Recruiting and the Internet: Risk and Opportunity, 1999, p. 1 - ©1999 by Kennedy Information LLC - The predominant response from executive recruiters to the earliest phases of Internet development was essentially a non-response. In the mid-1990s, executive recruiters clearly demonstrated their sphere of influence and market share from that of Internet-based recruiting services. Executive search was on a roll with ever-increasing demand and rising revenue. Relegated to staffing and technical-level positions, Internet recruiting did not then appear to impact traditional executive search in significant ways.
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But the Internet has mushroomed beyond most expectations. As personal computer usage sweeps the United States and expands worldwide, the already impressive number of Internet users is growing rapidly as more log on each day. The demographics of Internet users are extremely attractive and consistent with executive recruiters' high standards. As a group, Internet users are highly educated, highly compensated and at least moderately technology literate.
Internet applications and business models have also evolved at breakneck speed. The Internet's relatively low cost and highly effective database applications, global geographic reach and nearly instant response times have created new ways of identifying candidates and matching them to positions at all organizational levels. Middle management recruiting, $75K-200K annual compensation range, has drawn new Internet-based recruiting entrants. Armed with the technology's favorable economic, large search firms and bold outside players are aggressively vying for position in this lucrative segment.
Industry-specific recruiting specialties are also under considerable pressure. The intensified recruiting demands of high tech, software, new media, telecommunications and finance have bred numerous electronic recruiting services designed to compete with - or replace - traditional search methodology. Healthcare, manufacturing and communications recruiting are under scrutiny as well. Recruiters for industries with the least overt technology penetration (e.g. hospitality, recreation and retail trade) will be the last to feel the squeeze from Internet recruiting developments.
As they scramble for alliances, branding and market share, niche and boutique search firms will feel intensifying pressure to differentiate their services. To protect their besieged position, marketing and networking will have to be vamped up.
Clients are under considerable pressure to deliver talent into their companies. They will entertain the variety of recruiting solutions presented to them. Clients' use of Internet recruiting techniques and services may even allow for dis-intermediation of the process. Executive recruiters will need to remain competitive through superior assessment skills and valuable consultative services. And more importantly, all executive recruiters need to embrace the technology. Clients and candidates increasingly expect communication via e-mail, interactive web sites and utilization of electronic methods of candidate sourcing. With the specter of Internet-based recruiting initiatives looming, executive search fees and cycle times must be justified - or adjusted.
The development of Internet recruiting has created both challenges and opportunities for executive recruiters. Competition has increased; the components of the search process may become commodities. By streamlining the client identification and initial candidate screening functions, these elements of the recruiting process will be under increasing pricing and timing pressures. Clients are increasingly demanding more value and recruiters will need to make sure they are adding value in the most leveraged areas and using the most efficient tools and techniques where appropriate. Whether the choice is to synthesize an Internet-based recruiting solution directly into their service offerings or to integrate Internet technologies as strategic tools, all executive recruiters need to formulate their response. Measuring the vulnerability of current business models to Internet recruiting, and evaluating technological preparedness are important benchmarks for executive recruiters to base their actions on.
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