THE USE OF XING AND LINKEDIN FOR RECRUITMENT IN ENTERPRISES - Project 1 / FHNW Master of Science in Business Information Systems

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THE USE OF XING AND LINKEDIN FOR RECRUITMENT IN ENTERPRISES - Project 1 / FHNW Master of Science in Business Information Systems
THE USE OF XING
   AND LINKEDIN FOR
    RECRUITMENT IN                                  22nd June 2012

       ENTERPRISES                                  Carlo Colicchio
                                                    Iso Demirkaya
                                                    Alex Hächler

                                Project 1 / FHNW
Master of Science in Business Information Systems
THE USE OF XING AND LINKEDIN FOR RECRUITMENT IN ENTERPRISES - Project 1 / FHNW Master of Science in Business Information Systems
Introduction

Title:                    The Use of XING and LinkedIn for Recruitment in Enterprises

Authors:                  Carlo Colicchio
                          carlo.colicchio@students.fhnw.ch
                          Iso Demirkaya
                          iso.demirkaya@students.fhnw.ch
                          Alex Hächler
                          alex.haechler@students.fhnw.ch

Adviser:                  Prof. Martina Dalla Vecchia
                          FHNW Olten – School of Business
                          Riggenbachstrasse 16
                          4600 Olten
                          martina.dallavecchia@fhnw.ch

Study:                    Business Information Systems

Module:                   Project 1

Start date:               February, 2012

End date:                 June, 2012

Place:                    Olten

Copyright:                © 2012 by FHNW Olten – School of Business

Carlo Colicchio, Iso Demirkaya, Alex Hächler                                            2/72
THE USE OF XING AND LINKEDIN FOR RECRUITMENT IN ENTERPRISES - Project 1 / FHNW Master of Science in Business Information Systems
Introduction

Abstract

XING and LinkedIn are nowadays well-known social business networks for business people.
They are used by employers, recruiters, employees and job seekers. Social business
networks help companies in marketing and recruiting activities.

This research paper focuses on recruitment processes for enterprises that use XING and
LinkedIn. The reader gets theoretical insights about social media, social networks and social
media recruitment. The characteristics, functionalities, mobile apps and the price models of
XING and LinkedIn are illustrated to set up a comparison. Recruitment processes compared
with eRecruitment supported processes are a part of this research paper as well.

The analysis based on interviews is executed through the research team with CEO’s, HR
managers and recruiters. The topic is supported by trend report statistics about effectiveness
and efficiency of recruiting channels. The experiences of the interviewees with social
business networks are summarized to give recommendations for enterprises. A set of
functionalities, memberships and services of XING and LinkedIn are compared in interest of
giving enterprises a basis for their choice of tools. Finally the research paper makes
recommendations for companies that intend to use one of these two social business
networks.

In summary, social business networks are only a part of the whole recruitment process and
therefore cannot cover all activities efficiently in a recruitment process. The efficiency of
social business networks can be increased under certain circumstances e.g. media-mix
strategies, recruitment strategies or the combined use with an applicant tracking system.
Furthermore the advanced search functionalities of XING and LinkedIn make it possible for
companies to actively search for candidates and find them easier within a shorter time
period.
The hypothesis that XING and LinkedIn are more efficient than other recruiting channels can
be qualitatively proved.

Carlo Colicchio, Iso Demirkaya, Alex Hächler                                                3/72
THE USE OF XING AND LINKEDIN FOR RECRUITMENT IN ENTERPRISES - Project 1 / FHNW Master of Science in Business Information Systems
Introduction

Table of content

1         Introduction.............................................................................................................5
1.1       Hypothesis ............................................................................................................... 5
1.2       Research questions ................................................................................................. 5
1.3       Boundary ................................................................................................................. 7
1.4       Research methodology and techniques ................................................................... 8
2         Literature review ...................................................................................................11
2.1       Social media ...........................................................................................................11
2.2       Social network ........................................................................................................12
2.3       The use of social business networks in enterprises ................................................13
2.4       Users of social networks .........................................................................................14
2.5       Social media recruitment ........................................................................................15
3         XING.......................................................................................................................17
3.1       Characteristics / functionalities................................................................................17
3.1.1     Web platform ..........................................................................................................19
3.1.2     Mobile apps ............................................................................................................21
3.2       Price models and benefits.......................................................................................22
4         LinkedIn.................................................................................................................24
4.1       Characteristics / functionalities................................................................................24
4.1.1     Web platform ..........................................................................................................26
4.1.2     Mobile apps ............................................................................................................28
4.2       Price models and benefits.......................................................................................29
5         Recruitment in social business networks ...........................................................32
5.1       Use case for adaption in business area ..................................................................32
5.2       Effectiveness and efficiency statistics .....................................................................36
5.3       Experiences of enterprises with social business networks ......................................38
6         Comparison XING versus LinkedIn .....................................................................43
7         Conclusion and recommendation .......................................................................48
8         List of literature and references ..........................................................................51
9         List of figures and tables .....................................................................................54
10        Appendix ...............................................................................................................56

Carlo Colicchio, Iso Demirkaya, Alex Hächler                                                                                     4/72
THE USE OF XING AND LINKEDIN FOR RECRUITMENT IN ENTERPRISES - Project 1 / FHNW Master of Science in Business Information Systems
Introduction

1 Introduction
The purpose of this research project is to compare the two social business networks XING
and LinkedIn. Nowadays “Social Media” is one of the most mentioned topics all over the
world, based on the fact that social networks like Facebook, Twitter, etc. are an extremely
successful business. According to this fact, even companies need to consider the use of
these social media platforms to maintain their relationships with (potential) customers and
employees. Especially for enterprises, the on-going development and popularity of social
business networks like XING and LinkedIn are a matter of fact and therefore a need of action
is required.
The findings of the research paper should provide further information how both social
business platform can be used by companies to generate benefits and which of the two
networks would fit best with the different requirements of companies.

1.1 Hypothesis
The main aim of this research paper is to give an answer to the following hypothesis:

 Social business networks like XING and LinkedIn allow companies to recruit
    employees in a more efficient way than over other recruiting channels (job
    employment agencies, corporate website, print media, etc.).

The above mentioned hypothesis should help companies to find out if they should include
XING and LinkedIn in their processes or not. For companies, it is important to know whether
and where they will be more or less efficient by applying these social business networks. .
That will enable them to decide where it makes sense to make use of them or not. They
therefore also have to be compared with the classical communication channels companies’
choose to fulfil their business needs. More efficient means a shorter cycle time with lower
costs compared to the classical communication channels.

1.2 Research questions
The research questions have been derived from the hypothesis. The following questions
should help to answer the hypothesis and are guiding the content of this research paper.

First of all a main research question has been derived:

 How can companies make the most out of using the two social business networks
    XING and LinkedIn?

Carlo Colicchio, Iso Demirkaya, Alex Hächler                                               5/72
THE USE OF XING AND LINKEDIN FOR RECRUITMENT IN ENTERPRISES - Project 1 / FHNW Master of Science in Business Information Systems
Introduction

Making most out of it refers to recruiting activities within a company. Marketing activities are
also a part of XING and LinkedIn. This research paper will not go into detail regarding this
application area. The recruiting activities are described from the point of view of enterprises
from the time when they decide to search for appropriate candidates until to the stage when
they finally hire new employees.

The research project in the field of social business networks (XING and LinkedIn) wants to
answer, the following research questions:

    What functionalities do the web and mobile platforms of XING and LinkedIn provide in
     order to support efficient recruiting processes?
    What kind of pricing models exist and which benefits are offered by these two platforms?
    What are the experiences of companies that use XING and LinkedIn for their recruiting
     activities?
    Which are the advantages and disadvantages (comparison) between the two social
     business networks?

Basically the answers of these research questions should help to provide recommendations
to companies, which are considering the application of social business networks like XING or
LinkedIn for recruitment.

Carlo Colicchio, Iso Demirkaya, Alex Hächler                                                6/72
THE USE OF XING AND LINKEDIN FOR RECRUITMENT IN ENTERPRISES - Project 1 / FHNW Master of Science in Business Information Systems
Introduction

1.3 Boundary
The boundary shows which topics are parts of this research paper and what specifically of
those parts is being analysed. In Figure 1 the general hierarchy is described. The focus is on
the topics with the dark background (social business networks and recruitment).

                                                 social
                                               business
                                               networks

                                           social
                                          networks
                                       social media

                      Figure 1: Pyramid of social media/ networks/ business networks

This hierarchy is created by the research team in order to give the reader a clear
understanding of the terms which are used by the research team. The social networks
belong to the social media and one sub-category of the social networks is social business
networks. So this research paper will only be about social business networks and the
influences of social business networks. There are two relevant activities which are covered
by social business networks: Recruitment and marketing. This paper focuses mainly on
recruiting activities for enterprises. The recruitment process is being described from the
companies’ point of view. It covers the whole process from searching to hiring a new
employee.
Marketing activities are only part of this paper if the activities are related to recruitment, such
as a professional company profile, groups or events on a social business network to attract
potential employees. In this research paper marketing is regarded as an instrument to reach
potential new employees.
Social business network will be explained to give a clear and common understanding about
what a social business network is. This research paper focusses on two well-known social
business networks in Europe: XING and LinkedIn. Other social business networks are not
part of this research paper. The experience of private users is not part of this research paper
as well because the focus is on the usage and benefits for enterprises.

Carlo Colicchio, Iso Demirkaya, Alex Hächler                                                   7/72
Introduction

1.4 Research methodology and techniques
In order to achieve the defined research goals a research methodology is needed to ensure
the scientific character of the research findings.

In general, the research project followed a deductive approach which included these steps:
    Theory (Research of previous findings, experiences, first observations)
    Hypothesis (Derivation of the hypothesis according to already analysed theory)
    Observations (Analysis of the research area with the stated research questions)
    Confirmation (According to the carried out analysis, confirmation or rejection of the
     hypothesis and deduction of a conclusion)

The following sections of this chapter precisely describe the most important activities and the
corresponding techniques in order to understand how the research questions have been
answered.

               The first step of the research project included an accurate literature research of
               scientific papers, books and research studies within the field of social media
               with the focus on social business networks. Due to the fact that the hype topic
               “social media” is well-known all over the world and reached a good state of
               maturity, market research companies like Gartner, Forrester, etc. have already
               conducted interesting research studies within this field. Furthermore internet
               sources like blogs and twitter-streams of experts have also been followed.
               According to the high quantity of literature an accurate analysis is required in
               order to get as much information as possible to reach an appropriate
               knowledge base, which is the state of the art.

               After the literature research, the research questions and sub-questions have
               been defined in order to outline the focus of this research project. As already
               mentioned in chapter 1.2 the main research question is:

                How can companies make the most out of using the two social
                   business networks XING and LinkedIn?

               In order to answer this main research question five further sub-questions have
               been defined to specify the main goals which have to be achieved by carrying
               out this research project. Furthermore a hypothesis has been derived from the
               described research questions which has to be approved or rejected according
               to the findings of the research analysis.

Carlo Colicchio, Iso Demirkaya, Alex Hächler                                                 8/72
Introduction

               The main research analysis first covered the history, facts and figures of XING
               and LinkedIn. Based on the gathered information, a better understanding and
               new knowledge about the two platforms was derived. In addition to the
               explanation of both social business networks, real-life experiences of
               enterprises (case studies), which already use respectively benefit from social
               business networks like XING or LinkedIn have been researched. Therefore9
               semi-structured interviews have been carried out with knowledge holders,
               which have experience in our research field. Most of the interview partners
               have been recommended or are part of the business network of the research
               team.

               The interview partners are CEOs, human resource managers or personnel
               consultants with the focus on (e)-recruiting (also social recruitment). The
               interviewees are from small to large and from locally to internationally operating
               enterprises. For the interviews, an interview catalogue of eleven questions has
               been derived from the literature research. All the interviews, which on average
               have lasted an hour, have been carried out personally to get as much
               information as possible from these recruiting experts.

               The results from the interviews have been collected and merged together in
               order to reach an overview about all posed questions. The next step included a
               qualitative analysis of the data set, which allowed to identify response patterns
               and to derive conclusions from that. The research findings from the interviews
               have been compared with similar results from two well-known empirical
               research studies in the field of recruitment. Thanks to this approach the
               statements from the interview partners have been confirmed.

               It has been rejected to carry out an empirical survey, based on the decision that
               the focus of this research project is to show how enterprises can make most out
               of using these social business networks. Therefore it makes more sense to
               interview knowledge holders from companies which are already active within
               the mentioned research topic. Assuming that the return of an empirical survey
               would not be very large, the preferred research technique has been to carry out
               qualitative semi-structured interviews.

Carlo Colicchio, Iso Demirkaya, Alex Hächler                                                 9/72
Introduction

               The last step of the research methodology was to inter the final findings from
               the interviews in order to prove or disprove the hypothesis. Therefore it has
               been defined to measure and compare the efficiency of “new” processes (social
               business networks and applicant tracking systems) with a classic recruitment
               process. More efficient in this case means a shorter cycle time with lower costs
               compared to the classical recruiting channels. The costs should be measured
               by the existing pricing models of XING and LinkedIn and the process costs of
               the modelled generic processes by the answered questions of the interviewees.

               According to the described approach it has not been possible to measure the
               efficiency quantitatively of these activities due to the fact that the interviewed
               partners have virtually no data of recruitment process costs and generally the
               information gained from the interviews is not precise enough to write
               representative quantitative statements. Therefore it has been decided to make
               qualitative statements with the existing theoretical data and the data from the
               interviews. Additionally the effectiveness of the different recruiting channels
               could be analysed quantitatively as well to give a better decision basis for
               companies what kind of recruiting channels may be applicable in practice.

               In addition to this efficiency measurement, a qualitative comparison of both
               social business networks has also been carried out. Based on a predefined set
               of criteria, which has been weighted according to the importance for social
               business networks (especially recruiting), both networks have been rated. This
               evaluation allowed getting a final comparison of XING and LinkedIn. Thanks to
               that a conclusion which contained the most important findings of this research
               project, and especially proved or disproved the hypothesis, has been stated.

Carlo Colicchio, Iso Demirkaya, Alex Hächler                                                10/72
Literature review

2 Literature review
To get an overview of the topic of social media and especially social business networks like
XING and LinkedIn this chapter outlines the state of the art around this topic. Social Media is
a wide term which nowadays can be associated with different activities in the internet. This
chapter explains what is already known about social media, the differentiation of social
networks types and how these new communication channels can be used for business
activities such as for recruitment.

2.1 Social media
Social Media is an overall term for media that serves the exchange of partners over the
Internet within a community. It can be represented as opinions, impressions, experiences
and information and knowledge which are generated by users (Onlinemarketing-Praxis
                                                             2012).
                                                             Furthermore social media allows
                                                             users to create contributions in
                                                             certain online media channels.
                                                             According to Figure 2 it can be
                                                             shown that a huge amount of
                                                             social media platforms have
                                                             been established over the past
                                                             years. They are used to share
                                                             different types of media for
                                                             example pictures, music, video,
                                                             events, business contacts and
                                                             much      more.       Social     media
                                                             platforms are not only used for
                                                             private purposes but they can
                                                             also     be   found     in     business
Figure 2: Social Media Prisma (ethority.de, 2011)            environments.

Therefore enterprises are facing the trend and react to this new way of collaboration and
exchange of media. According to the research study of KPMG International (2011, p. 2) the
participation of enterprises in social media has become a business imperative. More than 70
per cent of the organizations operating around the world are active on social media now.

Carlo Colicchio, Iso Demirkaya, Alex Hächler                                                   11/72
Literature review

As a matter of fact, social media are rapidly moving up the boardroom agenda, regardless
the type of industry or the organisation structure. This fact can also be proved by the social
media report 2010/11 (Böttcher et al 2010, p. 3) where 77 per cent of the survey participants
are of the opinion that social media is relevant for enterprises. Networks like Facebook,
LinkedIn, Twitter and XING are the most important and should be used by organisations.
Social business networks like XING with 12.3 million (XING 2012) and LinkedIn with 161
million users (LinkedIn 2012) have combined about 175 million users which use these
platforms to share business contacts and build up relationships with like-minded people.
Such figures outline the potential of social media and demonstrate the importance they
already have reached in the society.

2.2 Social network
In reference to social media the term social networks can be summarised as platforms and
online-presences, which help internet-users to build up and maintain relationships. Therefore
the related information exchange and communication between the parties is also supported
(Hettler 2010, p. 53). The contextual alignment of the social networks providers differs a lot
between the platforms and therefore a differentiation of two types of networks is necessary
(Hettler 2010, p. 54):

 Scope                       Communication and private exchange between (un/known) persons
 Basis of the network        Social relationships between the persons
 Type of the network         Symmetric, with the confirmation of the relationship the sharing of activities
                             starts
 Example                     Facebook, LinkedIn, XING

Table 1: Social network types (relationship and communication)

 Scope                       Publication, sharing and discussion about all types of content
 Basis of the network        Published content of the sender
 Type of the network         Asymmetric, users can follow the contributions of network participants
                             without having mutual connection/relationship.
 Example                     SlideShare, Twitter, YouTube

Table 2: Social network types (publication of content)

According to the above mentioned social network types the following basic functionalities can
be described: Identity Management (Possibility to edit the own profile), Contact Management

Carlo Colicchio, Iso Demirkaya, Alex Hächler                                                          12/72
Literature review

(Possibility to administrate contacts and to network), Expert research and the support of an
information exchange between contacts (Back et al. 2009, p. 71).
To get an impression of social networks it can be said that Facebook is the largest world-
wide social-network with more than 900 million members at the moment (Facebook 2012).
To turn the focus on the business-side, enterprises also use social networks especially XING
and LinkedIn to support business activities. These so called social business networks like
XING or LinkedIn provide a multitude of functionalities, which can be used for marketing or
recruitment activities. Specifically, these social business networks have special pricing
models which allow the user to get a basic set of functionalities for free. For more
sophisticated functions a periodical service fee is charged. The detailed characteristics of
both social business networks will be described in the following chapters 3 and 4.

2.3 The use of social business networks in enterprises
The impact of social media in general is according to already mentioned facts astonishing. In
order to deepen the application areas of XING and LinkedIn the European social media
report 2010/11 (Böttcher et al 2010, p. 5) outlines the findings in Figure 3: According to the
research study, the business activity which can be best supported by social business
networks is human resources/career enhancement (XING: 81% and LinkedIn: 51%) in both
cases. This activity is followed by external communication with business partners (XING:
73% and LinkedIn: 43%). Figure 3 shows also that both social business networks are used
for private and business purposes. According to that fact it is evident that people ascertained
that such platforms bring advantages along, which support their activities in both application
areas. It can be said that employees connect their private and business life through the use
of social business networks. Beside the application of social business networks for career
enhancement/HR the corporate communication to external stakeholders can also be
supported by these platforms.

               81%       73%                                            72%        79%

                   51%
                           43%                                                       46%       XING
                                                                           37%
                                 29%                            28%
                                       24%
                                   15%                                                         LinkedIn
                                         13% 12%        9%5%       9%
                                                3%

Figure 3: For which purpose is XING/LinkedIn useful? (Böttcher et al 2010, p. 5)

Carlo Colicchio, Iso Demirkaya, Alex Hächler                                                              13/72
Literature review

According to the “Social Media Studie 2011-Namics” (2011, p. 14), the largest share of
communication through social networks is covered by the human resource department
followed by the corporate communication division. It is expected that the importance of social
business networks like XING and LinkedIn will increase and take a relevant position in the
near future (Böttcher et al 2010, p. 9).

2.4 Users of social networks
The evolution of social media and the contemporaneous growth of social networks are
supported by the large amount of people, who use these networks. The so called “Digital
Natives” are the generation which have grown up with the new possibilities which the internet
technology has provided. Already in their childhood they started to spend time on the internet
and tried to generate and share content with other internet users. In comparison to older
generations, Digital Natives make the internet an essential part of their life and that can be
seen as a virtual living environment (Hilker 2010, p. 21).
The already mentioned older generation, which can be defined as “Digital Immigrants”, has a
more conservative attitude to use the internet and especially social networks. Nowadays, the
management positions within companies are mostly taken by such “Digital Immigrants” which
have another approach of working and have more difficulties adapting to the use of new
communication media. But it is a matter of fact that social media especially social networks
will lead to a paradigm shift where openness, transparency and interactivity are taking a
more important role in the society and also in the business world. Companies have to face
this evolution and take into consideration the needs of the “Digital Natives” to become
attractive as an employer of the new generation but as well to be competitive on the market
(Hilker 2010, p. 22).
In order to get back to the main focus of this research paper Figure 4 shows the age
distribution of the users of both social business networks XING and LinkedIn. According to
that figure, it can be said that the users of these platforms are business people which are
mostly aged between 25 and 44 years. This age range would represent something between
“Digital Natives” and “Digital Immigrants”.
As already mentioned, the target group of such social business groups is on average a little
bit older than for example other social networks like Facebook, Twitter or YouTube. This fact
can be also interesting for companies which are aiming to hire new employees or to enhance
the popularity of their brand. Through the use of such social business networks there are a
lot of possibilities to reach an appropriate target group to fulfil the already mentioned
company tasks.

Carlo Colicchio, Iso Demirkaya, Alex Hächler                                             14/72
Literature review

                               6%
           0-17
                          4%

                               6%
          18-24
                          4%

                                                                    21%
          25-34
                                                                          28%
  Age

                                                                                        35%
          35-44
                                                                                      34%

                                               12%
          45-54
                                                 13%

                                                       16%
          55-64
                                                13%

                          4%
        65-older                           LinkedIn          XING
                          4%

Figure 4: Age distribution of XING and LinkedIn (eins-zu-null 2012)

2.5 Social media recruitment
Based on the assumption that social business networks are new ways of supporting
recruiting activities of enterprises can be supported, this chapter gives an overview how
modern social business networks are used for this application area.
The term “social media recruitment” is part of the overall concept of “e-recruitment”, also
known as “online recruitment”. This topic is defined by the use of web based tools to assist
the recruitment process. The tool can be a job platform, the organisation’s corporate web site
or an even more sophisticated applicant tracking system (ATS). Nowadays organizations are
using the internet as a source for recruitment and in some cases IT-systems (ATS) to
support the whole recruitment process (recruitment.naukrihub.com 2012).
As a matter of fact, the search of employees by companies is usually handled with job
advertisements in newspapers, personal recommendations or job platforms in the internet.
But a lot of enterprises are neglecting the opportunities which social media are providing.
Especially the opportunities to reach highly qualified people (employer recruitment) and
furthermore to enhance positively the development of the brand of the company (employer
branding) are topics which should awake the interest of the business world (Hilker 2010, p.
131).
According to the explanation of the characteristics and functionalities of the social business
networks XING and LinkedIn in the following chapters 3 and 4, it can be shown that they

Carlo Colicchio, Iso Demirkaya, Alex Hächler                                                  15/72
Literature review

provide new ways for companies to support employer recruitment. For example, social
business networks offer search engines with extended filter functionalities to find potential
employees and to directly get in touch with them. Considering the whole recruiting process
according to the German research study “Recruiting Trends 2012” (2012, p. 34) it can be
confirmed that social business networks are mostly used for the publication of job
advertisements and the active sourcing of new applicants, which represents one of the first
stages of the whole recruiting process.

    59%                                                                               60%

                        52%               52%
                                                                                                Yes
                                                            44%

                                                36%
                                                                                                Currently not,
                                                                              29%
          27%                    26%                              27% 29%                       but planned in
                              22%                                                               future
                                                                                                No, neighter
              14%                                  12%                                          planned in
                                                                                    12%
                                                                                                future

  publication of job   active sourcing employer branding building up and active sourcing of
   advertisments        for applicants                  enlarge network of already identified
                                                            recruiters         applicants

Figure 5: Adoption of social business networks for recruitment (Eckhardt et al. 2012b, p. 34)

Carlo Colicchio, Iso Demirkaya, Alex Hächler                                                              16/72
XING

3 XING
The social business network “Open Business Club” was founded in 2003 in Hamburg,
Germany and has been renamed in 2006 (Lutz et al. 2011, p. 21) to its current brand “XING”.
The company employs over 450 people from 27 different countries. In 2010 XING acquired
amiando AG, a Europe’s leading provider of online event management and ticketing. The
platform has more than 12 million members worldwide (March 2012) and is available in 16
languages (XING 2012). The revenue in 2011 was EUR 66.2 million (XING 2012).

3.1 Characteristics / functionalities
The characteristics of XING should give the reader an overview of the kind of people and
companies that are using XING. It also points out the regions where it is mostly used.
The XING Media Data is an analysis in the DACH region (Adconion 2012).

XING has 5.27 million members in the DACH region (Germany, Austria and Switzerland) and
approximately 7 million members are from other countries. These 7 million members are a
small and not relevant percentage per country and are therefore not included in Figure 6. In
the brackets is the percentage of XING members compared to the total amount of the
population of the respective country. The graph shows that the popularity of XING is mostly
in German speaking countries, although XING offers its platform also in English and other
languages.

   Switzerland          0.43        (5.41%)

        Austria          0.44       (5.23%)

      Germany                                                                 4.4   (5.38%)

 Total in DACH                                                                           5.27   (5.37%)

                  0             1              2           3            4           5           6
                                              Numbers of members in million

Figure 6: Numbers of members in millions of XING (XING Media Data 2012, p. 1; statistik.at;
de.statista.com; bfs.admin.ch)

Carlo Colicchio, Iso Demirkaya, Alex Hächler                                                          17/72
XING

Figure 7 shows the industry distribution of XING. For companies in the service branch XING
is quite well-known and applied, followed closely by industry and media.

                                  14%

                                        12%   11%
   Industry distribution

                                                    8%   8%    8%
                                                                     7%
                                                                          6%    6%   6%
                                                                                          5%

                                                                                                3%
                                                                                                     2%    2%   1%

Figure 7: Industry distribution of XING (XING Media Data 2012, p. 2)

Figure 8 gives an overview of the companies’ size that can be found on XING. Small
companies between 1 and 50 employees have a combined share of over 30% of all company
sizes. On the other side huge companies with over 10,000 employees are also well
established on XING.

                                               17%
   Size of company distribution

                                                         16%        15%                                         15%
                                                                                               12%
                                                                           9%
                                                                                     7%
                                        5%
                                                                                                      4%

Figure 8: Company size distribution of XING (XING Media Data 2012, p. 2)

Carlo Colicchio, Iso Demirkaya, Alex Hächler                                                                          18/72
XING

3.1.1   Web platform

This section describes the web platform of XING focussed on the business side. It is not the
intention of the following descriptions to go into detail about how to set up a personal profile.
As already mentioned in chapter 1.3, the focus is on the usage and benefits for enterprises.

Figure 9: XING web platform profile example (Bpmnforum 2012)

First of all the functionalities of XING related to recruiting activities are mentioned.

Messaging             The messaging function is used to contact other members on XING by
                      text messages which are saved in every member’s mailbox. This function
                      can also be used to send messages to members belonging to a specific
                      group or invite people directly to an event.

Member                This function offers the option to search for members by name, position,
search                company, wants, haves etc.

Job offer             The point of view is from a company who is searching for a new qualified
                      employee to hire. The job offer function allows companies to place their
                      job offer online on XING and all members of XING can view and apply for
                      it. The job offer is in one of ten typical categorisations such as IT or
                      Engineering.

Job search            The applicant can search for job advertisements by entering a search
                      term concerning a job position, a company name or search by a category
                      or a city. For some job advertisements it is possible to directly go to the
                      website of the company and apply online.

Carlo Colicchio, Iso Demirkaya, Alex Hächler                                                 19/72
XING

Company               XING provides a functionality to set up a company profile. Applicants can
profile               visit the company site to get an overview of the company they might like
                      to apply for.

Premium               The Premium Membership offers more than the free membership.
Membership            Additionally it provides an advanced search function which is helpful for
                      employers and recruiters to find better matching candidates, due to the
                      specific search filters. Furthermore compared to the free membership it is
                      possible to see who viewed the own profile. The free membership only
                      shows the profile picture without name and profile information of the
                      visitor. More about the Premium Membership can be found in chapter 3.2.

Recruiter             For HR consultants, managers and head hunters there exists a special
Membership            membership called “Recruiter Membership”. With this membership
                      recruiters can use more search filters to find top candidates faster.
                      Additionally they can see more profile information of the candidates in the
                      overview without having the candidates in their own contact list. It is
                      possible to assign a candidate status for every person in the overview,
                      such as “Interesting”, “CV received”, “Interviewed with the customer” etc.
                      More about the Recruiter Membership can be found in chapter 3.2.

In the following the functionalities for marketing activities related to support recruitment are
mentioned.

Groups                With the function to create groups, companies can advertise themselves.
                      A XING member who works for a company in the machine building
                      industry can e.g. create a group for engineers to discuss interesting
                      topics. At this moment the XING member is also a moderator of a group
                      and is listed on the side of the group page with his company name. The
                      company has the chance to get to know some interesting members of
                      XING in the respective field and these could also be potential employees.

Events                XING members have the possibility to organise events and use the
                      online-ticketing system provided by amiando. For example a recruiting
                      event for graduates could help to find new employees.

Carlo Colicchio, Iso Demirkaya, Alex Hächler                                                 20/72
XING

3.1.2   Mobile apps

This section describes the mobile app of XING. The following descriptions are related to the
version 3.5.7i of the German Android app. The functions of the Android and iPhone app are
the same. XING has a specially designed website for tablets on touch.xing.com and mobile
apps for Black Berries and Windows Phones as well (XING 2012), which are - due to a lower
popularity - not part of this research paper. Compared to the web platform the mobile apps
do not offer as much functionalities.

Contacts              The app provides the standard
                      functionality to view your own
                      contacts with their whole profile.
Search                The search function offers the
                      possibility to search for contacts
                      which are not in the user’s list.
My Profile            The own profile can be viewed but
                      not edited.
Messages              With this function it is possible to
                      view and send messages to the
                      contacts of the own network.
Connector             The     connector   provides    re-
                      commendations of people you may
                      perhaps know or are related to your
                      contacts.
Birthdays             Birthdays shows the upcoming            Figure 10: Mobile app XING iOS
                      birthdays of your contacts in XING.
Visitors              The free membership allows you to
                      see the profile picture of the person
                      who visited your profile whereas the
                      contact details of those visitors can
                      only be viewed if you at least have a
                      Premium membership.
Handshake          The only function that is not provided
                   in the web platform but in the mobile
                   app is “Handshake”. The user can
                   display the QR-Code of his profile on
                   his mobile phone while another
                   person who also uses this app can
                   scan the QR-Code and can then
Figure 11: Example view the profile of the person in front
of a QR-Code
(internet-echo,    of him. For example this can be used
2012)              at a meeting to add new business
                   contacts on XING.                          Figure 12: Mobile app XING Android

Carlo Colicchio, Iso Demirkaya, Alex Hächler                                                   21/72
XING

3.2 Price models and benefits
XING offers several fee-based services. In this section, the focus relies on the additional
benefit for professional members, not private people, if they choose to subscribe to fee-
based services. These price models refer to the web platform and not to the mobile apps.
There are three different types of memberships shown in Table 3. In the column “Benefit” all
the additional benefits are listed compared to the Premium Membership. The free
membership is below the Premium Membership and is not listed. The important
functionalities for recruiting of the free membership have been already mentioned in chapter
3.1. The Sales Membership is an additional price model which is provided by XING but is
only mentioned in this chapter for the sake of completeness.

 Membership                       Price in CHF       Benefit
 XING                            4.75 per month       See who visited your profile
 Premium Membership              (3-month term)       Apply filters to improve search efficiency
                                 4.15 per month       Send messages to non-contacts
                                (12-month term)
                               50% off the regular
                                price for students
 XING                                                 Find business partners in a more
 Sales Membership               60.00 per month
                                                       targeted way
                                 (3-month term)
                                                      Identify potential customers faster than
                                                       ever
                                36.00 per month       Transparent sales workflows
                                (12-month term)       Plus all of the Premium features

 XING                           72.00 per month       Use exclusive search filters to find top
 Recruiter Membership            (3-month term)        candidates faster.
                                60.00 per month       See more profile information in the
                                 (6-month term)        overview
                                                      Efficient candidate management
                                48.00 per month
                                                      Plus all of the Premium benefits
                                (12-month term)

Table 3: XING Membership cost/benefit overview (XING 2012)

Carlo Colicchio, Iso Demirkaya, Alex Hächler                                                  22/72
XING

There are two services in XING which are offered in three price categories each and are
available in every type of membership. The job advertisement function in Table 4 provides
three different types of advertisements. The more the customer is willing to spend, the more
options are available to set up an attractive advertisement. The prices for ads and company
profiles are officially only available in EUR on the website of XING. Therefore the prices in
CHF are below the EUR prices with an estimated exchange rate of 1.2.

    ad               TEXT                      LOGO                       DESIGN
    Price1           EUR 0.94                  EUR 470.05                 EUR 589.05
                     CHF 1.15                  CHF 564.05                 CHF 706.86
    Price type       Pay-per-click             Fixed price, including     Fixed price, customized,
                                               logo, PDF, 30-day term     30-day term
    Benefit           No basic fee, no          Add your company         Generate more
                       minimum charges            logo to improve             interest with a
                      Click limit for            recognition                 customized design
                       complete cost             Ad text can be           XING will post your
                       management                 formatted                   ad(s) for you
                                                 View up to 20            View up to 20
                                                  members that match          members that match
                                                  your ad right now           your ad right now

Table 4: XING job advertisement cost/benefit overview (XING 2012)

The service to set up a company profile in Table 5 offers three possible types as well. The
basic profile is for free. For additional monthly charges, the profile can be found easier due to
the option to define your own keywords. The most expensive option provides statistical
analysis of the visitors of the company profile such as traffic-analysis and profile-analysis.

    Company      BASIC                     STANDARD                 PLUS
    Profile
    Price        0                         EUR 24.90 a month2       EUR 129.00 a month2
                                           CHF 29.90 a month2       CHF 154.80 a month2
    Benefit        "About us" page         All of the BASIC        All of the STANDARD
                    together with            benefits                 benefits
                    your company’s          Improved visibility     Linkable header graphics
                    logo                     thanks to freely         that can be changed as
                   automatically            definable                often as you like
                    generated list of        keywords                See who visited your
                    employees               "Contact" page           Company Profile
                   Option to post           listing people to       Visitor and follower
                    company                  get in touch with at     statistics as well as traffic
                    updates                  the company              and profile analysis
                                            Up to 5 profile         Highlighted entry in search
                                             editors                  results
Table 5: XING company profile cost/benefit overview (XING 2012)

1
    Prices for Switzerland and non-EU countries
2
    The minimum terms is 12 month

Carlo Colicchio, Iso Demirkaya, Alex Hächler                                                    23/72
LinkedIn

4 LinkedIn
LinkedIn was founded in 2002 in the living room of Reid Hofmann, a co-founder of the
company. The website was published on the internet on 5th May 2003. Just one month later,
already 4500 members were registered. The main purpose of the social network is
professional networking. LinkedIn was considered to be one of the top ten companies of
most valuable start-ups in 2010 with a value of $1.575 billion in private markets. (LinkedIn
2012)

4.1 Characteristics / functionalities
In this chapter, all the important characteristics and functionalities will be explained. To make
it better comparable, the structure of chapter 4 is held similar to the preceding chapter 3
about XING.
First of all, LinkedIn is the biggest platform for professional networking, considering its more
than 161 million subscribers (LinkedIn 2012). Figure 13 shows how they are grouped in
different countries. Most of the users are still located in the US market. But there is a huge
growth in European countries. According to LinkedIn students and recent college graduates
have the demographical fastest growth.

                                   42
   Numbers of members in million

                                        34

                                             25

                                                  15

                                                       9
                                                           7
                                                               5   4   3   3   3   3   2   2   1   1   1   1

Figure 13: Numbers of members in million of LinkedIn (LinkedIn 2012)

Carlo Colicchio, Iso Demirkaya, Alex Hächler                                                                      24/72
LinkedIn

Figure 14 shows the related industries, where LinkedIn is mostly used. There is still a larger
usage by technical industries such as IT and telecommunication as this target group is more
technology oriented as others.

                                                                20%
                                                                      17%
                                   Industry distribution

                                                                             10%   9%    8%     8%   7%    6%      5%    4%    3%      3%

Figure 14: Industry distribution of LinkedIn (IQ Digital Mediadaten LinkedIn 2012, p. 11)

Figure 15 shows the different sizes of companies using LinkedIn. Leaders of social media
are still big companies with 10,000 or more employees according to IQ Digital. There is still a
huge potential in middle-sized enterprises. Surprisingly, enterprises with employees between
5,001 and 10,000 use LinkedIn less than smaller enterprises.

                                                                                                                                 52%
   Size of company distribution

                                                                                                     18%
                                                                                        12%
                                                                            10%                                     9%
                                                           4%

                                    1-50                               51-200       201-1,000    1,001-5,000    5,001-10,000    >10,001
                                  employees                           employees     employees    employees       employees     employees

Figure 15 Size of company distribution of LinkedIn (IQ Digital Mediadaten LinkedIn 2012, p. 11)

Carlo Colicchio, Iso Demirkaya, Alex Hächler                                                                                            25/72
LinkedIn

4.1.1   Web platform

Figure 16: LinkedIn web platform profile example (Socialrabbit 2012)

On the first page, LinkedIn shows different kind of news and gives a first impression about
updates in the joined network. The important functions of the web platform are mentioned in
the following:

Messaging             The messaging function allows contacting other members on LinkedIn by
                      text messages which are saved in every member’s mailbox. This function
                      can also be used to send messages to members belonging to a specific
                      group or invite people directly to an event.

Search for            The search function allows finding new members on LinkedIn or existing
contacts              ones. There are different search criteria’s possible such as the company
                      name, member name, school, groups, skills and more.

Job offer             Recruiting news are found in the head of all updates. The job
                      advertisement function allows companies to place their job advertisement
                      online on LinkedIn and all members of LinkedIn can view and apply for it.

Carlo Colicchio, Iso Demirkaya, Alex Hächler                                               26/72
LinkedIn

Job search            There is also a separate section “jobs” which provides search
                      functionalities for all available jobs. The applicant is able to filter the jobs
                      by entering the company name, category such as IT, Engineering etc. or
                      region to get suitable job search results.

Company               For companies, LinkedIn provides a section where a company profile can
profile               be set up. This information is important to get an overview of the
                      company and for situations where the company tries to hire new
                      employee over LinkedIn or to reach potential customers.

Premium               Premium accounts offer more functionalities than the free membership. It
Accounts              offers more search results, expanded profile information, full list of visitors
                      and better filtering mechanisms.

For Recruiters        HR consultants, managers, head hunters or sales professionals might
                      benefit from search functionalities provided by the Recruiter Membership
                      which enables to choose important skills for new candidates.

In the following the functionalities for marketing activities related to support recruitment are
mentioned.

Groups                With the group function, employee of companies may discuss and follow
                      different topics. For example a LinkedIn member who works for a job
                      agency can create a group for HR managers to discuss related topics
                      about recruitment. The member who created the group is at this moment
                      the moderator of the group.

Events                LinkedIn members are able to organise and promote events with the
                      provided events function. In addition, LinkedIn shows a list of events,
                      which might be interesting for the user based on the groups which the
                      user follows.

Carlo Colicchio, Iso Demirkaya, Alex Hächler                                                     27/72
LinkedIn

4.1.2   Mobile apps

The LinkedIn mobile app is available for the following mobile operating systems: Android,
iPhones iOS and Black Berry (LinkedIn 2012). Most of the functions available on the web
platform are provided on the mobile app, too. There are still
some limitations: For example editing of the profile is not
possible on the mobile apps. The mobile app described in this
section is based on Android mobile app version 2.4.1. Figure
16 shows in comparison to the Android app, the iOS version
which looks different but provides the same functions.

LinkedIn        LinkedIn Today shows important business
Today           news.

Updates         This functionality provides latest updates about
                the own network activities.

You             This section shows the own profile which can
                                                                   Figure 17: Mobile app LinkedIn iOS
                be viewed but not edited. Furthermore the user
                has an overview about the visitors of the own
                profile and by clicking on the person, LinkedIn
                shows the profile information of the visitor.

Inbox           With this function it is possible to view and
                send messages to the contacts of the own
                network.

More            This functionality recommends people and
                groups which can be interesting for the user.

Search for It is possible to search for people in the contact
people     list and for new contacts.

Speech          The speech box in the right corner of the app
box             allows sending notifications. The user can
                choose if the stats update can be viewed by all
                network users or only by the own contacts.
                                                                   Figure 18: Mobile app LinkedIn
                                                                   Android

Furthermore a new mobile app for the iPad has been released, which provides a nicer view
of the dashboards, a better usability and a higher resolution for the iPad’s display.

Carlo Colicchio, Iso Demirkaya, Alex Hächler                                                  28/72
LinkedIn

4.2 Price models and benefits
LinkedIn offers several professional tools which can be categorized into four different areas.
One area considers the Premium Accounts, which allows members to directly contact any
people who are not in the personal contacts. The second area is for recruiters, which
provides several search functionalities to find a suitable employee. The Memberships for
Sales Professionals and for Job Seekers are additional price models which are provided by
LinkedIn but are only mentioned in this chapter for the sake of completeness.

Table 6 provides a brief overview of membership prices and benefits of the memberships.

 Membership                   Price in CHF       Benefit
 Premium Accounts
 LinkedIn Business            21.95 per month     Contact anyone directly with InMail
                              (1 month term)         Business: 3 per month
                              19.95 per month        Business Plus: 10 per month
                              (1 year term)          Executive: 25 per month
                                                  See more profiles when you search
 LinkedIn Business            42.95 per month        Business: 300
 Plus                         (1 month term)         Business Plus: 500
                              39.95 per month        Executive: 700
                              (1 year term)       Zero in (search engine provider) on
                                                   profiles with Premium search filters
 LinkedIn Executive           85.95 per month     See expanded profiles of everyone on
                              (1 month term)       LinkedIn
                              64.95 per month     Who’s viewed your profile: Get the full
                              (1 year term)        list
 For Recruiters
 LinkedIn Talent Basic        42.95 per month     Contact anyone on LinkedIn with InMail
                              (1 month term)        Basic: 10 per month
                              39.95 per month       Finder: 25 per month
                              (1 year term)         Pro: 50 per month
                                                  Pinpoint candidates with advanced
 LinkedIn Talent              85.95 per month      search filters
 Finder                       (1 month term)      See more candidates when you search
                              69.95 per month       Basic: 500
                              (1 year term)         Finder: 700
                                                    Pro: 1000
 LinkedIn Talent Pro          429.95 per month    Search for top talent within your groups
                              (1 month term)      Save and manage your candidate
                              399.95 per month     pipeline
                              (1 year term)         Basic: 25 folders
                                                    Finder: 50 folders
                                                    Pro: 75 folders

Table 6 continues on the next page.

Carlo Colicchio, Iso Demirkaya, Alex Hächler                                             29/72
LinkedIn

 For Sales Professionals
 Sales Basic           17.95 per month                 Contact anyone directly with InMail
                       (1 month term)                        o Sales Navigator: 10 per month
                       13.95 per month                       o Sales Executive: 25 per month
                       (1 year term)                   Build your pipeline with Lead Builder
                                                       Pinpoint the right leads with Premium
 Sales Navigator              42.95 per month           search filters
                              (1 month term)           Who’s viewed your profile: Get the full
                              34.95 per month           list
                              (1 year term)            Save important profiles and notes using
                                                        profile organizer
 Sales Executive              85.95 per month
                              (1 month term)
                              64.95 per month
                              (1 year term)
 For Job Seekers
 Job Seeker Basic             17.95 per month          Contact anyone directly with InMail
                              (1 month term)                 o Job Seeker: 5 per month
                              13.95 per month                o Job Seeker Plus: 10 per month
                              (1 year term)            Who’s viewed your profile: Get the full
                                                        list
 Job Seeker                   25.95 per month          Zero in (search engine provider) on
                              (1 month term)            $100K plus jobs with detailed salary
                              21.95 per month           information
                              (1 year term)            Move to the top of the list as a featured
                                                        applicant
 Job Seeker Plus              42.95 per month          Exclusive access to our job seeker
                              (1 month term)            community
                              39.95 per month
                              (1 year term)
Table 6: LinkedIn membership cost/benefit overview (LinkedIn 2012)

Carlo Colicchio, Iso Demirkaya, Alex Hächler                                                  30/72
LinkedIn

The job advertisement services in Table 7 provide different packages of advertisements.
Customers can get up to 36% off the standard price by choosing a larger job pack. A job
advertisement is published for 30 days. The “30-day posting” refers to 1 job. With the other
job packs more job advertisements can be published for a lower price per job ad. The
benefits are the same for all packages.

 ad                30-day posting         5-Job Pack                   10-Job Pack
 Price in CHF      167.95 / job ad        132.99 / job ad              107.30 / job ad
 Benefits           Reach the best job seekers
                    Proprietary matching technology identifies the best candidates for your
                     job in real-time
                    Candidates see who posted the job and how they are connected into
                     your organization
                    Jobs are forwarded 11 times on average, collecting 400 views and 30
                     applications
                    Jobs appear in search results and on Twitter, increasing your visibility
                     across the web
                    Easy-to-use interface to review, organize, and contact applicants
Table 7: LinkedIn job advertisement cost/benefit overview (LinkedIn 2012)

The service to set up a company profile is free and offers interesting benefits for enterprises
such as product presentations, service- and product recommendations through customers,
analytics tools, advertising and blogging.

Company                 LinkedIn company profile
Profile
Price in CHF            0
Benefit                    Free including active company updates
                           Services and product presentations (visual)
                           Service- and product recommendations through customers
                           Analytics tools for page views and clicks
                           Advertising (similar to Facebook pages)
                           Blogging per feed
Table 8: LinkedIn company profile cost/benefit overview (Networkfinder 2012)

Carlo Colicchio, Iso Demirkaya, Alex Hächler                                                31/72
Recruitment in social business networks

5 Recruitment in social business networks
To give an overview of efficiency and effectiveness for the use of social business networks in
the recruitment process, a use case has been created according to the answers derived from
the interviews and the knowledge about the social business network platforms. The question
“How does your recruitment process look?” has been directly integrated in the use case.
The aspect efficiency has been analysed qualitatively with the responses from the interview
and are underlined with results from the trend reports “Trend Report Online Recruiting
Schweiz 2011” and “Recruiting Trends 2012”. These reports provided additional information
about effectiveness which is also included in this chapter. Furthermore the experiences of
enterprises with social business networks have been summarized.

Two processes use the term “e-recruitment” and one process uses the term “applicant
tracking system”. For a better understanding the definitions are as following:

“E-recruitment or eRecruitment is the process of personnel recruitment using electronic
resources, in particular the internet”
(Human Resource Management by R. J. Stone 2012)

“An applicant tracking system is a program (usually with a web-based section) used to
monitor and coordinate an organization’s job applications and helps manage its recruitment
needs”
(Taleo 2012)

5.1 Use case for adaption in business area
Figure 19 shows generic processes for a typical classical recruitment process without
specific electronic recruitment tools on one hand and on the other hand e-recruitment
processes with the use of a social business network or even with an applicant tracking
system.
The recruitment steps are more or less identical. Therefore, only those steps have been
visualized more than once if they are different in another process.

In the classical process the most expensive step compared to the other two processes is to
place the job description in a newspaper (step 2). In the following Table 9 the interviewees
answered a question about their recruiting costs.

Carlo Colicchio, Iso Demirkaya, Alex Hächler                                              32/72
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