Journal of Business Economics

, Volume 83, Issue 4, pp 295–317 | Cite as

Different degrees of informational asymmetry on job markets and its impact on companies’ recruiting success

  • Sabrina Falk
  • Andrea Hammermann
  • Alwine Mohnen
  • Arndt Werner
Original Paper

Abstract

Based on a large survey of German companies, we investigate the influence of job characteristics on the recruiting success on labor markets with different degrees of informational asymmetry. We cluster companies’ recruiting channels in those with low (internal job markets and employee referrals) and high (job advertisements, the Federal Employment Agency and headhunters) degrees of informational asymmetry. We provide evidence that monetary aspects are important when quality aspects of the job and the company are not directly observable by job applicants. However, if recruiting channels are used where the level of asymmetric information is lower because applicants have more reliable information about job and company characteristics, the quality attributes of a workplace, such as flexible work times or a high job responsibility, become influential on the recruiting success. Finally, our results show that applicants with access to more information about the quality aspects of a job also seem to be in a better position to evaluate the information given with regard to their credibility.

Keywords

Job vacancies Employer signaling Recruiting success 

JEL Classification

J21 C83 L15 

References

  1. Akerlof GA (1970) The market for “Lemons”: quality uncertainty and the market mechanism. Quart J Econ 84(3):488–500CrossRefGoogle Scholar
  2. Allen DG, Van Scotter JR, Otondo RF (2004) Recruitment communication media: impact on prehire outcomes. Pers Psychol 57(1):143–171CrossRefGoogle Scholar
  3. Antoninis M (2006) The wage effects from the use of personal contacts as hiring channels. J Econ Behav Organ 59(1):133–146CrossRefGoogle Scholar
  4. Backes-Gellner U, Tuor SN (2010) Avoiding labor shortages by employer signaling: on the importance of good work climate and labor relations. Ind Labor Relat Rev 63(2):271–286Google Scholar
  5. Baltes BB, Briggs TE, Huff JW, Wright JA, Neuman GA (1999) Flexible and compressed workweek schedules: a meta-analysis of their effects on work-related criteria. J Appl Psychol 84(4):496–513CrossRefGoogle Scholar
  6. Barber AE, Roehling MV (1993) Job postings and the decision to interview: a verbal protocol analysis. J Appl Psychol 78(5):845–856CrossRefGoogle Scholar
  7. Bretz Jr RD , Judge TA (1994) The role of human resource systems in job applicant decision processes. J Manag 20(3):531–551Google Scholar
  8. Burdett K, Cunningham EJ (1998) Toward a theory of vacancies. J Labor Econ 16(3):445–478CrossRefGoogle Scholar
  9. Chapman DS, Uggerslev KL, Carroll SL, Piasentin KA, Jones DA (2005) Applicant attraction to organizations and job choice: a meta- analytic review of the correlates of recruiting outcomes. J Appl Psychol 90(5):928–944CrossRefGoogle Scholar
  10. Connelly BL, Certo ST, Ireland RD, Reutzel CR (2011) Signaling theory: a review and assessment. J Manag 37(1):39–67CrossRefGoogle Scholar
  11. Fahr R (2011) Job design and job satisfaction—empirical evidence for Germany? Management revue. Int Rev Manag Stud 22(1):28–46Google Scholar
  12. Gude H, Kay R, Suprinovič O, Werner A (2010) Deckung des Fach- und Führungskräftebedarfs in kleinen und mittleren Unternehmen. KfW, Creditreform, IfM Bonn, RWI, ZEW in: MittelstandsMonitor 2010—Jährlicher Bericht zu Konjunktur- und Strukturfragen kleiner und mittlerer Unternehmen, Frankfurt am Main, pp 109–145Google Scholar
  13. Heckman JJ (1979) Sample selection bias as a specification error. Econometrica 47(1):153–161CrossRefGoogle Scholar
  14. Holzer HJ (1994) Job vacancy rates in the firm: an empirical analysis. Economica 61(241):17–36CrossRefGoogle Scholar
  15. Kay R, Suprinovič O, Werner A (2010) Deckung des Fachkräftebedarfs in kleinen und mittleren Unternehmen: Situationsanalysen und Handlungs-empfehlungen. Institut für Mittelstandsforschung Bonn: IfM-Materialien Nr. 200Google Scholar
  16. Kirmani A (1990) The effects of perceived advertising costs on brand perceptions. J Consum Res 17(2):160–171CrossRefGoogle Scholar
  17. Kirnan JP, Farley JA, Geisinger KF (1989) The relationship between recruiting source, applicant quality, and hire performance: an analysis by sex, ethnicity, and age. Pers Psychol 42(2):293–308CrossRefGoogle Scholar
  18. Kohn LS, Dipboye RL (1998) The effects of interview structure on recruiting outcomes. J Appl Soc Psychol 28(9):821–843CrossRefGoogle Scholar
  19. Milgrom P, Roberts J (1986) Price and advertising signals of product quality. J Polit Econ 94(4):796–821CrossRefGoogle Scholar
  20. Nadler JT, Cundiff NL, Lowery MR, Jackson S (2010) Perceptions of organizational attractiveness: the differential relationships of various work schedule flexibility programs. Manag Res Rev 33(9):865–876CrossRefGoogle Scholar
  21. Nelson P (1974) Advertising as information. J Polit Econ 82(4):729–754CrossRefGoogle Scholar
  22. Ployhart RE (2006) Staffing in the 21st century: new challenges and strategic opportunities. J Manag 32(6):868–897CrossRefGoogle Scholar
  23. Powell GN (1984) Effects of job attributes and recruiting practices on applicant decisions: a comparison. Pers Psychol 37(4):721–732CrossRefGoogle Scholar
  24. Rau BL, Hyland MM (2002) Role conflict and flexible work arrangements: the effects on applicant attraction. Pers Psychol 55(1):111–136CrossRefGoogle Scholar
  25. Russo G, Rietveld P, Nijkamp P, Gorter C (2000) Recruitment channel use and applicant arrival: an empirical analysis. Empir Economics 25(4):673–697CrossRefGoogle Scholar
  26. Rynes SL, Bretz RD Jr, Barry G (1991) The importance of recruitment in job choice: a different way of looking. Pers Psychol 44(3):487–521CrossRefGoogle Scholar
  27. Saks AM, Uggerslev KL (2010) Sequential and combined effects of recruitment information on applicant reactions. J Bus Psychol 25(3):351–365CrossRefGoogle Scholar
  28. Schmidtke C (2002) Signaling im personalmarketing. Eine theoretische und empirische Analyse des betrieblichen Rekrutierungserfolges. Munich. Rainer Hampp, VerlagGoogle Scholar
  29. Sebald H, Denison K, Enneking A, Richter T (2007) Was Mitarbeiter bewegt zum Unternehmenserfolg beizutragen—Mythos und Realität. Towers Perrin Global Workforce StudyGoogle Scholar
  30. Spence M (1973) Job market signaling. Quart J Econ 87(3):355–374CrossRefGoogle Scholar
  31. Turban DB, Dougherty TW (1992) Influences of campus recruiting on applicant attraction to firms. Acad Manag J 35(4):739–765CrossRefGoogle Scholar
  32. van Hoye G, Lievens F (2005) Recruitment-related information sources and organizational attractiveness: can something be done about negative publicity? Int J Sel Assess 13(3):179–187CrossRefGoogle Scholar
  33. Wooldridge JM (2008) Introductory econometrics. A modern approach. South-Western Cengage learning, MasonGoogle Scholar
  34. Yip PSL, Tsang EWK (2007) Interpreting dummy variables and their interaction effects in strategy research. Strateg Organ 5(1):13–30CrossRefGoogle Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2013

Authors and Affiliations

  • Sabrina Falk
    • 1
  • Andrea Hammermann
    • 3
  • Alwine Mohnen
    • 1
  • Arndt Werner
    • 2
  1. 1.Lehrstuhl für Unternehmensführung, Technische Universität MünchenMunichGermany
  2. 2.Institut für Mittelstandsforschung BonnBonnGermany
  3. 3.CologneGermany

Personalised recommendations