A recent survey conducted by Yellojobs tried to uncover the reasons why people are leaving companies. Besides for the money factor the other factors that listed high were non co-operating, bad superiors, no further growth and remuneration, uninteresting job profile, office politics and work environment were the other reasons cited for changing jobs.
Jobsites have been solving the problems of recruiting staff since a decade now but still with the competitive job market attrition seems to be so high that most companies are losing more money hiring and paying jobsites and consultants than doing anything else.
We had previously on WATBlog listed down 5 reasons why social networking sites are a threat to jobsites. Also last year a bunch of job referral networking sites had sprung up. So there is techtribe.com, reffster.com and even a yellojobs.com which seem to be catering to this space. Even Infoedge Ltd the parent company to Naukri has launched Brijj.com last year to leverage the power of networking for jobs. Though e-recruitment is still a small part of the overall recruitment spend in India to give you some statistics according to Ma Foi-India Today survey, recruitment fees in India stood at Rs 4,500 crore in 2006, out of which only Rs 500 crore was through e-recruitment.
Incentivised employee referrals was always a part of the recruitment spend since BPO’s came to fore and huge manpower recruitment became a big task for companies. With online job referral companies like techtribe, yellojobs, reffster and brijj coming to the fore such referral based recruitments are bound to rise.
Though according to me the consumer internet model of job referrals might be plagued with people referring unknown individuals. Maybe if someone explored the same model from a enterprise solution point of view targetted at a top down model for enterprises then it may just bring far more credible results.
But nonetheless it does look like online job referral sites are here to stay and will surely cause a few waves in the e-recruitment industry.
TooStep is in the same segment as well.
Excellent stuff by Yellojobs.com which breaks the age old myth of money being the foremost reason. The REAL reason which perhaps never comes on the record is the BOSS. People do feel that a bad boss is a key block on their career growth and is a large reason for many to quit.
Great new insight!
Check out http://www.youtube.com/watch?v=J4upi5qDxhQ
Hilarious !
The e recruitment space definitely needs some innovation. The current model of having a monolithic job boards is’nt working very well. Lets see if referrals can make some dent in online jobs market.
I think most of the referral based recruitment had problems at the top management…be in Reffster CEO leaving the company or NDTV and YelloJobs breaking…that may be one reason of these Portals not growing that fast.
Look at http://www.zyoin.com, which seems to be the fastest growing referral based recruitment portal.