Online recruitment advertising is booming as the Internet continues to significantly change Australia's employment landscape.
According to research outfit IDC, new e-recruitment activity continues to spring up with online advertising figures for 1999 totalling $14.7 million. And this figure is set to grow at a compound annual growth rate (CAGR) of 86.2 per cent to reach $329.3 million by 2004, as recorded in its latest survey, The Australia eRecruiting Market: Analysis and Forecast, 1999-2004.
IDC reports the figures include not only spending on Internet job listings, but also on banner, button and other types of ads such as corporate profiles and microsites that are purchased by recruiters to attract attention to their recruiting campaigns.
As a result, the Internet has become a significant channel for both employers and job seekers.
Affected by Internet
Lisa Shishido, IDC Australia's Senior Analyst, Internet and eCommerce, who authored the report, says at the moment the Internet has affected the initial stages on the recruiting process - posting vacancies and identifying and assessing candidates.
"However, a handful of Web-based end-to-end solutions that attempt to manage the entire process have recently emerged," she said.
Specifically, Shishido believes enterprises that comprise the Australian eRecruiting market include Internet employment sites, Web-based end-to-end recruiting solutions providers, which are also called hiring management systems, and recruiting agencies with online activities.
"In each of these categories, challenges abound - but more importantly, so do opportunities," she said.
Challenge to make profits
"For example, the large number of employment sites currently competing for a limited pool of advertising dollars means that most are finding it a challenge to make profits as they face the pressing question of when and how they will reach profitability.
"However, the opportunity lies in beating or outlasting competitors to become one of a small handful of sites that will eventually dominate the market, reaching critical mass in users and advertisers and branching out to create other revenue streams."
Meanwhile, Shishido warns that traditional recruiting agencies face the challenge of moving to Internet speed' to keep up with competitors.
Adopt efficient technology
To survive and thrive, they must adopt technology that can make their business more efficient and be more proactive about communicating their value proposition to clients.
"The days of agencies that are simply résumé shufflers who view candidates as walking invoices are over. The opportunity lies in harnessing the power of Internet technology to make business more efficient," Shishido said.