|Naukri, a no longer purple cow!|
Recently, I have observed major changes in the marketing behavior of topnotch job portals in India such as naukri.com and monsterindia.com. They started hiring someone responsible for traffic generation. Do they really need tons of traffic? Not sure but my this question is not about traffic but about the substance of business models in today’s changing landscape for job seekers via social networking sites.
With the changing dynamics of online business and changing pattern of searching information and jobs by online users, these portals should fast adapt to these changes. Ironically, many of them still carry the old legacy of their products (portals) with just a few add ons to kiss their demise.
If you see a case study of naukri.com, the ONLY reason for its success is that it has bridged a gap between employee and employers. Undoubtedly, Naukri.com is still an established entity today in India with a database of more than 6.5 million registered users and with 20,000 company listings.
What was purple cow until yesterday is no longer a milking cow today. They have already reached inflection point and now they are passing through the II phase of diminishing return. See the graph illustrated here.
Hypothetically, my observation about job portals – naukri.com or monster.com, is that they had seen an increasing rate of growth until 2009, a year of inflexion point. Since then, their growth is being pushed up to grow @ decreasing rate. Increasing rate of the growth can never be returned unless they come up with a major breakthrough. They need to sustain II phase which they are maintaining by pushing more workforce to generate traffic to their portals. It has to be seen if these portals may ever risk of transitioning through III phase of negative returns.
The burgeoning popularity of social networking sites (Facebook.com, LinkedIn.com, Community, Groups, etc.) appears to be challenging their business models. The growth, at least “an increasing rate of growth” for these portals appears to be suspicious.
I have been observing many brands making use of LinkedIn, Facebook, Community, Groups etc. for posting their job requirements. Google, Microsoft, Capgemini, Dell and others post jobs more frequently on LinkedIn than on these job portals. Also, smaller companies instead of subscribing to naukri.com or monster.com, they find it quick to post the requirement onto these social media sites.
The community based jobs with recommendations appear to be more trustworthy than any other sources. You will find community based jobs on sites like twitter, Facebook, Linkedin, social bookmarking etc. A recent survey conducted by HR services firm, Ma Foi Randstad, found that more and more Indians are now using social networking sites to look for jobs.
According to the study, 90% of Indian employees have accounts on various social media sites like Facebook, Twitter, LinkedIn and out of them, 81 per cent use it for professional purposes. Over 82% Indian employees were found to use networking sites to discover new jobs in their field of work. Among the Indian cities, 85% employees in Mumbai and 83 percent in Delhi were using social media for jobs.
The job portals, though tried to keep a pace with the changing dynamics of online, yet they find it too complex to revise their old infrastructure. If a giant like Google finds it tough to keep pace with social dynamics of online, these companies are just tips of the iceberg.
@Sanjeev, the success of any product can be attributed to three main drivers –great products, unparalleled service and competitive pricing. Do you still think naukri.com encompasses all these today?