mean decrease of 11.1% in candidate sourcing costs compared to a 1.5% decrease for LO profilers. HI profilers also report a mean decrease of 6.3 days in time to fill vacancies compared to 1.2 day decrease for LO profilers. Both computerized groups report that these improvements were achieved without sacrificing the quality of candidate pool.

The aggregate mean payback period for HI profilers was 2.7 years compared to 31.6 years for LO profilers.

Further analysis indicates that the level of advertising before computerization significantly affects the level of cost savings achieved through implementation of the CRIS.

Frequent HI profile advertisers report a mean savings of 24.2% in candidate sourcing costs.

Results of this study can help computerized organizations improve their data management processes. For non-computerized organizations, the results offer insights about how to better estimate the costs and benefits achieveable through computerization. Source: DAI, 56, no. 10A, (1995): 4035

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