Hope you all had a fab beginning of 2008 - personally, I had a ‘fat’ beginning to the year, after all the holiday food that I am still trying to work off..
Just to bring to your attention what might be the type of online operation we’ll see more of in the coming months if it works for their stakeholders, Recruitment portals or markets are intended to aggregate employers and recruiters and take the friction out of a what is still very convoluted, and therefore costly, exchange. A couple of players coming up with soft and hard launch dates soon:
- VacancyBid, you can catch Danny Nerezov, the 24-year old CEO, on Facebook any day of the week. From their site:
VacancyBid is a Sydney based company which exists to lower the cost hire for employers, and create maximum revenue opportunities for recruiters.
- NeedRM; I met CEO Michael Rhodes many moons ago about this initiative, so I guess the business model has been reasonably worked. The tag line for the company from their homepage:
NEED Recruitment Market is a recruitment revolution that has the capacity to change global business dynamics. As an efficient recruitment marketplace that sits between employers and recruiters, NEED delivers real value to traders by harnessing the speed and global reach of the Internet.
I will be watching with interest to understand how they go to market and how well received they are specially in the context of:
- the continued growth of the BPO/Managed services deals between employers and one agency which brings its own exchange platform, thus locking out unauthorised delivery by other agencies
- the continued scarcity of talent, e.g. recruiters wondering “why do I need to go and bid for work which may not be overly profitable if I still have job orders I cannot fill?”
- the fact that these markets may rely on externally sourced data to reveal its effectiveness, that is employers/recruiters have to go back to the system and flag an engagement as closed (person placed)
In some ways, recruiters are already bidding for work using the classifieds model: if the see company abc publishing an ad for an accountant on a job board, I won’t be surprised if they receive a few calls from agencies canvassing the demand on an ongoing basis.
As I said, the marketplace is still partially intermediated. There’s a few challenges, I certainly don’t have the solution. My bet is technology alone will not diminish friction.
have a great year