Determinants of job seekers to select recruitment agency for new job vacancies master project in business administration

TRƯỜNG ĐẠI HỌC MỞ TP HCM HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITE LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL MBAVB3 PHAN XUÂN BÌNH DETERMINANTS OF JOB SEEKERS TO SELECT RECRUITMENT AGENCY FOR NEW JOB VACANCIES MASTER PROJECT MASTER IN BUSINESS ADMINISTRATION (PART-TIME) Tutor’s Name: Dr NGUYỄN MINH HÀ Ho Chi Minh City (2010) I ABSTRACT The study aims to find out key factors which strongly influence to the selection of job seekers when approaching recruitment agency for new job Job seekers’ assessments involve in job vacancy – influences and characteristics of recruiters and recruitment agency – standard operational procedures practiced by both recruitment agency and recruiter The study tries to find out the difference of using recruitment agency and other sources Through the assessment of job seekers, recruiter and recruitment agency will understand which vacancy’s characteristics they should focus on to communicate and select “right candidate” The operational procedures of recruitment services are analyzed to verify its interaction to job seekers From the results those working in this services and also recruiter can consider to leverage the advantages of their companies in attracting more applicator Besides, the limitation of recruitment and selection procedure, interviewer should be corrected to improve the professionalism and attractiveness of both recruiter and recruitment agency Overall, this study tries to figure out the job seeker’s insight when they cooperate to recruitment agency and recruiter Well understanding most important stakeholders, recruitment agency can improve its performance Key words: Recruitment, recruitment agency, recruitment sources, recruitment consultant, job vacancy, job seekers II TABLE OF CONTENTS CHAPER - INTRODUCTION 1.1 General background 1.2 Rationale 1.3 Problem statement 1.4 Research objectives 1.5 Scope of study 1.6 Research method 1.7 Research structure CHAPER – LITERATURE REVIEW 2.1 Introduction and overview 2.2 Definitions 2.3 Theory of choices 11 2.4 Theory of Customer Behavior 15 2.4.1 Customer Behavior and Roles of Customer 15 2.4.2 Customer Needs and Wants 16 2.4.3 Values sought by User – Job seeker 17 2.5 Summary 18 CHAPER - RESEARCH METHODOLOGY 3.1 Proposal research procedure 19 3.2 Research methodology 21 III 3.2.1 Qualitative research 21 3.2.2 Quantitative research 22 3.3 Assessment of measurement of scales 25 3.3.1 General perception of job seekers about sources of recruitment, job characteristics, and employers influences 25 3.3.2 Determinants of factors affect to the selection of recruitment agency by job seekers 28 3.4 Summary 30 CHAPER - RESEARCH RESULTS 4.1 Descriptive statistics on total sample 32 4.1.1 Overall personal information 35 4.1.2 Working Industry 36 4.1.3 Current position 36 4.1.4 Sources to find job vacancy 37 4.1.5 Sources to find most recent job vacancy 39 4.2 Quantitative study 39 4.2.1 Factor analysis 39 4.2.2 Mean analysis 43 4.3 Exploratory Factor Analysis 45 4.4 Independent sample test 55 4.4.1 Working industry 56 4.4.2 Position 58 IV 4.5 Summary 59 CHAPER - CONCLUSION 5.1 Research summary 62 5.2 Recommendation 66 5.3 Limitation & suggestion further researches 66 Reference list i Appendix A iv Appendix B xi Appendix C xii Appendix D xiii Appendix E xv Appendix F xxvii V LIST OF TABLES Table 2.1Customer Behavior Domain 15 Table 3.1 Research procedure 20 Table 3.2 Variables for factor – Sources of recruitment 26 Table 3.3Vacancy characteristics 26 Table 3.4 Required Information of vacancy 27 Table 3.5 Professionalism of employers and interviewers 27 Table 3.6 Job vacancy characteristics & attractiveness introduced by RA 28 Table 3.7 Recruitment agency characteristics 29 Table 3.8 Recruitment consultant’ competences 30 Table 3.9 Convenience of interview by RA 30 Table 4.1 Qualitative statistics 32 Table 4.2 Factor Analysis Results 47 Table 4.3 Cronbach Alpha’s value of each factor 53 Table 4.4 Reliability test results ranking by descending importance 54 Table 4.5 Statistics Result of Independent-Sample T-test (Service and Supply Chain – Logistics) for all factors 56 Table 4.6 Statistics on Independent –Samples T-Test – Factor 57 Table 4.7 Variable’s mean in Factor 58 Table 4.8 Statistics Result of Independent-Sample T-test (Officer and Middle Management position) for all factors 60 VI LIST OF CHARTS Chart 4.1 Gender 35 Chart 4.2 Working industry 36 Chart 4.3 Current position of respondents 36 Chart 4.4 Newspaper advert source 37 Chart 4.5 Post CV on online recruitment website source 38 Chart 4.6 Recruitment agency 38 Chart 4.7 Walks-in 39 Chart 4.8 Other sources 39 Chart 4.9 Sources for recent job vacancy 40 Chart 4.10 Factors summary 60 VII DECLARATION I declare that the work presented in this thesis has not been previously submitted for any degree or diploma or at any other higher education institution I use best of my knowledge and belief, the thesis contains no material previously public or written by other person except where due reference is made in the text SIGNATURE: PHAN XUÂN BÌNH DATE: JAN 01st 2011 VIII ACKNOWLEDGEMENTS Deeply in my heart, I would like to say my big thanks for my parents who never stop encourage and support me to pursuit my learning I’m deeply aware of their sacrifice and promise not to disappoint them I would like to acknowledge all my professors and coordinators at Solvay Brussels School and HoChiMinh City Open University who provide us valuable knowledge and support with their best wholehearted attitudes Of course, I could never have reached this point without the great assistance of my tutor, PhD Nguyen Minh Ha His positive feedbacks, coaching and encouragement help me to find out the best way to finish this thesis Thanks so much for your kind assistance I also would like to acknowledge the support of my family, friends, employer and colleagues had shown to me Without their encouragement and sharing, I will be difficult to such a work For my classmates who have been with me for the whole course, without their assistance, encouragement and sharing, I may lose my spirit and face so much difficulties I extend a huge thanks to all beloved classmates Lastly, I would like to thank all the participants to my research CHAPTER - INTRODUCTION 1.1 GENERAL BACKGROUND Vietnam is one of the top highest growing countries in the world for the last decade and coming years Together with the high growth is the huge demand of well qualified labor force especially in big economic centers such as Ha Noi and Ho Chi Minh City This trend explains why Vietnam is a very promising market and destination for recruitment services Since 1995 many well known consultancies as KPMG, Price Waterhouse Coppers, Ernst & Young, Grant Thornton had set up its recruitment services in Vietnam besides the presence of many specialized recruitment agencies as Manpower, Bo Le, FirstAlliances, L&A, HR capital Vietnam, VIP Database, HR2B, NetViet After the recovery of financial crisis in 2009, famous worldwide recruitment agencies such as Andecco, Robert Walters, Jobstreet, Odgers Berndtson have eyed Vietnam market However the increasing growth in term of quantity of well-experienced labor force is always lower than the demand This circumstance explains why there always exists a fierce competition among recruitment agencies to attract and enrich its candidate’s pool and improve job seekers’ interest and attention to job openings Recruitment is one of elements of human resource management as it is the method to use to acquire the human capital for the organization That’s why most of foreign and big local companies use recruitment agencies (or employment agencies) as one of the key recruitment sources to attract middle to senior employees In the view of employer, the time to fill job vacancy and suitability of candidate is one of key performance indicators to evaluate the quality of recruitment agency services xx QD6 Strong customer – base and well-known clients (recruiters) A QD8 Usefulness of the tests QD9Career consultancy QD10 Useful of consultancy services QD11 Quality of consultancy services QD12 High fill rate QD13 Time to fill a vacancy QD14 Satisfaction to new offer 38,4054 27,889 0,441 0,871 38,3784 38,9730 38,5541 26,332 25,496 24,603 0,545 0,574 0,753 0,865 0,864 0,849 38,6486 24,964 0,763 0,849 38,5405 24,794 0,788 0,847 38,2973 38,5946 38,3514 26,959 26,882 27,767 0,555 0,627 0,509 0,864 0,860 0,867 Reliability Statistics Cronbach's Alpha 0,876 N of Items 10 Item-Total Statistics QD2 RA has experienced consultants QD6 Strong customer – base and well-known clients (recruiters) QD7 High frequency of updated information on website QD8 Usefulness of the tests QD9 Career consultancy QD10 Useful of consultancy services QD11 Quality of consultancy services QD12 High fill rate QD13 Time to fill a vacancy QD14 Satisfaction to new offer Scale Mean if Item Deleted Scale Variance if Item Deleted 34,4189 25,143 0,407 0,877 34,6081 24,757 0,410 0,878 34,5811 23,157 0,535 0,870 35,1757 34,7568 22,540 21,247 0,543 0,787 0,871 0,848 34,8514 21,706 0,780 0,850 34,7432 21,498 0,813 0,847 34,5000 34,7973 34,5541 23,463 23,673 24,330 0,588 0,617 0,527 0,865 0,864 0,870 Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted xxi KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Approx ChiSquare Bartlett's Test of Sphericity Df Sig 0,759 860,571 45 0,000 Communalities QD2 RA has experienced consultants QD6 Strong customer – base and well-known clients (recruiters) QD7 High frequency of updated information on website QD8 Usefulness of the tests QD9 Career consultancy QD10 Useful of consultancy services QD11 Quality of consultancy services QD12 High fill rate QD13 Time to fill a vacancy QD14 Satisfaction to new offer Initial 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Extraction 0,710 0,676 0,485 0,402 0,794 0,772 0,814 0,536 0,574 0,428 Total Variance Explained Initial Eigenvalues Comp’t 10 Total 4,872 1,318 0,916 0,709 0,624 0,562 0,462 0,314 0,146 0,078 % of Variance 48,720 13,177 9,156 7,086 6,241 5,616 4,624 3,137 1,464 0,780 48,720 61,897 71,053 78,139 84,380 89,995 94,619 97,756 99,220 100,000 Extraction Sums of Squared Loadings Total 4,872 1,318 % of Variance 48,720 13,177 48,720 61,897 Component Total 41,503 20,394 % of Variance 41,503 61,897 xxii Component Matrix(a) Component QD2 RA has experienced consultants QD6 Strong customer – base and well-known clients (recruiters) QD7 High frequency of updated information on website QD8 Usefulness of the tests QD9 Career consultancy QD10 Useful of consultancy services QD11 Quality of consultancy services QD12 High fill rate QD13 Time to fill a vacancy QD14 Satisfaction to new offer 0,461 0,705 0,471 0,674 0,608 0,627 0,866 0,862 0,890 0,697 0,712 0,630 Rotated Component Matrix(a) Component QD2 RA has experienced consultants QD6 Strong customer – base and well-known clients (recruiters) QD7 High frequency of updated information on website QD8 Usefulness of the tests QD9 Career consultancy QD10 Useful of consultancy services QD11 Quality of consultancy services QD12 High fill rate QD13 Time to fill a vacancy QD14 Satisfaction to new offer Component Transformation Matrix Component 0,893 -0,451 0,837 0,814 0,578 0,516 0,868 0,846 0,861 0,723 0,752 0,642 0,451 0,893 xxiii Factor – “Recruitment consultant’ competences” Case Processing Summary Valid N 148 % 91,4 Excluded(a) 14 8,6 Total 162 100,0 Scale Mean if Item Deleted 23,4189 23,6216 23,5405 23,8243 24,1351 Scale Variance if Item Deleted 10,395 9,625 9,284 9,479 10,594 Corrected Item-Total Correlation 0,497 0,646 0,791 0,735 0,359 Cronbach's Alpha if Item Deleted 0,843 0,822 0,803 0,811 0,864 RC6 Consult to candidate appropriate information about vacancy and recruitment procedure 23,2297 8,858 0,667 0,819 RC7 Quickly feedback and advise appropriate information / next steps to candidates 23,3108 9,086 0,622 0,827 Cases Reliability Statistics Cronbach's Alpha 0,849 N of Items Item-Total Statistics RC1 Experience of consultants RC2 Recruitment skill of consultant RC3 Conversation skill RC4 Foreign language skill RC5 Appearance and grooming KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Approx ChiSquare Bartlett's Test of Sphericity df Sig Total Variance Explained 0,777 580,946 21 0,000 xxiv Comp’t Initial Eigenvalues Extraction Sums of Squared Loadings % of Variance Total % of Variance 3,809 1,202 54,420 17,178 Total 3,809 1,202 0,857 0,396 0,338 0,275 0,122 54,420 17,178 12,246 5,655 4,827 3,934 1,740 54,420 71,598 83,844 89,499 94,326 98,260 100,000 Component 54,420 71,598 Total % of Variance 2,578 2,433 36,835 34,763 Component Matrix(a) Component RC1 Experience of consultants RC2 Recruitment skill of consultant RC3 Conversation skill RC4 Foreign language skill RC5 Appearance and grooming RC6 Consult to candidate appropriate information about vacancy and recruitment procedure RC7 Quickly feedback and advise appropriate information / next steps to candidates 0,643 0,762 0,876 0,827 0,480 0,403 0,442 0,771 -0,566 0,733 -0,597 0,404 Rotated Component Matrix(a) Component RC1 Experience of consultants RC2 Recruitment skill of consultant RC3 Conversation skill RC4 Foreign language skill RC5 Appearance and grooming RC6 Consult to candidate appropriate information about vacancy and recruitment procedure RC7 Quickly feedback and advise appropriate information / next steps to candidates Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization 0,744 0,858 0,679 0,626 0,627 0,941 0,937 xxv Component Transformation Matrix Component 1 0,727 0,687 Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization 0,687 -0,727 Factor – “Convenience of interview by RA” Case Processing Summary Cases Valid Excluded(a) Total Reliability Statistics Cronbach's Alpha 0,866 N 148 14 162 % 91,4 8,6 100,0 N of Items Item-Total Statistics IT1 Place of the interview IT2 Time of the interview IT3 Duration of the interview Scale Mean if Item Deleted 6,9324 6,8784 7,0000 Scale Variance if Item Deleted 1,370 1,114 1,306 KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Approx Chi-Square Bartlett's Test of Sphericity Df Sig Corrected Item-Total Correlation 0,713 0,886 0,654 0,592 275,950 0,000 Cronbach's Alpha if Item Deleted 0,842 0,674 0,898 xxvi Total Variance Explained Initial Eigenvalues Comp’t Total 2,378 0,495 0,127 % of Variance 79,276 16,490 4,234 79,276 95,766 100,000 Extraction Sums of Squared Loadings % of Total Variance 2,378 79,276 Component Matrix(a) IT1 Place of the interview IT2 Time of the interview IT3 Duration of the interview Extraction Method: Principal Component Analysis Component 0,877 0,959 0,831 79,276 Comp’t Total 2,378 0,495 0,127 % of Variance 79,276 16,490 4,234 xxvii APPENDIX F INDEPENDENT SAMPLES T-TEST Factor – “Job vacancy characteristics & attractiveness” • Between Services & Supply Chain Group Statistics Factor Q5 Service Logistics/ Supply Chain N 42 56 Mean 4,01 4,09 Std Deviation 0,331 0,625 Std Error Mean 0,051 0,083 Independent Samples Test Factor Levene's Test for Equality of Variances t-test for Equality of Means Equal variances assumed 0,690 F Equal variances not assumed Sig 0,408 T Df Sig (2-tailed) Mean Difference Std Error Difference 95% Confidence Interval of the Difference Lower -0,729 96 0,468 -0,077 0,106 -0,288 -0,791 87,458 0,431 -0,077 0,098 -0,272 Upper 0,133 0,117 xxviii • Between Officer and Middle management level Group Statistics Factor Q6 Officer/ Executive Middle management N 48 62 Mean 3,98 4,04 Std Deviation 0,317 0,601 Std Error Mean 0,046 0,076 Independent Samples Test Factor Levene's Test for Equality of Variances t-test for Equality of Means Equal variances assumed 1,823 F Sig 0,180 T Df Sig (2-tailed) Mean Difference Std Error Difference -0,681 108 0,497 -0,065 0,096 -0,255 0,125 95% Confidence Interval of the Difference Lower Upper Equal variances not assumed -0,732 96,568 0,466 -0,065 0,089 -0,242 0,111 xxix Factor – “Recruitment agency characteristics’ • Between Services & Supply Chain Group Statistics Factor Q5 Service Logistics/ Supply Chain N 42 56 Mean 3,70 3,76 Std Deviation 0,465 0,580 Std Error Mean 0,072 0,078 Independent Samples Test Levene's Test for F Equality of Sig Variances T Df Sig (2-tailed) t-test for Equality Mean Difference of Means Std Error Difference 95% Confidence Interval of the Difference Factor Equal Equal variances variances not assumed assumed 0,018 0,895 Lower -0,528 96 0,599 -0,058 0,109 -0,274 -0,545 95,561 0,587 -0,058 0,106 -0,267 Upper 0,159 0,152 xxx • Between Officer and Middle management level Group Statistics Factor Q6 Officer/ Executive Middle management N 48 62 Mean 3,74 3,72 Std Deviation 0,464 0,600 Std Error Mean 0,067 0,076 Independent Samples Test Factor Levene's Test for Equality of Variances t-test for Equality of Means Equal variances assumed 0,422 F Sig 0,518 T Df Sig (2-tailed) Mean Difference Std Error Difference 0,184 108 0,854 0,019 0,105 -0,188 0,227 95% Confidence Interval of the Difference Lower Upper Equal variances not assumed 0,190 108,000 0,850 0,019 0,101 -0,182 0,220 xxxi Factor – “Recruitment consultant’ competences” • Between Services & Supply Chain Group Statistics Factor Q5 Service Logistics/ Supply Chain N 42 56 Mean 3,88 4,06 Std Deviation 0,431 0,587 Std Error Mean 0,067 0,078 Independent Samples Test Factor Levene's Test for F Equality of Sig Variances T Df Sig (2-tailed) t-test for Equality Mean Difference of Means Std Error Difference 95% Confidence Interval of the Difference Equal variances assumed 0,266 Equal variances not assumed 0,607 Lower -1,687 96 0,095 -0,181 0,107 -0,394 -1,762 95,971 0,081 -0,181 0,103 -0,385 Upper 0,032 0,023 xxxii • Between Officer and Middle management level Group Statistics Factor Q6 Officer/ Executive Middle management N 48 62 Mean 3,82 3,93 Std Deviation 0,469 0,616 Std Error Mean 0,068 0,078 Independent Samples Test Factor Levene's Test for Equality of Variances t-test for Equality of Means Equal variances assumed 0,243 F Sig 0,623 T Df Sig (2-tailed) Mean Difference Std Error Difference -1,078 108 0,284 -0,115 0,107 -0,328 0,097 95% Confidence Interval of the Difference Lower Upper Equal variances not assumed -1,115 107,975 0,267 -0,115 0,103 -0,320 0,090 xxxiii Factor – “Convenience of interview by RA” • Between Services & Supply Chain Group Statistics Factor Q5 Service Logistics/ Supply Chain N 42 56 Mean 3,37 3,61 Std Deviation 0,606 0,491 Std Error Mean 0,094 0,066 Independent Samples Test Levene's Test for F Equality of Sig Variances T Df Sig (2-tailed) t-test for Equality Mean Difference of Means Std Error Difference 95% Confidence Interval of the Difference Factor Equal Equal variances variances not assumed assumed 1,196 0,277 Lower -2,236 96 0,028 -0,248 0,111 -0,468 -2,170 77,365 0,033 -0,248 0,114 -0,476 Upper -0,028 -0,020 xxxiv • Between Officer and Middle management level Group Statistics Factor Q6 Officer/ Executive Middle management N 48 62 Mean 3,40 3,44 Std Deviation 0,575 0,515 Std Error Mean 0,083 0,065 Independent Samples Test Factor Levene's Test for Equality of Variances t-test for Equality of Means Equal variances assumed 0,071 F Sig 0,791 T Df Sig (2-tailed) Mean Difference Std Error Difference -0,366 108 0,715 -0,038 0,104 -0,245 0,168 95% Confidence Interval of the Difference Lower Upper Equal variances not assumed -0,360 95,187 0,719 -0,038 0,106 -0,248 0,172 ... study aims to find out key factors which strongly influence to the selection of job seekers when approaching recruitment agency for new job Job seekers assessments involve in job vacancy – influences... assessment of measurement of scales in order to test the research model 20 3.1 PROPOSAL RESEARCH PROCEDURE Research problem To define determinants of job seekers to select recruitment agency for new job. .. competences • In case job seekers received new job recommended to them by recruitment agency, they still approach these sources when looking for new job again • Factors determine the selection of recruitment