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Why You Need A JAD
(October 2, 2001) It's been an interesting season with companies blowing in and out of business. While we continue to believe that the number of viable job boards is growing rapidly, the economy has shaken the foundations of some and provided safe harbor for others. As the HotJobs - Monster and CareerBuilder - Headhunter mergers wander through the approval process there are a range of open questions about the future shape of the industry. In a move that will shake your understanding of who is in charge, RecruitUSA unilaterally terminated their longstanding partnership with Headhunter.net. Citing the need to protect their customers and intended to ensure effective recruitment results, the Job Advertising Distribution (JAD) company is moving the business volume to a separate set of more reliable operations. CareerBuilder has announced that the Headhunter Brand will cease upon completion of the acquisition, leaving existing customers in the lurch. (It's the newspapers' way of spending brand equity.) >From the press release: -
In an unprecedented move, RecruitUSA Inc. (www.recruitusa.com) announced today that they will sever their partnership with Headhunter.net and will no longer support the recently acquired company through their integrated job posting service. RecruitUSA, the established leader in jobs cross-posting, acknowledged their long-standing relationship with Headhunter.net and the volume of sales they have produced for the job board in a relationship that has spanned nearly five years. RecruitUSA indicated, however, they cannot continue a partnership with Headhunter.net if they are unwilling or unable to fulfill their obligations to customers. "It has been communicated to the industry that the Headhunter.net brand will cease to exist sometime in October, 2001," said Doug Ries, RecruitUSA's Vice President of Business Development. RecruitUSA stressed that they will continue to send their clients' job postings to Headhunter.net under current packages as long as the job board continues to accept their postings. The move comes on the heels of the Sept __ announcement that Headhunter was being acquired by CareerBuilder. "Long term relationships are the core of our business and we don't like to lose them," said Don Ramer, co-founder and CEO of RecruitUSA Inc., "but our first concern lies with our customers. Despite numerous attempts, we have received no commitment from HeadHunter.net to honor our customers' subscriptions, many of which represent substantial commitments."Times have changed. The JADs, a modest trend two years ago, have become the centers of industry information and reliable access to continuous service. It's far easier to let them monitor the rapid changes in the business than to assume that your internal intelligence will catch it all. They go out of business if they get it wrong. You just waste your money. Since their risk is higher, they pay more attention.
It's beginning to look like the JADs are stepping into the control position associated with being a middleman. While RecruitUSA's customers get well deserved protection from market vagaries, vendors who lack clarity can be given a strong dose of market discipline.
The RecruitUSA announcement indicates a serious power-shift in the industry that we think is a permanent one.- John Sumser © TwoColorHat. All Rights Reserved.
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by John Sumser
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