Some midsize companies, like MTM Technologies, are using social recruiting to attract better talent with lower recruiting costs by tapping employees' social networking contacts.
In a time of widespread layoffs, purchasing a tool to help manage a hiring process might seem like an extravagance to small and midsize companies. But MTM Technologies, a Stamford, Conn., provider of IT services, is still growing despite the recession and sees a way to justify the investment when others might not.
While large companies employ internal or external recruiters to scout job bulletin boards and social networks for talent, small and midsize companies typically lack dedicated resources and the budget to engage in extensive searches. In fact, most small and midsize firms don't use full-featured applicant tracking systems (ATS) -- they often rely on spreadsheets or small databases. Like many small and midsize businesses, MTM Technologies works with a third-party payroll service -- it uses Ceridian. Ceridian's products include a recruiting system that MTM used, says Michael Kerrigan, VP of HR operations at MTM. "We bought everything hook, line, and sinker," he says, "but we had major problems."
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Looking for alternatives, MTM Technologies, a company with 470 employees spread across 26 states, saw that an ATS called Jobvite might provide a more cost-effective way to manage its hiring process. Jobvite farms employee connections, looking to harvest qualified candidates for open positions across job boards, social networks, and e-mail contacts. The technology, which is software as a service (SaaS), helps automate the type of word-of-mouth-style marketing that's a building block of social media.
"The beautiful thing about Jobvite is it interacts with all employees," says Kerrigan. "We post a position, and it goes out and hits these other Web sites but also gets sent to managers, friends, and co-workers." By "interacts with all employees," Kerrigan is referring to the fact that employees are asked to share some of their personal or professional connections with the company. Jobvite takes it from there -- maintaining their privacy. Unless the candidate opts to receive a contact from MTM, Jobvite doesn't store his or her contact information.
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By involving employees such as Chris Chrobocinski, VP of National Service, MTM Technologies expands its reach to find more suitable candidates than it would on a job board. Chrobocinski, who has been with the company for 12 years, says he logs on to Jobvite to send a note to a contact who may be appropriate for an opening. If the contact applies for the job, then Jobvite prompts Chrobocinski to share feedback about the candidate. Employees are encouraged and often incentivized to participate. But there's another form of motivation for them as well: If you can find an acquaintance a job, you have won a friend -- or at least a useful contact -- for life.
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