LinkedIn Recruiter for Recruitment Agency

Well LinkedIn have decided that the Recruitment Agency market is to big not to service it. The new product called LinkedIn Recruiter is launched that enables Recruitment Agencies to harvest the full power of the LinkedIn Social Network.

Is LinkedIN Recruiter a good or a bad thing for you?

Well, depends from your standpoint. LinkedIn as any other social network is finding hard to monetise it’s service. The subscriptions to Employers aren’t making the desired revenue levels. Advertising Jobs didn’t take up in most of markets. In Ireland for example, there is about 30ish jobs advertised in LinkedIn at one time for the last two years (January 2009: 17 jobs in Ireland advertised in LinkedIN). Obviously not a sustainable business model. Considering and national job board even in the recession times has thousands of jobs advertised.

Therefore from a LinkedIn’s perspective, this is clearly a new revenue stream.

From the Recruitment Agency perspective, this lets them in LinkedIn on a completely different level than before. Built in protection when the staff leaves and being able to share the contacts and the communication is what was always missing element for the recruitment agencies. LinkedIn Recruiter is here to offer all what a recruitment agencies need to use LinkedIn on a larger scale than before.

And then there is a job hunter, the passive job hunter, the ordinary LinkedIn user. How will LinkedIn Recruiter affect him/her?

One thing is for sure – the amount of the job offers sent via LinkedIn InMail is going to increase. In markets where the LinkedIn Recruiter is going to be large, and there is a shortage of certain skills in the workforce, some LinkedIn users will find themselves as a target to job offers. So far it was great – since they wanted Employers to find them when they have a job for them. What happens when the Recruitment Agencies have a capacity to get to them easily is that a great ‘candidate’ will be contacted by every recruitment agency trying to fill the same position. So you might get 5, 10, 20,… InMails from all different Recruitment Agencies who are interested to head hunt you for the same role. If you not like the role – will you respond to all of them saying: ‘No Thanks.’? And when that happens next week when another company has a similar role, and you get XX InMails about it again?

So the success of sales of LinkedIn Recruiter will decrease the quality of the LinkedIn service for the job hunters that have skills that are in demand in their markets.

The trade off that LinkedIn is making with introducing LinkedIn Recruiter is that to increase their profits, they decided that it’s OK to decrease the quality of the service they are providing to their most sought users. The longer term problem for LinkedIn is what if those best users leave, finding they get too much SPAM? And with that crème candidates cut off, LinkedIn all of a sudden becomes not a source of Good passive Candidates, but of just … Passive Candidates? And even those slightly fed up by being hassled by many recruiters for the same job they don’t want in the first place?

Then again, LinkedIn limits the number of InMails that a recruiters can send a month. It is 50 a month (to multiple recipients each). So to reach more candidates and send more InMails a recruitment agency will just by more licenses. That creates more revenue for LinkedIn, so they will turn a blind eye that the top candidates gets bombarded with job offers.

Ireland might be a bit specific in that regard. Ireland is a small country where everyone knows everyone. (Almost) Literally! Online Social Networking take up in Ireland is far lower than in the US (where LinkedIn is from). Ireland is still the country where more people get a job via the traditional Job Boards than via the Social Networks. The ratio is changing, but we are far from the situation currently in US or Far East.

Who will be the first Irish recruitment agency in Ireland to take up the LinkedIn Recruiter offer?

EmployIreland.ie Looks to Rebound in Tough Job Board Climate

Since the economy bottomed out and took scores of Irish jobs with it, purveyors of job boards have seen corporate customers curb or cut contracts at the same time they’ve dealt with an influx of résumé postings from the newly unemployed.

More companies also are adding job postings and career centers to their Web sites, or are using social networks such as Twitter, Facebook and LinkedIn for recruiting, which raises the possibility that they won’t go back to previous levels of job board spending once the recession ends.

The result: falling revenue and earnings, as evidenced by publicly traded job boards such as industry leader Monster Worldwide, which in the first half of 2009 lost $11.7 million on revenue of $477.4 million, a 34 percent drop from the same period last year.

Peter Zollman, executive editor of Classified Intelligence, a consulting group that tracks the classified advertising and job board industries, says that while the job board industry has struggled in 2009, some privately held firms may be better positioned to weather the recession.

One such firm…

The above article is actually from: http://www.workforce.com/section/06/feature/26/71/27/index_printer.html

The second part of the article is less interesting and less relevant for Europe and Ireland in particular. This is my attempt to finish it up:

One such firm is EmployIreland.ie.

EmployIreland.ie is the only job site in Ireland that hasn’t been letting go it’s staff during the recession.

Irish Jobs lost their largest client – CPL. Jobs.ie is selling traffic left right and center. They even implemented Pop Under windows, and that’s surelly the worst marketing practice. RecruitIReland even went free for a the best part of the year to get jobs on their site. Loadza made all kind of experiments like Online Jobs Fair that did not stop clients leaving.

The traffic job boards in Ireland are attracting fell drastically, as well as their revenues in 2009. Most of the jobs sites are actually using Google AdWords PPC to drive traffic, since there is simply not enough ‘organic’ – natural traffic from the search engines.

The fact that the revenues of the Irish job boards will not bounce back up is something all of them are trying to hide. Or they simply live in denial.

Social networks is where the recruitment is turning to and massive job boards will slowly be losing their revenues. Going forward it will not be so rapid as it was in the 2009, but there is less and less advertising revenue available for jobs advertising in the years to come.

Even new jobs sites are not popping up as quick as they did up until just a few months ago.

EmployIreland.ie is in the unique position to thrive in the current market. It is agile enough to change with the times. EmployIreland.ie is in its core a technology company Portal.ie. The experiments with the recruitment social networks lead to a number of BETA releases like JobsMarket.ie and JobsBoard.ie, and a few international ones.

By running the only Irish real time job posting system eRecruit.ie, the company is in the unique position to….

I am kind of out of inspiration any more. Just remembered the title of the Recruitment Conference yesterday: The Future of Recruitment … Job boards are less and less part of that future. EmployIreland.ie will lead the way by innovation, and embracing the new ways of doing business in recruitment industry!