Monster deal logical move for Randstad

Randstad’s acquisition of careers site Monster is a “logical” step for the recruitment giant as innovation in industry technology forces recruiters to reassess how they offer their services, an industry analyst has said.
Thu, 25 August 2016 | By Graham Simons

FROM SEPTEMBER'S RECRUITER MAGAZINE

Randstad’s acquisition of careers site Monster is a “logical” step for the recruitment giant as innovation in industry technology forces recruiters to reassess how they offer their services, an industry analyst has said.

So says recruitment industry analyst and adviser and former Jobsite group marketing director Felix Wetzel, commenting on Randstad’s 9 August announcement that it is to buy global job site Monster Worldwide in a deal worth $429m (£330.6m).

According to Wetzel, the Monster acquisition makes sense as recruitment agencies are coming under increasing pressure from traditional job boards and new players offering recruitment services.

“They use technology to scale and offer lower rates,” Wetzel told Recruiter. “Their CV databases are ready-made and permanently refreshing talent pools. Randstad buying Monster, therefore, is a logical step.

“Randstad becomes self-sufficient in terms of candidate attraction and more advanced in terms of technology. Combining Monster’s B2C [business-to-consumer] and Randstad’s B2B [business-to-business] focus and mindset creates an entity that is better placed to compete with the up and coming disruptions and threats from companies such as Indeed and Coople,” he added.

Meanwhile, Joe Slavin, managing director and ‘Chief Monster’ of Monster from 2002 to 2005, a key period of its iconic heyday, told Recruiter on the day of Randstad’s announcement, the deal is also great news for Monster.

“I think ever since the banking crisis [started in 2008] Monster has had a hard time of it.
I think a change in ownership will be of benefit. There’s going to be a new set of hands, a new set of eyes looking at things,” said Slavin.

“The world is changing and maybe this will be the catalyst for change for Monster because the share price has been battered for quite a while.”

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