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  • Greg Collier 5:38 pm on April 10, 2012 Permalink | Reply
    Tags: ERE Expo, Facebook, , , , KODA, , Recruiting, , SilkRoad, ,   

    Social Networks May Provide Connections But Job Boards Showcase Opportunities 

    It’s no secret that social media sites like Facebook and Twitter have become the Internet’s go-to places for sharing news, milestones and – in this economy – leads on job openings. And certainly any professional who’s been searching for employment in recent years has put together a LinkedIn profile to showcase his or her skills.

    So where does that leave job boards, such as the one I host on Geebo? Are they destined to fall by the wayside as social networks become the new home for job listings?

    The short answer to that question is, quite simply, no.

    In fact, at the recent ERE Expo in San Diego – considered to be the premier conference for recruiting professionals – I noticed that the social networks were nowhere to be found. I saw no signs of Facebook or Twitter or even LinkedIn.

    It turns out that, when it comes to linking employers with prospective employees, social really isn’t the most effective route. Consider the points that a couple of recruiting and job board experts made during a recent Q&A in Forbes. Job boards, they said, offer faster signals to the market. They are good for driving lots of eyeballs to a single job listing that’s tied to a certain industry or location, which is especially good for reactive small businesses who tend to post a job as the need for help arrives.

    But recruiting over social networks has two primary problems associated with it (among others):

    1) The ability to apply online for something that a jobseeker may or may not be qualified for leads to what’s called “Resume Spam” by job seekers who cast the widest net possible by applying for everything – even if they’re not qualified or clearly didn’t read the job description.

    2) Friends tend to overvalue their ability to judge their friends abilities. Consider your out-of-work accountant neighbor. You know he’s out of work and you think of him when you hear about an opening out there – but what do you really know about his job skills, work ethic or professional background? He may be a nice guy and quick to lend a neighborly hand from time to time – but does that make him qualified for a particular job?

    When a job seeker comes to a site like Geebo to scan active listings, they can immediately filter down the choices by industry and location. Because these listings tend to be fresh, job seekers understand that there are opportunities out there.

    Sure, social is a great way for recruiters to identify people who might be good matches for their open positions. And as a means of learning more about potential candidates, social networks offer a greater insight that goes beyond the resume. But as a place to solicit and find the right matches, social is almost too big to be effective.

    Consider what happened to KODA a few years ago. The startup company rounded up millions in venture capital money to deliver a site that brought together the elements of social networks and job boards – a idea filled with challenges that eventually proved to be too much for the company, which has since headed into the sunset.

    Social has a role here but, by no means, should anyone start writing the job board’s obituary. In a recent blog post, SilkRoad, a company that focuses on “social talent management,” chimed in about the importance of job boards in finding talent and ranked sites that were the leading external sources for hiring.

    Not surprisingly, Facebook, Twitter and other social sites were nowhere on that list.

     
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  • Greg Collier 1:55 pm on February 19, 2012 Permalink | Reply
    Tags: Active Users, Facebook, Groupon, , IPO, Valuation   

    Facebook’s “fuzzy” math: There’s just no need 

    Did we learn nothing from the dot-com bust just a decade or so ago? Have we not learned lessons from the financial meltdown of the past few years? Or is that push for “Mo’ Money, Mo’ Money” really so strong, that we’re willing to let financial fairy tales distort our perception of what’s really in front of us. 

    I’m talking about bringing back some honesty to the world of business, some transparency that keeps companies from exaggerating their financial health and exposing the markets to unnecessary risk. Case in point: Facebook and its upcoming Initial Public Offering. 

    Washington Post columnist Barry Ritholtz had a great piece last week about Facebook and a set of non-financial numbers might raise an eyebrow of the real growth potential of the social networking giant. He looked at the way Facebook counts active users and, more importantly, how they define those users. 

    Facebook has become just as much a “platform” as it has a destination site, allowing people to interact with Facebook without actually visiting Facebook. Have you ever clicked the “Like” button at the bottom of an blog post and had it show up on Facebook? Sure, you have. But you didn’t go to Facebook.com – the actual site – to do that, did you? Consider this excerpt from the Post column: 

    Why does this user-behavior metric matter? Consider what it means in terms of how “daily users” will generate revenue and profits. If all users do is click a “Like” button, but never make it to Facebook.com, they cannot be “monetized.” They cannot be marketed to. They do not see any advertising. They cannot be sold any goods or services. They take advantage of FB’s extensive infrastructure to tell their FB friends (who may or may not see what they did) that they liked something online. That’s all that happens. So they not only fail to generate revenue for Facebook that day, but they are actually a cost. It’s not cheap to maintain that massive infrastructure of Like buttons everywhere.  

    Now, if I’m an investor, this is important to know. Once investors start breaking down this information on a quarterly basis, via public filings, these are the sorts of questions that Facebook will have to address, especially if the financials don’t meet the expectation of the hype. Companies learn those lessons everyday on Wall Street. Just ask Groupon investors. 

    Don’t get me wrong. I made a conscious decision a long time ago to run my business in a manner that doesn’t have me answering to investors. And I’m happy with the way my company has grown over the last decade, in part because of that decision. But that what was best for me and my business. I’m not here to question Facebook’s decision to go public.

    What I am saying, though, is that businesses today need to be more responsible and transparent. We’ve seen what happens to businesses when they’re less than fully honest about the bottom line, the number of users, the growth forecasts and more. Some companies only talk about products “shipped,” instead of products “sold.” I can ship a million products, but if I don’t sell any of them, I’m not making any money. 

    I guess this really gets to me because Facebook is undoubtedly a great company with amazing growth potential. Why does anyone feel the need to incorporate “fuzzy” math into it? They’ve achieved critical mass and are on a growth trajectory that’s redefining the Web, marketing and advertising and even parts of the global economy.

    They don’t need to operate in a manner that indicates the opposite, that sets them up for a “gotcha” moment by analysts, bloggers or the government. They don’t need to cloud the picture for consumers or investors or even themselves. 

    The housing market and the banking industry operated for years behind cloudy pictures and fuzzy math and look how that turned out. If ever there was a company that could be honest and transparent without compromising its potential, that company is Facebook. 

    And yet, we remain determined to repeat history.

     
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