This is from Wikipedia:
In economics, disintermediation is the removal of intermediaries in a supply chain: "cutting out the middleman". Instead of going through traditional distribution channels, which had some type of intermediate (such as a distributor, wholesaler, broker, or agent), companies may now deal with every customer directly, for example via the Internet. One important factor is a drop in the cost of servicing customers directly.
Disintermediation initiated by consumers is often the result of high market transparency, in that buyers are aware of supply prices direct from the manufacturer. Buyers bypass the middlemen (wholesalers and retailers) in order to buy directly from the manufacturer and thereby pay less. Buyers can alternatively elect to purchase from wholesalers. Often, a B2C intermediary functions as the bridge between buyer and manufacturer.
Now, lets consider the online recruiting marketplace. I believe the future of "Jobs on the Internet" is via the "Employment Search Engine / Job Aggregator model" which connects jobseekers directly with opportunities at companies - no middlemen.. In fact, 2 years ago I was sitting with Dan Finnegan - President of Yahoo Hot Jobs, at the SHRM convention and he agreed! (maybe explains why he is no longer there - but that is another story). The need for mega jobboards was once necessary and vital, but today - with thousands of corporate websites containing jobs - the new "employment search engine model" is far superior.
So, why has the disintermediation of job boards been so slow???? One big reason is a lack of market transparency to the online recruiting marketplace. A mythology exists in the marketplace that the "Big 3" represent 90%+ of employment traffic. This is supported by an uninformed media, multi-million dollar ad campaigns on the part of job board advertisers, and a lack of tracking of candidate sourcing metrics and understanding of Internet traffic metrics on the part of corporate HR / Recruiting.
So why is this such a problem??? Mainly because the strategy of the big board players is to suck your recruiting budget out of your pocket before you can begin to get started with any type of competing strategy. Sadly, I know many of my friends who have to pay hugh fees to the big board gods for "vapor advertising".
The job that we as leaders in the industry have to do is force more transparency and provide more education so the facts can come out.
This is going to be a fun year!
|Goldman Sachs Predicts Grim Year For Newspapers|
|by Erik Sass, Thursday, Jan 10, 2008 7:45 AM ET|
|NEWSPAPERS WILL TAKE IT ON the chin in 2008, according to analysts with Goldman Sachs, who warned Wednesday of a potential double-whammy, as the industry's secular downturn converges with a broader economic slowdown. Overall, they forecast a 7.9% decline in revenue, a much more substantial drop than their earlier prediction of just 2.6%.
The predicted 7.9% drop is especially gloomy as it comes after several years of losses, compounding a 1.8% decline in 2006 and a roughly 8% drop in the first three quarters of 2007 compared to the same period in 2006 (fourth-quarter figures aren't yet available).
As always, the collapse in classifieds leads the way. In a note to clients, GS said: "We expect the classified categories to be very weak with the real estate, help wanted and auto categories particularly sensitive to broader economic activity." All three categories are also suffering from intense competition from the Internet.
The downturn in the housing market has led to a meltdown in real-estate classifieds in particular, with overall real-estate classifieds falling 24.4% in the third quarter of 2007, compared to 2006. Recruitment is down 19.7%, and automobiles 17.7% in the same period.
As a result, GS cut earnings forecasts for the New York Times Company, McClatchy, Gannett, Belo, Journal Communications, and E.W. Scripps.
We would like to announce an exciting new distribution mechanism that we can add to your existing cross-post product for no additional cost. Now, through our partnership with America's Job Exchange we can distribute your company's jobs to relevant state workforce portals or One Stop centers, giving your job postings more exposure!
As of August 2007, OFCCP requirements to comply with the Jobs for Veterans Act and VEVRAA were updated requiring America's Job Exchange to offer a service that accepts a feed of jobs from CareerBuilder.com. Those jobs are then redistributed to the relevant job bank or local employment office based on the state in which the job is located.
If you would like to add this feature to your existing account, at no additional charge, please answer the following questions and reply to this email:
1) Do you wish to have your jobs distributed out to the states via AJE? Yes or No
2) If yes, are you a Federal Contractor? Yes or No
Please note that only jobs for Federal Contractors will be distributed to the local employment delivery systems (e.g. One Stop centers). For employers who are not Federal Contractors, your jobs will be distributed to the following states' job banks: NY, NJ, RI, KY, and NV.