Aim Of Indeed.Com Owner Is To Prevail Over Its Competitors.

Aim Of Indeed.Com Owner Is To Prevail Over Its Competitors.

For the 12 months ending March 31 2015, global jobs aggregator, Indeed, nearly doubled its net sales revenue, increasing from $201.3 million U.S. to $386.8 million. As far as revenue is concerned, the company is on a par with Monster, CareerBuilder, LinkedIn and Dice. All recorded considerably larger revenue streams, but much lower rates of growth. Amongst the top job sites, LinkedIn registered the biggest increase from 2013 to 2014, with their recruitment revenue growing by 47.5 percent. Japanese conglomerate Recruit Holdings Co., the owner of Indeed, revealed in its annual financial report that growth at Indeed was 92.2 percent.  According to Recruit, this was due to the SMB market, noting that, “Net sales trended favorably, reflecting smooth growth in service use by small and medium-sized clients”.

The 2014 fiscal year at Recruit ended on $5.66 billion, with growth in sales of its staffing business up by 10.3 percent. Internationally, staffing sales reached $2.4 billion, with its operations in Japan making up the balance. Management at Recruit also announced in the financial report that their aim in the long term is to become the leading provider in the HR media and staffing operations across the globe by the year 2020, with expansion being achieved mainly via acquisitions and mergers. Subsequent to its successful IPO in October on the Tokyo Stock Exchange, Recruit Holdings and its CEO, Masumi Minegishi, put forward a detailed company strategy that will concentrate on the overseas HR services market and connect it with its “Lifestyle” and “Life Events” operations.

The Nikkei Asian Review referred to Minegishi when it mentioned that the strategy of the company was to expand abroad. By dipping into funds raised when it went public, it has as much as $850 million available to use, with even more borrowing on the cards to acquire companies. It was in this way that Recruit first entered the U.S. market. Its list of purchases included the CSI Companies, an employment and staffing services business based in Jacksonville, Florida, which was bought in 2010, followed a year later by the acquisition of Staffmark and Advantage Resourcing International. More recently, U.S. speciality staffing firm Attero was bought by Recruit for $37.8 million, as well as Peoplebank and Chandler MacLeod, two Australian staffing firms for which they coughed up a combined $290 million.

In its position as the fifth-largest staffing company in the world, Recruit is making rapid progress towards its goal and realization of its long-term vision of becoming the top provider and achieving domination in the HR media, although challenges exist in the job board arena. According to Jeff Dickey-Chasins, a job board consultant, the industry is undergoing changes, with large job boards such as Monster and CareerBuilder doing more than just job posting and resume searches. He noted that CareerBuilder specifically is “making a pretty big shift in becoming a cradle-to-grave HR supplier”. Chasins added that Indeed has not really developed much beyond its original business model as a jobs aggregator, generating most of its sales from pay-per-click advertising. Also, it faces a lot of competition from more than twenty other job aggregators, which includes its main competitor, SimplyHired. The competition has become even more intense, as within the last two years, Monster and LinkedIn have also started to aggregate jobs.