Professional organizations and double dipping
Part of my job is advising recruiters on candidate generation strategy. Every so often, I'll grab some current job descriptions and head out onto the Internet to see what's doing. It's hard to advise on the most effective places to post jobs if I don't at least do it every so often. Plus it reminds me of the old days.
Another part of my job is working directly with professional organizations. So when I go out to evaluate job posting resources, I definitely think of the professional organization sites first.One change I have noticed, that is really ticking me off, with most of the professional organizations that I have been working with: they are starting to charge for job postings. These are marketing organizations and I get that they are trying to monetize their offering but it's another situation where I think they have overlooked the value prop and gone straight to the money. It doesn't work that way. They are acting like a big job board but not providing the volume of quality candidates that can be found through other means.
Most of us staffing folks have a set budget for posting jobs. So, we have to make choices. Do I buy a chapter level job posting or a posting on one of the big boards or use a networking tool? What is the reach of these different options? Where has the quality already been proven? Unfortunately, you kind of have to prove it to me before I pay (and since I've already paid for membership, good luck).
I hate to keep harping on the same things over and over again, but for a professional org chapter, you have to think about who the customer is and what they want. If the ultimate customer is the member, they may want access to open job listings (hello...networking is a major reason people join these groups). If you don't charge the company for the job postings, you will get many of them. This will make your members happy and you'll have lovely stories about job seekers who have found their next role via the organization (hello....that you can use as marketing tools to get more members). All this from me and I have no formal training in marketing (other than one undergrad class which I hardly remember at all). If you charge the companies for the job postings, you are competing for dollars with other chapter level organizations so you aren't going to get as many listings and your membership will go elsewhere to seek out listings. Seems pretty simple to me. What am I missing? I think that these groups will end up making more money in the long run if they decide to charge EITHER the employer or the seeker, but you can't have it both ways. You have to pick....what is your business, who is your supplier and who is your customer. Could it be any simpler?
(Sorry, I am getting fired up again...it comes on suddenly)
Anyway, I've got a blog so I am going to do a hot jobs posting this week because I insist on working around those that want me to pay for something that I'm pretty sure I can do for free. So let's see!
PS: and those groups that aren't charging me...thanks! I'll be back!
Comments
- Anonymous
August 24, 2005
The comment has been removed - Anonymous
August 24, 2005
Hi Heather, for a few years back now accounting and IT professional associations in Australia have cut a deal with the top job boards by which the board creates a private label for the association(hope that's what you call it over there), lists the jobs that pertain to the relevant profession through this private label, gets the traffic, registrations, cv's etc. and pays them (the association) a sum. The association gets board technology, some revenue, and the members get more or less appropriate roles (at least you'll be looking at the same profession vertical) from the board's customers
The catch is obviously that you have to post with the board first, but then again, as an advertiser, you are getting ur budget to buy a bit more, right?
Maybe the time to buy eyeballs is over, or maybe the boards in the US were never that keen to deal with the prof. bodies. It all just went to the point that maybe you can stay loyal to your members charter and get a bit commercial on the side.
cheers j. - Anonymous
August 25, 2005
Would members of the professional organizations and associations be willing to pay higher membership fees to the professional organization?
Modern organizations generally do not cover their costs with membership fees alone, and find it necessary to diversify their revenue into areas like classified listings, events, magazine advertising and others.
I'm sure that their members would like all of these services for free, but it could be argued that by finding sources of revenue other than membership fees, they are actually keeping those fees low for their members - something that I am sure that the members appreciate. - Anonymous
August 25, 2005
Andrew, we do those things. I just don't have the resources to do that with all of them. That doesn't solve the problem that by asking companies to pay for postings, they are getting less postings up in the first place. So they still aren't making the money. They have priced themselves out of the job postng market.
Jorge-I like that approach. I would be more apt to pay if their was potentially broader reach and the bigger boards do that. Love that idea.
David-what about advertising revenue in the site? Webcasts? I just don't see the volume of job postings on these sites that makes me think this makes sense. - Anonymous
August 25, 2005
Right on Heather! We hear you loud and clear at TheLadders.com home office. We'll see you (and the rest of your team) in our listings soon. - Anonymous
August 25, 2005
The comment has been removed - Anonymous
August 25, 2005
Paul-send me your snail-mail address and I'll send you a card for a free tech support call.
You are right-on about how I am thinking about this whole thing, by the way.
Michael-thanks for reminding me. I need to integrate your info into some job posting guides I'm putting together for our marketing and finance recruiters.
Guys-ask Michael about whether their members pay for value and how they think about their business model.
I think you have 2 choices: charge the seeker/member and the companies will provide loads of job descriptions for free (like theLadders)(customer = seeker, supplier = company). Charge the companies and the job seekers will flock there (like Monster.com) (customer = companies, supplier = seeker) or charge both and you'll get less postings (because you are charging) and you will get less members because you are providing less value. You can try both but I have yet to see it work. - Anonymous
August 25, 2005
Heather I wish all people that work in HR, are as dedicated and committed as you. Also who take their work seriously?
Keep up the good work. - Anonymous
August 25, 2005
The comment has been removed - Anonymous
August 28, 2005
Heather over at Microsoft has a great post on professional organizations and double dipping. Money quote: I hate to keep... - Anonymous
August 28, 2005
David-it's not about fault (you aren't taking this personally, are you?), it's about what is most effective and, like I said, who the customer is and whether they are getting what they want. What I do have issue with is poorly thought through value prop which results in the organizations getting less money period. Best way to make money (profit or non) is to give your customers what they want, not to confuse suppliers with customers and charge anyone you can. My point is that the job posters (companies) deliver the value that members want so why would they be charged. Again, you could flip it around but that's really more of a job posting board scenario. This is about wise business decisions, not chatising someone for being naughty.
If you give the customers more of what they want, more will come and you'll make more money. I'm not saying that you should charge more for it (though someone could if the value was there), but it makes the organziation more competitive and I honestly believe would drive membership up. I don't see the correlation with GE/MS/P&G. - Anonymous
August 29, 2005
Personal - never.
First, I love constructive feedback. Good advice is always welcome - especially when its from somebody who's opinion I value.
Second, ERE is not a professional association and don't charge membership fees! - Anonymous
September 02, 2005
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