IT bosses are increasingly turning to the internet for recruitment, but the print media still matters for public recognition.
An IDG survey of subscribers of Computerworld and NZ Reseller News in a decision-making role has found that 35% of employers plan to use recruitment agencies less this year because of the internet, up from 28% surveyed last year. But 44% say the web will make no difference. However, 31% of IT leaders say the internet is already proving useful in recruiting, up from 20% last year.
Despite these findings, of the 178 people who replied to the survey, only 10 had looked at at least three agency websites, suggesting they have limited time to surf the web looking for job agencies. In addition, while 6% of IT leaders found out about an agency from the internet, six times more -- 36% -- heard about an agency through IT publications.
IDG managing director Bob Pinchin says while this shows the websites of agencies are important to job-hunters, IT managers will usually learn of a recruiter through its print media advertising. “Print media clearly remains the most important form of branding,” he says.
The survey asked respondents to recall the first three recruitment agencies that sprung to mind. Some 47 agencies were mentioned, showing a two-horse race between Candle and TMP - owner of Monster.co.nz and other agencies. Candle was recalled by almost half of the sample, followed by TMP at 39%, which is closing the gap on last year.
Two trends are emerging: internet sites nabbing a share of the job ad market from newspapers, and consolidation of online job sites.
Last week ANZ's job series noted net job ads up 1.6% over July last month, after reaching a high of 15,248 in April but rising and falling twice since.
In the US the pattern is clearer. Forrester Research notes that the purchase of HotJobs.com by TMP, the parent of Monster.com, gives it revenue of $US700 million, half of US online recruitment ad revenue for 2001. The combination will offer 14 million resumes and 650,000 job listings – nearly two thirds of US job-seeker traffic.
Online recruitment ads represent 9% of total recruitment advertising in the US, says Forrester – newspapers dominate with almost $US9 billion revenues in 2000. But Forrester says newspaper recruitment classifieds dropped 17% in the first quarter of this year from the same quarter last year as Monster.com's revenues grew 210%.
In New Zealand, newspaper ad numbers have continued to rise, despite the online job growth. An IDC report estimates that spending on online recruitment advertising in Australia in 1999 totalled $A14.7 million, and this figure is set to grow at a compound annual growth rate (CAGR) of 86.2% to reach $A329.3 million by 2004.
Media interests are behind most of the online recruitment sites in this country. Nzjobs.co.nz is backed by recruiter Haines, JobStuff.co.nz by media giant INL, IT job specialist JobUniverse by IDG, Monster.co.nz by recruitment giant TMP Worldwide, Netcheck.co.nz has links to The Radio Network and Seek is backed by Australia’s Seek Communications.
Meanwhile, the IDG survey also revealed that time constraints and the scarcity of candidates were the two main reasons IT chiefs used agencies. The two most important assets and agency should have were efficient service and understanding the client's business. Value for money mattered less at 34%, along with them using up-to-date processes at 25%.
The survey was carried out nationally in June. The sample was made up of 42% IT managers/CIOs, 33% directors, 11% other managers and 14% others. Some 61% employed more than 100 staff.