Employment sites do the job

September 21 2006 - Recruiters and HR leaders find online job sites effective in filling openings, despite complaints that they generate too many unqualified applicants. Only employee referral programmes got higher marks, while print advertising trailed behind.

The first comprehensive American study of recruitment advertising effectiveness, conducted by ERE Media, Inc. and Classified Intelligence LLC, asked recruiters to rank the value of job sites, print, social networks, employee referrals and career fairs. The most important factor was found to be the number of hires compared to cost. Recruiters emphasized that all forms of advertising have a place in the spending mix.

Peter M. Zollman, founding principal of Classified Intelligence said:

"The big news is that recruitment sites are identified as an effective way to find and hire employees. Especially among large companies, recruiters are increasing their spending. This should mean real growth for the online job segment - most likely at the expense of newspapers."

Nearly half of the 353 recruiters who participated (45 per cent) expect to increase spending with job sites this year compared to 2005; more hires for more companies come from job sites than any other source. Niche and national boards are more effective than diversity, regional or executive boards. Of respondents who spend more than US$100 000 a year on advertising, 39 per cent use job boards.

More than half the recruiters expect to spend more on employee referral programmes, although less than one-third of hires come from this source. Social networks are used by 43 per cent, but the jury is out on effectiveness. Although dollar levels are low, 44 per cent said they expect to spend more in 2006.

Print received the lowest rating, with 58 per cent calling it ineffective and 43 per cent planning to spend less on it this year. One recruiter called print "less and less effective every year, as the new generations don't read the classifieds."

David Manaster, CEO of ERE Media said:

"This is extremely valuable information for recruiters who want to know what approaches their colleagues are finding successful, and consider how best to allocate their budgets. The report reflects HR professionals from a great cross-section of industries and company sizes talking about how to get the most for their money."