Today’s end-of-the-week roundup begins with a quiz and ends with a quickie update on OneWire, a clever, and certainly — as an investment report says — intriguing take on candidate matching.
So let’s get on with it: Guess who says they want to grow their influence at the top corporate levels?
HR you say? Sorry, not the answer we were looking for. The answer comes from MarketingCharts, which says, ”An overwhelming majority (79%) of global CMOs say they want their influence in business strategy and development to grow.”
Here’s another factoid from the article, which is based on a survey from Forrester Research and Heidrick & Struggles: 89 percent of CMOs identified visioning and strategic thinking as a top competency. There now, don’t you feel better?
Here an ATS, There an ATS
Is there anyone left in the world who wants an ATS and doesn’t have one? There’s no reason for that these days, what with an ATS in every price range.
At the free end, there’s Zoho Recruiter, if all you need are the basics. For our money (actually no one’s money) there’s SmartRecruiters, which is a surprisingly full-featured, sophisticated ATS that’s priced at an even-more-suprising free.
At the other end of the scale, a company can spend upwards of a million on a enterprise, in-house talent acquisiton system that handles reqs, posts jobs, parses, sorts, manages, and stores hundreds of thousands, even millions of resumes you will never look at.
Despite this virtual cornucopia of systems, humanity’s indomitable drive to build a better mousetrap leads to the near monthly launch of just one more ATS. The latest to find its way into our inbox is Zartis. It’s a minimalist SaaS ATS out of Ireland that’s aimed at the SMB market. (Got all those initials?)
Zartis offers more than Zoho, and less than SmartRcruiters. That would be fine except for one thing: Zartis is mostly fee-based. What you get for free is a single open job allowance, which makes it more of a S than an M market tool. If you have more jobs and want more functionality — like posting jobs to aggregators — you have to pay.
Bottom line: Check out Zartis if you’re curious, then choose SmartRecruiters.
Since the ATS door is now open, OneWire got some strokes in an investment report from Feltl and Company, an investment banker and advisor. The report includes long excerpts from a discussion between analyst Scott Berg and OneWire President and COO Brin McCagg.
Berg obviously was impressed. “Overall,” he writes in his report, “We believe OneWire is creating an intriguing and unique approach to talent acquisition software and we are quite excited to track its progress in the coming years.”
We (our royal usage here refers to us — another use of the royal pronoun!), we wrote about OneWire in 2009, not long after it was launched by founders McCagg and Skiddy von Stade. (Von Stade heads the financial executive search firm FS von Stade and Associates.)
OneWire was then, and still is, both intriguing and unique. It stands between the applicant and a corporate ATS, though an ATS isn’t a required component. It functions as a matching system, with the players completing profiles far more detailed than a mere resume.
It borrows from social sites, networking, and classic job sites to create a rich database of prospects that, as we (there’s that royal pronoun again) said in the 2009 article, if you want a Harvard grad who was on the crew team with international banking experience in pharmaceuticals, OneWire will find everyone who fits and rank them for you.
OneWire is being used by hundreds of financial firms and many Fortune 1000 companies. If you need another reason to take a look, consider that OneWire was named “One of America’s Most Promising Startups” by BusinessWeek. Here’s one more: OneWire has gotten $30 million from individual investors, a fundraising method intriguing and unique enough to warrant Mashable attention.
Monster is taking a battering on Wall Street today after the company missed the earnings expectations of the financial markets and warned it may just break even in the current quarter.
Monster’s stock price was down almost 20 percent at lunchtime in New York, a drop of $1.79 on the day. Trading below $10 for so long that Standard & Poors moved the company out of its S&P 500 stock basket in December, Monster’s price is now right at $7.19 a share.
The jobs advertising company, which yesterday laid off 400 employees, issued its fourth-quarter and full-year financials this morning before the markets opened. Despite growing revenue by almost 14 percent for the year, the company fell short in the final quarter. It earned 11 cents a share versus the 12 cents analysts were expecting. Monster’s revenue for the quarter also fell short, coming in at $250 million instead of the $259 million average estimate of Wall Street analysts.
Compared to 2010, Monster was profitable, earning 37 cents a share for the year (after allowances for one-time and similar expenses). In 2010 the company lost 7 cents a share.
Looking ahead, the company is not optimistic about where the job market is heading. Bookings (posting and search contracts) are expected to be down 6 to 10 percent from the 1st quarter of 2010. Part of the explanation for the decline is that there were strong signs of economic recovery at the beginning of 2011 leading employers to anticipate adding staff. But the economy sputtered, slowing hiring.
Now, with employers carefully monitoring headcount and with surveys suggesting that if hiring accelerates at all, it will be in the second half of the year, Monster says it expects its revenue will be lower this quarter than the year before. The outlook, says the company’s report, is for a 3 to 7 percent decline in revenue.
“First quarter earnings are expected to be in the range of break-even to $0.04 per share,” the company says.
However, from a purely employment view, posting and search revenue actually was up globally. While North American revenue (principally the U.S.) declined 2 percent in the last quarter, Monster’s international revenue grew by 8.3 percent. For the year, revenue from its international operations was up 23.3 percent, and is now approaching parity with North America.
The biggest revenue reduction came from Monster’s advertising income. Monster said earlier this year it would be getting out of the advertising business, so the decline here was to be expected. For the fourth quarter, Monster’s advertising revenue was $21.3 million, a 34 percent reduction from the year before.
The layoff of about 7 percent of its 5,700 employee workforce is expected to save about $100 million annually.
Said Sal Iannuzzi, chairman, president and CEO, “We are taking difficult but necessary steps to implement cost savings initiatives that will provide us the flexibility to enhance our marketing and sales efforts to continue to improve long-term growth prospects and profitability.”
Next week, CareerBuilder will release its North American revenue for the fourth quarter and full year. The privately held company voluntarily releases only select data. LinkedIn, now the leading recruitment competitor to both Monster and CareerBuilder, will report its financial results on Feb. 9. Dice Holdings, operator of Dice.com and other niche boards, will report its results Feb. 2.
Tech workers get an average of 23 recruiter inquiries a week — yes, a week, says a survey from TEKsystems, a global IT staffing and services firm.
That’s a remarkable number, which, even if is skewed by respondents with very in-demand skills, would still go a long way to explaining why you’re not getting calls back. In fact, the survey shows that IT professionals are picky about whose call they will return.
The best thing a recruiter can do when leaving a message or speaking with a potential candidate is to be as detailed about the job as possible. Hearing details about the specific job, the team, the nature of the work, and the company culture is the kind of information that would lead 88 percent of the survey respondents to return the call.
Less important, but still high on the list for the IT professionals surveyed, is the professionalism of the recruiter and the reputation of the company.
“The best recruiters take the time to get to know the client and the candidate in detail. He or she with the most intelligence wins the matchmaking process,” says TEKsystems Director, Rachel Russell.
The findings come from the company’s quarterly IT Professional Perspectives Survey, which surveyed 2,424 IT workers last quarter about how they look for jobs. First, when a tech worker begins to consider a new job, they take stock of their skills, goals, and interests. Then, 96 percent say they hit the job boards.
“Job boards are the quickest way for IT professionals to feel like they’re getting out there and searching for a job,” says Russell. “But given that so many people are on the job boards, it’s a hard place to stand out.”
Perhaps knowing that, once a tech job seeker finds interesting opportunities, the next step for 72 percent of them is to network with other professionals. At some point, many will work with a recruiter. According to the survey, 59 percent say a recruiter is the main resource; 54 percent say colleagues; 53 percent say friends; and, 46 percent rely on their networks.
Recruiters who help job seekers, even if they don’t end up placing them, may still reap rewards. With 45 percent of the survey respondents saying they have 10 or more top professionals in their network, recruiters who remain accessible, helpful, and professional may be able to get a referral. The survey found 65 percent of IT professionals willing to share names if they had a positive experience with the recruiter.
Like the Giants and the Patriots, CareerBuilder and its controversial band of chimpanzees will be making a return appearance at this year’s Super Bowl in Indianapolis.
In this year’s 30-second commercial airing during the fourth quarter on Feb 5, the chimps wreak havoc with their human co-worker during a business trip, ordering 46 banana daiquiris, while brainstorming a poison ivy shampoo.
The chimps have proven to be an audience pleaser since making their debut in CareerBuilder’s first Super Bowl ad in 2005. The company’s three ads all made it into the top 10 in most of the popularity polls. The company reprised the monkey concept the following year, then tried a variety of other concepts, including viewer-conceived ads.
Last year, the chimps returned in an ad called “Parking Lot.” It ranked sixth in the USA Today Super Bowl Ad Meter poll, but prompted a complaint from PETA, People for the Ethical Treatment of Animals, over the use of chimpanzees. The organization, once monitored by FBI counterterrorism investigators, released a letter from Angelica Huston calling on CareerBuilder not to air the commercial and to never again use chimps.
CareerBuilder explained that it’s again using chimps, despite the complaints of PETA and other animal-rights groups, for the simple reason people like them. “The chimpanzees were brought back by popular demand. It’s been a very successful campaign that job seekers identify with and act upon,” CareerBuilder VP of Communications Jennifer Grasz told Forbes.
Monster, whose 1999 “When I Grow Up” commercial is considered one of the best Super Bowl commercials of all time, has yet to appear on any list of this year’s advertisers. The company last ran a Super Bowl commercial in 2010.
At a per ad cost approaching $3.5 million, the Super Bowl is the most expensive TV buy in the world. CareerBuilder says it’s worth it and sent along these data points:
- Revenue – Over the last seven years, on average, CareerBuilder’s invoicing increased 36% year-over-year in the month following the Super Bowl. This consistently outpaced year-over-year growth in other months.
- Applications – Over the last seven years, on average, CareerBuilder saw a 24% year-over-year increase in applications to our employers’ jobs in the month of the Super Bowl.
- Traffic - CareerBuilder’s traffic grew 43% year-over-year during the month of the Super Bowl when we first debuted as a Super Bowl advertiser. CareerBuilder has seen continued gains and, in 2011, the company had an 18% year-over-year increase in traffic in the month of the Super Bowl.
- Brand Awareness – Per a Millward Brown awareness tracking study, from 2004 to 2011, CareerBuilder’s unaided awareness grew 29%. Total awareness of CareerBuilder’s TV ads doubled in the week following our first appearance at the Super Bowl.
“Unemployment is expected to remain above 8 percent for the next four years.” That gloomy assessment of the U.S. economy from FedEx Chief Economist Gene Huang is echoed in any number of reports and economic predictions.
“Most predictions,” says an economic analysis by the Society for Human Resource Management, “are less optimistic now than they were when 2011 began.”
What especially worries economists is whether the slow job growth is due to employer cautiousness — in which case growth will accelerate when economic confidence returns — or whether it is structural, meaning some jobs have been permanently eliminated, much the way automation obsoleted elevator operators.
“It is a fair bet that aggregate demand remains the main problem while pockets of skills mismatches persist, despite the high number of job seekers,” says the SHRM analysis.
The latest economist to weigh in is Gad Levanon, director of macroeconomic research for The Conference Board. Last week, he dissected recoveries of the past to examine the rate of job growth across multiple industries. What he found is that “the current employment recovery is the second slowest on record.”
His analysis led him to conclude that job growth this year is going to be a lot like last year.
Like Huang, the St. Louis Federal Reserve doesn’t see unemployment moving much below 7 percent before 2014 and even then, the Fed says it might even be up around 8 percent. That’s despite the Fed’s guess that real GDP is likely to be over 3 percent, possibly even up to around 4 percent.
Levanon’s analysis, though, offered some support for the SHRM view that it is weak demand that’s limiting job growth. One look at the chart and two things jump out. The first is how small the percentages are now compared to recoveries of the 60s, 70s, and 80s. The other is how robust the growth in temporary workers is.
The latter is a good sign. It suggests, at least, that the current pace of job growth is likely to continue. While a nearly 32 percent growth in temporary staffing since June 2009 would historically signal a spurt in full-time job growth, that may not be the case in this recovery. Instead, it may evidence that some structural changes are occurring in how employers manage their workforce.
This is not the same as automation eliminating jobs, but is a response to business cycles — as when retailers add staff in the fall for the holiday season — or project-based needs, or the natural ebb and flow. In other words, more employers may be including the use of temps as a strategic part of their workforce, and not merely as a precursor to fulltime hiring.
This so-called “secular growth” theory is certainly debatable. A Morgan Stanley research paper last spring challenged the notion that temporary and contract workers are becoming a strategic part of corporate employment in the U.S. and worldwide.
However, in a provocative and data-laden analysis of the staffing industry, BMO Capital Markets says “it may be different this time.” While the firm doubted the secular growth notion, now it’s not so sure. The research report issued earlier this month says:
However, by this point in the cycle, we should have seen a significant switch from “temp” to “perm,” but we have not; temp jobs represented nearly 15% of totals jobs added in the current recovery – by far the highest of the first 21 months in the past six post-recession periods – and given the current sluggish rebound, total employment may not return to its pre-recession peak for the first time ever.
There’s evidence now, says BMO, that the proponents of secular growth may be right “and the industry is seeing some secular growth as corporations use temporary staffing more strategically as part of their overall human resource policies.”
A quick look at some of the goings-on in recent days from the recruiting/human resources world:
- If you’re looking for a gift for the busy New York professional who has everything, you can now get them a “PA for a day.” The new temp firm, founded by a PR/events director for a New York ad agency, offers personal assistants for a day — actually for as little as two hours, at a rate of $20 an hour. The company says that “personal assistants cannot and will not assist with any tasks that are illegal, illicit, or questionable.” In addition, “PA For A Day currently does not offer babysitting/childcare services.” We’re not sure if they’re referring to the boss’s kids, or the boss himself.
- Hey LinkedIn, better sound general quarters. You’re under attack by a Norwegian startup. JobCruiter sent out an announcement about its launch with the in-your-face headline “JobCruiter.com Challenges LinkedIn.” The site, says the announcement, has “ambitions of being the best global career network.” Now, here’s the fightin’ words: “Many see today’s career networks just as boring overviews of their contacts where nothing is ‘happening.’“
- So many job boards launch in a week that we’re tempted to erect our own population clock. Atlanta, which has no shortage of job sites already, has one more as Twitter jobs broadcaster TweetMyJobs gets into the job board business. The city is partnered up with TMJ, which puts Mayor Kasim Reed right on the front page. The site itself does what all job boards do, provides a search box, a dashboard to manage searches and submit resumes, and a way for job seekers to see who of their Facebook friends works at a hiring company.
- Speaking of new sites, CareerBuilder took the occasion of a survey about relocation to announce its new CareerRelocate site. It’s a cool site with a graphical skills demand indicator, which told us that cowboy country is where there are jobs in the “other” industry category. But will the jobs move us? The survey says about a third of employers will. Forty-four percent of workers say they’re willing to go, but when they do 41 percent leave the family behind.
Bad news on those relocation prospects for recruiters, though. Wanted says job ads for recruiters increased only 4 percent between December 2010 and December 2011. That’s about 50 percent better than what it was back in 2008 and 2009. But that CareerBuilder jobs demand map says most of the country doesn’t have much need for recruiters.
- Jobvite says it’s making it easier for veterans to find jobs. Jobvite customers can flag job opportunities specifically for veterans. Among other features of the application, jobs specifically of interest to veterans can be tagged, after which they automatically get added to the Veterans Job Bank.
This year’s list of the Best Companies to Work For reads a lot like last year’s. The rankings have changed a bit; SAS, for instance, got unseated for the #1 spot by Google, but otherwise the list (click here for the list of all 100) shows that a great place to work tends to stay that way.
That’s because it’s no easy feat to win a spot in the top 100, which Fortune released today. Many companies compete — 1,000 typically start the process. They’re put through the wringer by The Great Place to Work Institute, which requires each to undertake employee and management surveys, examines employee engagement, and develops a Trust Index. The Index measures what the Institute believes are the cornerstones of a great place to work: Credibility, Respect, Fairness and Pride, and Camaraderie.
While economic and financial conditions influence the rankings, the Trust Index is the cornerstone of the ranking. Building a high Trust Index takes time and commitment from every part of the company, beginning with the CEO and C-suite. The culture that creates endures.
It doesn’t hurt, though, to offer great pay and great benefits. Fortune notes Google’s “free gourmet food, on-site laundry, dry-cleaning, and alterations, an outdoor sports complex, (and) the star-studded lineup of speakers.”
But even for perk-heavy Silicon Valley, three-time first-place winner Google offers an unrivaled assortment of benefits and perks, including custom workstations. Says Fortune, “One option that became increasingly popular last year was swapping out the standard sit-down desk for a standing desk. Googlers place an order with the company’s Ergolab, choose from a number of desk models, and have their desk measured to their height.”
Google isn’t alone in providing unusual perks. GoDaddy, #93 on the list, holds off-site activities that have included “whitewater rafting, gold panning, competitive cooking courses, and trapeze classes.” Zappos gives every employee $50 to award as a bonus to a co-worker. From those getting a bonus, the company picks a winner who gets a parade, special parking, a $150 gift card, and a cape.
For the complete list of this year’s best 100 companies and their 2011 rankings, click here.
Does the name Thom Beers ring any bells? Try Ice Road Truckers or Deadliest Catch or Storage Wars. Beers is the man behind these shows, two of them Emmy winners, and a slew of others that have redefined reality TV.
His list of credits is a veritable compendium of the shows that turned the Discovery Channel from a repository of old-school science and nature documentaries and recycled European programming to the most widely distributed cable network in the U.S.
By any definition of the word, Beers is a success.
But it’s because of the time he was out of work with a family to support, yet took the risk to start his own production company, that Thom Beers’ is one of the first stories American Dream told on Armed Forces Radio Network. When the show begins its second season later this month, eQuest will be the sponsor.
eQuest? Yes, the job-posting distribution service, is sponsoring the first 26 weekly installments of the show’s new season. Part inspirational and part motivational, the show is intended to help the men and women in uniform look ahead to their own success when their service to the country is done.
If eQuest seems like an odd match, you’re right, and you have company. Founder and CEO John Malone had about the same reaction when Fascination Entertainment first proposed the partnership. The production company, though, did its homework. Having produced videos for eQuest in the past, Fascination knew that veteran outreach was a requirement for any company doing business with the government.
“They put together this show to inspire these guys,” said Malone, using the gender-neutral meaning of guys. “It’s all about showing success is obtainable and it’s going out to something like 180 countries and millions of people are listening to the (Armed Forces Network).”
It didn’t take Malone long to sign-on as the show’s sponsor.
“I was really impressed, and we thought it would be a good way to reach military people and we said (internally) ‘Wouldn’t this also be fun to have as part of our package,’” says Malone, explaining that American Dream is “part of our OFCCP outreach.”
The Office of Contract Compliance Programs enforces federal contract requirements, specifically those parts relating to affirmative action and equal employment opportunity. On its website, the Department of Labor lists some ways federal contractors can meet the outreach requirements of the Jobs for Veterans Act. Sponsoring a program on military radio is above and beyond; obviously not something the government thought of.
“It’s kind of a different way of doing veteran outreach … not something I would have thought of,” Malone agrees. But when he met with the producers and listened to the first shows, “I walked out of there all pumped up.”
“Whether it translates into jobs or veterans getting hired, I don’t know. I hope so,” he says. “The main thing,” he adds, “is that it’s really about pumping them up; getting them excited about what they can do after the military.”
Four eQuest customers will get sponsorship mentions during the 25-minute broadcasts. The company is including their message without charge. But don’t get the idea these are commercials; they are much more like the sponsorship messages on NPR. It’s branding; not an invitation to apply, although there’s no reason a web address can’t be mentioned, as the Sutter Health message does. (The other three co-sponsors are American Airlines, American Water, and FINRA.)
Malone says since hearing about the program, other eQuest customers have said they want to participate. Interested employers can contact eQuest directly.
In the coming weeks American Dream will air interviews with John Tesh, David Oreck, and Mario Andretti among others who may not be as widely known, but whose stories are no less inspiring.
“It’s not about the money they made,” adds Malone. “It’s about following their dream. That’s the inspirational message.”
That’s precisely the message that Thom Beers delivers. “First and foremost,” he says in closing, “make sure it’s your dream … Then do everything possible to make it happen. Don’t give up… Don’t get discouraged, man. Just keep plugging away.”
A $5 million investment in a company that charges nothing for its product would seem to have the same shot as a straight bet in roulette. Yet the Mayfield Fund just gave SmartRecruiters a $5 million boost to fund new development in its SaaS-based free ATS.
It’s certainly a vote of confidence in the company and the business model launched by Jerome Ternynck. He introduced SmartRecruiters to the SMB market in 2009 when he still owned and ran MrTed, a European ATS company that was entirely SaaS.
MrTed was an enterprise system. SmartRecruiters was intended for smaller companies, many of whom had either no ATS or rudimentary products. Promoted as “Free and Easy” — which it was and is — so resonated with recruiters and hiring managers that Ternynck quickly had hundreds of customers paying nothing.
When he sold MrTed to StepStone (now Lumesse) in August 2010, Ternynck held on to SmartRecruiters.
Today he’s approaching 11,000 customers and, despite doubters who questioned the staying power of a free — not freemium, but really, truly free — business model, SmartRecruiters is still here and growing. The company makes money by taking a cut or commission from sales of third-party recruiting services such as placements to commercial job boards, assessments, and background checks. Buying those services is entirely optional.
Ternynck likens SmartRecruiters to iTunes. “The way we play it is almost a platform play,” Ternynck told blogger and HR marketer Maren Hogan. “Some clients have called us almost an iTunes for recruiting.”
Mayfield Fund partner Rajeev Batra suggested that it was the “free and frictionless business model for hiring” that caught the fund’s attention. “When you combine a serial entrepreneur with deep industry expertise like SmartRecruiters founder/CEO Jerome Ternynck, with a disruptive model, you can transform a market and build an impactful company.”
While the investment may accelerate the build-out of features, and increase the number of marketing partners, Ternynck and SmartRecruiters haven’t been sitting still. Just a few months ago the company introduced mobile career sites for its clients, launching 10,000 of them. For free. They supplement the WWW career sites that are part of the SmartRecruiters feature set.
On the horizon, Ternynck said, are enhanced candidate features and job seekers that, Aberdeen’s Madeline Laurano says, will “provide a more engaging experience between recruiter and job seeker through a social platform.”
Mayfield’s Series A investment follows a $1 million angel investment the company got in fall 2010. Mayfield, one of the oldest Silicon Valley venture capital firms, has a wide-range of investments and over the years has invested in such startups as Gigya, Snapfish, and Affinity Labs. The company was also a heavy investor in the ill-fated Jobster.
Financially troubled Arbita has closed its job posting service and transferred its remaining clients to Broadbean, one of the leading vendors in the field.
News first broke yesterday when Arbita’s CEO Don Ramer sent emails to customers notifying them of the decision to shut down the OnePost job distribution service. Broadbean, meanwhile, issued its own announcement saying it would take over the balance of uncompleted customer contracts.
“We are excited at the opportunity to work with Arbita’s client base and will, first and foremost, provide a high-quality, stable platform that meets their global posting needs,” Broadbean’s CEO and founder Kelly Robinson said in the company’s announcement.
John Sumser, who wrote about the situation on his HRexaminer site yesterday, quoted Ramer as telling customers that Arbita has been unable to solve the many technical problems with its job posting delivery system. “Accordingly,” Ramer says, “I have decided to close the Arbita posting platform and assist clients in migration to a more robust posting platform.”
Broadbean, a UK company with an office in Newport Beach, California, isn’t acquiring Arbita or any of its assets, according to the post. Robinson says, “The responsibility we take from Arbita is the tech and time they owe to their current clients.”
“Please know that while Arbita’s business has failed and their doors have closed, with their technical operations ceasing, Broadbean is here to assist clients by offering to fulfill the service obligation owed to OnePost clients.”
A company spokesperson said Broadbean did not pay Arbita for the right to service the customers. The number of customers was not disclosed.
In November, after a contentious parting with Shally Steckerl who was Arbita’s executive vice president and leader of its sourcing group, Ramer closed the unit and laid off three employees. At the time, Ramer said Arbita has been “financially stressed and challenged since Q1 2010.”
Steckerl — and other former Arbita employees — say the company delayed paychecks or, in some cases, failed to pay employees at all. Steckerl said he’s owed thousands in company expenses that were charged to his Arbita credit card, but for which he’s personally responsible.
With the closing of its job posting service and the layoff of the two employees who remained there, it’s not clear that anything remains of Arbita. However, in an email, Ramer said, “There has been no announcement of the company closing.”
Regarding the financial issues, Ramer said, “Measures have been taken and processes are in place to assure that all of Arbita’s obligations to employees are responsibly discharged.”




