Recruitment and selection process of personnel in the it sector in the territory of Vojvodina

It is widely known that the effective functioning of any business organization depends not only on material or financial resources but also on the presence of capable and valuable human resources in its team. The significance of the human factor in any type of work or organization is unparalleled due to its unique characteristics. The value of human resources increases over time, with work experience and education levels. Human resources are an organization's wealth that can help it achieve its goals. Human resource management involves the process of hiring people, training and developing employees, developing business strategies, and evaluating performance. In the current complex environment, no job or organization can exist and grow without appropriate human resources. Therefore, human factors have become the focus of attention for every progressive organization. Human resource management is a process that includes hiring people, training and developing employees, developing business strategies, and evaluating performance. It has undergone many changes in the last two decades, gaining a more important role in today's organizations. Human resource management, or HR, deals with all aspects of how people are employed and managed in organizations.

Human resources are a crucial aspect of every successful organization. HR creates a positive and productive work environment, helping employees grow and ensuring compliance with laws and data management. Despite various responsibilities, hiring remains at the core of HR efforts. HR professionals carefully find, review, and assess potential employees to build a talented and diverse team. By focusing on hiring, HR contributes to the overall strength and dynamics of the company.

The recruitment and selection process in HR management, involving various methods, is crucial for attracting top talents. Understanding the key steps in the selection process can assist human resource managers in navigating the entire employment lifecycle and achieving optimal results. This paper focuses on the importance of recruiting and selecting candidates, as companies that take their hiring process seriously have a higher chance of finding and retaining top talents, helping them stay ahead of the competition and achieve their goals. The study analyzes the recruitment and selection process of candidates in the IT sector.

In the first three months of 2023, the export of the Serbian IT industry reached 786 million euros. According to data from the Ministry of Information and Telecommunications, the figures show a significant increase of 44% compared to the same period last year. The total export for the previous year was 2.7 billion euros, and if the growth trend continues, the export could exceed 4 billion euros by the end of the year, as stated by the Government's presidency.

The IT industry in Serbia is experiencing constant growth, with local IT companies being highly sought after by foreign clients. Novi Sad has become a hub for this industry in Serbia, nurturing talents and IT professionals for Europe and the world. Some of the IT companies in Novi Sad include Ximedes, Symphony, VegaIT, Levi9, Playrix RS, Schneider Electric, and IBM.

The first part of the paper analyzes previous research in the field of recruitment and selection in the IT sector. The second part presents the results of our research on the selection and recruitment process of candidates in the IT sector in the Vojvodina region.

Literature Review

Strategic HR fundamentally takes actions aligned with the company's long-term goals. This involves proactive planning, optimizing talent management through data analysis, and proactively suggesting improvements to the organization, work environment, and employee development. As companies expand their teams, recruitment processes and talent management become priorities, and investing in human resources becomes essential for developing the best professionals and advancing the organization.

People are the most important resource of a company, and it becomes clear that investing in employees can contribute much more to an organization than financial or material resources. During candidate selection and recruitment, it is crucial to hire people who fit the job and align with the organization's goals and missions, as well as to invest in employee development for the future.

Incorrect decisions during hiring cause significant problems in organizations, affecting costs, efficiency, and business economics. When testing or interviewing, HR management makes random, rarely intentional, and conscious errors, which later impact operations. The person who accepts our business offer at the end of the final selection can cost the organization a lot, taking time to train the new employee, introduce them to the job, and socialize them. Still, over time, our new workforce may prove unproductive and unqualified for the job. More than 82% of companies use some form of screening before hiring. It's a great way to find out whether someone truly speaks Mandarin fluently (as claimed on their resume) or if they are misrepresenting themselves. There are numerous skill assessments you can use, including those offered by LinkedIn. However, here's a warning: skill tests only work if you pay attention to the results. According to an article in the Harvard Business Review, researchers "discovered that even when companies administer such tests, hiring managers often ignore them—and when they (ignore the results), they end up with poorer hires." Whenever possible, consider dropping the requirement for a four-year degree in your job ads, especially for jobs with "middle skills," traditionally requiring more than a high school diploma but less than a college degree. Seeking a college degree drastically reduces your talent pool, even though an undegreed worker may be a perfect fit.

We mostly look for candidates externally. In the past, when employees typically stayed with one organization throughout their careers (from the end of World War II to the 1970s), companies filled 90% of their vacant positions through promotions and lateral moves. Today, that figure is a third or less. It's crucial to ask whether the best candidate might already be in-house. There are many reasons why you might want to hire internally. It takes less time and money to find talent (saving on relocation costs), enables faster onboarding and ramp-up, and provides an accurate report of the candidate's recent performance (Cappelli P., Harvard Business Review, 2019).

Automatic rejection of "overqualified" candidates – if you routinely reject candidates because you think they're overqualified, you might want to reconsider. Of course, there are reasons why an overqualified candidate might give us pause. Hiring managers may not want to bring on someone with more experience than them who could overshadow them. There's always the risk that the employee will get bored and move on or might demand too high a salary. However, most experienced employees understand that compensation for a long career tends to ebb and flow over time, rather than continually rise. There may also be a reason why an experienced candidate wants to work in your company, even if it's a step down and less pay.

Employers Rarely Provide Feedback

Almost 77% of candidates who apply for jobs through job postings don't receive feedback from employers, according to a study conducted by "Infostud" for over ten years, titled "Rate the Path to a Job." Candidates are asked about their experience in the selection and recruitment process from the moment they submitted their application to the end and whether they received feedback on the outcome of the competition. The study was conducted in 2020 and assessed over 21,500 job ads, constituting 6,000 individual employers. Employers receive over 500 applications, but even in the 21st century, when it's just three clicks, not receiving information can discourage job seekers, as stated in the research.

Although data on the lack of feedback has indicated a negative impact on employers' image for years, there is no improvement in efforts to improve this step in the selection and recruitment process this year. As in the previous 13 years, Infostud collected candidate ratings on the selection and recruitment process at employers where they applied for one of the open positions. In this year's "Rate the Path to a Job" survey, 22,339 candidates expressed their views on 28,791 job postings from 7,783 employers.

Candidates this year, as in previous years, rated companies on a scale of 1 to 5 for how the company scheduled the interview, the quality of information received about the job, the speed of the selection process, and notification of the competition outcome.

Until the pandemic, there was a slight trend of improvement, and last year's persistent rating was repeated in 2022, with the lowest average rating of 1.5 given by 88% of candidates for lack of feedback. In times of a significant workforce deficit, when it is increasingly challenging to find workers, the situation becomes even more alarming, with 65% of candidates stating that they would no longer apply to the same employer due to this reason, and 70% emphasized that they would not recommend that employer to any of their close ones.

On the other hand, many companies attach great importance to these processes and their public image, as evidenced by high ratings for scheduling tests or interviews, receiving an average rating of 4 this year. Processes related to obtaining information about the job they applied for (job description and working conditions) and the speed of completing the selection also received a high rating of 3.7.

Recruitment in the IT Industry

In the IT sector (information technology), most skilled personnel are recruited externally and highly educated. In 2021, the LinkedIn user base in Serbia is expected to reach 1.10 million users by 2025. Research results indicate that in Serbia, the internet and social networks are used in the recruitment process, but not extensively. The use of social networks like Facebook or LinkedIn is relatively low, as shown in the research results. The use of social networks for recruitment is still developing. In the selection process, the internet and social networks are not significantly utilized, as indicated by research results. Serbian organizations use social media profiles in only 10% of cases for the selection of managerial and professional positions and only 6.3% for the selection of administrative and physical workers (Knežević, 2022).

Among external recruitment methods, recommendations, newspaper, and online advertisements are most commonly used. In the external recruitment of managers, the internet is most frequently employed. For skilled workers, the most popular external recruitment sources are the National Employment Service, online ads, and permanent job postings. Recruitment often occurs through recommendations via the LinkedIn network, and foreign companies collaborate with Serbian faculties, leading to a noticeable number of employed students or graduates securing positions through internships or the opportunity "My First Job."

Employers Dissatisfied with Candidate Quality in the Serbian Job Market

In the "Rate the Path to a Job" survey conducted by the job search website Poslovi Infostud, data consistently shows a certain level of candidate dissatisfaction with the employers' selection and recruitment process. The lack of feedback on the competition outcome, where many employers frequently fail, contributes the most to this dissatisfaction.

An article in the electronic edition of "Danas" (28.07.2022) states that employers are dissatisfied with the quality of candidates in the Serbian job market. Some applicants did not show up for scheduled interviews, and some respondents note that the job ad text is incomplete, with an imprecise job description.

To determine employer satisfaction regarding candidate quality from the job opening to the hiring of the selected candidate, a survey was conducted in May and June 2022 involving 317 companies. Twenty percent of the participating companies were from the IT sector, and 80% were from non-IT sectors. Over half of them belonged to smaller companies (up to 100 employees), while a third fell into the category of medium and larger enterprises with up to 1000 employees, and 10% were companies with over 1000 employees.

Positions with medium seniority were most frequently sought by surveyed companies (57%), with 20% of ads targeting junior and senior positions each. Common challenges faced by companies include the number of applicants, lack of experience, and unrealistic candidate self-perceptions. Regarding the response to job postings, companies mostly expressed dissatisfaction with the small number of applicants, with over 60% believing that a minimal number of candidates apply, while only 36% are satisfied.

Concerning the quality of applications, half of the companies rated it lower than expected, with only 15% being satisfied. Competence levels of candidates also contribute to this dissatisfaction. The research indicates that almost half of the applications are less competent than the job ad requires, while only 13% of candidates meet the employer's specified job requirements. Dissatisfaction is even more pronounced in the IT sector. Employers emphasize that candidates with lower seniority than required apply predominantly (48%), and a significant portion of applicants lack expertise, comprising a third of the total applications. Only 5% of companies receive applications with the required qualifications and seniority.

Although candidates who applied for a job are expected to attend the interview, market data from the survey shows a slightly different picture. Almost half of the surveyed employers state that all invited candidates show up for the job interview, while a third emphasize that invited candidates do not appear for the scheduled interview. If candidates cannot attend the job interview, employers note that candidates rarely report being unable to attend, but a quarter usually informs with a request to reschedule. Regarding positions most problematic in terms of hiring and turnover, employers highlight issues mainly in the IT sector (especially for senior positions), followed by trade/sales, manufacturing, and also lower-skilled positions like various crafts that are in shortage in our market, as stated in the press release.

When asked about highlighting work conditions such as salary in the job ad, 77% of employers state that they do not publish this information in the job ad text. On the other hand, only 4% plan to communicate the salary in the future to attract a more qualified and competent workforce. Given that candidates most often criticize employers for the lack of feedback, the research shows that 50% of them always report the outcome, and a third usually informs. Complete absence of feedback is stated by 15% of surveyed employers.

Based on the presented data, there is significant employer dissatisfaction with the choice and number of candidates in the job market. Our "Rate the Path to a Job" research shows that candidates are satisfied with the way interviews are scheduled and the information they receive about the position they are applying for. However, on the other hand, surveyed companies assess that they often do not receive competent candidates and that it frequently happens that candidates do not appear for scheduled interviews. Interestingly, there is a certain consistency in both surveys regarding candidate information about the interview outcome. Candidates in the previous survey emphasized that they do not receive feedback on the outcome of their job interview, while employer responses also show that they often will not send a response regarding the interview outcome (Danas online, 2022).

Methodological Framework of the Research

The subject of the research is to determine how the process of selection and recruitment of employees in the IT sector functions in the territory of Vojvodina. Objectives of the research were:

• •    Determining recruitment sources in IT companies in the Novi Sad area,

• •    Examining the influence of the position for which employees are hired on the elements of the selection process,

• •    Identifying differences in the types of tests used in the selection process for different positions in the IT sector,

• •    Determining differences in the candidate interview process for different positions in the IT sector.

Based on the proposed scientific goal of the research, research hypotheses were formulated. The hypotheses on which the research is based are:

• •       H0: There is a statistically significant difference in the implementation of

the recruitment and selection process for IT positions and all other positions in the organization.

• •       H1: There is a statistically significant difference in the recruitment process

for candidates for IT positions and other positions in the organization.

• •       H2: There is a statistically significant difference in the types of tests used in

the selection process for IT positions and other positions in the organization.

• •       H3: There is a statistically significant difference in the interview process

between candidates hired for IT positions and other positions in the organization.

The research was conducted in the territory of Vojvodina between February and May 2023. Two basic methods for data collection and analysis were applied: the method of theoretical analysis, the research method, and the method of content analysis. Primary research is based on the survey method using the Google Forms application for questionnaire creation and analysis. The questionnaire, including 14 questions, was answered by 180 anonymous respondents employed in IT companies in the Vojvodina region. Data processing was conducted using the statistical package SPSS.

Demographic Characteristics of the Respondents

The research focuses on the process of selection and recruitment of employees in the IT sector in the Novi Sad area. The primary goal is to show whether there is a significant difference in the implementation of the recruitment and selection process for IT positions compared to all other positions in the organization.

The questionnaire was completed by employees in the IT sector with different qualifications, job profiles, ages, and workplaces. A total of 180 employees in the IT sector participated in the survey, with 61.7% being male and 38.3% female. The respondents were categorized into five groups: the first group is under 25 years old (12.3%), the second group is from 26 to 35 years old (46.9%); the third group is from 36 to 45 years old (30.9%), the fourth group consists of employees from 46 to 55 (8.6%), and respondents older than 56 years (1.5%).

Respondents were asked about their educational qualifications, and the results showed that the majority of IT professionals had completed their university education, with 49.4% (40 respondents) holding a bachelor's degree, 29.6% (24 respondents) having completed master's studies, and 21% (17 respondents) having only secondary education.

When examining the duration of employment, 34.6% of respondents have been working between 6 and 10 years; 30% have been employed for up to 5 years, 29.6% have been working between 11 and 20 years; 3.7% have been in employment for 21 to 30 years, and only one respondent has work experience longer than 31 years.

Employees in the IT sector hold various job positions, which, in addition to job descriptions, include the level of experience, aiding team leaders and managers in task allocation. Job positions held by respondents include programmer (junior, senior), designer, software tester, director, owner, manager, supervisor, team leader, finance group collaborator, HR assistant, technical support agent, consultant, marketing specialist, social media specialist, and content writer.

Research Results

Influence of the Respondent's Position on the Candidate Recruitment Process in the IT Industry

To examine whether there is a statistically significant difference in the way candidates are recruited for IT positions compared to those employed in other positions in IT companies, we employed the Pearson's χ2 (chi-square) test. (Table 1)

Table 1. Pearson's χ2 (chi-square) test.

Crosstab Count
	IntExtREG		Total
	Interna	Eksterna
Pozicija IT Ostalo Total	18 24 42	26 13 39	44 37 81

Value df

Asymptotic Significance (2-sided)

Exact Sig. (2-sided)

Exact Sig. (1-sided)

• a.    0 cells (0,0%) have expected count less than 5. The minimum expected count is 17,81.

• b.    Computed only for a 2x2 table

To achieve significance, p should be 0.05 or lower. Based on our results, it can be stated that there is a statistically significant difference in the candidate recruitment process across different positions in IT companies, given that p=0.032. Although there is no statistically significant difference based on frequency analysis, it can be inferred that IT positions are more often filled through external methods compared to all other positions in IT companies. Considering the statistically significant difference in the candidate recruitment process across different positions in IT companies, we can conclude that H1: IT positions are more often filled internally, while other positions in the organization are more often filled externally – CONFIRMED.

Influence of the Respondent's Position on the Application of Tests in the Candidate Selection Process in the IT Industry

In the candidate selection process, testing is frequently utilized, but its application varies depending on the specific job being filled. To investigate whether there is a statistically significant difference between the position to which a candidate is hired and the use of tests in the selection process in IT companies, we employed the Pearson's χ2 (chi-square) test. (Table 2).

Table 2. Pearson's χ2 (chi-square) test.

Crosstab

Count

	Testovi		Total
	Da	Ne koriste
Pozicija IT	33	11	44
Ostalo	23	14	37
Total	56	25	81

Value df Asymptotic Significance (2-sided) Exact Sig. (2-sided) Exact Sig. (1-sided) Pearson Chi-Square 1,552a 1 ,213 Continuity Correctionb 1,009 1 ,315 Likelihood Ratio 1,551 1 ,213 Fisher's Exact Test ,236 ,158 Linear-by-Linear Association 1,533 1 ,216 N of Valid Cases 81 a. 0 cells (0,0%) have expected count less than 5. The minimum expected count is 11,42.

b. Computed only for a 2x2 table

Based on our results, it can be stated that there is no statistically significant difference in the application of tests in the selection process based on the position for which the candidate is being employed in IT companies, considering that p=0.213. Although there is no statistically significant difference based on the frequency analysis, it can be concluded that tests are more commonly used in the selection process when hiring for IT positions.

Since there is no statistically significant difference, we can conclude that:

H2: There is a statistically significant difference in the type of tests used in the selection process for IT positions compared to other positions in the organization -NOT SUPPORTED.

The influence of the respondent's position on the candidate interview process for open positions in the IT industry.

To examine whether there is a statistically significant difference between the position for which the candidate is being employed and the use of tests in the selection process in IT companies, we used the Pearson's χ2 (chi-square) test, crossing the respondent's position with questions related to how many interview rounds they had during the hiring process and whether the interview included a technical knowledge check. Regarding the question of whether they had an interview during the selection, 97% of respondents gave a positive answer. When we crossed the respondent's position with the question of whether they had an interview during the hiring process in the selection process, we found no statistically significant difference (p=0.118) (Table 3).

Table 3. Pearson's χ2 (chi-square) test.

Crosstab Count
	Interviju		Total
	Da	Ne
Pozicija IT Ostalo Total	44 35 79	0 2 2	44 37 81

Value df Asymptotic Significance (2-sided) Exact Sig. (2-sided) Exact Sig. (1-sided) Pearson Chi-Square 2,439a 1 ,118 Continuity Correctionb ,710 1 ,399 Likelihood Ratio 3,194 1 ,074 Fisher's Exact Test ,206 ,206 Linear-by-Linear Association 2,408 1 ,121 N of Valid Cases 81 a. 2 cells (50,0%) have expected count less than 5. The minimum expected count is ,91.

b. Computed only for a 2x2 table

Depending on the position they were applying for, candidates were interviewed several times during the selection and recruitment process before the human resources management made an assessment of who the right candidate is for the open position.

Using the Pearson's χ2 (chi-square) test, we determined that there is no statistically significant difference between the number of interview rounds candidates had and the position they were applying for, considering that p=0.853 (Table 4).

Table 4 chi-square test

	Crosstab
Count
	Krugovi
	Jedan	Dva	Vise od dva	Total
Pozicija IT	12	25	7	44
Ostalo	9	21	4	34
Total	21	46	11	78

Value df Asymptotic Significance (2-sided) Pearson Chi-Square ,318a 2 ,853 Likelihood Ratio ,321 2 ,852 Linear-by-Linear Association ,054 1 ,817 N of Valid Cases 78 a. 1 cells (16,7%) have expected count less than 5. The minimum expected count is 4,79.

In conclusion, we attempted to determine whether technical knowledge assessment as part of the interview process is more prevalent when hiring candidates for IT positions compared to other positions within the organization.

Through the analysis using the Pearson's χ2 (chi-square) test, we found a statistically significant difference (p=0.002). Specifically, 31% of employees in IT positions underwent a technical knowledge assessment during the interview, in contrast to 12% of respondents employed in other positions within IT companies (Table 5).

Table 4 chi-square test

Crosstab

Count

	TehnickoZnanje		Total
	Da	Ne
Pozicija IT	31	6	37
Ostalo	12	14	26
Total	43	20	63

Value df Asymptotic Significance (2-sided) Exact Sig. (2-sided) Exact Sig. (1-sided) Pearson Chi-Square 9,979a 1 ,002 Continuity Correctionb 8,318 1 ,004 Likelihood Ratio 10,053 1 ,002 Fisher's Exact Test ,002 ,002 Linear-by-Linear Association 9,821 1 ,002 N of Valid Cases 63 a. 0 cells (0,0%) have expected count less than 5. The minimum expected count is 8,25.

b. Computed only for a 2x2 table

Based on the results obtained, we can conclude that:

H3: There is a statistically significant difference in the interview process between candidates hired for IT positions and other positions in the organization – PARTIALLY CONFIRMED.

In other words, the difference in the interview process exists only in the segment related to technical knowledge assessment, which is more prevalent when interviewing candidates for IT positions. Other parts of the interview process do not differ significantly when hiring candidates for various positions in IT companies.

DISCUSSION OF RESULTS

In this research, we examined the candidate selection and recruitment process in the IT sector, attempting to determine whether there is a statistically significant difference in implementing the candidate selection and recruitment process for IT positions compared to other positions in the organization.

To prove the main hypothesis, we defined three auxiliary hypotheses, of which: Hypothesis 1: There is a statistically significant difference in the recruitment process for candidates for IT positions and other positions in the organization – confirmed; Hypothesis 2: There is a statistically significant difference in the type of tests used in the selection process for IT positions and other positions in the organization – not confirmed; and

Hypothesis 3: There is a statistically significant difference in the interview process between candidates hired for IT positions and other positions in the organization – partially confirmed.

Since the auxiliary hypotheses are partially confirmed, we can conclude that our null hypothesis (There is a statistically significant difference in the implementation of the recruitment and selection process for IT positions and all other positions in the organization) is partially confirmed.

The results of our research have shown that candidates employed internally in the IT sector are more likely to hold positions not specific to information technology, such as managers, HR consultants, finance associates, team leaders, supervisors, marketing experts, and social media specialists. Externally, through online advertisements, positions were mostly found by programmers, designers, software testers—candidates who are IT professionals. Our research somewhat aligns with the findings of Knežević and Ivković (2022), indicating that recruitment in the IT sector often occurs through the LinkedIn network or by recruiting recent graduates from faculties with which IT companies collaborate.

Our research revealed that the majority of IT companies have profiles on platforms such as LinkedIn, Hello World, Reddit, significantly aiding candidates in obtaining information about potential employers.

Our results have determined that there is no difference in the type of tests used during selection based on the position candidates apply for. On the other hand, significant differences have been identified in the interview process itself. Candidates for IT positions underwent a minimum of two interview rounds, and apart from the HR representative, team leaders or sector directors more frequently participated in interviews for IT positions. For other positions within the organization, the HR manager interviewed candidates and made decisions about employment. Additionally, candidates for IT positions underwent technical knowledge assessments, unlike candidates applying for other positions in IT companies. This result leads us to the conclusion that technical knowledge is crucial for IT professional positions, while personality assessments, interests, cognitive abilities, etc., are more important for other positions.

Furthermore, research results indicate clear criteria for candidate selection. In the IT sector, preference is given to specific abilities such as motivation for work, adaptability to the work environment, knowledge in a relevant field, and the skills possessed by the candidate. Experience in the relevant field and education did not significantly influence the management's decision on hiring candidates.

In conclusion, we have also explored the reasons why many individuals apply for or work in the IT sector today. Most are highly satisfied with their salary, working conditions, opportunities for training and advancement provided by the organization, but other factors include a good working atmosphere, the opportunity to work on innovative and interesting projects, flexible working hours, and a good balance between professional and personal life.

Conclusion

People have always been central figures in organizations, but their strategic importance is growing in today's knowledge-based industries. Employment is referred to as a positive process with an approach to attract as many candidates as possible for vacant positions. It is the process of identifying and creating potential candidates to apply for a job. On the other hand, selection is called a negative process involving the elimination of a large number of candidates. There are many individuals applying for jobs, but selection is performed only on those who are qualified and skilled. Selection is important because hiring good resources can help increase the overall performance of the organization. Both recruitment and selection processes are considered essential for the effective functioning of organizations and occur simultaneously. They are imperative for the growth and development of the organization.

For recruitment and selection processes to have a positive impact on the organization, human resource management must be in line with job analysis, job description, and in line with the goals and missions of the organization. The process itself must be subjective, professional, and responsible. Research has also shown the negative aspects of human resources or management, as it leads to neglect of basic principles of candidate selection or ethics in business, such as errors in job offers to selected candidates or failure to respond to individuals who have not found their position in this job description.

During the candidate selection and recruitment process in the IT sector, human resource managers easily find new IT professionals, as the process often occurs internally, i.e., through recommendations from senior colleagues, saving time, money, and future potential employees are already familiar with the organization. However, when hiring other staff in the organization, management often relies on external recruitment, which involves newspaper advertisements, websites, agencies, or offering jobs to recent graduates.

Investment in the human resources sector, training, and development plays a crucial role in every organization.