Are you looking for a job? When graduating you likely gonna do just that. It is a habit that creates and maintains one of the worlds’ largest industries. The recruitment industry. Worldwide more than $ 400 billion is spend in the recruitment market. 80% through intermediaries, 20% with recruitment for permanent jobs. (Clennet, 2014; recruitment.nl, 2014)
But times are changing. Internet, social media, big data and smart algorithms are new ingredients for cooking the pie.
Existing competitors in the market initially adopted internet to do more of the same – general speaking in line with Porters claim. New entrants with vacancy platforms on internet, like Monsterboard, were integrated in the market at cost of paper advertisements. Now the market is at the brink of more fundamental changes.
New, experimental, platforms like Magnet.me and Jobtippers, form clear evidence that the barriers to entry have decreased (Dutchcowboys, 2014). New is that the “hunt” for candidates is not anymore restricted to the small market for “top executive head-hunting”. Searching for suitable candidates to fill a job is becoming more and more accurate, transparent and also less expensive. Of course it works both ways (searching for jobs and searching for candidates) with a potential devastating effect on the size of the industry. For example, internet platforms reduce the average job searching time for graduates already with almost 25% (Kuhn and Mansour, 2014).
The new ingredients, such as disruptive data processing technologies and giant social networks, like facebook, Linkedin and others with access to personalized data, change the rivalry in the industry with substitutes in another dimension. The buyers, in this case the employers and the potential candidates gain tremendous power. More and more they will find the best match (between themselves) through technology and data, rather than through a recruitment agency or intermediary. The suppliers, mediators and recruitment agencies as well as the common media channels will have to change dramatically to adapt (Hagiu, 2014). If they can. But one thing is clear, their traditional market will shrink, and their power reduces. It is just a matter of time before employers start using matching apps, and therewith knock on your door because they know you are ready for their job. These changes might be food for the critics of Porters view on the way to handle internet in a companies strategy (Porter, 2001). The recruitment industry can’t continue as usual with just integrating internet in their business.
So, what does this mean for you, fellow near graduating student? It means you have to manage your electronic footprint, your social network profile in a responsible almost professional way. Your profile (not just Facebook, but all personalized data you leave behind) is you. And an employer will be looking for you. If not, have fun with writing letters on ad’s in media.
Social media and analytics already now connect job candidates with career opportunities.
With more data and more knowledge it is becoming easier to match graduates to jobs and sooner than you think, jobs might find you! Be ready.
References:
Hagiu, A. (2014). Strategic decisions for multisided platforms. MIT Sloan Management Review, 55(2), 71.
Kuhn, P., & Mansour, H. (2014). Is Internet job search still ineffective?. The Economic Journal, 124(581), 1213-1233.
Porter, M.E. 2001. Strategy and the Internet. Harvard Business Review 79(3) 62-79.
Ross Clennet (16 Oct 2014). Global staffing industry sales top $400 billion via http://blog.rossclennett.com/2014/09/global-staffing-industry-sales-top-400.html
Sociale netwerken transformeren de vacaturemarkt, 2014, Dutchcowboys at:
http://www.dutchcowboys.nl/vacatures/31365
vacatures.nl (2014). Voorspelling: In 2015 groei van 8% voor de Nederlandse recruitmentbranche via http://www.recruitingroundtable.nl/2015/07/15/voorspelling-2015-groei-van-8-voor-de-nederlandse-recruitmentbranche/)
