Limited social media recruiting tools at vinamilk

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Pham Thi Hong Hanh LIMITED SOCIAL MEDIA RECRUITING TOOLS AT VINAMILK MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2018 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Pham Thi Hong Hanh LIMITED SOCIAL MEDIA RECRUITING TOOLS AT VINAMILK MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: PHAM PHU QUOC Ho Chi Minh City – Year 2018 APPENDIX SUPERVISOR’S REPORT ON THE FINAL THESIS SUBMITTED FOR THE DEGREE OF MASTER of BUSINESS ADMINISTRATION Final thesis title: LIMITED SOCIAL MEDIA RECRUITING TOOLS AT VINAMILK Student name: PHAM THI HONG HANH Supervisor name: PHAM PHU QUOC General comments: Remarks on the student’s attitude: Remarks on the assignment’s academic quality: Overall assessment: Meet requirement for submitting; Not meet requirement for submitting Other remarks: - Did the student follow the report schedule? Other Yes No - The Turnitin plagiarism percentage: Supervisor’s signature CONTENTS Executive Summary CHAPTER 1: BACKGROUND TO THE THESIS 2.1 Recruitment Industry Overview 2.2 The Context Of Recruitment Activities At Vinamilk 2.3 Problem Finding Process 2.4 Vinamilk’s Symptom 1.4.1 Recruitment KPIs: 1.4.2 Average Applicants CHAPTER 2: PROBLEM IDENTIFICATION 2.1 Initial Identification Of Problem 2.2 Problem Identification 14 2.2.1 The First Tentative Problem: The Increase Of The Passive And Monitoring Candidates 14 2.2.2 The Second Tentative Problem: The Appearance Of The Other FMCGs/ Dairy Companies 16 2.2.3 The Third Tentative Problem: Business Development And Expansion 18 2.2.4 The Fourth Tentative Problem: Limited Social Media Recruiting Tools 19 2.3 Problem Definition 23 2.4 Justify The Existence Of Limited Social Media Recruiting Tools 23 2.5 Justify The Importance Of Limited Social Media Recruiting Tools 27 2.5.1 Growth Of Brand Value 27 2.5.2 References And Recommendations 28 2.5.3 Lower Cost Of Recruitment (LCR) 28 2.5.4 Faster Recruitment 28 2.5.5 More And Higher Quality Job Applicants 28 2.6 Potential Causes 29 2.6.1 Challenges From Changing In Corporate Culture – Transparent Society 29 2.6.2 Challenges From Changing The Staff’s Position In The Workplace 30 2.6.3 Not Up-To-Date Recruitment Sites 31 2.6.4 The Influence Of Social Media Sites To Traditional Recruiting Tasks 32 2.7 Cause Validation 33 CHAPTER 3: DESIGN SOLUTION FOR SOLVING PROBLEM 35 3.1 The first alternative solution: The current long-term human resources staffs will be mainly responsible for implementing the new method 35 3.2 The second alternative solution: Recruiting new member who has many working experience in social media recruiting tools to implement 37 CHAPTER 4: ACTION PLAN 41 4.1 Action Plan from Vinamilk 41 4.2 Effectiveness measurement 45 Conclusion 46 SUPPORTING INFORMATION 47 Appendix 1: Interview Transcript - Mr Bang Nguyen (Recruitment Manager at Vinamilk) 47 Appendix 2: Interview Transcript - Ms Thu Ngo (Recruitment Specialist at Vinamilk) 49 Appendix 3: Interview Transcript - Ms Nhu Loc (Recruitment Specialist at Vinamilk) 51 Appendix 4: Interview Transcript - Mr Anh Dinh (Strategic Key Account Manager at Jobstreet) 55 Appendix 5: Interview Transcript - Ms Uyen Bui (Key Account Team Leader at Vietnamworks) 57 Appendix 6: Interview Transcript 2nd - Mr Bang Nguyen (Recruitment Manager at Vinamilk) 59 Appendix 6: Interview Transcript 2nd - Mr Thu Ngo (Recruitment Specialist at Vinamilk) 64 FIGURES Figure 1: Vinamilk's Recruitment Channels (Internal Source) Figure 2: Annual Recruitment Report of Vinamilk 2016, 2017, 2018 .5 Figure 3: Recruitment KPIs - Non-manager Level Figure 4: Recruitment KPIs - Manager Level Figure 5: Average Applicant via Vietnamworks source Figure 6: Average Applicant via Jobstreet source Figure 7: Initial cause-effect map 13 Figure 8: The different types of Job-seekers 14 Figure 9: The average applicants between Vinamilk and FMCGs industry 17 Figure 10: The proportion of generations in Vietnam's Force 19 Figure 11: Updated cause-effect map 22 Figure 12: The final cause-effect map 34 TABLE Table 1: Board of Management‘s expectation on improving recruiting effectiveness .45 Executive Summary This thesis provides an analysis and evaluation of the limited social media recruiting tools at Vinamilk and recommends the solutions to improving the candidates’ quality and quantity Methods to find out the central problem of Vinamilk include primary data from internal and agency reports, two-round in-depth interview and related literature frameworks Results of the finding show that companies not using social media as a hiring tool may be at risk of missing a large number of candidates and top talents Further investigations reveal that social media recruiting tools bring many benefits such as: the growth of brand value, the convenient references and recommendations, the lower cost of recruitment, faster recruitment and more and higher quality job applicants etc Of course, Vinamilk will face many challenges if they want to successfully implement the social media recruiting tools These include challenges from changing in corporate culture as well as changing the staff’s position in the workplace and the pressure to up-to-date recruitment sites frequently In addition, the thesis will base on the main cause of changing the staff’s position in the workplace to propose two alternative appropriate solutions: The first is The current long-term human resources staffs will be mainly responsible for implementing the new method and the second is Recruiting new member who has many working experience in social media recruiting tools to implement Based on relevant factors as well as considering benefits and costs, a detail action plan was conducted to implement the first alternative solution is The current long-term human resources staffs will be mainly responsible for implementing the new method for improving the recruiting efficiency This will help to predict accurate measurement of figure performance to determine whether Vinamilk invest in this project CHAPTER 1: BACKGROUND TO THE THESIS 2.1 Recruitment Industry Overview The explosion of Global Industry 4.0 with the application of automation, data exchange and cloud computing has changed the face of key industries, and human resource is no exception The term "Human Resource s 4.0" is widely mentioned in the media and social networks in 2018 This will completely change the way people communicate including the recruitment methods of human resources In the context of the era of digital technology, the human resources industry will be under pressure to change the way to manage the employer branding, manage talents and apply technology in the recruitment activities Accordingly, a streamlined and smarter process to approach talents needs to be established to replace the traditional methods Specifically, it is necessary to distinguish between active and passive candidates in order to provide the suitable recruitment channels In other words, the company needs to build effective employer branding as well as long-term relationships with their candidates such as show them the company’s core values and future growth Therefore, when the company has a need for recruiting, this will be a potential source One of the most visible changes in the perceptions of Vietnamese HR professionals is the shift from traditional recruitment methods to the useful social media recruiting tools such as LinkedIn, Facebook, Twitter, etc to approach and get closer with the jobseekers With social media recruiting tools, the employers will easy access to resume with a large amount of data and more, saving the cost of hiring This research will analyze the recruitment activities of Vinamilk, one of the largest capitalization companies in Vietnam to find out the remaining problem in talent acquisition process 2.2 The Context Of Recruitment Activities At Vinamilk Over 40 years of establishment and development, Vinamilk has become one of the leading brands in Vietnam and reaching out to the world The main activities that generate revenue for the Company include the processing, production and sales of milk, beverages and other dairy products To be as successful today, Vinamilk understands that people are the decisive factor for the success and development of the company , Vinamilk has implemented many programs to attract and retain talents such as: • Training programs to assist developing employees and achieve their career objectives • The worthy compensation and benefits • Diversified job roles with the sustainable development of the company • The company’s culture creates motivation and creativity At present, the main sources for recruiting at Vinamilk can be divided in two groups: • Traditional recruitment channels (such as: Vietnamworks, Jobstreet, Company Website, Employee Referral and Headhunter) • Social media recruitment channels (LinkedIn, Anphabe, Facebook…) Vinamilk's Recruitment Channels 5% 3% 2% Vietnamworks 20% Jobstreet Social Media (LinkedIn, 50% Anphabe, Facebook) Company Website 20% Employee Referral Figure 1: Vinamilk's Recruitment Channels (Internal Source) According to the bar chart, the traditional recruitment channels are still the highest proportion, around 80% of total channels In the meanwhile, the new modern method like social recruitment just makes up 20% of total channels With continuous development, Vinamilk now has more than 5000 employees nationwide The domestic subordinate units of Vinamilk include: branches, 13 factories, warehouses and 10 dairy farms nationwide The oversea business and subsidiaries of Vinamilk include: Driftwood Dairy Holding Corporation (USA), Vinamilk Europe Spóstkaz Ograniczona Odpowiedzialnoscia (Poland), Angkor Dairy Products Co., LTD (Cambodia), Miraka Limited Company (Oversea associate - New Zealand), Vinamilk’s Representative Office in Thailand etc The growth of Vinamilk is reaching the international market, so it creates many challenges for the recruitment team, especially in the current situation, when the recruitment activities of the company has not really caught up with the global recruitment trend 2.3 Problem Finding Process In order to find out the central problem of Vinamilk, the following steps will be conducted: • Referring the Annual Recruitment Report of Vinamilk to collect and analyze data • Referring the Report from two agencies that Vinamilk is currently using the recruiting service include Vietnamworks and Jobstreet • Conducting in-depth interview with Vinamilk’s Recruitment Team and Staffs from recruiting agencies that manage Vinamilk’s account to understand the symptom and tentative problems • Reviewing literatures relating to the tentative problems that lead to variables and symptom in combine with the Vinamilk context and the global trendy • Conducting the second in-depth interview with Vinamilk’s Recruitment Manager in order to identify the existence of the problem • Reviewing some theories frameworks to justify the problem’s importance 2.4 Vinamilk’s Symptom Appendix 4: Interview Transcript - Mr Anh Dinh (Strategic Key Account Manager at Jobstreet) Good afternoon Anh, Many thanks for taking your time to attend the interview today I am currently conducting a research in order to find out the problem that takes to the decline of the candidates’ quality and quantity at Vinamilk That’s the reason why I want to talk with you to get more information about the company’s context The interview can take from 15-20 minutes I will take notes during the interview to avoid missing information Are you ready? Mr Anh Dinh: Yes, I am ready Firstly, can you introduce about yourself and as well as your tasks at Vinamilk? Mr Anh Dinh: I am Anh Dinh, a Strategic Key Account Manager at Jobstreet, a Southeast Asia's largest online employment company, according to Forbes I have worked at Jobstreet.com for just years However, I have total year experiences in managing key account and consulting in recruitment field I am currently manages Vinamilk’s account on Jobstreet website As I mentioned before, there is a decline in the quantity and quality of candidates applying to Vinamilk, how you think about this? Mr Anh Dinh: It is true that according to the report I just sent to Vinamilk to statistics the average applicants for a position has a significant decline This may be due to a few reasons that we learn According to a report by SEEK Asia, our mother group, the proportion of passive candidates and, in particular, the strong growth of monitoring candidates has been around 73% Passive candidates are currently satisfied with the job and not intend to transfer jobs, monitoring candidates are those being happy with current job but still want to monitor the market in terms of salary , the nature of work Therefore the number of active candidates looking for new jobs are reduced In fact, it is also common practice that the passive candidates who are less likely to seek employment are often potential candidates In general, highly passive candidates also affect the quality of applicants 55 Thank you so much for your sharing 56 Appendix 5: Interview Transcript - Ms Uyen Bui (Key Account Team Leader at Vietnamworks) Good afternoon Uyen, Many thanks for taking your time to attend the interview today I am currently conducting a research in order to find out the problem that takes to the decline of the candidates’ quality and quantity at Vinamilk That’s the reason why I want to talk with you to get more information about the company’s context The interview can take from 15-20 minutes I will take notes during the interview to avoid missing information Are you ready? Ms Uyen Bui: Yes, I am ready Firstly, can you introduce about yourself and as well as your tasks at Vinamilk? Ms Uyen Bui: I am Uyen Bui, a Key Account Team Leader at Vietnamworks, the largest recruitment website in Vietnam, matching jobseekers with jobs, and employers with top candidates via the Internet since 2002 I have worked at Jobstreet.com for ju3 years and have total year experiences in managing key account and consulting in recruitment field I am currently manages Vinamilk’s account on Vietnamworks website As I mentioned before, there is a decline in the quantity and quality of candidates applying to Vinamilk, how you think about this? Ms Uyen Bui: In 2018 there was a strong appearance of many multinational companies, especially foreign dairy companies entering the domestic market of Vietnam Foreign companies often take care of the image, you can see in the ranking of the 100 Vietnam Best Places to Work in recent years, the multinational companies accounted for a high proportion and often in the top This also affects the employer brand of the company, the need to share talent, candidates have more choices This may cause a decrease in the number of applicants Can you share more about the methods that the multinational companies promote their employer branding? Ms Uyen Bui: There are many ways to promote employer branding and multinational brands always well because they already have existing methods available from parent 57 corporations and deployed successfully in many countries before As simple as they can create a Facebook fanpage where they often share the company's fun activities, images of the work office, the cultural contests they organize etc All these things have a greatly impact to the active as well as passive candidate through the traffic from users ‘likes and comments I think this is one of the very good methods that Vinamilk should learn Thank you so much for your sharing 58 Appendix 6: Interview Transcript 2nd - Mr Bang Nguyen (Recruitment Manager at Vinamilk) Good morning, Bang, Many thanks for taking your time to attend the interview one more time Your previous sharing is very useful for my research Last time we have mentioned one point that Vinamilk is limited social media recruiting tools, now I want to focus on this issue Hope that you can share more about this in order to help me find out the problem The interview can take from 15-20 minutes I will take notes during the interview to avoid missing information Are you ready? Mr Bang Nguyen: Yes, I am ready How often you use social media for recruitment? Mr Bang Nguyen: As I mentioned in the previous interview, Vinamilk has not really paid much attention to social media recruiting tools We just use social networks to search for candidates only in specific positions such as information technology, digital marketing, and social media marketing or high-level positions Which social media sites you use for recruitment? Mr Bang Nguyen: I usually use LinkedIn, here are many professional candidates, especially the senior candidates To be honest, we are still not focused on this channel And also in LinkedIn group, you post also the LinkedIn group? Mr Bang Nguyen: No, we just use personal account in LinkedIn to connect with potential candidates and approach them What about other social networks like Facebook? Mr Bang Nguyen: I only use LinkedIn To be honest, I think Facebook like a social network about personal life, not for job And you also check the possible candidates' profiles and before they interview or after the interview in their LinkedIn profile? Mr Bang Nguyen: For candidates we approach on social networks like LinkedIn, we can easily reach them before the interview because in addition to their profile, we can also understand their habits, their way of using social networks through commenting or 59 posting opinions on posts, groups For candidates applying through traditional channels, we often cannot check the information before the interview but usually later through our relationship or asking the candidate to provide What are the reasons make you rarely use social media for recruiting? Mr Bang Nguyen: Firstly, I think it is the terms of recruiting habits Vinamilk is familiar with the thing that the applicants apply for jobs automatically Previously, we only need to post jobs, the number of records already a lot For many people, being in Vinamilk is a dream Secondly, it is also important that Vinamilk is a Vietnamese company, if multinational companies easily to deploy modern recruitment and implement globally, we admit that we still need time to catch up and follow the human resource trendy And finally I think that in terms of human resources, we need new members who can grasp the market trend as well as have knowledge of corporate structure and culture This process takes time to select and train the new one About what percentage of your employees were recruited over social media? Mr Bang Nguyen: The percentage of employees recruited through social networks in Vinamilk is still very limited Because our rate of social media recruiting tools is around 20%, so the number of candidates we recruit from this source is not high But I can say one thing, it is little but quality Most of the candidates coming from social networking sites are quality candidates who are really interested in the job and become loyalty employees What you not like about social media recruitment? Mr Bang Nguyen: It can be said that it is uncontrolled When we announce recruitment, sometimes there are people who are not interested in recruiting but leave negative comments about Vinamilk’s product Instead of responding to recruitment information, we have to take care of our customers That is also part of the reason we restrict the use of social networking When you use this tool, you often have to follow up to respond to regular followers Moreover, it is the control of negative comments 60 Do you think that in the future Vinamilk will make greater use of social media when recruiting staff? Mr Bang Nguyen: I believe so, if we have reasonable implementation methods and can prove effective recruitment from the social network to the board Are you afraid of the obstacles that come from the management in changing the corporate culture? Mr Bang Nguyen: Integrity has long been a core value in Vinamilk’s culture This means that Vinamilk will be transparent and honest in all transactions and behaviors So if Vinamilk's human resources department can prepare a perfect plan for the transition in social media recruiting, it will undoubtedly gain the support from the management Also you think there are any difficulties? Mr Bang Nguyen: The pursuit of a new recruitment method means Vinamilk’s HR staffs must learn and cultivate new knowledge, and deploy step by step while still maintaining the traditional recruiting tools This will increase the workload for everyone The company will face with many potential issues such as: the training about new methods, the staffs’ pressure related to workload, the recruiting new qualified staffs corresponding to the new workload increase etc From your use of social media tools in recruitment, what you think the benefits, if any, have been? Mr Bang Nguyen: I think it is in terms of cost, I can use it for free In addition, I can join specialized groups to find candidates For example, to find candidates for design, there are many groups on the social network specializing in design Or in terms of packaging techniques, there are many specialized groups on materials techniques How has this affected the HR processes in Vinamilk? Mr Bang Nguyen: I think a lot of changes, even I think that Vinamilk have to set up a small department to manage employer branding on social networks Can you explain it more detail? Mr Bang Nguyen: I think I have to it step by step First of all, Vinamilk's current recruiting team will implement parallel social media recruiting methods in addition to 61 traditional recruiting methods Only long-time personnel understand the most about the culture as well as the field of operation of the company To convince our bosses with these new changes, we must have a perfect proposal First, the goal must be identified, followed by a guideline on the steps to be taken Once you have a perfect plan, the next step is to divide the task for the recruiting team members Training courses or instructional materials on the deployment method should be provided to the members During the deployment process, the workload will increase, and we will need recruited some trainees or junior employees to support They will be responsible for the admin tasks of traditional recruiting methods such as posting job, screening candidate’s resume, arranging interviews etc With the recruitment trend with social media becoming so popular nowadays, I think it is not difficult for us to approach the new methods The important thing is to properly implement based on the company context Therefore, human resources are the most important factor, especially those who have worked in the company for a long time, who understand the culture as well as the structure of the company, so adjusted to the new recruitment method is also more effective What you think about the benefits if Vinamilk use current long-time HR employees to implement the social media recruiting strategy? Mr Bang Nguyen: As I mentioned above, there are many benefits if Vinamilk use current long-time HR employees to implement the social media recruiting strategy Firstly, the current staffs who have worked for Vinamilk for a long time will be extremely familiar with the organization, the colleagues and especially the wide connection with candidates in labor market In order to enhance social interaction, it is important for employees to have a broader relationship with the other colleagues who can help them interact and share on social networks In addition, the current personnel have a large data base candidates will also be more convenient to connect, build relationships Secondly, the current staff is familiar with the way the company operates and the way in which the leaders work Therefore, the consultation of the information on the social network is easy to present and be easier to get approval 62 And finally, in the terms of cost, hiring a fresh employee to admin job will be easier to recruit at a lower cost in compare to the other senior positions Can you describe some steps to implement the social media recruiting strategy effectively? Mr Bang Nguyen: I think we should define Vinamilk’s goals first After that, we base on the Vinamilk's culture to determine the right platform The next steps, we implement the strategy in cooperate with Vinamilk’s employees Finally, the strategy’s evaluation will help us to identify whether the strategy should implement Thank you very much for your time 63 Appendix 6: Interview Transcript 2nd - Mr Thu Ngo (Recruitment Specialist at Vinamilk) Good afternoon, Thu Many thanks for taking your time to attend the interview one more time Your previous sharing is very useful for my research Last time we have mentioned one point that Vinamilk is limited social media recruiting tools, now I want to focus on this issue Hope that you can share more about this in order to help me find out the problem The interview can take from 15-20 minutes I will take notes during the interview to avoid missing information Are you ready? Ms Thu Ngo: Yes, please go ahead, I am free now How often you use social media for recruitment? Ms Thu Ngo: I had some accounts on social network, but I rarely use it for recruitment Maybe my time for traditional recruiting sources such as screening and conducting interviews also take a lot of time How you think about applying social media methods in Vinamilk’s recruitment process now? Ms Thu Ngo: I think this time is suitable, the size of Vinamilk is biger and biger, the competitors increase more and more, it is very important for Vinamilk righr now to catch up with the global trendy and diversify many recruiting methods What are the reasons make you rarely use social media for recruiting? Ms Thu Ngo: Nowadays, LinkedIn or Facebook is very convenient for recruiters in the term of speed and convenient Many people use LinkedIn to looking for new career opportunities Yet, whenever they want to change the job, they go to LinkedIn rather than visit traditional recruiting tools LinkedIn becomes the mediate vehicle to connecting job seekers to the employers and vice versa This will affect the recruitment activities of Vinamilk Although LinkedIn or Facebook can make the recruitment process faster, it can change the role of recruiters in different ways Social media sites cannot become the dominant tools, any methods always have the pros and cons Besides the benefits of social media, the disadvantage of dominant “middle man” should still be considered 64 What you think about the way Vinamilk will start to implement social media recruiting tools? Ms Thu Ngo: In my opinion, recruiting a new person with many years of working experience in the field of recruiting and especially social media will help Vinamilk a lot in the early stages of systematically deploying new recruitment methods He or she will understand how to build a social media recruiting strategy so it's easy to implement and apply Thus, the company will save time in the initial set up In addition, obstacles or difficulties in the implementation process are anticipated, so that the company can prepare for countermeasures However, any solution is two-sided, a good person implement a good method in one company, maybe cannot make it work in the next company Perhaps the culture of this company is different from the other company culture that has led to significant changes The cost and time to recruit a suitable senior staff is also an important concern Therefore, developing a social media recruiting plan perfectly and in line with the company context is very important Thank you very much for your time 65 References SEEK The different types of job-seekers 2018 [Available from: https://insightsresources.seek.com.au/the-3-different-types-of-job-seekers-2-2 Cappelli P Making the most of on-line recruiting Harvard business review 2001;79(3):139-48 Gupta V Using social networking sites for hiring India: Express Computer Online 2008 King R Social networks: Execs use them too BusinessWeek, September 2006 Wolk D Social-networking sites pique the interest of company recruiters Workforce Management 2004;83(8):70-2 DeKay S Are business-oriented social networking web sites useful resources for locating passive jobseekers? 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The Existence Of Limited Social Media Recruiting Tools The last section showed that Vinamilk is limited social media recruiting tools, now the next section will collect more data from the second... of Vinamilk In general, it has no significant impact to the symptoms of Vinamilk 2.2.4 The Fourth Tentative Problem: Limited Social Media Recruiting Tools Social media is not just a public platform;