February 2003 Column

State of the Internet - 2003 

There was a time I was worried…3 to 4 years ago…that the recruiter community was over-using the Internet. Hundreds of recruiters across the country gave up tried and true recruitment methods like asking for referrals, recruiting from their files, cold calling in favor of having resumes from Internet ads delivered to their InBox awaiting their arrival at work the next morning.  It worked for a while, about a year until the clients started using the same services, running the same ads and getting the same candidates in their InBox’s. That worked for our clients as well, for a while. Probably a couple of years. These days, I think a lot of the clients that had relied exclusively on the Internet are realizing that it is not exactly what they had in mind after all. Too much work.  

When a client gets a resume from one of us…it is an actual candidate. Qualified, interested, ready to interview. When a client gets a resume from an Internet ad they are getting nothing more than a lead, a lead that dozen’s of other companies have, that they have to screen and qualify. Multiply that by, maybe, 400 or more resumes for some jobs and our services look more attractive. I have heard of clients that get hundreds of resumes from an ad then pick a few candidates to interview from the first 30 or so. What if the best candidate is number 128? They do not get their money’s worth because they do not have the skills to review 400 resumes in a timely fashion. To pick the best 20 to screen…the best 3 to interview…the best one to hire out of the 400. I am not saying they don’t make a hire from their Internet ad as they probably do but I am saying I do not think they are getting the best candidate for their open position.  

Several years ago when I used to check Monster.com for St. Louis IT/MIS job order leads fairly regularly there would be over 1000 jobs advertised in my area on any given day. Last summer that number was down to about 250, give or take. More recently it was up a bit to 285. Interestingly, I did not see many of my clients running ads. More specifically, out of the 285 ads, 205 of the ads were placed by placement/staffing/consulting type firms (us). Ads placed by companies hiring for in-house needs (our clients) numbered 56 and there were another 24 that did fit into either category for some reason or another (this is not, I repeat, not, a scientific study). I checked further. Logged onto both HotJobs.com and CareerBuilder.com and ran the same searches. I came up with these totals: 

Ads for St. Louis IT/MIS job openings 

Service                         Total Ads            Recruiter Ads              Client Ads                  N/A 

Monster.com                285                  205                              56                                24

HotJobs.com                149                  114                              32                                3

CareerBuilder.com       72                    41                                21                                10 

Totals                           506                  360 (71.15%)             109 (21.54%)                37 (7.31%) 

As you see, companies that we would normally consider our clients placed only 21.54 percent of the total ads running that day (if you are wondering, yes, I did review over 500 Internet ads for the purpose of writing this article). This is way down from a time when most clients I had were running Internet ads. Also, I have recently seen companies running Internet ads and using third-party recruiters simultaneously. Hopefully, a good trend that we will have to keep an eye on.

But…as we all know well it is still slower that it used to be. Other than make a lot of calls, work hard and hope for the best what can we do to make more money when it does get busier…especially as it relates to the Internet? A few ideas: 

Probably one of the easiest and least expensive projects you can work on is to build your candidate database. Candidates are still plentiful right now and easily obtainable. The unemployed guy who sends you his resume now is the hard-to-find, employed guy you will want to try and place down the road. I am not saying to run any ads just to populate your database, or even to communicate with every single person that sends you their resume but do keep them and organize them somehow. I get a lot of resumes in the course of a week and frankly, these days can’t use the vast majority of them but I have created a resume directory in my Outlook program to store all of these great leads for when I need them in the future. Better yet…get them in your database. Name, resume, a few keywords and you are done. Also, use the Internet search engines for an hour or two once a week to download resumes of passive candidates that you may need in the future. Save these to a resume directory on your hard drive and then you can use the Windows/Find program to search those resumes in the future. This will pay off big time down the road for you when candidates are harder to find. 

Another project is to try and create better processes and streamlined procedures for dealing with client/candidate communication. I recently wrote about an Internet service that, for a monthly fee, would not only manage your emailing lists for you, but would also give you the content for your regularly scheduled mailings. A service like this constantly keeps your name and contact information in front of your clients or candidates and makes them more apt to think of you when the need for your service arises. Better than contacting a client two days after they just filled a position you missed out on. At the other end of the spectrum, for those who don’t want to be a few hundred a month into a service, there is the do it yourself method. Simply compile a list of your candidates and clients you wish to keep in regular contact with, along with their email addresses and simply send them all a greeting of some sort each month. Using Outlook you can create Groups and send the same message to each member of a group with one click. Other email software has similar features I am sure. Can’t hurt. 

One more idea is to take a look at your web site. If you still don’t have one make sure you do as soon as you can. Even is you do not use the Internet to recruit much I feel all recruiters need some sort of web presence, it’s almost expected these days. There are pre-packaged recruiter web sites out there running anywhere from $300 or so on up into the thousands. If your needs are simply, a lower end site should do the trick. Having the web site is not enough. All who do need to take a few minutes and spend the $30 to $50 it takes for a third-party company to register your site with all of the Internet search engines. You can do this manually for free but you would have to visit each search engine individually and the professionals are able to register you with search engines you don’t even know exist. Well worth the money. Make sure your web site does what you want it to do. More for marketing…beef up that area. More for recruiting…do more to lure them in. Your web site can be a great source of income generation if utilized properly. 

Lastly, take advantage of the fallout. Hundreds of our competitors have gone out of business in the last couple of years. All of those recruiters I was writing about earlier that over utilized the Internet probably comprise most of those that went under. I was recently browsing our local business journal and noticed a bank had posted a foreclosure notice against the personal residence of the proprietor of a local consulting firm, who I have known for years. This thinning of our ranks has left big gaps in client coverage. Not necessarily this moment but now is the time to push for new relationships, meet new people so when things break loose a bit you are ready.  

The worst is over. Most recruiters I have communicated with are busier now than they were a year or so ago…even six months ago. No, nothing like it was a few years ago, not even close, but for sure, getting more job orders…making placements. If we all have made it this far we will probably see it through to better times again. Anyway…have a good year. 

Tip 

I recently wrote a review in this column on a passive candidate recruiting service, HTC. More recently HTC, a company that specializes in knowing the right questions to ask a client, has sent me a list of their 8 mandatory questions you need to ask a when taking a job order for a passive candidate search. They have graciously allowed me to reprint these questions below: 

1. What are the target companies or the kinds of companies you would like candidates out of?

2. What department(s) could these candidates be found in?

3. What would their title(s) be?

4. What degree(s) or certification(s) might the candidate have?

5. If this a management position, what level manager would they be?

6.When we identify someone from one of the target companies in the correct department with the correct title, has the right degree/certification and the number of years experience you are looking for, are there any other MINIMUM skill set requirements that need to be met?

7. What is the absolute minimum number of years experience that this candidate must have with each skill set?

8. What is the maximum amount of salary you want the candidate to be currently making? 

 These questions are somewhat abridged but the entire text can be found at their Web page http://htcresearch.com/HTC%20Research%20Corp%20folder/HTC%20Research%20Corp/8questions.html. Also, visit their Web site at www.htcresearch.com.