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JADs
(May 31, 2001) Although they vary in customer focus, financial structure, business model, and other important ways, all Job Advertising Distribution (JAD) companies share several characteristics. At the simplest level, they offer customers the ability to post online employment advertising in one place and have it automatically delivered to one or more other destinations. Contemporary HR Departments use these services primarily as a means to control the costs associated with repetitive administrative costs.

In other words, the primary value that a JAD delivers to its customer is a reduction in internal costs. As the Job Board Industry grew and developed, an essential component of competitive distinction has been the specialized ways that a customer can interact with the service. While one job board may offer the ability to broadcast job information by geography, another may encourage the use of special screening questions. Each online entity shares some essential data elements while using others to maintain a competitive edge.

The JADs standardize data entry into a once-per-job interface of some sort. Once all of the data is entered, a customer can then begin the process of choosing the best media outlets for the publication of a particular advertisement.

For the JADs that have significant business experience, the primary value (administrative reductions) is just the starting point. Variously, they offer media planning (the "best" distribution for a particular advertisement), differing levels of alliance quality, integration into Enterprise and Applicant Tracking Systems as well as variety of potential targets. The largest single distribution network, managed by RecruitUSA, reaches over 30,000 job boards across the web.

As is the case in most developing industries, competition spurs the JADs to offer increasingly differentiated product lines. Although the current round of claims that a targeted campaign can be effectively designed are a little inflated, many of the vendors are headed in the right direction. The business case for choosing a supplier in this arena, however, is best made on the primary value. Any system that eliminates redundant, no value added administrative burden is precisely worth the cost it saves. Additional value must be carefully weighed. The extremely intangible value of building an early partnership with an industry innovator is probably the trickiest component of the assessment.

For a comprehensive analysis of the players in the JAD segment, see our report: Choosing a Job Advertising Distribution Company.

- John Sumser © TwoColorHat. All Rights Reserved.

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