[ernie] The Electronic Recruiting News In Email_010405

[Carrie Baggs <interbiz@interbiznet.com>]

		John Sumser's Electronic Recruiting News
interbiznet.com E R N I E Electronic Recruiting News In Email Our Rate Card S P O N S O R S Find out more About IBN Got a news tip? Tell us at news@ interbiznet.com Our Rate Card Articles Presentations Trends Reports Archives Resume Databases (Over 60) Company Job Listings (Over 4000) Suggestions? OUR HOME	Read Today's Interbiznet Bugler (New) Download the 2001 ERI Executive Summary. Requires Acrobat. 2001 Electronic Recruiting Index is available. Order your copy today! To subscribe or unsubscribe from ERNIE, please use the form on the linked page. Think About The Market (April 05, 2001) With estimates ranging from 120 Million to 140 Million and average job tenure at just about 3.5 years, there are between 30 and 35 Million job hunters annually. Given a median salary of about $30K and an average cost to fill a job of 30% of the first years salary, that is a market value of about $360,000,000,000. That's $360 Billion and doesn't include contract or temporary employment expenses. It doesn't include internal job changes or promotions. It doesn't include so called professional services. We have no trouble believing that the real market value for our industry is about $1.5 Trillion and growing rapidly. So when analyst companies like IDC offer low ball pictures of industry revenues, we giggle quietly. They don't understand that the extreme shortage of workers is driving expenditures and tactics to levels that are historically unimaginable. They fail to grasp the regional essence of the marketplace. They mistake job posting revenues (our numbers say in way excess of $2B this year) for the depth and breadth of the market. Think about the historical executive search sector. What is a search firm really but a job board with a higher price point and deeper customer service? Placement agencies and recruitment advertising agencies are extremely difficult to distinguish from Job Boards and their derivatives. A look at business model or web activity can give some clue. But really, (remember last week's harangue of Spencer Stuart?), the difference is mostly in the minds of the people who work there and, hopefully their customers. Look at the hybrid models, like Talent Fusion. Is it a job board on steroids, an outsourcing service or a PEO posing as a recruiting firm? Who can tell? The important thing about the emerging set of players is that they define success in customer terms, not technical ones. Does the market have room for new technology? Certainly. But the over arching emphasis on the development of unique technology is a critical reason for the difficulties facing many of the players in the game. A competent job board can be acquired from an ASP for under $100K per year (allowing for some variable costs associated with success). That's far less than two full time technical people would cost. Rather than focusing on customer service and market opportunity, we have far too many firms throwing money down the technology rat hole. It's a shame and leads to many of the data integration problems suffered by the users. We wonder why the managers of the troubled companies aren't canning their technical teams as they move towards profitability. With a market opportunity this large, it seems like acquiring customers should be the only game in town. - John Sumser ******************************************************************************************    What position can Sendouts.com put your firm in?       A more competitive one.      Find out how: Get access to hundreds of thousands of qualified candidates. Manage every step of the placement process. Establish a stronger presence on the web.    Do it all with one web-based application for under $100 a month.    Final reason to visit us:    Get over $500 in savings with our introductory offer package. Contacting Us: Call, fax, write, email. We'd love to talk about your project. All material on this site is © 1995 - 2001 by IBN: interbiznet.com (The Internet Business Network), 346 Starling Rd., Mill Valley, CA 94941 415.380.8244 staff@interbiznet.com To Subscribe or Unsubscribe From the ERNIE... Enter email: Enter name:	FEATURES: Interbiznet Trends (New) Email Newsletters      - Daily Industry News      - ERN in Email      ANNUAL REPORTS:      - 2001      - 2000      - 1999      - 1997      - 1996      - Report Pricing      RESOURCES: Top 100 E-Recruiters Presentations Recruiter's Toolkit Seminar In A Box ERN Archives 1st Steps In The Hunt      ADVERTISING: Our Rate Card Demographics Recently Archived Articles Recruiter Returns Funjobs.com What Is A Layoff? Who Is Losing? Walks On Water Chicken Little Job Distribution Co's      ERNIE Archives    All material on this    website is the    property of IBN    (The Internet    Business Network:    interbiznet.com)    You may download    a copy for personal    use. Redistribution    without permission    is strictly prohibited.    All material on    this site is    © 1995 - 2001 by IBN

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