Internet overtakes all traditional hiring sources including newspaper classified ads which now only account for 5% of new hires

Indianapolis, IN, February 9, 2006 – Today DirectEmployers Association, a non-profit consortium of over 200 leading U.S. employers and operator of the JobCentral employment search engine, released the results of an in-depth industry study, conducted on its behalf by strategic management and technology consulting firm Booz Allen Hamilton, that shows the Internet is now the primary hiring source for employers.
The study of hiring practices at leading U.S. companies revealed that Internet sources produced 51% of all hires in 2005 with the largest source of hires being the employers’ own corporate web sites, while newspaper classified advertisements were the source of only 5% of the new hires.
According to the study, individual percentages of new hires for each Internet source are: Corporate Employment Web Sites: 21%; General Job Boards: 15%; Niche Job Boards: 6%; Social Network Web Sites: 5%; and Commercial Resume Databases: 4%.
Employers reported that they find the highest quality candidates and receive the highest return on their investment from their own corporate web sites and from employee referrals. Financially, while General Job Boards represent the highest recruitment spending category for corporations, capturing 27% of the recruiting advertising budget, employers in this study reported that such Boards generated only 15% of new hires in 2005.
In addition, as the economy heats up in 2006, employers report they will significantly increase employment related spending in the following key areas: Corporate Employment Web Sites: 74%; Employee Referrals: 68%; and Social Networking Technology: 60%.
According to Dr. Rich Cober, the Booz Allen Hamilton team lead, this research report “provides clear evidence that the Internet has transformed the way American employers attract and hire employees. As we look at 2006, employers are giving serious thought to how the Internet can be better used for driving applicant flow. In light of recent regulatory changes, including the new definition of an ‘Internet Applicant’, employer efforts to focus applicant flow and provide clear direction on how individuals should express interest in jobs is timely. Responses indicated that employers anticipate directing a greater proportion of applicants through their own corporate web sites rather than any other online source in the year to come,” said Dr. Cober.
About DirectEmployers Association:
DirectEmployers Association is a nonprofit consortium of leading U.S. employers dedicated to developing and implementing Internet recruiting solutions which acknowledges, values, and respects diversity and reflects the rich array of cultures represented in our nation’s workforce. The Association is managed by Bill Warren, widely recognized as the founder of online recruiting and a former president of The Association created and maintains, the Internet’s only cooperative, employer-owned search engine dedicated exclusively to employment. It’s member companies include an impressive group of over 200 industry leaders such as Abbott Laboratories, Accenture, Allegis Group, Analysts International, ALLTEL Corporation, Ashland, Bausch & Lomb, Bristol Myers Squibb, Capgemini, Cingular Wireless, GE, H&R Block, IBM, Kindred Healthcare, Lockheed Martin Corporation, Mellon Financial Corporation, National City Corporation, Pfizer, Progressive Insurance, Raytheon Company, Southern Company, Union Pacific, Volt Information Sciences, and Xerox Corporation. For more information, please visit
About Booz Allen Hamilton:
Booz Allen Hamilton has been at the forefront of management consulting for businesses and governments for over 90 years. Integrating the full range of consulting capabilities, Booz Allen is the one firm that helps clients solve their toughest problems, working by their side to help them achieve their missions. Booz Allen is committed to delivering results that endure.
With more than 17,000 employees on six continents, the firm generates annual sales over $3.5 billion. Booz Allen provides services in strategy, organization, operations, systems, and technology to the world’s leading corporations, government and other public agencies, emerging growth companies, and institutions.
To learn more about the firm, visit the Booz Allen Web site at To learn more about the best ideas in business, visit, the Web site for strategy+business, a quarterly journal sponsored by Booz Allen.
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