For this spotlight, I wanted to take a look into ZipRecruiter because they recently reported on second-quarter earnings. They are a leading online employment marketplace and an NYSE-listed company (ZIP). Powered by AI-driven smart matching technology, they actively connect businesses of all sizes and millions of job seekers to make hiring top talent and finding a job faster and easier.
First, let us highlight some key takeaways from the earnings report:
$240M in revenue in Q2 2022
Approximately 156,000 employers on the platform and $1,533 in revenue per paid employer
78% of revenue comes from flat rate pricing with a subscription model. The remaining percentage of revenue comes from performance-based pricing
Improvements to the “Invite to Apply” feature, leading to over 1 million invitations from employers being sent to candidates
What you should know is that the US employment, recruiting agencies, and staffing is a $205 billion dollar business. Even though it may not feel like it during a job search, companies in this industry are doing all that they can to innovate and get you hired. This report made me think about how ZipRecruiter is redefining the experiences for recruiters and job seekers.
Talent Acquisition Experience
I can say with confidence that I’m not the only person who hates the administrative tasks that come with talent acquisition. I love a good automation tool that can do a mundane task for me and remove me from the workflow. Recruiters tend to wear many hats and do the marketing, sourcing, interviewing, and onboarding of a candidate. We can’t do it all and as efficiently as most would like. ZipRecruiter’s AI capabilities take off some of that pressure with their “invite to apply” feature. Employers receive candidates who match the job specs and have the opportunity to rate them. What’s better is that the AI learns and will start to send better-qualified candidates. It gives the feeling of having your sourcing on autopilot.
Other platforms do some form of matching candidates to opportunities and in the coming years, I can only imagine how accurate it can become. I’m certain blockchain technology will play a big part in the experience by verifying skills and credentials during the hiring process. Matching and verification features in any tool would give TA professionals crucial time back in their day to talk to candidates.
Job Seeker Experience
Give job seekers some attention. Even if they aren’t a good fit, many teams never let candidates know of their status. Some job seekers are fortunate to have a speedy job search for a company they really want to work for or it can be the complete opposite and it can be a depressing experience. The experience a lot of times is what turns candidates off and causes them to leave feedback on websites like Glassdoor for the world to see which then affects how passive candidates apply to their open positions.
Something as a candidate receiving a message that their application was viewed will take off some of the anxiety of thinking their resume is just sitting in the resume black hole. Rather than job seekers applying, they are actively pursued by employers. I imagine that receiving a personalized notification from a company is a confidence booster and a sense of validation. Job searching is a career-long experience and I foresee the search becoming more personalized. There will always be a market for those who are actively seeking but the passive candidates are gold in a tight market. According to the Bureau of Labor Statistics, for workers age 25 to 34, the median tenure is 3.2 years. What person wouldn’t want their own recruiter (in this case AI) that knows exactly when I’m ready to take on a new project? However for a public company, sometimes the long game isn’t the best especially when you have a powerhouse competitor like LinkedIn.
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