Job Boards Challenging 2Q09 Numbers – Its not the Economy
In a late night posting (10:49 pm) ERE released an article about the financial results of both Monster and Careerbuilder/ Both job boards saw major drops in revenue in the 2nd Quarter – Careerbuilder by an astonishing 31% but still looking better than Monster’s 37% drop. On the plus side – even with the loss, Monster still beat analysts expectations.
Want to read more about the details and financial information – Click here to read the ERE article by John Zappe.
After reading the posting a few days ago on the HR Technology Vendors increase in revenues – it makes you wonder a little bit about what is going on with the job boards. At first glance you can blame it on the basics – economy, high unemployment rates, companies not hiring…But the reality of the situation is that the traditional job board model is likely going to be phasing out in the coming years.
What makes me think that?
1. Job Board Aggregators – If they can fix some of the ease of use issues they have – sites like indeed.com and simplyhired.com will undoubtedly be the best resource from a candidates perspective. No more having to search a number of individual job boards and company career site. Simple. Effective. From a company perspective, these aggregators run on a more PPC cost model and so for many organization they can be listed on this site at no charge to their company.
2. Social Media -Sites like Twitter, Facebook, LinkedIn have become the new place where people can be found. For companies, the cost to advertise & brand is next to nothing. New middle-man products (and some ATS’s) that are on the market allow for quick distribution to a number various social media sites for less than a fraction of a traditional job board posting. With this market (or any market, actually) you are more likely to reach the passive candidates on this route than the traditional job board. Why does that matter? Because you can target more specifically and waste less time on people you don’t really care to look at anyway. (In the slightly further future – it will be transition to mobile recruiting and the interaction via SMS that will make the difference - read my thoughts on that here)
3. Customer Experience – Just like with our own branding and candidate experience programs we implement in our organizations – the customer experience at some of the other, niche boards is well, better. They are more responsive and more forward thinking than many of the big guys. Stop focusing on how to add more sales and revenue – instead look at the value you can bring to the community you are working in. Building the trust and value in your brand will lead to better sales.
Don’t believe me? Lets take a look at Jobing. I first came across Jobing.com in Phoenix while I was working on a Consulting Project with a major Financial Institution. I was brought in to design a recruiting process separate from human resources and roll it out to the various regional HQ’s. My roll out in Phoenix happened to coincide with the Jobing.com job fair that attracted thousands upon thousands of candidates. No big deal you are thinking – but at the time, the Phoenix market had close to a 2% unemployment rate. So, how were they able to do that? They provided value to attendees by offering interview training, resume review (complete with computers & printers to make new ones if needed) and more. One thing I also was alway intrigued with by their strategic plans was to build a relationship with one market at a time – don’t try to take on the whole world at once. It worked.
So – what else is Jobing doing that is keeping their clients coming back and using them as the main resource? (Hey – Monster & Careerbuilder, you may want to take note)
- Social Media – I think it is because of the nibleness and entreprenurial spirit of the company – but they adapted social media fast and furiously. In fact they have close to 1000 twitter accounts – including the CEO @jobing, all 38 of the regional markets they are in, and a variety of other employees. (I follow @thatpassionguy their social media manager, myself). In itself – that is no so new and different – but this is: They have created twitter accounts that tweet out jobs based on location & industry so confidential job seekers can just follow a particular twitter handle and get information real time! (Ex. @phxhealthcare would be healthcare related jobs in Phoenix)
- Blogs. Jobing.com offers members of the community the ability to blog on their website – creating a built in market for smaller organizations (the majority of ones that actually hire)
- Superior Customer Service – They stay individual market focused with a full team at each location so you talk to people you may actually meet. In today’s crazy online world – it is a unique characteristic. They also LISTEN to suggestions from both their companies, employees and the candidates as to what they are looking for and then try to implement change QUICKLY.
The tradditonal job board model is as outdated as the newspapers they tried to replace
Why can’t anyone use their real name???
Anyway – I don’t think that traditional job boards will ever go away completely – I DO think that they will need to evolve (I mention sites like indeed.com in addition to the social media strategy being attempted by jobing). Again, if you don’t think that traditional job boards need to evolve then keep up the argument that its the economy…
Couldn’t agree more Sarah! If you throw together organic direct search engine traffic, paid SEM, social networking, employee referrals, internal transfers, mobile recruiting for campus and location based sourcing, aggregators, targeted niche boards, new strategies in alumni recruiting and all the other unique sources, you have a recipe for the demise of ‘post and pray’ big boards. Our clients have cut millions of dollars from their job board spending even though many are still actively sourcing and pipelining talent. As you state, the money follow the ROI and smart companies realize that to effectively recruit key talent in the next round of this economic cycle, the big boards aren’t the answer!
WOW is one of Jobing.com’s core values. It is also the reaction I get when I read your blogvertisment for them. You clearly know very little about the job board industry or are good friends with some people at Jobing because your assessment of their strategy is nothing more then a commercial for them and deeply flawed.
I agree that Monster and Careerbuilder should take not on how to not grow their business. First, Jobing’s 1000 twitter accounts are virtually meaningless. They do no use them effectively and their Social Media Director has actually stated publically that he cannot measure the effectiveness in top line revenue their twitter accounts have produced. Most of their Tweets are just RT from others. There is nothing very original here. Careerbuilder and Monster do the same.
I challenge you to find their Linkedin or Facebook fan pages. You cannot. Not much of a Social Media strategy. Their whole strategy revolves around the hope and prayer that Twitter can drive more traffic to a replace all of the traffic they lost since they can longer afford to advertise.
Their customer service used to be fabled but not so much anymore. They have cut over 200 people from their staff and closed several local markets, including Atlanta, Orlando, Baltimore, Fort Worth, Miami, Riverside, Ca. and others. Most of the talented employees are gone. They where known for their ability to be face to face with their clients and now have less then 3 Outside Sales Consultants in the entire company. The others have been fired or quit. Many markets are handled out of their call center in Phoenix. Not too local.
They made these moves save money because revenue took a nosedive in 2008 and has yet to recover. They are bleeding money. Of course, they are spending millions to have their name on an Arena in Phoenix to appease the ego of their CEO. I wonder how much better their service could be if they had not fired all of their Customer Service staff. I bet the stadium branding could have paid a few salaries.
The job fairs that you boast about where once a thing the company could be proud of. Since the time you attended they have ceased their Career Expo operations in all of their markets besides Phoenix and Denver. They attracted so many people because of the amount of outdoor and local advertising they did. This made their job fair business a loss leader and it was a huge expenditure. They lost an average of $100,000 per event. Careerbuilder and Monster are just not in the business of losing money like Jobing.com
Do we have to even mention the millions they spent to show off at the SHRM conferences in Las Vegas and Chicago? They could not even afford to have a 10 x 10 booth in New Orleans this year after their record setting expenditures the past two years. They now have less total staff then they brought to Las Vegas the first year.
Their blogs are total fluff. No one reads them except for the people who wrote them and their friends. You could accomplish the same with an email. They have lost their SEO officer and their IT Security Director was too embarrassed to even mention Jobing on her linked in profile.
The company has lost so much money that they left their core strategy of local, grass roots and outdoor advertising in the local markets behind. Their traffic is way down and the average postings generates little to no candidate traffic compared to the big three. Before anyone says the quality is better than think again. The candidate quality is no better then any other general job board.
You article is nothing more then a blogvertisment. You much did they pay you to write?
The following is based on my experience working with the internal Talent Acquisition department of a Fortune 100 company, obviously your views may differ based on the types of roles you fill and clients you work for.
Do I think Monster and CareerBuilder will go under? Absolutely not. I think they will transform and adapt to new trends. There is still a value (I think) to large job boards with thousands of resumes, especially for high-volume recruiting. Most of our candidates (both skilled and unskilled) are coming from the job boards, still.
We have also had tremendous success with niche job boards for specific positions (LawCrossing.com, CallCenterJobs.com, etc.).
The bulk of our Social Media recruiting comes from LinkedIn. While LinkedIn certainly has a large database of very skilled individuals from just about every company EVER, it is not very interactive. I would like to see some microblog or live chat functionality (like Facebook) to be able to engage candidates in real-time.
Being recruiters, we need to be aware of different tools that could possibly lead to the next hire. We must certainly not discredit another utility because it doesn’t fit YOUR hiring model – it might work wonders for somebody else. Find what works for you, and keep doing it. At the end of the day, who cares if you met your next hot candidate at the mall, focus more on the impact that candidate makes as opposed to where he or she came from.
That’s all.
Adam Fields, P.I.M.P.
@Fieldsy4Life
My apologies to you because it certainly seemed like you where endorsing them. Do you mind if I, too, clarify a few things relating to your response:
1. I am glad to know that you do not get paid and that this is a labor of love for you. Many people familiar with Jobing have a mistrust of bloggers in this space because of Joel Cheezhead’s absolute refusal to post anything negative about his friends there.
5 people get fired from Jobfox and it’s blogtastic and 100 from Jobing are RIF’d and not a peep from him after they bought him a booth at SHRM Chicago.
2. This statement “I agree that Monster and Careerbuilder should take not on how to not grow their business” should read; “should take NOTE on HOW TO NOT GROW their business” It was misspelled sarcasm.
3. @thatpassionguy is a 23 year old recent college grad that Jobing’s CEO paid for a cross country road trip to interview people on why they love their job. He has ZERO HR or Recruiting experience. He actually said this in a blog: “As for quantifying success…you’ve hit it right on the head. How much business do you generate using a strategy like this? The answer? Not much, if any.” His words not mine.
4. The theory of Social media is still evolving and companies like Linkedin are doing great things for recruitment. Twitter is a wait and see thing, but Jobing is not do anything different or ahead of the big job boards or other sites like jobs2web.
5. You mentioned Job fairs. That has nothing to do with Social Media or even technology. They got people to the events with good, old fashioned local advertising on Radio, TV and Billboards. It has nothing to do with Social Media at all.
Finally, you mentioned that “I liked about them as an organization is they didn’t try to do everything everywhere – and attempted to stay local.” Well, they are not local anymore. They are calling on many markets from their call center in Phoenix and now they are offering Outplacing services as well as paid resume rewriting. The company is not leading the social media pack. Instead they are grasping at any life preserver they can find.
Props to you for getting the Caddyshack reference. I will certianly be keeping up with your blog int he future.
Just going with the Caddyshack theme in names, I fashion myself after Ty!
Sarah, thanks for you perspective on the recent news about CB & Monster.
While Jobing is going out to new medium to drive traffic, so is CB, Monster, JobCircle, Yahoo! Hotjobs and countless other job boards. Jobing promotes their CEOs Twitter account all over their site yet he seldom tweets. He has the ability to offer incredible perspective as a former HR Director and chooses not to do so. Why would a client buy their services if it appears that the CEO doesn’t believe in it?
The blogs are great SEO, though I find it funny that no one from Jobing HR is blogging about the company. The only blogs come from their community relations people. Do they not believe in their own product? Why not have HR talk about all the great things happening within Jobing or hiring initiatives or special leadership programs or anything?
With regard to excellent customer service, their job fairs were legendary. Best in class service driven by extraordinary people. Unfortunately, as the economy has taken its toll on the company and events, it has taken a toll on it’s people. Today’s Jobings are not nearly as enthusiastic as they were in the past. I have interacted with many Jobings over the years and they were always memorable. I can tell you that today those interactions are equal to that of other vendors. All are passionate about their product and truly believe it to be a valuable piece to any recruitment campaign.
I know it is fashionable to smack the big boys when bad news comes out about them, let’s not forget they have to publish reports due to the fact they are public companies. Jobing is afforded the luxury of being a private company and gets to rise above much of the conversation. I can tell you that they are hurting and hurting badly. Their numbers are equal to or worse than CB & Monster.
One thing is certain. No one seems to think Job Boards will be around in the future. Another thing is that no one seem to like this Jobbing company very much. Regardless, networking is the best form of recruting and Social Media is just another way to network. Networking and Social Media also will work well because it provides information in realtime. You can Tweet about current openings right now, but when you post them to the job board they just become old news.
Lots of stuff to respond to here. I’ll comment on what I’m able to comment on given my knowledge as one of two Jobing.com social media managers.
1) I want to thank Sarah for writing about our social media presence, and for responding to the Caddyshack character. I think this blog has a lot of potential to benefit recruiters interested in social media and industry news, and I’ll be returning here on a regular basis.
2) There were a few personal attacks on some Jobing employees here, including myself and our CEO. It was said that our CEO seldom tweets…wouldn’t you if you were the CEO of a job board dealing with the issues discussed in Sarah’s post? It’s not like the guy has the time to pop up Tweetdeck every day and tweet every hour. I’m actually impressed that he’s on there and active…name another CEO of a job board on twitter.
As far as the attacks on my inexperience in the recruiting industry, you’re right. I can’t say that I have 20 years of experience and I’m the VP of HR for a Fortune 500 company. But what I do have are unique experiences in social media with projects like http://www.pursuethepassion.com. That’s why I’m a social media manager. If you combine that with the two years I’ve worked for Jobing, you’ll find that I’ve got a perspective that not a lot of people have when it comes to socializing talent strategies.
All I can say about Jobing employees is that they are one of the top reasons why I work here. I also sit right next to our SEO director, so I don’t know why you thought she’s no longer with us.
3)Attacks about our Twitter strategy. We have 12 community relations managers and 10 community videographers who tweet under each of their local market accounts. We have our CEO, VP of Community, and our PR Director tweeting under individual accounts. Name another organization with 25+ employees tweeting on behalf of the company? That’s unique and progressive. Combine that with our 950+ Twitter accounts that tweet our jobs, and I believe we have the most effective strategy in the business. We just have to execute on that strategy, and that takes time.
As far as our overall social media strategy, we’re not on Facebook yet. The reason is that we don’t want to be half pregnant in many different areas of social media. We would like to develop a world class Twitter community and make sure we are getting value before moving on to using other social media tools.
And as far as me saying that we weren’t having success on Twitter, that’s a false statement because it was taken out of context. To get the full story, you can visit http://phoenix.jobing.com/blog_post.asp?post=20276.
I hope that sets a few tracks from the record straight. I know reading the comments from this post fired me up a bit to prove the naysayers wrong, so thanks for the extra fuel in the tank. I look forward giving the Caddyshack characters of the world something positive to talk about in the future.
Will the Jobing.com Social Media Manager ever respond to the question what if any contribution to top line or even bottom line revenue has your 950+ Twitter accounts has your World Class Twitter Community produced?
Since they are not “half pregant”BTW-horrible metaphor)in other social media then what does a Social Media Manager do or is the correct term Chief Tweet? What metrics are they using to know if Twitter is making any contribution to the companny? Jobing has now rolled out a social media consulting business so I am sure that they have devolped some sort of metrics to justify the cost and measure the success.
I guess Jobing.com is now “half-pregnant” on Facebook. They have put up a few misleading local sites such as Orlando. They seem to be using old pictures to show they are there. Too bad they closed that office over 8 months ago. There Miami Facebook page shows pictures at Heat Games. They haven’t been a sponsor there for 3 years. I wonder what “half-pregnant” misleading social media Brett will think of next. The Jacksonville site says they where there since 1999. I do not think that is true either. The strategy seems to be born out of desperation. You would think that a social media leader would have developed a Facebook strategy a while ago. I am starting to think the whole Social Media campaign of theirs started a few months ago. I don’t think that qualifies them as experts.
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I will start this by saying I question any response filled out by a character of Caddyshack vs. someone who can stand behind the things they say concerns me… but,
Let me clarify a few things -
1. I don’t get paid to do blog postings. This is a HR Technology blog so YES I will talk about particular vendors by name based on MY experiences with them personally.
2. I don’t understand this statement “I agree that Monster and Careerbuilder should take not on how to not grow their business.”
3. I don’t know anyone at the company – I mentioned clearly in the post I follow @thepassionguy on twitter
4. You are looking at their social media effort from the job board perspective and being able to quantify them vs. the large scale impact I was getting at that the “theory” of social media can get involved with in the future.
5. The fact they don’t do job fairs in every city doesn’t really matter to me – in fact, I mentioned something that I liked about them as an organization is they didn’t try to do everything everywhere – and attempted to stay local.
Lets get real – are any of the job boards the future of our industry? No. But the reality of the fact is that Jobing is TRYING to jump ahead and do some innovative things to bring companies and people closer together.
I will refer to a post by Maren Hogan on her blog (www.marenated.com) a while back where she talked about us all learning and making mistakes now while the products are still young. Will we make mistakes, errors, etc – yes – but will we be ahead when everyone else is trying to jump on board in the coming years.
Back to Jobing – Are they doing it perfect? Absolutely not – but it is a start. Social media is still a really, really new venture for everyone and there are going to be a lot of mistakes made – Just like with the job boards in the 90’s. I didn’t tell you (or anyone else) to rush out and sign up for an account – I am simply pointing out some new things that are getting tried by people other than the big 3 that if the big 3 tried – could likely be done better and help bring additional success.
I have no doubt they are likely hurting big time…being private has lots of advantages. I am not slamming big boards to slam. – I happen to like monster and careerbuilder and thing FOR TODAYS market it’s great. But tomorrows market and their continued success depends on them growing and evolving in more ways then a new user interface….
Thanks for finding this and clarifying a few things (without me having to ask!)
Excellent points about your Social Media strategy. Let’s clarify a few things. This blog post was about two of the big three job board’s horrendous earnings’ reports. The author seems to believe that the traditional job board business is going to be a thing of the past and that Social Media will be the replacement. Jobing’s social media presence is touted as a great example. Your company does not have to make their earnings public. Most in the business are aware of the tremendous cuts to staff that your organization made in order to show a profit in many markets. Is your company gambling on Twitter’s success for their future and, most importantly, what if any contribution to top line or even bottom line revenue has your 950+ Twitter accounts has your World Class Twitter Community produced?
Looks like the Social Media Manager of Jobing.com is also a plagerist. It seems that the blog he referenced above: http://phoenix.jobing.com/blog_post.asp?post=20276 was removed and redirected to the origical blog that someone else wrote in Nov. 2008. That’s one of the problems with bloggers.
…and now the commments are all gone too. I guess you will probably just delete the whole blog. Not very Social Media like. Did you not like the comments from Sarah? Did they hit too close to home?
Come on Brett. You ARE THE SOCIAL MEDIA MANAGER!