The modern day recruitment industry was born as a result of World War II. This is because after the war had ended, many of the returning soldiers were in need of jobs and had to rely on middlemen to secure jobs. This is where the employment agency came in and the industry took off to what it is today, offering online jobs to millions of people annually. However, fears of financial crises, the Euro zone turmoil as well as the constant cuts being introduced by governments have all thrown cold water on the future of online employment agency. So, what does the future hold for online recruitment agencies?
According to statistical data, unemployment rates in major world economies are at its all time low since 1996. In this respect, many online recruiting agencies are not able to keep the cost of running their businesses, while some can’t afford to hire new staff at all. If there is a vacant position, many companies choose to use their own in-house recruitment processes rather than online employment agencies. Also, the coming of websites such as LinkedIn and Monster also pose a major threat to online employment agencies.
Sites like the two named above boast of hundreds of millions of professionals from all corners of the world and pose a clear threat to online recruiting agencies. This is because such networks allow professionals and employers alike to have access to a rapidly increasing database free of charge. In addition to reaching millions of people, the cost of posting jobs in these sites is comparatively low. With the ever increasing pressure to bring down the cost of operation, many companies prefer recruiting themselves as opposed to handing out large fees to online employment agencies.
Despite what it may seem, both employers and candidates stand a great chance of benefiting by using online employment agencies. This is because the time spent on profiling an employee is, in essence, an extra cost to the hiring company. Shifting through CVs, and arranging and organizing interviews is a time consuming process. Online recruitment agencies however, have databases of hundreds of potential employees who have been carefully selected, assessed and interviewed. In this respect, a vacancy could be filled within a few days with the help of an agent. As for candidates looking for job openings, there is nothing wrong in signing up for an online job recruitment agency. In most cases, registration is free of charge.
Even though online recruitment agencies face a challenging future, they have survived so far and there are hundreds of thousands of them operating from different parts of the world. Obviously, the industry took a downturn during the recent economic crunch and is still reeling from the effects. However, many online employment agencies are making a steady comeback and are now using sites such as LinkedIn and Monster to improve the quality of their services. So, it is not just that people have changed the way they search for jobs, online recruitment agencies have also changed their approach with respect to how they work. Having survived numerous casualties in the recent past, the industry is not only continuing to survive, but is growing as well.