Cenek Report

The major job boards – Monster, CareerBuilder, etc. – will soon be facing their own recruiting challenges – namely customers. Web-based networking tools, such as Zoominfo, Linkedin, and Jobster, will increasingly become a less expensive and more effective alternative to the high cost of many job boards.  Job referral boards such as Job Thread will allow firms to leverage the power of networks, and easily compensate people for referring the right talent.  Boards that cater to the passive job seeker, such as Quiet Agent, will grow in popularity. The ultimate impact on recruiters and search firms is anyone’s best guess.

A recently published study of of hiring practices at major U.S. companies by Booz Allen Hamilton appears to be signaling this trend.  The study revealed that internet sources produced 51% of all new hires in 2005 with the largest source of hires being the employers' own corporate web sites.  Employers reported that they find the highest quality candidates and receive the highest return on their investment from their own corporate web sites and from employee referrals.  As the economy heats up in 2006, employers report that they will significantly increase employment-related spending in the following key areas: corporate employment web sites: 74%; employee referrals: 68%; and social networking technology: 60%. 

See reference below for link to survey.