By Jez Styles
You might have missed it but LinkedIn’s share price collapsed after their latest financial statement.
LinkedIn has been under increasing pressure to increase its revenue streams and, with a slow down in growth to 20% in the fourth quarter from 56% in the equivalent period last year, many analysts are predicting this slowdown to continue with predictions of just 10% in 2018.
At the heart of this slow down in growth has been LinkedIn’s over reliance on its ‘talent solutions’ which makes up 63% of net revenue. LinkedIn has attempted to differentiate its ‘adverts’ proposition from the standard job boards and through the acquisition of several firms including Fliptop. Late last year LinkedIn updated its job advert page for premium subscribers to provide further information for prospective candidates on employers. Read more here:
Sounds great right?
What happens when the analytics don’t look quite so rosy? And let’s face it, not every company on LinkedIn is in hyper growth.
Indeed I happened upon the following advert recently.
***Looks like an interesting position doesn’t it? I might even apply myself…
Hang on, let’s just look at those lovely graphs and charts before I do though…
It seems that headcount has dropped by 18%, so 1 in 5 employees have left in the last 2 years. Hmmm that doesn’t look good for job security does it? Average tenure is 3 years?
Well maybe the salary and package will assuage my concerns…
Well, there are no details about salary and package and LinkedIn tells me that these roles typically pay anywhere from £30 to £59k…which is pretty broad by anyone’s standards.
I might just pass on this occasion.
And herein lies the rub. The more LinkedIn tries to differentiate and provide more information the more they will expose the ugly truth of recruitment.
Not every company is Google or Facebook.
Dry analytics will make some businesses look great, a lot very average and many quite unattractive. They don’t tell you about the culture, the people and what it’s like to work for the company.
Which means that fewer, not more, companies will invest in LinkedIn’s talent solutions. Which means prices will go up and features will go down on our subscriptions. This means further disenchantment with LinkedIn. And if you want to see the numbers behind what I suspect is a growing trend in user disenchantment – click here!
***Apologies to the guys at Hotel Chocolat for flagging this, I really like their stores and I’m not entirely convinced these analytics are a fair reflection of their employer credentials. Hopefully this post might lead to a few more, not less, applications!