Creative Destruction: Newspapers

Wall Street Journal - Recruiters Use Search Engines to Lure Job Hunters - [Retrieved 3/10/2009]

Companies have long used search-engine marketing to lure online consumers. Now they're looking to draw job hunters the same way, while scaling back on competing media such as job boards and newspapers.

In search-engine marketing, employers bid to place ads next to search results for certain keywords, like "accountant," or "nurse." The ads can be limited to users in specific ZIP codes. Advertisers pay search engines when a user clicks on their ad.

Last March, Baylor Health Care System, a large Dallas-based nonprofit, began purchasing keywords on Google, Yahoo and employment-related search engines SimplyHired.com and Indeed.com. The search-engine ads generated more applicants, at less cost, than the other recruiting methods, says Eileen Bouthillet, director of human resources communications.

In the first six months of the program, Ms. Bouthillet says, the search-engine ads delivered 5,250 applicants, at an average cost of $4. By contrast, Baylor paid an average of $30 for each of the 3,125 applicants who came via job boards, and $750 each for the 215 applicants who replied to a newspaper or magazine ad.

This is how technology destroys old industries. 

Classified and job ads were cash cows for print. Why would anyone hiring use newspapers to get applicants? Look at the costs per applicant.  

Some sobering math  

5,250 applicants for $21,000 from search engine ads  

3,125 applicants for $93,650 from job boards  

215 applicants for $161,250 from newspapers or magazine ads  

Takeaway

Search engine ads are 86.98% less expensive than newspaper or magazine ads [In this example. We assume the search is filling one job]. At the same time search engine ads deliver 2342% more applicants to the pool that a candidate will be selected from [at a significantly reduced cost].  

Where do you think the most bang per buck comes from?

MICHIGAN IS HURTING

IDEA: Michigan Job Support and Training Group

"Teach, Train, Coach, Create Businesses..."

Post and IDEA created as a result of a New York Times article + a job group [Boston Salty Legs Career Club ] [Thanks Susan]

The people of Michigan are hurting. Rapidly increasing job loss is creating some very bad consequences. Michigan has relied on certain business sectors to heavily and [automotive, furniture, etc] for too long. It is time to diversify.

In doing so we need to create a skilled, talented and capable work force. Human Capital!

The goal is to create small teams of people all across the state that are connected and supporting one another. This is an idea in progress. It will be developed with the input from many different people [Google Docs]. No one person has the 'answer'.

As a small group and through team work we can create winning solutions that lead to talent creation. This talent can then be deployed in different industries and fields because it will be flexible. In being flexible it will have resources to further create value.

Are you interested in being an IDEA Solution Creator?

What say you?



#MakeItHappen

HEALTH CARE COSTS

Whirlpool Factory Suspends 39 Workers, Saying They Lied About Tobacco Use

When filling out documents you should always be truthful. Firms are trying to keep costs under control. Health care is an expense that is rapidly increasing ["Since 2000, employment-based health insurance premiums have increased 100 percent"]. Firms are assigning costs to people who are more expensive to insure. Apparently some people may have lied in paperwork they filled out stating they were not tobacco users. This may have been done to save the $500 extra the firm charges tobacco users for insurance [< $10 a week]. A small excerpt is below. Full story can be found here.

"A 2007 national survey showed that 16 percent of all large employers -- those with 20,000 or more employees -- adjust health care premium contributions according to the worker's smoking status, according to the human resources consulting firm Mercer."

Thoughts & Analysis

This is surely going to increase [above 16%] across employers of all sizes in the coming years. Especially if health care expenses are significant for the firm. Some firms have such high turnover that employees are not employed long enough to gain coverage. This is most certainly the exception to the general trend.

If it turns out the employees committed fraud in their paperwork they will be terminated. Now is bad time to be losing a job [not that there is ever a good time to lose a job]. Hopefully there are some lessons learned from this situation.

Always be honest. Even if it is going to cost you.

Start thinking about your health and fitness level. You should take good care of your body; it's the only place you have to live.

The choice is yours. What are you going to choose?

Freakonomics: Who Hires During a Recession?

Interesting question. The original post can be found here [see #12] or read my comments below.


Almost all firms & industries hire and replace employees all the time [recession or not].

People are fired [need to be replaced], people quit [need to be replaced], business is growing [more people need to be recruited and hired].

In the instance of a business liquidating, everybody loses their jobs and no one is hired.

Every few months I get calls/emails from mortgage firms looking to hire me [it is not my industry and I see it as an unappealing option].

Almost every firm and industry is hiring all the time.

Airlines might be an exception to the rule.

If there is an HR person in the airline industry reading this post… How do you see it?