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The topic of Indeed’s latest strategies and its increasing focus on white-collar “sit down” jobs sparked a bit of discussion at this week's in-person CareerXroads Recruiting Operations meeting. Nearly 40 recruiting operations leaders gathered at Ford Motor Company’s headquarters in Dearborn, MI, to debate this significant shift as well as countless other items impacting the efficiencies and deliverables of talent teams and vendor partnerships from around the world.

Given this context, the publication of the AIM Group's most recent report is incredibly timely. We're happy to be able to share the full report with our logged-in members, but non-CXR members will need to go to AIM Group for the full download here.

Why the Shift?

Even with its dominance in digital recruitment ads, Indeed has hit a snag with a low take rate per hire—less than 1%. This is a far cry from the 20% average for direct hire placement fees or the 40% charged by executive search firms. To bridge this gap, Indeed presents products like Flex and Hire, which operate on a placement fee model with higher take rates of 5-10%. This shift aims to boost revenue and expand its total addressable market (TAM).

The Role of Recruit Holdings

Indeed’s parent company, Recruit Holdings, already runs a large international staffing business. By shifting to a staffing-like model, the take is that Indeed is eyeing the $327 billion staffing industry, a significant leap from its current $32 billion market in recruiting ads.

Potential Conflicts and Strategic Execution

This move isn’t without its challenges. One big concern is the potential conflict with Indeed’s existing clients. As the company aims to generate more hires and charge more per hire, it needs to tread carefully to avoid upsetting its current customer base. Also, Indeed is looking at dynamic pricing based on job types to boost revenue further.

Glassdoor and the Bigger Picture

The full report from AIM Group provides a thorough analysis, including insights into the broader implications of Indeed’s strategy. For example, Glassdoor, another Recruit Holdings entity, offers an interesting comparison in terms of revenue and market approach. Understanding these dynamics is fairly important for anyone in the recruitment industry.

Conclusion

Indeed’s shift towards a staffing model is a major development in recruitment. It’s a strategic effort to adapt to market demands and increase revenue. But the success of this pivot will depend on how well Indeed can balance these new strategies with existing client relationships. For a detailed analysis and to stay ahead in the recruitment game, I highly recommend downloading the full report from AIM Group.

CareerXroads has a long-standing friendship with Peter Zollman, AIM Group Founding Principal, and there is no incentive, financial or otherwise, for CXR to share this report. This report is a must-read for anyone looking to understand the future of recruitment and how major players like Indeed and Recruit Holdings are shaping the industry. Don’t miss out—download the full report now.