COMMONWEALTH JOURNAL OF COMMERCE & MANAGEMENT RESEARCH A COMPARATIVE ANALYSIS OF THE PRODUCTS OF NAUKRI.COM VS MONSTER.COM
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1 A COMPARATIVE ANALYSIS OF THE PRODUCTS OF NAUKRI.COM VS MONSTER.COM Lori Singh Assistant Professor, Chetana Institute of Management and Research,Mumbai ABSTRACT I would like to draw attention towards the effectiveness one market leader has over its other competitors in a market that deals with all modes of businesses to fulfill their requirements in terms of manpower sourcing and planning. Online recruitment has become an effective and convenient source of hiring for companies and job seekers alike. It is a supply chain that creates several inter linkages which help in identifying the right candidate for the right position. The result behind the the comparison of both portals i.e. Naukri.com & Monster.com is to derive why corporates and consultants alike prefer to use these portals over any other when it comes to sourcing their recruitment. From the observations conducted in the study it is evident that these two portals firstly hold the highest internet traffic of users that maybe looking for a job or looking for a job change The reason behind this is because 69% of the population see naukri as the first source of recruitment in india and regularly update their profiles on Naukri first post which they do not give as much importance to Monsters services. The top of the mind recall that Naukri possesses in the eyes of its clients and jobseekers is absolutely spot on and the servicing aswell is prompt and effective. Due to Naukri s database size, recruiters see a larger amount of responses from its jobseekers at a minimal price. This reduces the need to employ external sources to carry out their recruitment processes. The result of the comparison indicates that the market leader is continuously upgrading its software and innovating new means of recruitment to stand and hold the position it has earned. 1
2 OBJECTIVES To study the target audiences of Naukri.com and Monster.com and identify the better portal To study the role of a sales executive within both portals and determine sources of revenue To compare the traffic both portals experience and identify the reason for choice To compare Naukri.com against Monster.com and other competitors and identify drivers for growth To study the products of both portals and compare their effectiveness To study the reason behind Naukri& Monster being the first preference for corporates and consultants COMPANY PROFILE History (Naukri.com) Naukri.com is an Indian job portal operating in India founded in March It publishes a monthly report called NaukriJobSpeak. The site was established in 1997 by Info Edge (India). The Company was incorporated on May 1, 1995 under the Companies Act, 1956 as Info Edge (India) Private Limited and converted into a Public Limited on April 27, Info Edge (India) Limited (Info Edge) is India s premier on-line classifieds company in recruitment, matrimony, real estate, education and related services. Our businesses comprise the following: Info Edge is a listed company on the Bombay Stock Exchange and National Stock Exchange. It went public in November As of March 31, 2014 Naukri.com had a database of about 40.6 million registered job seekers and over 80,000 live job listings from Corporate Customers. During the Fiscal year Naukri.com serviced approximately 42,000 Corporate Customers, an average of about 11,000 resumes were added while about 130,000 were modified daily in the Naukri.com database in Fiscal year Naukri.com provides recruitment classifieds and related services to job seekers and Corporate Customers, (employers and recruitment 2
3 consultants) on their website supported by our network of our offices in India, spread across cities. History (Monster.com) Monster Worldwide, Inc., is a global leader in connecting people to jobs, wherever they are. Monster pioneered the business of digital recruiting in 1994, and today are the only online recruitment provider able to serve its customers on a truly global basis. In addition to our broad portfolio of global Web sites, Monster offers valuable online advertising space on category leading properties such as Military.com and FastWeb.com. These sites deliver a quality audience and the most sought-after consumer demographics to companies looking to showcase their brand to their target audience at key points in their life. In 2014, Monster unveiled a new strategic approach to include job aggregation, and a deeper expansion into the small business market. Vision (Naukri.com) To create World Class Platforms that Transform Lives Mission (Naukri.com) We will continuously delight our customers in current and new businesses by delivering superior value through enhanced offerings on the internet and other platforms. We will do this by preserving our entrepreneurial spirit and leveraging our financial strength and expertise in building brands, communities, product and technology; sales and service Info Edge is a leading provider of online recruitment, matrimonial, real estate classifieds and related services in India. Values(Naukri.com) Customer Delight,Entrepreneurship, Knowledge, Results, Trust Review of Literature 2.1 Sector Overview 3
4 The overall (print + online) recruitment advertisement market in India was worth about Rs. 5.6 billion annually in 2003, of which the print media alone was about Rs. 5.2 billion. It is expected that by 2007, online recruitment advertising will grow between Rs. 1.5 and Rs. 2.5 billion while the print advertising will grow at 8 per cent annually to about Rs. 6.5 billion.1,2 Another figure for the market size was cited at Rs. 8 billion annually in 2000 with a growth rate of 10 per cent.3 Of this figure, recruitment advertisements in English language print media are steady at Rs. 1.2 billion, but the online recruitment advertisement volume has grown from Rs. 150 million in 2001 to Rs. 400 million in 2003 to an expected Rs. 750 million in The cost of recruitment online can be as low as Rs. 1,500 the cost of a single advertisement for a week on a job site in case a firm is able to find the right candidate. One study by an executive recruiting research firm in the US found that using online recruitment cut the recruiting cycle from 90 days to 28 days, candidate identification from 30 to 70 days, interview and assessment from 30 to14 days, and closing from 30 to 7 days.6 Globally, recruitment is considered an activity involving advertising for positions, resume searching, profile matching, screening of applications, shortlisting of candidates, counselling, client servicing, and replacement. There are five major ways of obtaining jobs in the organized sector in India. The first and the largest category is the print medium where paid advertisements in general and business interest newspapers and magazines dominate. Newspapers such as The Times of India (the largest daily circulation English language broadsheet in the world) and Hindustan Times can have an employment supplement on the weekend. At the low end and for government-related jobs are outlets like Employment News and local language newspapers. Also in this category are trade magazines like Dataquest that carry sector specific advertisements. The second major category is placement and HR consultants that companies use for middle and senior level placements. The third category includes referrals and personal contacts, the fourth category has the online corporate web page of the firm, and the fifth 4
5 and the fastest growing category consists of online recruitment portal sites like naukri.com, jobsahead.com, jobstreet.com, and monsterindia.com. Apart from these categories, recruitment also takes place directly from college campuses and through job fairs. According to ArunTadanki, CEO of monsterindia, revenues for online recruitment sites were 12 per cent of the aggregate revenues earned from print job advertisements in 2003 and this was expected to go up to 20 per cent by the year The HR consulting firms and placement agencies are a major force on the recruitment market. Vipul Shah, head of Elixir Web Solutions, an HR consulting firm, claims that they are the No. 1 online advertisers on the online job portals in India8 and that their firm has web staffing specialists who are trained specifically for online recruitment strategies and effective online job advertisement posting. In India, recruitment has been the domain of the HR department (and in some firms with the old nomenclature the personnel department). HR departments started getting a separate E-recruitment budget in 2002; most HR departments did not have separate internet addresses or services. A feature unique to the Indian market compared to more developed markets especially as naukri.com grows is that, in mid-2004, internet penetration in India was less than three per cent of the population and the smaller towns tend to have a lower number of available machines for usage and a lower level of familiarity with the internet. The calendar year 2004 saw sales of about three million PCs in India. RESULTS AND INTERPRETATIONS From the findings based on the data collected on both portals, Naukri.com holds a larger share of the market being 69% but Monster.com offers a larger share of services at a comparatively lesser price which makes it a prominent source for consultants to employ, however the quality of cvs that monster provides differs in quality as compared to those that Naukri offers its clients. Having the access to over 40.9 million resumes makes Naukri not just the leader of online recruitments but it also possess the diversity of profiles across 41 functional areas and 7 roles within each functional area. This is not just the option that 5
6 Naukri offers but is transalated by the sheer size of the database. It has jobseekers ranging from drivers to chemical engineers and they are not just plenty in number they differ in quality aswell and this helps businesses manage their recruitment by finding the right person for the job. Naukri has also lauchednaukri Premium, First Naukri and NaukriGulf which are sub categories of Naukri s website that segregates the different prominent audiences. This move is created to compartmentalize with its growing database size and channel traffic from one website to another so that the predecessor does not overload its capacity of usage and crash. Monster.com relies purely on the business of consultants. Consultants require the use of a large number of cvs and Naukri has a limit of cvs a consultant is able to view in a year. This is the reason that monster.com is able to generate market share be means of consultants. The Job of a Naukrivs Monster Sales executive: Each frontline salesperson has a monthly base target, a stretch target, and a jackpot target. At base achievement, he gets two per cent of the sale value as variable pay. At stretch achievement, he gets three per cent of the entire sale for the month as variable pay. At jackpot achievement, he gets four per cent of the entire sale of the month as variable pay. In addition, there is a super jackpot target for the quarter. If, in a quarter, the super jackpot target is achieved by the salesperson, then his variable pay already earned for the quarter is topped up so as to be five per cent of the total sale value in the quarter. Sales are recognized and incentives paid out only when naukri.com collects the money from the client. How does this work in practice? Below the base target, a salesperson does not make any incentive. For example, if the base target for the month is Rs. 0.1 million and the achievement is Rs. 75,000, the salesperson makes no incentive money. At base target level, a salesperson makes 0.75 to two per cent of sales depending on the person s level within the company. A Junior Sales Executive would make two per cent while a Branch Manager would make 0.75 per cent, the reason being that the Branch Manager has a much higher base. So, a Junior Sales Executive who achieves Rs. 0.1 million of sales in a month makes an incentive of Rs. 2,000. On the other hand, the Branch Manager could 6
7 have a base target of Rs. two million and would, therefore, make Rs. 15,000 on achievement of his base target. Continuing with the example above, the stretch target for the same Sales Executive might be Rs million for the month. The Sales Executive would make three per cent of the stretch target as incentive. A Branch Manager, on the other hand, could have a stretch target of Rs 2.3 million and make one per cent on the stretch target. So, if he does make Rs. 2.3 million, then he would end up making a total of Rs. 23,000 in terms of incentives in that month. Similarly, the jackpot monthly target for the same Sales Executive could be Rs. 0.2 million. In the jackpot, the Sales Executive would make four per cent of the entire sales amount for the month. In addition to the monthly targets, there is also a super jackpot target for the quarters. Typically, a super jackpot target is around three times the monthly jackpot target + ten per cent. So, in the above example, the super jackpot target for the Sales Executive could be Rs. 0.7 million for the quarter. The incentive at super jackpot is five per cent. Thus, if the executive ends up making Rs. 0.7 million in the quarter, he is entitled to a total incentive of Rs. 35,000 in the quarter, which is Rs.7,000 more than what he would have made in the jackpot (7L*4%). This helps take care of aberrations in any particular month and rewards consistent performance.20 Collections per month had been steadily rising and touched Rs. 50 million in January Receivables were negligible because more than 80 per cent of the payments came in before the advertisements were put up. The monitoring of the sales force is ex-post through a review of the daily call sheets that are submitted to the corporate office. Daily call sheets are the indices for monitoring planning and productivity; at the beginning of the month, the salesperson gives a plan of how many calls he is going to make with how many new accounts and how many renewal accounts to work on. In addition, Hitesh Oberoi spends about 12 days a month on the road with Bikhchandani spending about six days a month on the road with different branches. Historically, everyone in the firm has been encouraged to sell to the clients. So, the CFO, 7
8 AmbarishRaghuvanshi, for example, also goes to HR conferences where he sells to clients and obtains client feedback. On an average, a salesperson makes 65 calls a month and spends 70 per cent of the time on renewal accounts and the remainder on new accounts. Exhibit 9 shows the working sheet of a salesperson who has ten existing clients, 35 potential new clients, and 38 clients that he has never met but are on his list. The sales and marketing costs form 48 per cent of the annual revenues; this includes branch rentals, conferences, sales training, salesforce compensation, cell phone bills, and advertising. The salespeople also get a formal feedback from the clients on a feedback form. In the last quarter of 2004, about ten per cent of the clients were placement agencies; they were providing about 60 per cent of the jobs on the naukri site and 30 per cent of the revenues. The placement agencies were also providing approximately 70 per cent of the interview calls from the RESDEX database. CONCLUSIONS In this new age world of technology, machines have made things easier and accessible in great degrees to people and everything is just a click away from you. Whether you need to buy things, or sell things; want any information or entertain yourself; connect to your friends or connect to the best employers around the world, you have everything available online. Finding jobs has also become easier in this tech savvy century, as you can simply make an account on one of these career based websites, and see the information about the best opportunities available in your fields. Some of the best job websites in India are, naukri, monster India, timesjobs, career India, clickjobs, shine, freshersworld, bixee and many others, and every other day these websites get resumes in a great number. But naukri and monsterindia, have gained the recognition to be the best websites in the country, helping out people to find the right job for them. Naukri and Monster India, record the maximum number of job seekers everyday, because of their wonderful and reliable services. According to their records, naukri has a database 8
9 of 6.5 million registered users, while monster India is also not far behind, and their company listings go as long as 20,000 in number. Some of the best features that these two websites use for their functioning are, jobs update on mobile numbers through which a job seeker can get instant information about his or her prospects. Through chats also they offer their services, and also through e mails, while they constantly ask you to update your account to get better prospects for you. The recession affected the recorded job applications by a few percentages, but still in comparison to other working websites they have retained their value and business in the world of professional job providers. Both the websites hunt jobs for you in areas as different as public or private sectors, marketing or teaching, defense or social work. You can look for the location you want, the country you want, and even pay package you want in case you are an experienced candidate, and the websites search the best possible options suitable for you, keeping your profile in mind. These websites work quite fast and efficiently, and they even offer you jobs in their own establishments if your profiles match to their requirements.alexa.com has recorded naukri s traffic rank to be 21 and monster s to be 58, according to their recent professional graphs. They compete against each other and come up with advanced methods to find jobs for the applicants, but they provide complete satisfaction to the job seekers and above everything, make job hunting an easier task for them, which otherwise could have been a very troublesome thing to do. This makes the two giants the best preference as first and second in the recruitment market in India. Times Jobs is always an option for an extremely low budget suite with lack of quality and quantity of cvs they provide but fill the need for agencies like BPOs that need a mass hiring of people that are able to converse over the phone. 9
10 RECOMMENDATIONS What are the key messages from the research? In examining the findings, the key message for recruiters is to acknowledge that the adoption of e-recruitment is about more than just technology. It is about the recruitment system being able to attract the right candidate, the selection process being based on sound and credible criteria, and the tracking process being able to integrate with existing systems. Perhaps most significantly, e-recruitment is about cultural and behavioral change, both within HR and at line management level. From our evidence, we suggest that for e-recruitment to deliver, it is about developing the capability of HR to facilitate the system and to view the staffing process as an end-to-end process, similar to that of a supply-chain. What Job portals like Naukri and Monster should focus on is to create a means to build this supply chain into a network that is able to aid it when the need arises. The evolution of social media has forced these portals to engage themselves on these platforms and be able to integrate the efficiency of its services by means of the audiences that social media is able to generate. Bridging the gap between the uses of social media to recruit and using the portals to recruit will bring these portals in light of a better networking standpoint and they will be able to close more positions with higher accuracy and lesser attrition. 10
11 BIBLIOGRAPHY Books: Successful Talent Strategies: Achieving Superior Business Results Through Market- Focused Staffing- David Sears Competency-Based Recruitment and Selection- Robert Wood, Tim Payne 11
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