2009 Predictions

The Christmas trees have now (hopefully) all been packed away, everyone’s recovered from their post NYE HOs, and we’re all gearing up for a fascinating 2009.

Seek, CareerOne and MyCareer have all just popped around and drawn the tarots from the deck (not REALLY.  You guys have got to learn not to take everything I write literally:)) and here are the results of the session.  Here are, in other words, the Geoff Jennings predictions for the online recruitment market in 2009:

Seek will target the SME market

Seek has seen consistent revenue growth of over 30% for the past four years.  This is largely attributed to  growing job ad volumes, price increases and the Seek Learning revenue contribution. 2009 will be a very different story for the market leader and it will take a mighty effort to break even.  They might attempt this feat by:

- Ditching their focus on recruiters and targeting the SME’s (Small Medium Sized) businesses, especially those who currently advertise in print. This will enable them to tap into a new advertiser that will be much easier to grow the yield with because it is accustomed to paying hefty print prices.

- Push new products. Stand Out ads, Premium ads…obviously, this will also contribute to yield growth and it is a path that Seek has already begun to promenade.

- Grow the Learning business: this will supplement the losses of the Core business.

- Concentrate on ensuring that the international investments work contribute to the bottom line.

CareerOne will tread water.

No significant inroads were made by CareerOne in 2008.  I’m going to acknowledge that they moved ahead of MyCareer in traffic numbers, and this was a good effort…but that has more to do with my imbibing post-festive spirit and less to do with any sort of massive leap by the former.

In 2007 they sold against the promise of a new website for almost a year, leaving many advertisers scratching their heads.   They’re likely to do the same in 2009,  as a result of the new joint venture with Monster. We might see some action on the new look partnership offering by the end of 2009, but by then it will be too little too late for their bottom line.  Promises, promises…

MyCareer will change business models.

MyCareer will move from being a generalist job board (with the only variation on this being their failed attempt with Job Fox in the Headhunter plan).  They will continue their downsizing (hopefully with a little more aplomb than their last Melbourne attempt) and they will cash in on their quality audience by launching a range of fully-integrated EGN executive ads. across all their online news sites.  They could also acquire PageUp People, the Applicant Tracking System (ATS) provider that has an enviable relationship with the corporate market that MyCareer could benefit from.  This would also mean getting in before Seek does.

Aggregators

These pimps of the job space are here and have set-up shop on a street corner near you. Will they make any real impact on the job market? Probably not. They fall short in a few areas.  Firstly, they don’t really have an adequate revenue model and we don’t have enough users in Australia to warrant further investment. Secondly, Seek has ensured the demise of aggregators by not allowing its job inventory to be scrapped. Lastly, the user experience is not great because of the searchability of expired ads..

Referral sites

The new guard are here. It will take all of 2009/10 to establish their offering. But traditional job boards beware. 2Vouch, Hoojano and the like will have a large impact on how the market is shaped for the future and will be targeting the same SME market as you are.

MyCareer Come Back Soon…

Is this a purposeful action, or a glitch in the system?  Taking the site off-line seems like a radical decision in light of the fact that Monday is peek job search day.  Also, how are advertisers feeling about their ads being taken down?  Imagine missing out on that one golden candidate…the very idea sends shivers down this pre-Christmas spine o’ mine.

Presumably MyCareer has decided on the version of job search they prefer and we’ll await the results of their decision with…eagerness.

“We’re currently doing some work on our site to improve your job search.
Come back soon - we’ll be back online shortly.”

Job Board Price War Shake Up?

I received this letter indirectly. A plea from Recruit Me Now.  I can’t call it a media release.  It’s a confusing piece of communication which flits from third-person to first-person (and I’ve offered in past blogs to write your bloody publicity for you - but continue to be witness to the circulation of shite).

Deep breath, Geoff (see, that’s first-person).

Back to the case in point.  Recruit Me Now has offered free job ads for recruiters (now I’m in third-person.  See the difference, Michael?).  This strategy has been used by several job boards (namely, MyCareer, CareerOne, NowHiring).  This is not a successful strategy as it devalues the service offered.

Now I’m going to offer an alternative.  Don’t you just hate it when folks whine all the time but fail to show how things can be improved?  Here it comes, Mike.  Hold on to your jocks.  What Recruit Me Now needs to do is this:  cut ties with JobX.  They’re doing a crap job anyway (also offering free jobs).  Get your shirt and tie on and have a chat with market leader Hughes Recruitment, which has more recruitment jobs than you do, and present yourself as an affiliate marketer that can send them quality apps.  Charge accordingly.  Next, spend your time marketing your site properly instead of begging for free ads.

Let me know how you go:)

Back From My Tour Of Europe

So I’m back from my tour.  I’ve slept, eaten an huge bowl of veges, and ready to resume where I left off.

Nothing catastrophic happened in my absence, but there are a few points I’d like to draw your attention to.

Firstly, a recent Seek survey indicated:

67% of jobseekers are concerned about their current job or career in light of the global economic slowdown according to research from SEEK Intelligence. In a sign that employee confidence is dropping rapidly, when asked the same question in August only 39% of respondents were feeling worried. 

59% of respondents are feeling less secure in their job now compared to 12 months ago, nearly double the number of jobseekers who felt this way in August (31%) 

71% of people think that it will take them longer to find a job now compared to 12 months ago, a massive jump from 39% when the question was posed in August and an even bigger increase from the 29% recorded in 2007

Happiness levels in relation to the respondent’s job continue to decrease, with only 22% of respondents describing themselves as happy (down from 27% in August and 29% in 2007)

These aren’t great results for participants in the survey - but I’m sorry to report that the leverage recruiters can receive from employee dissatisfaction is considerable, especially in a candidate-tight market.

Also, it is important for us as recruiters to keep a picture of the overall feeling of the market place.  If security is a key concern of employees, then this can be used as a selling point in the dance of wooing candidates into various positions.

Secondly, Thomas Shaw, owner of Recruitment Directory, and one of our regular contributors, recently acquired the niche job board digitalindustryjobs.com from its existing UK owners. Here’s to hoping he didn’t pay too much for this as the exchange rate of the pound in relation to the $AUD is not great. However the revenue potential when converted back could work well.

Thirdly, MyCareer is still A/B testing their job search functionality. This has been happening for a number of months now. A decision should be made sooner than later as jobseekers will start to get confused.

Finally.  Seek remains the market leader. Their key drivers remain consistent:

1. Grow Volume of job ads

2. Grow yield

3. Introduce new products

Why change the strategy when you have financial results like these:

$M

 

(Seek presentation to UBS conference)

And I swear, I’m not receiving cash for comments from Seek.  There’s not much I can give these folks a hard time about, though.   The praise I give them is well-deserved.

 

 

Space Farming?

First LinkMe tested the waters by advertising their internal vacancies on Seek. These ads were swiftly removed by the latter.

Now this job listing on MyCareer (one of forty-four).

What’s interesting about this listing is that - Apply Now - the company placing this job on MyCareer on behalf of their client is a job board also.  See about us>

The official line is that job boards don’t allow other job boards to advertise on them. Why would a company facilitate the operation of its competitor?  Probably more to the point, however, why would Apply Now want to support its competition by giving it business?

Here’s an even stickier point.  While the principles of certain terms of business within the realm of the internet have yet to be precisely defined, it’s arguable that this sort of corporate behavior could be catagorised as Space Farming.

Fairfax has a clear policy on this subject.

* Third Party Advertising: Fairfax will not, under any circumstances, accept third-party advertising (also known as “space farming”) in any advertisement, including inserts, tip-ons, or other forms of separate publications inserted into or attached for distribution into the publication

Is Fairfax permitting this sort of on-selling of its advertising space? (Apply Now rates here)

The ‘Apply Now’ button links directly out to Apply Now’s external application form. Surely an employee at MyCareer had to notice something was smelly when they set this external apply link up??

Or with the cost cutting going on at Fairfax they might be grabbing any advertising dollars that come along…

MyCareer’s Search Results

Back in July, I reported on MyCareer’s search for excellence.  MyCareer were testing a new search box on their home page with keyword and category search versus keyword only.

Seems that the winner is the old keyword and category search. It would be interesting to see the A/B test results to see how the keyword-only search fared.

Update: 16/09/08

I don’t know what is going on at MyCareer now…the keyword-only box is back up.  Perhaps they’re still doing A/B testing?

Job For Simon

Let’s find a job for Simon. Have you met him yet? Simon Baker. Ex-CEO and MD at realestate.com.au (also known as the REA Group)? Ahhhh. Now the coin’s dropped. I think we both heard it make a clunk sound at the bottom of your skull.

So, here’s the thing. A few weeks ago, the folks at REA decide that they could not agree to differ with Simon. He’s taken to a hotel room, and told the grim news that his services would no longer be required. Bummer. No chance to say goodbye to collegues. No gold bloody pen - or watch. Betcha he didn’t even get one of those snazzy red polo tees.

Bummer.

I don’t need to go into how this was an appalling way to treat an employee of seven and a half years (and third largest shareholder). I wanna look to the future. What’s next for a man of Simon’s experience and achievement?

Perhaps his services are required at a couple of of under-achieving job boards - CareerOne and MyCareer. Perhaps this Midas could deliver them their gold - superiority over Seek.

JobFox’s New Intro Service

Jobfox has gone a step beyond any other job board and is personally introducing the candidates to employers.

Will MyCareer’s new Head Hunter service (powered by Jobfox) include this new ‘intro’ offering??

If yes, then employers will be getting contacted by MyCareer to encourage an introduction.

Hang on a minute, that’s my job…I am the recruiter!

MyCareer’s Search For Excellence

Past Fairfax Digital CTO Seth Yates has covered the update to MyCareer’s search functionality here already.

Here’s my view. (since I took this home page search box snap shot, they have rolled back to include the sector/sub sector, location e.t.c drop down menus again) MyCareer have informed me that they are running a Test A and Test B search box.

They have gone with the new search suggest keyword technology. Yahoo are using this tool successfully.

Once you make your way to the search results page, you can’t help but notice the new ‘refine your search’ column. With such a nice simple keyword search box on the home page they let themselves down here. Should have kept it slick and given the advertisers the spot light with their job listings.

May I suggest MyCareer, that you keep up the innovation.

Seek’s SARA Awards - 22 Days To Go…

The Seek SARA (prom queen) recruitment awards are off and running for the sixth time. With only 22 days to go for voting you’d better get your good suit or frock out from the mothballs in anticipation of that victory speech.

I remember the first time this was presented at the Brisbane RCSA conference way back by Matthew Rockman. I remember this because we (Fairfax/MyCareer) were the major sponsors of the conference and Seek set up the stage right in front, blocking our stand. Cheeky…

One to watch this year will be serial runner-up (small specialist recruiter) Retailworld Resourcing. They are sporting a bright orange web site with little space ships flying around and aliens with signs saying “Vote Now”. If you were from the USA and saw this site for the first time you would think that SARA was running for President.

Good luck and had a laugh at the video jobcast. Gotta love Kerrie-Anne…

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