The free ride is coming to an end for some HR executives who rely on the
online marketplace Craigslist to hire talent. Starting November 1, the popular
Web site will charge $25 for each help-wanted ad posted in the markets of
Chicago; Sacramento; Portland, Oregon; and Orange County, California.
Craigslist normally doesn’t charge recruiters to post help-wanted ads, but
the company adopted the fee at the urging of Web site users who wanted to enrich
the quality of the online job board.
“The $25 sum is intended to be high enough to keep out irresponsible posting
activity but low enough to be affordable for legitimate recruiters to do their
job,” Craigslist CEO Jim Buckmaster says.
The majority of Craigslist’s revenue is derived from job posting activity,
since most of its services are free. Yet the company currently charges fees in
seven of the 450 regions where it operates, including New York, New Jersey, San
Francisco and Washington, D.C.
The company has no plans to charge in more markets. It doesn’t intend to
increase the cost either, Buckmaster says.
“We did not get into this business with the objective of making money,”
Buckmaster says. “We are offering a community service.”
Nevertheless, the new price point could take a toll on small employers with
scarce resources but is unlikely to affect large corporate employers with
generous recruiting budgets, says Peter Weddle, CEO of Weddle’s, a recruiting
consultancy in Stamford, Connecticut.
“As long as it’s within certain boundaries, recruiters are willing pay for
quality talent,” Weddle says.
Craigslist is still considered an inexpensive form of online recruiting,
considering it is not uncommon for large job boards to charge $75 to $100 per
posting.
Once the Craigslist fees are instituted in those markets, however, activity
probably will drop somewhat, says Mark Mehler, principal at CareerXroads, a
recruiting consultancy in Kendall Park, New Jersey. He predicts a rebound soon
thereafter.
“People trust Craigslist,” Mehler says. “Once you gain that trust, people
will come back to you over and over.”
Each month, the company receives 1.5 million new job postings.
Buckmaster says the Web site enjoys a good reputation among recruiters
because it is inexpensive and effective. He says Craigslist’s tight geographic
focus enables employers to attract job applicants that can come on board
quickly, since they don’t have to relocate. What’s more, candidates tend to be
familiar with the employer, he explains.
“Some people swear by Craigslist,” Weddle notes. The site draws a young,
urban demographic, which is highly desirable for certain employers. Yet Weddle
stressed the importance of having a diverse online recruiting strategy.
“Recruiters need to understand that one source cannot possibly help them meet
their talent needs,” Weddle says.“They need to probe deep and wide.”
Craigslist competes with major players such as Monster and CareerBuilder
despite minimal advertising costs and no sales force. Craigslist hosts 30
million unique visitors and 8 billion page views each month, Buckmaster says.
Some 25 percent of the page viewing activity is related to job searches.
—Gina Ruiz