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Digitalization in Talent Acquisition

A Case Study of AI in Recruitment

Written by Dhyana Paramita

Paper category

Master Thesis


Business Administration>Human Resources




Master Thesis: Talent acquisition Human resources (HR) have become the source of a company's competitive advantage (Barney and Wright, 1998). Therefore, HR is required to be strategic, flexible, cost-effective and customer-oriented at the same time (Lepak and Snell, 1998). Companies need to manage their human capital effectively through recruitment, training, and employee development (Wilkinson and Leifer, 2007). The basic human resource strategy is defined in terms of its elements from a system perspective (input-process-output) and the two strategic focuses of human resource management, namely competence and behavior (Wright and Snell, 1991). Talent acquisition can rely on the HR structure that manages different types of employees through the use of internal employees and external talents (Lepak and Snell, 1999). The talent shortage hinders business growth opportunities (Chambers, Handfiled-Jones, and Michaels, 1998). The challenge of acquiring the best talent is widely related to warfare. For talent, it is mainly driven by the scarcity response (Beechler and Woodward, 2009). It resonates with the challenges faced 20 years ago (Murray, 1999), where (Murray, 1999) clarified the shortage of qualified IT professionals due to long recruitment cycles, which Beechler and Woodward (2009) defined as a business environment, Transformation of skills and culture. In addition, increasing mobility, global demographic and economic trends, and diversity are other factors affecting the global talent war. In response to this challenge, talent recruitment, which usually refers to the department within the human resources department (Shruthi and Sarala, 2014), is a strategic method to acquire the best talent for available jobs based on ability and cultural fit (Anita, 2019)) By visiting the pool of competing applicants who would otherwise be missed (Kumar, 2013). Although talent acquisition and recruitment are usually interchangeable, recruitment is a subset of talent acquisition and has a different focus from talent acquisition (Anita, 2019). Recruitment focuses on a narrower strategic scope to meet current company requirements by finding the right people for available jobs (Anita, 2019). At the same time, talent acquisition is more broadly defined as a strategic approach, that is, to identify, attract and select the best available talents with appropriate skills, knowledge and abilities to fill suitable jobs in dynamic business needs, including workforce planning, employer branding , Candidate relationship management and performance monitoring (ibid.). The basic goal of human resources is to successfully place from the recruitment process and hire the most qualified and diverse employees from the selection process (Walford-Wright and Scott-Jackson, 2018). 2.1.1. Recruitment and selection Recruitment is a practice in talent acquisition, which enables companies to compete in human capital. Recruitment is a timely process that covers the entire process of attracting, screening and appointing available qualified applicants for available jobs in the organization (Singaraj et al., 2019). According to O’Meara and Petzall (2013), recruitment can refer to an organization’s ability to attract a pool of qualified applicants in a cost-effective and timely manner and provide a shortlist of candidates to continue to the next selection stage. The selection is the post-recruitment stage, and candidates are deemed eligible to move on from the selection stage of the recruitment stage (ibid.). The recruitment phase is the phase of obtaining a large amount of information, and the selection phase allows both parties to participate in obtaining and transmitting information to determine the suitability between the organization and the job applicant (ibid.). Generally speaking, the talent acquisition process is similar in the overall recruitment process. Elearn (2009) divides the recruitment process into four main stages, from planning, recruitment, selection and entry, as shown in Table 1. A plan refers to a recruitment plan in which job vacancies are analyzed and decisions are made based on their job description, ability profile, and personnel profile requirements. Recruitment refers to the decision of recruitment strategy, including job marketing channels and strategies to attract job applicants. Selection is the stage of screening and screening qualified candidates after recruitment. There are many tools used, such as assessment tools and interviews. When applicants pass the selection process, according to Ordanini & Silvestri (2008), there are four main stages of recruitment and selection, namely job advertisement, screening process, selection and selection completion, as shown in Figure 1. Similarly, Hmoud (2019) suggests four similar stages but different terms, namely procurement, screening, selection, and contracting. The first stage is the first stage of the recruitment process, that is, the first stage of the recruitment process, which is used in newspaper advertisements, Internet recruitment boards, company websites, employee recommendations, job fairs (Holm, 2010) and social media (Gupta Et al., 2018). Recruitment advertisements have shifted from simulated recruitment to advertisements on physical recruitment boards or newspapers, until web-based recruitment is conducted where job advertisements can be posted on company websites or recruitment bulletin boards (Black and van Esch, 2020) . Recruitment advertisements are the first point of contact between employers and job seekers (Chapman and Webster, 2003). Read Less