An Analytical Model of E Recruiting Investment Decision An Economic Employment Approach

An Analytical Model of E Recruiting Investment Decision An Economic Employment Approach


The online recruiting market is one of the most rapidly growing e-commerce areas. Since the mid-1990s, a number of e-recruiting methods such as job boards, corporate career web sites, and e-recruiting consortia have been introduced into the labor market. Among them, e-recruiting with the use of a corporate career web site has been touted as the most efficient and cost-effective recruiting method. While the corporate career web sites have experienced a phenomenal growth, no formal economic models have been developed for the analysis and assessment of investment decisions in various e-recruiting technologies.

Existing System:

Statistics suggest that Information Technology (IT) has become one of the most important cost drivers in business operations and, thus, investment in IT requires special attention from management. Large and small, many businesses have realized that they should capitalize on business opportunities through the deployment of IT. Forrester research predicted that worldwide e-commerce—both business-to-business (B2B) and business-to-consumer (B2C)—would hit $6.8 trillion in 2004, capturing 8.6% of the world’s sales of goods and services (


While traditional benefit-cost methods were useful when evaluating operational level information systems, strategic benefits are more difficult to evaluate, since they involved dynamic interactions between customers, suppliers, and rivals. presented a perspective that emphasizes the importance of understanding where potential value lies and how best to relate it contextually to the measurement of the firm’s realized value. Applying concepts such as locus of value and value conversion contingencies, they suggested that complementary assets such as business process design and human capital influence the firm’s realization of value.


Proposed System:

This paper complements the body of literature on IT evaluation methodologies by presenting an economic e-recruiting investment model. The base for our analytical model is the classic economic order quantity (EOQ) model widely used in manufacturing and inventory management. Since critical differences exist in cost components and cost functions between classic EOQ model and recruiting decision model, we expanded the EOQ model to take into consideration a cost function and cost components that are unique to the economic recruiting decision-makings.