Monday, 22 December 2008
Ready to say goodbye to 2008?
1. The economy
You've got to start here. Uncharted territory? Well we've had recessions (and depressions) before but if anyone can think of a time when we've had runs on banks, bailouts, interest rates at 2% and the BBC's economics correspondent becoming more than a bit of a celebrity (take a bow Robert Peston, and quick - write a book!) The widescale evaporation of business confidence has already had a huge impact on recruitment, resulting in -
2. The return of profits warnings and cuts in headcount at recruitment firms.
I think everyone in the industry knows where we stand on this.
3. LinkedIn was everywhere
LI was valued at the magical £1billion in April, with the latest round of VC money invested. As opposed to being held back by the current economy, I would argue that LI's position with the consumer base was strengthened. Worried about losing your job? You'll be needing your friends/ colleagues around you then.. Time to update that profile then.
4. Competing with established online brands got very, very expensive
Two examples here:
Did you notice XING advertising in Metro and on the Tube earlier this year? Not content with shelling out significant sums for traditional media, XING have also decided to compete with LI on the applications side. How? Easy -they paid $7.5 million for SocialMedian, a social news site headed up by Jason Goldberg, former CEO of Jobster. 12 months entry to exit for Jason on this, despite the market sentiment.
Jobsite's £15million campaign - that's a lot of money. Will it be worth it? Would they have pumped that level of cash into the business if they could have seen a few months into the future? Who knows. Regardless, Jobsite want to shift monster from their perch.... Clearly not being one to give up on a fight, monster will be unveiling their new site early next year... Digital Recruiting have had a peek already.
5. Twitter
It was a heck of a year for Twitter... culminating in them turning down an offer from Facebook no less.
Twitter seems to have achieved the impossible - it is many things to many different (early adopting!) people. Some use it to learn, others to build profile, some businesses even use it as a customer service platform. No matter what you use it for (if you do!) I think few would argue its an addictive little thing. I'll fess up that I log into it most days... Any twitterers reading can follow me here
6. People got excited about mobile internet
This has happened before... Could this be yet another false start for mobile web? Sure user figures are on the up but (with the exception of a few premium handsets) do you think mobile web usage is user friendly enough to be a daily activity for anyone other than the early adopters?
7. Big recruiters "get" the net?
Have you seen how high Hays rank for a stack of key words these days? That's some going - and if you add this to the their Candidate Attraction Solutions business it looks like they've come a heck of a long way since Google were alleged to have told them they were crap. I tip my cap to Hays on this.
8. DMGT want the world...
Not content with investing heavily in Jobsite, DMGT also purchased Broadbean. No official number on this, but a rather large figure is doing the gossip rounds...
DMGT now have access to rather a lot of info about the online recruitment market. I'll be interested to see what they do with it all!
OK, so there you go. Some thoughts on 2008. What will you remember about this year?
Thursday, 27 November 2008
Shrinking Market? Shrink the Web (part 2)
Job ad side covered, this post deals with the other side of the fence - the now huge amount of candidate CVs sitting on job board CV databases. Monster alone has in excess of 5 million profiles - who would have believed this 10 years ago!?! Anyone that has ever spent time wading through these (and yes boolean searches help..) will tell you it ain't any fun. Time consuming, yes. Good use of time, I'm not convinced. In today's market, any time that isn't either on the phone or meeting face to face doesn't feel too productive to me... The proof of the pudding in terms of just how time consuming this is? The existence of firms that allow recruiters to outsource "CV mining" from job board databases.
I would challenge anyone who thinks that "only desperate" or "unplaceable" candidates put their CVs on job board databases to cross reference their fees for the last 6 months against the likes of TotalJobs, Monster and a few niche boards in their specific markets. I suspect anyone with that opinion may get a surprise at just how many of those placed candidates are on there.
So why aren't more clients getting their staff direct? Same reason some recruiters are outsourcing CV mining.
Information overload - it just isn't particularly easy to manage all those CVs. Who is active, how up to date is the CV, how many other jobs they up for? All the classics that a half decent recruiter will sort out in their sleep.
This part of resourcing is ripe for "shrinking" - and there's quite a few firms that are offering software to do this. In fact, this part of the market is getting crowded rather quickly.
In the US, it looks like AIRS Sourcepoint and Talent Drive's TalentFilter dominate the market. Both of these businesses are now looking at the UK market.
On the face of it, these products are great - a real time (and therefore money) saver. Time to go out and buy then? Not so fast, there's quite a bit to these products - and from what I hear this market is in danger of getting more than a little crowded very quickly...
Before putting pen to paper on any of these, I'd consider a few key areas - how many job boards are covered, how the results are screened and just how easy are they to use (ie do they need complex search strings or can you just upload a job spec and the system does the rest?) Basic stuff really but if the boards that work best for you aren't there then why bother? Also if the parsing/ screening isn't up to scratch then you're in danger of going full circle and just having too many CVs to look thru. If either of these two are the case then I'd steer clear... If they're right for your business then its worth a look...
Last point on this? AIRS and Talent Drive aren't going to have the market to themselves for too long.... I hear Broadbean are very close to launching a product in this market. The only product I've seen used is the Talent Drive product (and the functionality there is very good.... it includes results from sites like LinkedIn as well as job boards) I'm not best placed to say which is best, that said - given one of the criteria I'd have for selection is coverage of job boards I would hazard a guess that if the Broadbean product gets its parsing right (if/when launched) it could be hard to beat....
Friday, 24 October 2008
Shrinking market? Shrink the web.... (part 1)
Given the last time there was a slowdown, let alone a recession, was back in 2001/2002 the current conditions are uncharted territory for many in the recruitment industry. Not much fun, but hey you're in good company - given how complex the economic environment is at the moment, the situation Mssrs Brown, Sarkozy, Bush et al find themselves in is just as uncharted waters - I'm no economist but from what I read this set of circumstances is unique (maybe the US Savings and Loans crisis is the closest comparison?) Take a bit of heart - if you're a recruiter that's not worked a slowdown or a recession, then its highly likely that your Managers and Directors have. If there was ever a good time to listen, its now...
Pretty clear we're either in, or entering a job driven market, so client relationships, exclusive business and PSLs are going to be key. It doesn't take a rocket scientist to work out that there is going to be pressure on margins given job volumes are lower. There's a heck of a lot of variables out there at the moment. I'm looking forward to seeing the results of the next NORAS survey which is due next week. Last time round, they showed that jobseekers were visiting fewer job boards during their search - indication of maturing market, more discerning jobseeker etc. I'll be intrigued to see if that trend continues... If it does, I don't think it will in the medium term as people who need to find new roles will be working quite a bit harder to secure them.
From a recruiters' perspective job flow could not be more crucial. In Ye Olde Days pre web, ad chasing was a great way to track the market and generate jobs. After all, press ads (especially ads placed directly by an employer, who generally didn't have a searchable database or talent pool to fall back on) will never have a 100% fill rate. Paid for an ad? Ad didn't pull? You'll be needing to speak to a recruiter pdq. Its not quite so simple these days with the volume of job ads that are online. A UK search on Google for "jobs" shows 74 million page results. Any idea just how many jobs are on sites like monster, careerbuilder and jobsite? Trying to get a handle on the sheer mass out there is nigh on impossible. And that's before we get anywhere near a conversation about just how many of these jobs are out of date/ duplicates or the amount of time that can be wasted trying to track down leads from sketchy internet ads (how many times have you seen "Inspector Clouseau" style antics trying to work out which company might be the "£80m turnover services business in Berkshire") This sort of information overload is a long way from checking the FT, Sunday Times, local press and whatever trade press there is for your market. Those of you around then will remember secretaries cutting out ads from the papers and putting them to the ad chase folder to be distributed to the relevant consultant.
You may or may not have come across a firm called Innovantage. I trialled their Insight product some time ago - in short trying to make sense of the info overload described above. I liked what I saw - I could ask Insight to list all the vacancies in my discipline and in my region. In theory, great. At that stage however, it didn't quite hit the mark from my perspective - for example, there were some disciplines that weren't totally covered (including mine.) For me, the product wasn't quite right but it was worth keeping an eye on.
I caught up with Matthew Dewstowe, the MD at Innovantage, recently and had a look at the latest version of Insight which is currently in beta. In short, they've come a heck of a long way since the trial I had in 2005.... I think they're very, very close to bringing a sensible solution for recruiters to track the market and generate leads.... A few things stood out for me:
- Track an employers digital footprint - is Apple your client? Wouldn't it be great to be able to see what jobs they have online, split between their careers site, direct ads on job boards and ads through agencies on their behalf. I wonder if many employers will use this sort of approach to track their competitors, or if recruiters will see the opportunity to integrate this sort of info into their key account management.
- Tracking all vacancies for a specific discipline. For example, if you're recruiting into sales in the Thames Valley region, the system will search for all job ads and mail a list to you - split as required.. Want it split between direct ads and agency ads? That's a couple of clicks away
- LinkedIn integration - the ubiquitous LI now gets into the Insight product, see how many people the firm that is advertising has on LI, and how far you are from being connected to them
- Database integration - the product can now be adapted to a number of the more popular recruitment databases (Adapt springs to mind.) I've not seen this up and running but I understand that a lot of the reports/ leads/ workflow etc can be tailored to suit a specific team or individual consultant. Basically this means as soon as there is a lead for that desk, it can show up in both the consultant's inbox and appear as an entry on the database - making the whole system/ process much more manageable and trackable.
I'm sure you can guess I like the latest version of this product (a lot.) Having been in touch with them when they first started out, I'm delighted at the sort of inroads Innovantage have made in product development - this whole concept of shrinking the web (or a specific part of it) is great in principle but a heck of a lot harder to do. I think they might just get this part of it sorted....
Friday, 17 October 2008
Broadbean acquired
If you've not seen it already, have a click on the Broadbean blog.
Congratulations to all involved. A british business doing the business!
Broadbean have got themselves into a market leading position. Don't think many in the industry would doubt that - how did they get there? They got the mix right - technology, delivery and service. Nice work.
Dan's blog covers the lot, have a read.
Sunday, 12 October 2008
Thursday, 2 October 2008
xing offline advertising targets tube passengers

Anyone read Metro yesterday?
http://www.xing.com/ the professional networking site had a fairly big ad in there yesterday morning. Anyone who's ever looked into advertising in Metro will know these ads ain't cheap. Also noticed poster advertising at one of the tube stations I was at. This sort of campaign isn't uncharted territory for xing - a couple of clicks from google will show there are comments on tube station advertising in Vienna and a Flickr pic of an xing ad in Barcelona's Metro - see above. Clearly xing are getting a return on this type of approach.
While this advertising is small change to Jobsite's £15million campaign , it is another sign of both just how quickly the market is maturing and also that any new entrants into the market are going to need some pretty deep pockets.
While they're not 100% like for like in terms of features, I don't think xing would be offended if I were to say they were going head to head with LinkedIn. In fact, their ad seems to take a bit of delight in this - the strap line is "Start Networking, Not Just Linkin'" I wonder how much their marekting guys would have loved to added "ed" to "Linkin." The rest of the text makes a pretty clear play on the benefits of getting onto xing - Digital identity, advance your career, effective contact management, business opportunities etc. I'm a little surprised that there was no mention of "managing your reputation online" or "building your personal/ professional online brand." I'll post a pic of the ad later....
One thing I would suggest xing consider is looking at the actual graphic. Might have been nice if there had been people in the xing network in the UK as opposed to Continental Europe! Maybe I'm being pernickety but you don't need to look to far from a Google search on xing to see comments about it having much more of a region specific feel/ reputation. I don't think that's the case but I do think they could have got a little more from their ad with a very small change!
This business networking market is becoming more and more crowded, I shudder to think of how many variants are currently in development - I can think of quite a few, and I would suspect you probably can too. Those looking to enter the market are going to need more than a great site - deep pockets also required! I'd love to hear how much it is costing someone like xing to acquire a new user. Some of the figures I've heard from other sites are shockingly high... In fact, if the guys at xing are feeling friendly, I'd love to see the cost per acquisition before and after the latest ad campaign.
Sunday, 28 September 2008
Prufrock "connects" with LinkedIn in the Sunday Times
There is also a small article on how the current banking crisis is having an effect on LinkedIn new profile stats. It claims that "twice the usual number of bankers have signed up over the past 15 days. There has also been a 10% increase in invitations sent out by existing members of which there are nearly 2m in Britain." Bearing in mind LinkedIn is a networking platform as opposed to a job board, this strikes me as a great example of how online characteristics have and are continuing to change.
Clearly the banking sector sits at the epicentre of the current economic woes that are circling at the moment. If there is one group of people that is likely to show how the level of uncertainty (or certainty in cases like Lehman's) is affecting candidate behaviour its these guys.
It all comes down to the different levels of motivation - if you're in a good, secure job your motivation to look is minimal - and you need to be "tempted" by great prospects. The internet (ideally in conjunction with a good, or great, recruiter) is ideal for this. In this set of circumstance its about getting the right opportunity in front of a top quality candidate. If you've got the mix right in terms of your attraction strategy as well as a great recruiter handling the assignment then you've got a chance of at least engaging with this type of individual. The online recruitment market has, so far, been all about this sort of scenario. Tempting people onto the market in a job rich, candidate short market. In a market like that, recruitment consultancies thrive. Employers need more of a scarce resource and are willing to pay accordingly.
When the market turns, and we see a real drop in the number of vacancies coupled with an increase in supply of candidates - things get trickier for recruitment companies. The most basic of economics will tell you that there is pressure on their pricing and that there is much more competition for each assignment. To cut a long(ish) story short, employers are in a much stronger bargaining position and can choose who they work with. In a very candidate short market he who has the most suitable candidate(s) is holding the cards. So far so gloomy for recruiters? Sure, if the rest of the market follows suit with FS then it ain't going to be easy, but (and its a big but) recruiters and recruitment firms with a good reputation and great client relationships have got opportunities in front of them in a tighter market. If their clients consistently choose them to work with them, and they maintain their infrastructure thru the "down" market then when the worm turns (again) they will be in a great position to mop up market share from competitors who have not fared quite so well. Think about it. In a buoyant market, the biggest constraint on growth for recruitment firms is how many good recruiters they employ. If your firm maintains and develops its own internal talent pool then when the upturn comes, you're in the box seat to get a far bigger chunk of the upturn pie. Firms in that position aren't in that position by chance, I suspect many of them will be planning for just this set of circumstances.
So what about online then?
You could argue that online has almost mirrored the recruitment consultant market over the buoyant market in the last few years. Its been about tempting those candidates onto the market so both online and agency recruiters have been in the same boat. The market is much more mature - and like any mature market there are examples of the good, the bad and the ugly. My view is that there are now more examples of the "good" than there ever has been. Online is now the norm.
Just as the good recruiters will be looking at how they adapt their approach to suit the current and emerging market conditions, I suspect firms evaluating their online approach will be doing the same. Employer brand has been on the tip of many tongues in the last few years, and so far its been about promoting the business as an "employer of choice" (bet whoever coined that phrase wishes they had patented it) In a competitive market for talent, finding a route to promote your business and the opportunities within it is key. What happens if instead of tempting applications, there is an oversupply of job seekers?
I think this employer brand aspect is an example of where perhaps employers (and dare I say it, online marketeers) could learn a trick or two from some of the recruitment consultancies who will fare well if we do indeed go into an acutely job short market. Senior management within these firms have worked thru tough markets before and no doubt they will be working to juggle the commercial reality of fewer assignments with the requirement to ensure that jobseekers, perhaps in particular the candidates that are not likely to be easily placed, do get a good quality of service. When the market turns again, the client who was ignored as a job seeker has a long memory. On the flipside, if that same person received good quality advice and guidance on how they can make the best of their search, despite the tougher market, it is more than likely that individual is going to become an advocate of that recruiter when the boot is on the other foot.
The internet has resulted in a much more fragmented market for employers, job seekers and recruiters alike. Those that have made the most of the opportunities are more than aware of this. The change in market conditions changes the status quo. Think of the amount of ways a job seeker can connect/ contact a recruiter or employer these days. I received a LinkedIn connection from a very pro active (and from the looks of his profile a very high calibre jobseeker) in Australia. Newly available, and not willing to let the market come to him. What does he do? A search on LinkedIn for anyone with a recruitment background in the countries he'd consider working. I did get in touch with him to see if he'd be willing to share his "jobseeker experience" on the blog, sadly he declined - the reason? I'm working all out to secure my next role. I'm sure there's quite a lot more in his job search mix than LinkedIn. Quite right too... Currently this approch is the exception as opposed to the rule with online jobseekers. If you take a sec to consider the impact on candidate registration of characteristics like this, the amount of people on sites like LinkedIn as well as the stats offered at the top of this post by Prufrock I suspect you'll see I'm finally cutting to the chase on this long post!
So is it yet more grey areas in the online market for recruiters and employers?
No.
As much as job seeker characteristics are changing and are likely to continue to do so til there's a market upturn, what is happening is just the same as what has happened in every previous downturn. People, when they are faced with uncertainties about their jobs, work far harder to find opportunities. Their motivation level is easy to understand. This is not news. When they don't (or can't) find what they are looking for then they look for help and advice. Good recruiters give good advice, and over the course of the downturn no doubt there will be some very familiar conversations taking place in interview rooms. People want to hear about how they can best position themselves, what sort of tips they can get from a professional, how best to present their CV, where the best sites are to find jobs and to network etc.
There is real scope in this for recruiters to integrate more of this type of content into their online presence. For employers, many of whom who have invested in chasing the employer of choice badge, a careful examination of process may be timely. After all, employer of choice is about much more than being able to see some profiles of current employees - its about the experience that job seeker had when they visited the career site, and what happened post application.
Supplying service to job seekers when they need it most has given a number of recruitment firms a real competitive edge over the economic ups and downs. I just wonder if this time round, the firms that include this type of content (or arguably "conversation") to their online presence may benefit more....
