Is social networking Web site Twitter just the latest fad, or is it a cost-effective tool companies can use for recruiting and marketing?

A recent survey suggests it’s the latter.

Twitter is a site that allows users to post short “micro-blogs” to be read either by a group of contacts or the general public. While largely used for people to keep tabs on what friends are up to, many organizations have signed up for the free service to spread news about products or job openings.

Savvy recruiters and HR pros are also searching through the site’s user profiles to actively locate potential employees.

The strategy is catching on, if this recent survey of businesses in the U.K. is any indication:

About 17% of small employers are using Twitter to recruit and market, says British wireless provider O2.

And 62% of them say it’s helping save money. More than 15% estimate they’ve saved up to $7,000 since signing up for Twitter. A third said they’ve saved about $1,500.

Has your company tried using Twitter to recruit? Had any success? Share your experiences in the comments section below.

Tags: social networking, technology, Twitter