Attracting the attention of many capitals, information security sounded the alarm
The online recruitment industry is on the cusp
Our reporter Li Guo
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As the attention of corporate services continues to increase, the online recruitment track in the human resources sector has attracted the attention of many capitals.
But while the company is developing rapidly, some deep-seated problems have also been exposed.
“There are many orders, heavy production tasks, and more front-line workers and technical talents are urgently needed. After the district employment talent center learned about the situation, it sent a special person to make statistics on our company’s employment needs and other information, and published it on the'Bishan Employment' public account. Currently, more than two hundred workers have arrived on the platform for online recruitment." The person in charge of Chongqing Taiguan Technology Co., Ltd. recently told reporters that the online recruitment platform of the Bishan Employment Talent Center helped them solve their urgent needs and ensure the smooth progress of the enterprise. Put into production and run at full capacity.
In fact, it is an indisputable reality that it is difficult for SMEs like this to recruit workers.
For many talent recruitment platforms, whoever can seize this opportunity can stand out from the fierce competitors.
A few days ago, the online recruitment platform BOSS, listed on NASDAQ in the United States, directly hired, creating an entrepreneurial myth and a sky-high valuation in the capital market.
But less than a month after the listing, the relevant department launched a safety network review, once again putting this leading online recruitment company on the cusp of the storm.
Today, when talking about job-hopping is like talking about eating, online recruitment is one of the earliest fields in which the Internet penetrates the traditional industry. Various new ways of playing have quickly emerged, and capital has invested heavily in it. The era of "Warring States" is quietly opening.
A super trillion blue ocean market
In theory, China's recruitment market is huge.
A rough calculation shows that China’s non-agricultural employment population is about 580 million, and the per capita disposable income is about 30,000 yuan. Employers are often willing to pay 15-25% of job seekers’ annual salary for recruitment services. A huge market scale of more than 2.5 trillion yuan.
Even if this figure is too optimistic, a half discount is still enough to support a market of more than 1 trillion yuan.
In the process of my country's demographic dividend shift from quantity to quality and economic structure adjustment, the economic role played by the human resource service industry is becoming more and more important.
According to CIC (Insight Consulting) forecasts, the scale of China's online recruitment market will increase from 55.1 billion yuan in 2020 to 223.4 billion yuan in 2025, with a compound annual growth rate of 32.3%.
"Compared to new online recruitment companies, the advantage of traditional recruitment companies is that over time, more and more users are retained, and they can obtain advertising revenue and corporate customer payment revenue through scale effects." said Xu Dandan, chairman of Lagou.com With the increasing number of more personalized young job-seeking users in China, subject to business models, the product user experience and efficiency of traditional recruitment websites will encounter great challenges, and they may encounter development crises within two to three years.
Dai Kebin, CEO of Liepin.com, once said that the current one-year promotion budget for the entire online recruitment is about 4 billion to 5 billion yuan, but in the mid-to-high-end recruitment market, the current domestic budget reaches 40 to 50 billion yuan, and competition is fierce. Compared with the entry-level recruitment website, there is still huge room for development of a customized recruitment website for mid- to high-end people.
According to data from Tianyan Check, there are currently nearly 46,000 recruitment-related companies in my country.
In the past 10 years, the overall number of registrations has shown an upward trend, with an average annual growth rate of about 25%.
Among them, more than 11,000 new ones were added in 2019, the highest number of annual registrations.
As of now, more than 2,600 new registrations have been added this year.
Industry faces information security challenges
On June 11, BOSS directly hired and officially landed on the Nasdaq market.
On the first day of listing, it set a transaction volume of US$14.9 billion, and China's Internet recruitment industry ushered in a company with a market value of US$10 billion.
The listing has undoubtedly become a bright moment for BOSS to directly hire.
But on July 5, the National Cyber Security Review Office issued an announcement to start a security network review for BOSS’s direct employment. During the review period, its APP stopped new user registration.
The reason is related to information security.
While the rapid development of enterprises, some deep-seated problems have been exposed.
At the 315 party this year, BOSS was named by CCTV due to the issue of "personal information leakage".
It has also been reported that hidden erotic recruitment, requesting candidates to provide sexual services and so on.
In fact, in the face of emerging markets and mobilization waves, the online recruitment industry has been in a long period of silence and low ebb, but since the first half of 2014, this traditional industry has begun to be favored by the capital market.
In April of that year, Liepin.com announced that it had received US$70 million in financing; in June, Zhaopin also successfully listed in the United States after 51job.com; in August, the social application "Maimai", which is positioned on the working version of WeChat, announced that it had received US$20 million. Financing...
In recent years, the financing enthusiasm of online recruitment companies has risen, and 2019 has become a big year for financing, with a total financing amount of more than 3.8 billion yuan.
Although there are relatively few financing incidents affected by the epidemic in 2020, the overall financing amount will still exceed 3 billion yuan.
Online recruitment does bring real convenience to job-seekers, but BOSS’s direct recruitment as the leader of online job-hunting platforms in the era of mobile internet also allows them to hold a large amount of job-seekers’ information.
Maintaining the security of personal privacy information and corporate data is a bottom line that companies cannot cross.
This heavy hammer dropped by the network information department has sounded a wake-up call for companies involved in related businesses.
With the blessing of capital, companies should explore a more stable and safer development model.
How to create a benign industry ecological environment
For a long time, my country's human resources platform and the status quo have been inefficient, poor service, and serious fraud, which has severely restricted the development of enterprises and genuine talents.
Most platforms are content with being an intermediary in the "warm water", a single point of innovation but does not touch the real pain points, leading to the embarrassing situation of "difficult to recruit and also difficult to find a job".
Statistics show that in 2020, the market size of my country's human resources service industry has reached 369.4 billion yuan, while the market size of mid- to high-end talent search industry is about 89.58 billion yuan.
With the development of e-commerce and live broadcast industries, more companies are enthusiastic about participating, and new companies continue to enter related fields and develop rapidly, which also provides job opportunities for more job seekers.
"From the 1990s to the present, the original Internet recruitment model of the three major recruitment platforms has basically not changed, and the products are too old." said Ding Yi, a partner of Warburg Pincus. The rookies represented by Liepin.com and BOSS direct recruitment. It came into being, with differentiated play, and quickly found a place for himself in the market.
The core of the recruitment industry is efficiency. In order to find suitable jobs quickly, many job seekers may often submit resumes overseas. However, when companies receive a large number of invalid resumes, they need to identify suitable candidates one by one, which will lead to extremely low efficiency. When the recruitment industry can improve the accuracy of matching between companies and talents, the efficiency of the three parties will be greatly improved.
"On the basis of the continuous iteration and update of Internet technology, the online recruitment platform is exploring the accuracy and efficiency of human-post matching step by step, but is the matching accuracy and efficiency improved?" Chongqing Jingyu Provincial Situation and Development Planning Research The chief researcher of the institute Mo Yuanming said that the online recruitment platform needs to open up the full life cycle services of talent admission, graduation, job search, training, and job-hopping, and form a closed loop of product services, in order to greatly improve the efficiency of tripartite communication.
He believes that in order to maintain long-term sustainable development in the future, the competition of online recruitment platforms is no longer just a battle for business model innovation, but a three-part population that includes employers in the upstream of the industry chain, headhunters in the midstream, and job seekers in the downstream. Ecosystem, seek common development with multiple parties, and create a more harmonious and benign industry ecological environment.
In addition, with the deep integration of the Internet and the industrial economy, as well as the promotion of 5G technology and innovation, the online recruitment industry may undergo a "qualitative change" in the non-contact industry. "Information video, video ultra-high-definition" will become a new direction for future development. one.