The New Online Job Hunt.
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FORTUNE 500 companies like GE and PepsiCo are also embracing social networking in hiring: 42% now have a Facebook or LinkedIn page, according to a recent survey by CareerXroads. And Jobvite's annual survey found that the percentage of recruiters who plan to hire through social media rose from 83% in 2010 to 89% in 2011; 87% of those hiring online plan to use LinkedIn, 55% plan to use Facebook, and 49% plan to use Twitter.
So how are the big boards like Monster and CareerBuilder responding? By trying to imitate and outgun the competition. Both claim they're not just job boards anymore but instead offer an array of products, some with social-networking features. In June, Monster introduced an application to let Facebook users create separate professional networks, which eventually can be used by client employers--imitating and competing with year-old BranchOut. And in another sign of ferocious industry competition and the blurring of lines between kinds of companies, Taleo announced on Sept. 12 an integration with LinkedIn, allowing LinkedIn users to fill out online applications with their LinkedIn data and giving recruiters access to LinkedIn profiles, all with a single click of the mouse.
CareerBuilder has taken a similar route with new software and products, including one that sounds a lot like Jobvite. Until recently, job boards and applicant-tracking companies were primarily complementary, even though they drew from the same pool of recruitment dollars. Now, although they still focus on different parts of the process, says Talent Function Group president Elaine Orler, there is enormous overlap in what they offer, with each borrowing from the others. She says the situation is "becoming chaotic. It's like cats and dogs fighting each other for the same food."
Fortunately, there are still green fields abroad. "In the U.S., we've moved way beyond job boards, but they're still growing overseas," notes Cappelli. CareerBuilder recently announced the acquisition of JobScout24, a major job board in Germany. Both Monster and CareerBuilder have also moved fast to transfer their apps to mobile, which is particularly important in Asia, where job hunting, like everything else, is done on mobile phones rather than desktop computers. Beyondcredentials.com which expects to be profitable next summer, plans eventually to expand abroad.
Whatever part of the business the players are from, these innovations are amping up their market share and bottom lines. Although the online recruitment market dropped off with the high unemployment rate, an Evercore Partners report projects that in 2013, the market will rise to more than $2.594 billion, and these companies are vying for the projected surge. But are they making the process of job hunting any better for job seekers? Perhaps not for Bill Feeser, who every week tosses another 25 résumés into the black hole. But for the millions of people--no one can say how many--who've found work online this year as the unemployment rate soared, the niceties of human contact pale in comparison with the security of a new position.