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[ernie] The Interbiznet ERNIE_00.11.15




IBN: Defining Excellence in Electronic Recruiting
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It is better
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John Sumser

Reality
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DNR

(November 15, 2000) With the exception of CareerCast and FlipDog, the names of most of the practitioners of "Do Nothing Recruiting" (DNR) would draw blank stares from the customers, competitors and analysts in the Electronic Recruiting Industry. DNR companies operate from one essential principle: companies post their jobs in the Employment Sections of their websites. A DNR firm uses 'spiders' to collect job openings, "wraps" them and moves the "wrapped data" to a destination. All a Recruiter need do is post a job to the company website and the DNR company handles the rest.

Invented by Junglee during the first several years of online Recruiting, the technique is very labor intensive. When Junglee was acquired by Amazon.com, it sold its recruiting services to Webhire, the Internet based descendant of Restrac. While the move propelled Webhire to the forefront of the Electronic Recruiting Industry at the time, the technical integration process was very difficult.

This merger allowed the other entrants to have a clear competitor to play against. Since the Junglee Customer base had little real overlap with Restrac's original customers, the problems ranged from technical and pricing to Customer Satisfaction. Ultimately, other companies have been able to perfect the idea.

In 2000, a new Job Board, FlipDog, emerged with hundreds of thousands of job listing and no observable business model. Based on DNR technology, FlipDog is an exercise in technical brilliance with an extremely limited sales horizon. The company has managed to use the fact that it collects job postings from all over the world as a method for building macro-economic statistics based on that data.

Ezeenet, another DNR vendor, "wraps" some of the jobs posted to major websites (Monster, HotJobs, Headhunter). Using a huge team of Indian programmers and data gatherers, the company continues to seek the traction that its low price point suggests it should have.

Meanwhile, CareerCast, a California company, has taken the process to new heights. By focusing clearly on customer satisfaction and database integration, the team at CareerCast has taken clear leadership in this sector. Many of the major newspapers in the United States (Wall Street Journal, New York Times, USA Today, Boston Globe) use CareerCast's services to deliver quality offerings to distinguish themselves.

Even CareerCast has some difficulty with business models. Although the company has been consistently profitable, DNR methods represent a very new way of thinking. Trying to teach them to a typical classified advertising salesperson represents a challenge. Teaching that person to sell these services to an HR buyer may be more than any professional should be required to undertake.

We look for increasing automation in DNR services and see a fit between them and the emerging Recruiting Gateways.

- John Sumser

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