Fall has arrived – the season of transition and change. And for Indeed, one of the world’s largest employment websites, change is also in the air.
Starting on October 1, 2024, employers who utilize an Applicant Tracking System (ATS), data feed, or company website to connect their jobs to Indeed, will now be required to sponsor (pay for) their job posts to gain visibility. Indeed’s main priority has always been job seekers, and many of their updates are meant to provide the best experience possible for these individuals. This change will reduce the amount of clutter that tends to exist on the job board (i.e. multiple posts for the same position, forgetting to close filled openings, phantom job postings, etc.). However, creating a quality experience for job seekers can generate some challenges for employers who rely on Indeed to fill their openings.
What does this mean for your organization and recruitment strategies?
Indeed and Your Applicant Tracking System (ATS)
Applicant Tracking Systems (ATS) offer wonderful solutions to help manage recruitment needs, including automation of processes, i.e. job ads being posted simultaneously to multiple job boards. However, with this new change, jobs that are posted to Indeed via ATS or data feeds won’t be posted unless they are sponsored. Starting October 1, your organization will see “Open” jobs get switched to “Flagged” jobs with the notification that the job must be sponsored to go live on Indeed (*see the below image for reference). This will have a financial and administrative impact, as each job posting will need to be set up with a budget.
Organizations that have never utilized an ATS, data feed, company website, etc. to post jobs will still be able to publish their jobs directly on Indeed free of charge. The reason for this exception could be that companies small enough to not have automated processes may have fewer postings at any given time and are likely not major contributors to the clutter issue that results in a negative job seeker experience.
It’s important to recognize that this change may increase the cost of recruitment efforts. Indeed remains one of the largest and most widely used job search platforms, and therefore is one of the best recruitment tools to use. The cost to sponsor jobs will vary based on algorithms that determine the competitiveness of the market and the available talent pool. Roles that are harder to fill or are in high demand will usually get hit with higher sponsorship fees than easier-to-fill roles. In general, the estimated cost can range from $300 – $1,000 per sponsorship, but those numbers can change at any time.
How Can My Organization Reduce Recruitment Costs?
Be Strategic with Your Postings
It’s important to be informed about the role(s) your organization is hiring for and where those types of candidates are looking for work. Individuals in different industries or job categories tend to utilize different platforms. Taking some extra time to research which platforms are the best to use for a particular opening ensures optimal use of the recruitment budget.
Organic (Free) Job Sites
If your organization is utilizing an ATS, data feed, or company website to post jobs, those ads could still be published on a variety of organic job sites such as Google for Jobs, ZipRecruiter, CareerJet, Talent.com, and Job Rapido. These are not places you can physically post a job, but these are sites that aggregate data and “re-post” what is out there. Some ATS have agreements with these sites, and you can contact your ATS representative to get a full list of the sites they have agreements with.
Think About the Big Picture
Recruitment is a multifaceted process that is deeply influenced by an organization’s broader context, and a well-thought-out strategy can significantly enhance its efficiency and effectiveness. One of the most powerful tools for improving recruitment outcomes is branding. A strong employer brand can have a profound impact, leading to a 28% reduction in turnover, a 50% decrease in cost-per-hire, 50% more qualified applicants, and up to twice as fast a time to hire, according to LinkedIn. Social media plays a crucial role in building that brand—not only is it a free platform for posting job openings, but it also offers opportunities to showcase your company’s culture. By sharing community involvement, highlighting positive employee experiences, and celebrating company achievements, you can strengthen your reputation as an employer of choice. The more visible and appealing your organization appears, the easier it will be to attract top talent when you have job openings.
Consider professional partnerships
Hiring managers often lack the time to focus solely on recruitment, and in today’s fast-paced market, speed is essential. Top talent can enter and leave the market within days. Partnering with a talent acquisition expert who collaborates with hiring managers to design and facilitate a positive candidate experience can ultimately save your company time and money. While engaging a third party for recruitment or process optimization may seem like a significant upfront expense, it can absolutely bring a level of effectiveness and efficiency that only these professionals can provide who are skilled at attracting, connecting with, and securing the talent your organization needs. They understand candidate expectations and are trained to find the right match for your business, increasing the likelihood of long-term retention. A dedicated recruiter can fill roles more quickly, reducing the need for prolonged job postings and sponsorships. Additionally, a well-crafted candidate experience enhances your employer brand and reputation, as poor experiences can lead to negative feedback and hinder future recruitment efforts. Investing in talent acquisition experts is a smart move, as finding candidates who fit well and stay long-term can be far more cost-effective than constant rehiring.
Summary
In conclusion, the changes Indeed is implementing on October 1, 2024, will require organizations using ATS, data feeds, or company websites to sponsor job posts to maintain visibility, which may increase recruitment costs. While this update is aimed at enhancing the job seeker's experience by reducing clutter on the platform, it presents challenges for employers reliant on automated posting systems. To mitigate these costs, organizations should be strategic in their postings by researching which platforms best attract candidates for specific roles and utilizing organic job boards where possible. Additionally, investing in employer branding, leveraging social media, and considering external recruitment experts can further streamline hiring efforts, ensuring the organization attracts top talent efficiently while controlling recruitment expenses.
Need advice or assistance on HR or accounting practices? Please contact Herbein + Company, Inc. Our mission is to be your single source solution for successfully attracting, retaining, and developing your human capital. Our expert team is ready to partner with you and passionate about helping your organization achieve its goals!
Article Contributed by Jessica Keck
