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The online job market
How Jeff Taylor changed the way the labour market works.
Monster.com, the world’s biggest online job-search site, shows how electronic marketplaces reach more people and can offer more efficiency than
physical markets. It also shows that money can be made in such markets:
Monster has a long record of profitability.
Jeff Taylor, who launched the site in 1994, says that the Monster.com name
is the firm’s “single most important success factor”. It introduces an image of
youthful fun in what is basically a boring business. Supporting the brand is a
big advertising budget which accounts for a quarter of the firm’s costs. He
runs expensive ads during key sporting events such as the Super Bowl.
Job-seekers supply resumes and employers pay to scan them or to post job
ads. Most of the services that job-seekers get are free, but they have to pay for
a service that allows them to contact each other for advice and career management. They can use this service to ask each other questions about, say,
what it is like to work for a firm that they are thinking of joining.
The main contribution of Monster has been to speed up hiring and vastly
increase the accuracy of the job-search process. “You can post a job at 2pm
and get your first response at 2:01ˮ, Mr. Taylor says proudly. And an employer who knows exactly what he wants can use Monster’s filters to search
vast numbers of resumes with precise accuracy. Monster is a serious threat to
newspapers, which historically made 40 % of their revenues from carrying
ads, up to half of which were for staff. Headhunting firms have also lost
business, because demand for their help in filling lower-level jobs has fallen.
The online job market works well for workers and employers who know
what they want. It works badly for people who are unsure. Check that your
resume says clearly what kind of job you want. The filters will then make sure
that it reaches the right human resource departments.
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