THE ONLINE RECRUITMENT MARKETPLACE

This short report discusses what are perceived to be some of the key issues in the online recruitment marketplace at present and draws on the experience and opinions of key UK players within this sector. The main top level findings of the report are as follows:

What types of jobs are migrating online first?

• As a general rule, internet user demographics are the key determining factor behind the types of jobs that are migrating online
• In the UK, the free ISP model has been instrumental in altering internet user demographics, not least by lowering the cost barrier to entry for the medium. Mobile technology and digital interactive TV will only serve to further this trend and will eventually cause a variety of jobs to be brought online
• Several interviewees share the opinion that the recent graduate marketplace may become a key area in online recruitment as the internet is becoming ubiquitous in universities
• In terms of job categories online, commercial web jobs are beginning to appear online and this can, at least in part, be attributed to the recent flurry of IPOs for investment purposes

Vertical market niche services v generic services

• Niche sites can offer employers a more targeted and focused audience, which in turn means they are more likely to attract substantially more relevant candidates for the positions offered
• For job seekers, a focused site equates to the publication of vacancies and information more pertinent to them and is therefore to be viewed with greater interest and has greater potential to help them find a suitable position
• Lifestyle information, such as that concerning location, housing and schools and adding value all around the decision-making process, could ultimately provide the winning formula in online recruitment: for the majority of jobseekers the decision of whether or not to change jobs cannot be made in isolation

What are the revenue models now? What might they be in the future?

• Of the UK sites surveyed, revenue is only generated from advertisers and not from job seekers, in accordance with the Employment Agencies Act of 1973 which states that employment agencies and businesses are prohibited from charging fees to workers for finding or seeking to find them jobs
• Advertising, sponsorship and CV database access fees are the key revenue generators at present. Corporate web site development was highlighted by our interviewees as an alternative revenue stream, as were alliances and partnerships
• Agency-style results-related revenue models such as that advocated by Monster.com?s Talent Market are slowly beginning to emerge in this marketplace

Is the market doing a U-turn? Are businesses using online recruitment services to look for employees rather than to advertise their own opportunities? Is this a whole new paradigm?

• Issues of privacy still need to be addressed vis-a-vis online CVs. These centre around those candidates currently employed, but who are looking to change jobs, and concern the potential consequences should their current employer discover their intentions
• The online CV model therefore appears to be a more workable solution for contractors, new graduates or the unemployed who do not have to contend with the issue that a current employer may find their CV online
• Online recruitment service providers need to consider user experience. Such a service needs to be beneficial to users as well as employers: potential for success for jobseekers is clearly lessened when their CV is posted among thousands of others
• The online CV database model clearly represents a threat to newspapers and the classified advertising market, with the potential to remove classified advertising from the recruitment process completely

Skills auctioning - will it take off in the UK?

• Amon