Jobs websites — which traditionally charge organizations on a pay-per-click basis — are bringing more pricing options to the table as they push to differentiate their offerings amid increasing competition in the marketplace.
Paying on a Results Basis
CareerBuilder on Sept. 5 announced a “pay for performance” pricing plan; it followed the jobs website’s launch of a “pay per résumé” pricing plan in June.
The pay-for-performance plan ties costs to results, according to the company. No clients are being shifted to the pay-for-performance plan, but it’s an option if they choose.
“Pay For Performance is our second flexible pricing offering to clients looking to maximize recruiting return on investment,” the company said in a statement to SIA. “Unlike Pay Per Résumé, where clients are billed for résumés accessed, Pay For Performance allows clients to decide from two options: started applications or completed applications. Clients only pay for the applicants we deliver.”
Separately, for CareerBuilder’s pay-per-résumé plan, client firms will be able to purchase résumés based on a monthly budget amount or on an ongoing basis. Traditionally, clients have had to purchase a license to access résumés. Clients can still opt to purchase a license for résumé access.
“In our case we know Pay Per Résumé and Pay For Performance are not the right fit for every client, and we will not force all clients to move,” the company said. “We also know that many of our clients enjoy having fixed pricing they can count on and steady rates in times of economic uncertainty. We do not intend to do away with traditional pricing models. Clients can still post jobs through our subscription packages or on a per-job basis.”
Pay per Application
In April, job board Indeed announced two pricing models called “Pay Per Application” and “Pay Per Started Application.” Those new models began in the US and UK and were slated to become available to employers in other parts of the world this year.
The company had rolled out the pricing option to smaller employers last fall.
At the time, Indeed cited its research showing a majority of employers, 52% selected “pay for results” as the preferred pricing model when compared to “pay for clicks,” 22%, and “pay a flat fee per job post,” 22%. In addition, 84% of employers also report they believe they should only pay when they receive a quality candidate from an online job site.
However, the transition did not go smoothly, according to media reports.
As The Society for Human Resource Management reported April 28, a reversal of its planned rollout of pay-for-results pricing, the world’s largest jobs site had halted efforts to require employers to pay for submitted applications — a big change from PPC pricing — after customers expressed some confusion and pushed back.
Indeed confirmed to SHRM Online that it is holding off on requiring PPA pricing for now — while still believing that it is the best option for employers — but would continue to advance the transition from PPC to pay-for-results over time, in line with customer feedback.
“We feel giving people a choice between PPC and PPA while we make the transition is important,” said Raj Mukherjee, executive VP and general manager at Indeed, told SHRM Online. “We will continue to offer that choice throughout 2023, and perhaps longer.”
Recruit Holdings Co. Ltd., one of the world’s largest staffing firms and owner of Indeed as well as Glassdoor, in August reported Indeed saw paid job ads fall by 50%.
“Pay per application, or PPA, and pay per started application, or PPSA, are pay-for-performance pricing models which only charge employers when job seekers complete an application or start the application process,” Junichi Arai, senior VP, corporate strategy and investor relations, said in a conference call with investors. “In particular, under the PPSA model, which was expanded in the first quarter, jobs that only receive clicks but no applications or started applications are no longer counted as paid jobs.
X Joins the Fray
X, formerly known as Twitter, is allowing verified organizations early access to its X Hiring Beta, a new initiative that X says will enable companies to feature their job postings and reach millions of candidates. However, as CWS 3.0 previously reported, organizations must apply to use the feature.
The social media giant announced the move in a post on Aug. 25.
Media reports have said X Hiring is taking aim at LinkedIn.
