BARCELONA — Recruitment marketplaces unable to build a lead in their markets fall into what Jonathan Turpin, AIM Group principal, called the “LinkedIn / Indeed squeeze” — a scenario where the dominance of these two global recruitment giants limits significantly how much revenue rivals can generate.

Presenting at this year’s RecBuzz conference, Turpin shared a graphic demonstrating how recruitment marketplaces operating in markets where Indeed is No. 1 (U.K., France, India, for example) are limited in their revenue generation compared to those markets where Indeed doesn’t have a leadership position (Switzerland, Poland, Russia, for example).

Trapped between Indeed (owned by Japan-based Recruit Holdings) on one side and LinkedIn (part of Microsoft) on the other, recruitment marketplaces can find themselves in a precarious position. TotalJobs in the U.K., owned by Germany-based Stepstone, is a good example of a marketplace that has struggled to significantly grow revenue despite its position as the No. 2 in the market by monthly visits.

Those marketplaces that able to cement a No. 1 position see stronger revenue growth and are able to keep Indeed out of the leadership positions.

What are some defensive strategies that job sites can implement and counter the Indeed / LinkedIn threat?

Turpin listed these counter strategies:

  • Greater care in sharing jobs with aggregators
  • Value-based pricing
  • Supplementary aggregation
  • Local customer service
  • Launch of defensive sites in aggregation, niche and freemium segments
  • Vertical integration of tools like ATSs
  • Higher-touch services like candidate shortlisting and branding
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