IBN: Defining Excellence in Electronic Recruiting


Electronic Recruiting

Our Rate Card










Please Click On Our Sponsors

Please Click On Our Sponsors

Recruiting News for the Human Resource Professional

Please Click On Our Sponsors

Please Click On Our Sponsors

Please Click On Our Sponsors

Please Click On Our Sponsors




Click On Our Sponsors

Click On Our Sponsors










The Electronic Recruiting News is a Free Daily Newsletter For Recruiters, HR Managers, Advertising Agencies and Clasified Advertising Operations

| ERN | Bugler | The Blogs | Blogroll | Advertise | Archives |

What Happened V

(March 06, 2007)
The dot com bubble burst and 911 delivered a "one-two punch" to the vast majority of businesses in the industry. Overnight, businesses tanked, revenue shrunk, people stopped hiring. Forward momentum and visionary ideas were instantaneously replaced by sharp penciled bookkeeping. Partners sued each other. Customers went out of business. The depth of the fall was often equal to the height of the rise. The industry ground to a halt.

When there's environmental stress, human beings tend to blame it on each other. The industry (and most business niches, really) fell into a dramatic and nasty period in which survival was the name of the game. Business models were abandoned over night.

It was a line of demarcation. You were either in business before the implosion or you were in it afterwards. You were a veteran or not.

The Human Capital industry is very, very cyclical. Recessions have always been the bane of existence for staffing and other Recruiting oriented firms. When recession arrives, recruiters get laid off. The downturn in 2001 was severe, abrupt and unprecedented. The number of working recruiters shrank from about 300,000 to about 75,000 within six months.

No one was in the market for an improved workplace. Hanging on to the job you had was the issue. It was not an environment for innovation. In the interim, there was no venture capital, no excess in departmental budgets. There were no resources for new ideas. The same people who had been carried to the top by a rising tide were now building business one small deal at a time. It was Instant Karma. Overnight, innovators learned to be penny pinchers.

The period between the crash and 2005 was sparse. A few major things happened:

  • Yahoo Hot Jobs shifted its emphasis from postings to targeted marketing to the huge Yahoo audience (years from now, this will be seen a s a pivotal inflection point) (2003)
  • Monster shifted its revenue mix to emphasize database searching (2003)
  • Video, ever so slowly, began to emerge (2004)
  • Blogs turned up in their most nascent form (2002)
  • Adicio slowly and patiently consolidated its position as the dominant newspaper service provider.
  • Jobing.com began its southwestern niche acquisition strategy. (2004)
  • The number of job boards continued to double on a three year cycle. Most estimates agree that 80,000 American job boards is a likely end state.
  • Alternative, more proactive sourcing methods emerged (Shally).
  • Recruitment Process outsourcing (in all of its various forms) emerged.
  • Lean Staffing (the idea of methodically rooting waste from the recruitment system) took hold as an operating method (finally)

The economic recovery was often called "jobless". Though this wasn't exactly true, incremental gains in economic health seemed to pale in comparison with the roaring nineties. You could be excused for making the comparison between the 1920s and the great depression.

By early 2005, the recovery, fueled by low interest rates and housing price escalation, was showing unemployment rates that equaled the '90s. Several things happened in 2005 that signalled a change in fortunes for the industry:

  • Jobster entered the arena with a huge ($50M) round of venture funding.
  • Jobing.com purchased the naming rights for the former Glendale arena.
  • Recruitment blogging took on a life of its own reaching a tipping point by year's end.

And so, the stage was set for today's hectic, innovation rich environment.

Tomorrow, The End of History

The series so far:

John Sumser © TwoColorHat. All Rights Reserved.
 Permalink . - . Today's Bugler. - . Send To a Friend

Talent is what matters most.
Hire the best with Authoria Recruiting.

Authoria Recruiting 2007 is a next-generation recruiting solution that helps you:

  • Understand exactly what talent your managers need.
  • Find the best sources.
  • Target and attract the highest quality candidates.
  • Hire top talent and track their success.
The most widely-used enterprise recruiting solution on the market, Authoria Recruiting helps our customers manage private talent pools totaling over 11 million candidates.

Find a smarter way to hire. Download our complimentary white paper
- Staffing Strategies: Can You Find, Recruit, and Retain the Talent You Need?

Click On Our Sponsors

ERN | Bugler | The Blogs | Advertise with Us | Trends | Archives |

Contacting Us:

Copyright © 2012 interbiznet. All Rights Reserved.
Mill Valley, CA 94941
Send comments to colleen@interbiznet.com

To receive this Newsletter in Email each weekday, please use the form on the linked page.

Electronic Recruiting News


         - Bugler
           Daily Industry News

         - ERNIE
           ERN in Email




  • What Happened V
  • What Happened IV
  • What Happened III
  • What Happened II
  • What Happened
  • What It Was Like
  • Strange Things
  • 12 Things
  • Blog Impact
  • Intern U
  • Taluncon Recap
  • Best of the Blogs
  • New Entrants
  • Marketing Myopia
  • Blog Job Boards
  • Fertilize First, Farm Later





  • BlogRoll
  • Integrated Employment
          Branding Presentation
  • Trends Whitepaper
  • interbiznet Listings
  • interbiznet Trends
  • interbiznet Bookclub
  • Top 100 E-Recruiters
  • Presentations
         - Recruiting Then/Now
  • Recruiter's Toolkit
  • ERN Archives
  • 1st Steps In The Hunt


  • Our Rate Card
  • Demographics


       All material on this
       website is the
       property of interbiznet
       You may download
       a copy for personal
       use. Redistribution
       without permission
       is strictly prohibited.
       All material on
       this site is
       © 2008 interbiznet.

       All rights reserved.