EP301 | Job board pricing models and the future of the job board

Episode 301 of Wave’s Talent Matters podcast features Wave CEO Dave Jenkins talking with College Recruiter’s Founder and Chief Visionary Officer, Steven Rothberg, as they delve into the pros and cons of job board pricing models and what the future holds for them.

Having started College Recruiter in 1991, Steven has overseen the graduate-focused job board, which has grown into a database of 20 million candidates and connects 12 million people to new careers every year. With over three decades of industry experience, Steven is one of the leading experts in the job board space. Steven also co-hosts the JobBoardGeek podcast, which connects jobseekers with employers.

Steven lends his three decades of experience in the job board world to take a deep dive into job board pricing models and is a must-read for anyone keen to understand the evolving landscape of recruiting and job advertising. Here, we’ve extracted the key insights from their conversation.

Shifting from Duration-Based Pricing to Cost Per Click (CPC)

Traditionally, job boards have relied on the duration-based pricing model, a system borrowed directly from newspaper classifieds. Here, employers pay a fixed rate to post jobs for a set duration, irrespective of the number or quality of applicants they receive. This model ensures predictability but often lacks efficiency and adaptability in meeting the nuanced needs of today’s digital job market.

In contrast, the cost per click (CPC) model has gained popularity, primarily due to services like Indeed. Under CPC, employers are charged each time a candidate clicks on a job listing. This system can be more cost-effective but also introduces the challenge of ensuring that clicks translate into quality applications.

The Advent of Cost Per Application (CPA)

To address the need for higher-quality applications, the cost per application (CPA) model emerged. Under CPA, employers are charged each time an applicant completes the application process. This aims to offer more predictability and direct correlation between expenditure and recruitment outcomes. However, it also increases the perceived risk, especially if the received applications are not of the expected quality.

Enhancing Quality via Cost Per Quality Application (CPQA)

The cost per quality application (CPQA) model seeks to refine CPA by introducing clear, objective criteria to define a quality candidate. While not yet widely adopted, CPQA promises to align better with employers’ needs by ensuring that the applications they pay for meet predefined standards of quality.

Embracing Cost Per Qualified Validated Candidate (CPQVA)

Taking it a step further, the cost per qualified validated candidate (CPQVA) model is seen as the next frontier. This model ensures not just quality but also authenticity by validating the candidate’s credentials and qualifications. While this is a more complex system to implement, it significantly reduces the risk of poor hires and can be a game-changer for the recruitment industry.

The Role of Organic Listings

Organic listings still play a crucial role in job advertising. These are postings that appear in search results naturally, without paid promotion. Historically, job boards provided significant amounts of traffic through organic listings. However, the trend is shifting towards monetising these job posts to generate revenue, especially for staffing companies.

Navigating the Aggregator vs. Job Board Landscape

The podcast also touches on the distinction between aggregators and traditional job boards. Aggressors compile job listings from various sources, enhancing visibility and reach, but face the same challenge of maintaining quality and relevance. Whether leveraging CPC, CPA, CPQA, or even CPQVA, the focus remains on providing a balanced mix of volume and quality in candidate applications.

The Future of Job Boards and Staffing Companies

An intriguing point discussed is the potential future of job boards in relation to staffing companies. As job boards become more sophisticated in their pricing models, the role of staffing companies becomes even more critical. These companies add significant value through personal interactions and nuanced judgment, aspects that automated job boards currently struggle to replicate at scale.

The evolution of job board pricing models reflects the industry’s need to balance cost, quality, and efficiency. From the traditional duration-based pricing to more sophisticated models like CPQVA, each approach offers unique advantages and challenges. The key takeaway is the growing importance of a multi-faceted approach in recruitment, leveraging both technology and human judgment to attract and retain top talent.

More about Steven Rothberg

Steven is the Founder and Chief Visionary Officer at College Recruiter.
Having started College Recruiter in 1991, Steven has overseen the graduate-focused job board, which has grown into a database of 20 million candidates and connects 12 million people to new careers yearly.
Working primarily with Fortune 1,000 companies, government agencies, and other employers who hire at scale, they advertise their part-time, seasonal, internship, apprenticeship, and other entry-level jobs.

Find out more here