2009 – What a Year for Recruitment Companies: The Global Recession & Social Recruiting

2009! Talk of a mid-year (or is it mid-life) crisis for Recruitment Companies. More and more in the UK (as across the world) are facing very difficult and challenging times with the current economic climate. The global recession having claimed lots of job with fewer corporate organizations recruiting this time, unlike last summer and the year before that.

Corporate Recruiters have had to cut costs massively and reduce traditional recruitment budgets and find better ways to attract staff.

Then along comes Social Media in Recruiting. Companies are now realizing that they can find skilled people themselves by taking advantage of Social Media tools and implementing a enterprise-wide strategy.

Statistics in the UK show that around 25% of companies are using LinkedIn, Facebook and Twitter to attract talent, and also resorting to employee referals within their organizations.

Take the example reported by Business Week, of the US Cellular Corporate Recruiter Elisa Bannon, who used to spend up to $4 million a year to post jobs and screen résumés through the three heavyweights of online job search—Monster, CareerBuilder, and Yahoo! HotJobs.

But with her 2009 budget slashed to $1 million and 2,500 openings to fill, the wireless carrier’s director of talent acquisition ditched the big job boards and instead inked a deal with social networking site LinkedIn.

For an annual fee of $60,000, Bannon’s team now has access to the network’s 42 million members, many of whom are employed—the so-called passive candidates that recruiters covet, since conventional wisdom is the best people already have jobs.

Using LinkedIn, Bannon made a hire in 30 days for a position that typically takes six months to fill. “It’s a great product at an attractive price,” she says.

Watch her interesting video below about the LinkedIn Recruiter service.

From the same article, twitter is also gaining traction in the realm of job search. Kara Nickels got an e-mail one morning from an insurance industry client that needed 40 lawyers immediately for a big document review.

The legal recruiter quickly sent a message—or “tweet”—to her 150 followers, which was re-twittered by legal blogs that follow her. By the time she arrived at her Chicago office, Nickels had 10 replies and filled every post by lunch. “With job boards it takes a couple days before people look,” she says. “But Twitter is immediate. I’ll still use the job boards, but if you don’t use social media now, you’re behind the curve.”

While the social media tools are yet to have the critical mass profiles, the current trends show a shift from one to many – a case where engagements and conversations between recruiters and online users can generate candidates at faster rates; at far lesser costs than traditional methods.

1 thought on “2009 – What a Year for Recruitment Companies: The Global Recession & Social Recruiting

  1. Pingback: When Will We See More Twitter Success Stories? « Social Recruiting, Social Media Recruiting, UK Social Recruiter - SocialRecruiter.co.uk

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