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







Find out more
About IBN

Got a news tip?
Tell us at

Our Rate Card

     - Basic (PDF)
     - Strategy (PDF)

Recruiting Trends


Recruiting Eyeballs


(Over 60)

Company Job Listings
(Over 4000)

Email to IBN


It is better
to not be on
the web than
to be on and
not know why

John Sumser

is more
it seems.
John Gall

It's better to
do a few things
really well than
than to do
a lot of things
If you can't
make the necessary
commitments of
time and energy
to your
scale back
your plan.
John Sumser

All material on this
website is the
property of
(The Internet
Business Network:
You may download
a copy for personal
use. Redistribution
without permission
is strictly
All material on
this site is
© 1995-2003, interbiznet

Go Home

Click On Our Sponsors

Daily News. Archived Weekly. Click Here For The Current Issue.

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

Home | ERN | Bugler | The Blogs | Blogroll | Advertise | Archives | Careers
The Largest Company On The Telephone
(November 12, 1999) Everyone's heard of "MyJobSearch.com", right? Well, of course not. Online since 1997, the small operation has big ambitions.
Myjobsearch.com is different from other career sites in that it does not just list positions or resumes. Rather, it organizes the entire online employment sphere for the convenience of job seekers.
Taking its cues from JobStar, our long-standing favorite, higher trafficked, older operation, MyJobSearch offers over 140,000 neatly organized links to a variety of jobhunting aspects on the web.

140,000 Links. And it's still very, very early in the game.

While we appreciate the urge to be the biggest, there's much more to the Online Employment scene than having the most traffic. By our count, there are over 1,000,000 entities of one form or another who will make a play of some sort in the Internet "space". Being the largest is like being the Wal-Mart, an interesting position but hardly the whole ball of wax.

Profitability, in proportion to size, is a much more important vector.

Although the business model at MyJobSearch is unclear (absent from the website, actually), the company has recently invested money in Inflight Airline advertising. Our guess is that they have "display advertising" in their future, once the traffic is built.

The work of keeping track of the emerging employment scene is not a small task. We welcome MyJobSearch into our world.

- John Sumser, © TwoColorHat. All Rights Reserved.

HR Is A Profit Center

(November 11, 1999) On our list of businesses we most admire is Caldwell Partners, Canada's dominant Executive Search Firm. (No, it's not their website that makes us fond of them.) Led by its founder, Caldwell is the sort of enthusiastic enterprise that would be a pure fun place to work. More importantly, they don't believe in cost centers. At Caldwell, marketing is run as a profit center. Items typically seen as costs in domestic Executive Search are routinely billed to clients at Caldwell. Everything is run for profit.

Each year, as a part of marketing, Caldwell runs two very interesting programs. Canada's CEO of the Year and the Top 40 Under 40, two widely followed awards, are sponsored each year by a nest of Canadian Companies under Caldwell's direction. All operating costs are offset, Caldwell's network is solidly refreshed, their continued market dominance is assured and the money rolls in.

It's a fun and lucrative operation. (The two words are not mutually exclusive.) The simple idea is that every item that adds value should be billed as such. We applaud that kind of thinking. It's exactly why we admire their operation.

As the labor shortage relentlessly pressures HR Departments to change into a non-administrative, outward focused operation, we believe that Companies like Caldwell can be seen as role models. After all, why shouldn't HR be run as a profitable business? At the very least, Recruiting ought to be held accountable to margin targets.

At its very best, internal Recruiting produces a huge amount of waste. For every 10 candidates who make it through screening, one is selected. The remainder of the group has already been processed. Why not recoup the investment. Simply because Candidate X was not chosen by hiring manager Y is not an indication of a failure on Candidate X's part. Today, the investment of time and resources is left on the floor, neglected.

Everyone is having trouble finding qualified candidates. It's very easy to imagine a highly profitable recycling business in which an HR department offers prescreened candidates to other HR Departments, recouping their investment and making a profit to be applied against operations.

We're betting, in fact, that several of the new entrants in the Job Board Game will actually be from HR. Why not? The advertising agencies are buying media companies. The media companies are buying Executive Search Firms. The Headhunters are buying outsourcing contracts. From where we sit, everything is in play.

Everyone in our industry understands the traditional credibility problems that HR has inside the organization. It's at the root of long sales cycles. Several progressive companies have already developed in house temporary agencies. Why not go the full distance and require them to make money on the open market?

Exposure to the rigors of the market would do everyone good.

- John Sumser, © TwoColorHat. All Rights Reserved.

Juan Beeelion Dollars

(November 10, 1999) The research for the 2000 Electronic Recruiting Index continues to move along. With over 10,000 websites to review, our capable staff is chewing up bandwidth. Occasionally, they trip over a gem.

For instance, Baltimore's WBFF (BiffTV, a small Fox TV Station) is one of the few television operations with an observable job board. Ultimately this will change. The WBFF job board is a production of "The Community Career Network" (CCN). Somehow, CCN is tied to Bell and Associates, the jobcontrolcenter, Direct Jobs, and a couple of other small things we can't exactly figure out. Anyhow, the job application part of the core offering (advertise my resume)is fairly interesting.

Along the way, we had a good look at a couple of other tiny little niche sites and got to thinking about profitability in the job board business.

Imagine this.

At $95 per posting (good for thirty days), you only need to sell 878 postings per month to reach $1 Million in revenue. That's about 45 per day.

Interestingly, most job ads recur, so you really only need to find about 200 customers who need five people per month.

If you wanted each job posting to get 7 Resumes, on average, you'd only need to find about 7000 visitors per month. At $5 per visitor, you'd have nearly $600,000 dollars left for salaries, rent and hardware. With a staff of four, that's real money, real easy.

This is the simplest explanation we can offer for the notion that job boards will multiply like fleas once someone invents an affordable, shrink wrapped tool for small niches.

Want a business with $1 Billion in revenues? Just find 1,000 entrepreneurs who want to follow the formula. Our calculator says lots of people get rich. You could sell the franchises for $200K and have everyone say thank you.

- John Sumser, © TwoColorHat. All Rights Reserved.

Dancing With The Devil

(November 09, 1999) Yesterday, CDI and Monster.com announced a broad agreement that gives Management Recruiters International (MRI) offices access to Monster's database and job postings. It's quite a turnabout in attitude for a company that had identified Monster as its number one enemy in the market.

With this contract, CDI becomes one of Monster.com's largest customers. Given the rapid decline in CDI's stock price, we wouldn't be surprised to see MRI become TMP's (Monster's parent) largest acquisition. The shape shifting of the traditional component of our industry is underway.

On a slightly different front, Adecco has joined forces with OfficeClick.com who will provide a web based workspace for Adecco's 80,0000 administrative temporaries. Adecco will contribute jobs and career information.

The difference between the two deals shows the breadth of partnering opportunities available on the web. Adecco's arrangement clearly boosts the value of their employees while gaining access to a broader candidate pool. It's a winning solution and a model to carefully consider. The CDI deal is another thing entirely. By focusing exclusively on the aggregate buying aspects of their enterprise, we're sure that MRI Headquarters has provided the branches with a cost savings. Unfortunately, the deal signals MRI's inability to attract candidates through more conventional methods. The Adecco play strengthens its position. MRI confirms weakness.

The web demands partnership, often with entities that appear to be direct competitors. No player can move into the 21st Century without broad partnering as a key component of their business strategy. Figuring out how to understand your worst nightmare as your best opportunity is a central feature of the deals that everyone will have to make.

The essence of understanding what makes a smart deal that should be highly publicized versus a dangerous deal that should be covered by Non-disclosure agreements is a solid positioning analysis. In a highly competitive market, knowing how to clearly distinguish your company from the competitors is part and parcel of making the partnership process work. The first step in a positioning analysis is defining what you are not.

While we understand that subcontracting research to Monster is probably a necessary chore, we wonder where MRI's Marketing Department was. There is no question that a better framing for the deal could have been arranged. As one of Monster's largest customers, there was more on the table than a discount. It's no wonder that TMP's stock price is soaring. Their competitors are happily announcing that they are paying them.

- John Sumser, © TwoColorHat. All Rights Reserved.

Advanced Lock Down

(November 08, 1999) The labor shortage is broadly misunderstood as a consequence of economic good times. It just might be the case that the economic boom is a reflection of the declining availability of workers. With 1.05 jobs for every worker in the current market, the pinch is not only felt at the fringes. Specialty technical areas, sales-marketing, nursing, education, retail and services are the most broadly challenged sectors. As economic growth continues, however, the numbers become more challenging.

The ratio of Jobs to workers will hit 1.10 (10% more jobs than workers) sometime in 2001. It will happen even if the bottom falls out of the economy.

In that environment, guaranteed time off, extraordinary compensation, ownership and radical workplace flexibility will be the key retention issues. On the Recruiting front, getting any sort of response will be the critical concern.

Between now and then (30 months), companies are going to get really good at keeping their people. Velvet handcuffs (extreme perks and benefits) will be the norm. We won't be surprised to discover that the real value of operations like Monster's Talent Auction is the data about compensation. It's increasingly easy to imagine compensation packages pegged to current market rates.

Just In Time Recruiting (JITR) has been portrayed as "communicating with potential employees well in advance of the employment transaction". While that's certainly a part of the equation, the more important pieces are long term planning and management of the candidate pool.

The current abundance of jobs has resulted in a net increase of 25% in the hours required to place a candidate. The only reason that the staffing industry hasn't shut down from this change is that they've been able to raise their rates. The question is: "What happens when time per placement doubles, as it will over the next three or four years?"

To build a reliable labor supply, the first requirement is that you understand the pool of potential candidates from their perspective. To build a relationship with them, you are going to have to deliver a lot of value well in advance of making the actual Recruiting pitch. They have to see it as value.

The time to begin an aggressive campaign is now.

- John Sumser, © TwoColorHat. All Rights Reserved.

| ERN | Bugler | Advertise with Us | Trends | Book Club |
© 2011 interbiznet. All Rights Reserved
Material written by John Sumser © TwoColorHat. All Rights Reserved

415.377.2255 (V) 415.380.8245 (F)
Send comments to colleen@interbiznet.com
interbiznet this week
(thru November 14, 1999)
1st Steps In The Job Hunt
     - Future Shock
     - Future Shock II
     - Usenet Newsgroups
     - To Post Or Not To
     - Posting Keywords


  • interbiznet Listings
         - Associations
         - ATS Companies
         - Public Companies
  • interbiznet Trends (New)
         - Bugler
           Daily Industry News

         - ERNIE
           ERN in Email

         ANNUAL REPORTS:      

  • Electronic Recruiting
         Index (ERI)
         - 2002 ERI
         - 2001 ERI
         - 2000 ERI
         - 1999 ERI
         - 1997 ERI
         - 1996 ERI
         - Report Pricing


  • Integrated Employment
          Branding Presentation
  • 2003 Trends Whitepaper
  • interbiznet Listings
  • interbiznet Trends
  • interbiznet Bookclub
  • Top 100 E-Recruiters
  • Presentations
         - Recruiting Then/Now
  • Recruiter's Toolkit
  • Seminar In A Box
  • ERN Archives
  • 1st Steps In The Hunt


  • Our Rate Card
  • Demographics

    Last Week's ERN

    November 07, 1999
  • Name Game
  • Cheap But New
  • New Email Newsletter
  • Deconstruction
  • Life Takes Work

    ERN Archives

    Past Issues
    About interbiznet
    interbiznet publications

    Stocks We Watch
    Public Companies in
    Electronic Recruiting

    Central Newspapers
    Dow Jones
    General Electric

    Knight Ridder
    New York Times
    Restrac (Web Hire)
    Student Advantage
    Top Jobs On The Net
    US Search Co
    Washington Post

    Pending IPOs

    - None

    Public Staffing Cos

    AHL Services
    Alternative Resources
    American Consolidated
    Analysts Int'l
    Career Horizons
    Computer Horizons
    Computer Task Grp
    Consolidated Tech Grp
    Data Processing Resources
    Employee Solutions
    General Employment
    GTS Duratek
    Hall Kinion
    IT Staffing
    Kelly Services
    National Technical
    National TechTeam
    On Assignment
    Outsource Int'l
    Right Management
    Robert Half
    SOS Staffing
    Staff Builders
    Western Staff
    Winston Resources
    Work Int'l