From a report today by Nate Swanson, who analyzes HR/recruiting stocks for ThinkPanmure:
“We believe that companies are beginning to realize that the value proposition of the large, generic job boards (Monster/CareerBuilder/HotJobs) is waning, at best, as they increasingly provide a large volume of low-quality candidates. With recruiter in-boxes being filled with the equivalent of “resume-spam,” these large job boards are becoming less effective and eliminate many of the efficiencies of the online model. We believe that growth in these generic job boards is slowing, with online postings moving to niche job boards that are geographically or vertically focused (StepStone and Dice), or to sites that offer a pay-for-performance or “all-you-can-eat” pricing model (SnagAJob).
Second, we see the recruiting process becoming more complex and believe that recruiters will be spending an increasing amount of time on “employer-branding” initiatives, which target passive candidates and employee referrals. Here, companies will look to leverage their existing employees or alumni groups as a valuable source of new candidates. In fact, studies show employee referrals to be one of the largest and most cost-effective sources of new hires. Popular social networking sites such as LinkedIn and Facebook bring the power of an extended network to the recruiting process, although it’s still very early and a highly manual process. We think that social networking sites are becoming more and more like job boards. In fact, one HR manager to whom we recently spoke views the content on these sites as more valuable than those in a resume, as the content is public and therefore verifiable, and more current than the profiles listed on a job board, which could be more than a year old.”