In the rush to proclaim a revolutionary market, prices were artificially lowered for the first wave of Web Recruiting. Low prices created an odd set of expectations in the marketplace. Even today, we are undergoing a revitalized Resume Database giveaway trend.

We think there should be a plaque handed out to all web entrepreneurs that says: "It's easier to lower prices than it is to raise them."

Really, how could this process be less expensive? It has lower "friction", for certain. The distance between the candidate and the opportunity is being squeezed, every second of every day. But, the cost of tailored communications, as everyone knows, is higher than the cost of bulk communications. The cost of having a relationship hasn't changed. The cost of acquiring one is going up rapidly. The available number of relationships to be had is in an aggressive decline.

While Recruiting IS Advertising, the conditions for both have changed. Today's Recruiter works in an environment where candidates are scarce and inventory management is everything. That's the exact opposite of historical conditions. The financial fundamentals of Recruiting have changed in profound ways as a result.

Advertising is also undergoing a radical change. In an earlier time, it was funny to quote Ogilvy, who said "I know that half of my advertising dollars are wasted. I just don't know which half." In today's universe, advertising can be quantified. Major, non-recruiting advertisers are shifting to a skin-in-the-game, pay for performance model. Web advertising requires authentic one to one communications (and therefore more people on the response end).

So, when we say Recruiting Is Advertising, we mean the new Recruiting is the same as the new Advertising. It's more expensive, more direct, more prone to failure and more proactive on the Recruiter's end. The burden of adding value to the Recruiting relationship has shifted from the Candidate to the Recruiter.

We're amazed at the resilience of old outmoded ideas. The labor shortage is permanent and can only be solved with radical improvements in productivity accompanied by a massive wave of immigration. Candidates are not going to flock to use new screening tools. When we say the Resume is dead, we mean that the idea that a candidate has to market him or herself to get a job is dead. Good 21st Century advertising is proactive and identifies targets rather than depending on them to identify themselves.

Recruiting is advertising if you understand that today's advertiser is 100% accountable for results.

- John Sumser © TwoColorHat. All Rights Reserved.

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