Recruitment Advertising Revolution or Evolution

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Recruitment Advertising - Revolution or Evolution?

• Sue Stenberg
• Director, Strategic Alliances
• CruelWorld.com

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U.S. Recruiting MarketTotal Market Size 31B
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Online Recruitment Spending( in Billions)
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The Recruitment Market

• The market is fragmented
• One size does not fit all
• Every company will use a variety of different
  methods in their hiring process
• 35,000 online recruitment sites (Interbiznet)
• Emergence of career networks

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Market Trends

• Consolidation
• Headhunter.net/CareerMosaic
• HotJobs/Resumix
• Acquisition expanding into new businesses
• TMP/Monster buying executive search firms
• Transaction based model (cost per hire) vs.
  advertising/impression model (cost per ad)

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Recruitment is Changing

• Recruitment is cited as 1 problem at many
  companies
• The HR function is high profile
• HR people are more savvy and are willing to try
  new things
• More HR spending, market is only partially
  cost-sensitive

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Recruitment is Marketing

• Companies hiring marketing pros into HR positions
• Image advertising, building relationships
• Using multiple media to recruit
• TV, radio, event marketing
• Trying many new things but need/want help

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Employers Want/Need

• To break through the confusion over the multitude
  of options
• Looking for an overall plan and strategy with
  measurable results
• Consultative/integrated selling approach - HR
  consulting agencies being created
• Need help hiring people vs. help placing an ad

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Newspaper Advertising Trends

• Dramatic increase in recruitment spending, but
  the increase going mostly to non-print media
• Advertisers using print as well as other services
• Usage of newspaper print is changing
• Image advertising vs. advertising specific
  positions
• Driving job seekers to corporate website
• Moving to non-classified sections
• Display vs. in-column

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The Good News

• Print recruitment up
• 4Q99 up 5.4 to 2.3B (NAA)
• 1Q00 up 11.7 to 2.0B (NAA)
• Forrester survey showed print is secondary only
  to employee referral as source for job seekers
  (Forrester)
• Print 23
• Referrals 40
• Online 4
• Headhunter/Temp Agency 9

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The Not so Good News

• Hot labor market has deferred market changes
• At risk are newspapers and headhunters
• High cost
• Time to fill jobs

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Recruitment Costs Per Hire by Method
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The Not so Good News

• The best candidates are hired in 72 hours the
  print resumes havent begun to come in yet
• Newspapers and job boards win for quantity, not
  necessarily quality
• If the market changes, newspapers may be one of
  first to suffer cost and time
• Will the market change? The market has proven
  itself to be cyclical. The question is when.

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Capture Attention

• Tout your print/online combo metrics
• Differentiate yourselves in online
• Aggressively develop new partnerships and
  alliances

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Gain Market Share

• Develop programs for advertisers to go into
  non-classified sections
• Create stand-alone recruitment pubs
• Offer multiple products and services

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Gain Market Share

• Educate your sales force enable them to provide
  consultative type services.
• Help your advertisers to hire people rather than
  to place ads. If you help them, they will come
  back for more
• Take risks and be creative
• Let the cannibal be you

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Recruitment Advertising - Revolution or Evolution?

• Sue Stenberg
• sue.stenberg_at_cruelworld.com
• [phone]