adults in the UK had searched for a job over the Internet in the past twelve months, according to an E-recruitment survey conducted by Working in 2003 (www.enhancemedia.co.uk). In the month of August of 2002, according to GoJobSite, about 82% of the applicants considered the Internet as the best source of job opportunities, while 84% felt it was the best way to apply and 55% discovered that it was the best way to be hired. (Paton, 2002).Taylor (2005:45-46) has highlighted some important changing trends in the labor market and one among these is the increasing preponderance of Generation Y employees or nexters – i.e, those born after 1980, who are quite comfortable with ongoing changes in the technological environment and are able to adapt easier to those changes. As a result, it appears that ongoing growth and evolution of the online environment is likely, as the older generation that is not conversant with computer operations increasingly yields way to a techno-savvy generation that has been raised with the facility of operating within the electronic medium and enjoying its manifold conveniences and therefore is already attributed with a global rather than local perspective. Taylor (2005:46) also points out that the younger generation is less inclined to accept bureaucratically imposed controls, just as they are less inclined to be loyal to their employers and can be easily lured away with better pay and perks. This would lead to recruitment and retention problems as a result of which employers will be predisposed to favor those modes of recruitment which are cost and time saving, rather than those which involve the traditional painstaking processes. While the time and expense for such traditional methods of recruitment may have been justified in the interest of retaining employees for a longer period, the declining policy of corporate loyalty among the younger generation would lead employers to favor the fast and economical electronic medium for recruitment and retention of employees.