I began my journey as a manager in the pharmaceutical industry during the late 90s and ventured into entrepreneurship in 2001, launching my own recruitment business. The technological advancements since then have been beyond anything I could have imagined. I recently checked, and Google tells me the first smartphones appeared in 2000. However, the real smartphone revolution began with the launch of the iPhone by Steve Jobs in 2007.
In the early stages, the impact of technological developments was limited by the relatively poor quality and availability of mobile internet. The idea that almost everyone would be perpetually connected to the internet through a small device in their pocket was unthinkable in 2001. Today, it’s a reality that many of us are connected 24/7, with our smartphones by our side, even as we sleep.
Recruitment in 2001: A Different Landscape
Back in 2001, candidate sourcing was primarily achieved through expensive advertising. For us, this meant placing lineage adverts in the back of the Telegraph every Thursday at around £100 per centimetre, routinely using about 10 centimetres per week. Additionally, we advertised in industry-specific magazines, where a one-page colour advert could cost up to £8K per month. As a smaller recruiter, we often opted for quarter-page or even eighth-page ads.
This led to a catch-22 scenario for newer agencies. Markets were dominated by agencies with the biggest advertising budgets, yet you needed significant revenue to allocate a large marketing budget. An agency's value was largely in its in-house database, built via advertising. Agencies had to decide on job areas and geographical targets, create specific advertising campaigns, and build their database accordingly. The smaller the agency, the more specialised their target market had to be.
The database was the core of an agency's value. Agencies used CRM (customer relationship management) software to build and store candidate data, usually offline. When vacancies arose, the strategy was to mine the database immediately while waiting for responses to new advertisements. The larger the database, the greater the chances of quick placements.
The Rise of the Internet
The 90s saw the rise of the internet. The first generalist job boards appeared in 1994 with Monster, followed by others like Totaljobs and Jobsonline. In the early 2000s, industry-specific niche job boards emerged, targeting every conceivable market. This shift brought about significant changes. Monthly packages on job boards were much cheaper than traditional paper advertising and far more effective at reaching candidates.
For smaller recruiters, this was a game-changer. The advantage held by larger recruiters due to their big advertising budgets was eroded, levelling the playing field. This was also beneficial for client companies, as they could choose agencies based on the quality of their process rather than just their reach. The rise of job boards allowed smaller agencies to compete for candidates, making the quality of the recruitment process a crucial differentiator.
Recruitment Today: A Transformed Landscape
Fast forward to today, and almost everyone in the professional world is constantly connected to the internet. Smartphones have become powerful tools, and mobile internet quality ensures we can be online anywhere. For many, their phone is the last thing they see at night and the first thing they see in the morning—an unimaginable scenario 15 years ago.
Almost everyone has an digital footprint, often including a professional profile. Whether it’s a painter and decorator on Facebook or a management consultant on LinkedIn, online presence is ubiquitous. This has significant implications for recruitment. 'Reputation capital' is a fascinating topic; we develop an online reputation through various platforms, and this information can be revealing about our experience and character. Imagine a platform that compiles all your online reputations and publishes it for all to see. This could potentially replace traditional references and CVs, providing a comprehensive view of one's history, integrity, and character.
Has Recruitment Advertising Lost Its Value?
One might argue that recruitment advertising has lost much of its value. Online advertising, even when inexpensive, carries a hidden cost. It can generate a huge, often inappropriate response, which must be managed. Ignoring applicants isn’t an option, as market reputation demands integrity, including responding to all who apply.
Our strategy now focuses on advertising fewer roles and using proactive techniques to approach a highly targeted audience. This ensures we contact only relevant candidates, leading to high-value conversations. We are not restricted to active candidates; we also target passive candidates who might not be actively seeking new roles.
The Future of Recruitment
Today, agencies are no longer defined by their size and advertising budgets. That playing field is now levelled; anyone can reach anyone if they use the right techniques. If anything now, the greater issue is it’s too easy to reach people, resulting in message overload. With this it becomes harder than ever to attract people’s attention.
The emphasis is now on the quality of the recruitment process to attract and filter the best candidates for clients. As technology continues to evolve, it presents both opportunities and threats. Businesses that adapt early to these changes will stay ahead of the competition.
In conclusion, the recruitment industry has undergone a dramatic transformation since the early 2000s. The rise of the internet and advancements in technology have levelled the playing field, allowing smaller agencies to compete with larger ones. The focus has shifted from expensive advertising to quality processes and targeted approaches. The future will likely see even more changes, and staying ahead of the curve will be crucial for success in this dynamic industry.