New research suggests firms are missing out on talent, particularly from ethnic minorities, because they overlook the potential of e-recruitment.

The Chartered Management Institute (CMI) surveyed 1,350 managers from a range of minority groups. It found that internet searches were the second most popular method for job hunting among those polled (after newspapers), yet only 11 per cent reported finding suitable openings.

This suggests the majority of firms overlook the possibilities of e-recruitment, said Steven Timms, employment minister.

“This study shows that it is vital that employers take a close look at the methods they use to attract new recruits,” he said in a statement.

Managers aged under 30 were eight times more likely to use online searches than those aged over 50.

"It should be a key concern for employers because they run the risk of wasting a talent pool that already exists," said Jo Causon, director, marketing and corporate affairs.