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 JADs
((May 31, 2001) Although they vary in customer focus, financial
structure, business model, and other important ways, all Job Advertising
Distribution (JAD) companies share several characteristics. At the
simplest level, they offer customers the ability to post online employment
advertising in one place and have it automatically delivered to one or
more other destinations. Contemporary HR Departments use these services
primarily as a means to control the costs associated with repetitive
administrative costs.
In other words, the primary value that a JAD delivers to its
customer is a reduction in internal costs. As the Job Board Industry grew
and developed, an essential component of competitive distinction has been
the specialized ways that a customer can interact with the service. While
one job board may offer the ability to broadcast job information by
geography, another may encourage the use of special screening questions.
Each online entity shares some essential data elements while using others
to maintain a competitive edge.
The JADs standardize data entry into a once-per-job interface of
some sort. Once all of the data is entered, a customer can then begin the
process of choosing the best media outlets for the publication of a
particular advertisement.
For the JADs that have significant business experience, the primary
value (administrative reductions) is just the starting point. Variously,
they offer media planning (the "best" distribution for a particular
advertisement), differing levels of alliance quality, integration into
Enterprise and Applicant Tracking Systems as well as variety of potential
targets. The largest single distribution network, managed by RecruitUSA,
reaches over 30,000 job boards across the web.
As is the case in most developing industries, competition spurs the
JADs to offer increasingly differentiated product lines. Although the
current round of claims that a targeted campaign can be effectively
designed are a little inflated, many of the vendors are headed in the
right direction. The business case for choosing a supplier in this arena,
however, is best made on the primary value. Any system that eliminates
redundant, no value added administrative burden is precisely worth the
cost it saves. Additional value must be carefully weighed. The extremely
intangible value of building an early partnership with an industry
innovator is probably the trickiest component of the assessment.
For a comprehensive analysis of the players in the JAD segment, see
our report: Choosing a Job Advertising Distribution Company.
- John Sumser
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