Glassdoor? Google? LinkedIn? Any Which Way, the Future of Recruiting Is Transparency

Glassdoor? Google? LinkedIn? Any Which Way, the Future of Recruiting Is Transparency

Ever since Recruit Holdings, the Japanese HR conglomerate that owns Indeed, announced last month that it was acquiring Glassdoor, speculation has run rampant that the parent company would inevitably combine the two properties into an even larger online recruiting behemoth, perhaps as a defensive move against Google’s new job search feature. Matt Charney at Recruiting Daily, in his massive, four part “Requiem for Glassdoor,” concludes that even with their powers combined, Indeed and Glassdoor have no hope of competing with the search engine where 80 percent of job searches begin. With so much control over the front end of the funnel, Google has the power to render its competitors in the job search aggregation market virtually invisible to most users. No matter how much traffic Indeed buys, Charney reasons, “that traffic will ultimately be controlled (and priced) by … Google.”

Still, other observers see the Glassdoor acquisition through a different lens, viewing the site’s impact not so much in terms of volume but rather in how it has mainstreamed transparency and accountability on the part of employers in their interactions with candidates. That’s how the Washington Post’s Jena McGregor described it in her column after the news of the acquisition broke:

Analysts say the $1.2 billion pricetag for Glassdoor reflects a company that sits at the nexus of a number of trends: A tight labor market where many workers have their pick of jobs and employers have to work harder to attract them. A growing demand by recruiters and H.R. departments in an era of big data to back up their decisions with metrics. And a technological and cultural zeitgeist where an appetite for transparency and accountability have only grown

These trends were illustrated in a report Indeed issued just a week after the announcement: How Radical Transparency Is Transforming Job Search and Talent Attraction, based on a survey of 500 US jobseekers, highlighted findings like these: 95 percent of candidates said insight into a prospective employer’s reputation would be somewhat or extremely important in their decision making. Among Millennials, 71 percent said transparency was extremely important, while 84 percent of Millennials aged 25 to 34 said they would automatically distrust a company on which they could find no information (even among Baby Boomers, 55 percent agreed that transparency was crucial). No reviews, Indeed found, are even more harmful to an employer’s reputation than bad reviews, since candidates are at least willing to consider an employer’s response to a bad review.

The growth of online pay information sources like Glassdoor is also a central theme in our upcoming work on pay transparency at CEB, now Gartner.

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Can a Crowdsourced Approach to Executive Recruiting Beat the Experts?

Can a Crowdsourced Approach to Executive Recruiting Beat the Experts?

Erin Griffith at Wired profiles ExecThread, a site where executives can share and find job opportunities within an exclusive network of their peers. The site is the brainchild of entrepreneur Joe Meyer, who realized the potential for disruption in executive recruiting when he sold his startup HopStop to Apple in 2013 and was approached by dozens of recruiters bearing job offers he didn’t want:

He quickly realized that C-level job opportunities weren’t listed on job boards—they came through friends or colleagues. So he decided to share the 99 job opportunities he didn’t take with his network, building an informal online community of high-level professionals. The hope was that his professional contacts would share their unwanted “hidden” job opportunities, too. …

Over the past two years, the site has grown by word-of-mouth to 15,000 self-described “high-caliber” members. Of those members, 80 percent are vice president-level or higher. Cumulatively, they’ve discussed more than 7,000 jobs. Beginning Thursday, anyone can apply—but you may not get in. ExecThread vets applicants based on recommendations from existing members, how networked applicants are, how willing they are to share job postings, where they’ve worked, and what titles they’ve held. Existing members vote on incoming applicants.

Meyer tells Griffith that he hopes for ExecThread to “democratize” high-level job searches by allowing executive candidates to compete for opportunities that are not pitched directly to them by recruiters. He believes the site can do a better job of sourcing talent than executive recruiting firms, but also envisions eventually monetizing ExecThread by selling users’ data profiles to those firms.

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