Revenue from resumes: could an online career center really ease the revenue challenges associations face?

PROGRAMS THAT SIMULTANEOUSLY satisfy members, attract prospects, require little staff time, and generate profit are rare, but online career centers are proving to be one. Whether built from scratch or converted from manual job banks, an online career center can be a significant source of nondues revenue.

Take the Association for Investment Management and Research (AIMR), Charlottesville, Virginia, as an example. "For a number of years, JobLine was a paper-based service," explains Charles "Chip" Deale, CAE, vice president of member and candidate services. "Employers mailed or faxed job postings. Staff entered the information into a database and then posted the job on a static Web page. Members viewed a static list online and mailed or faxed their resumes [to AIMR]." When staff received resumes, they photocopied and mailed them to employers. The service was free to members and employers. "It was popular, but an untimely, laborintensive, and unprofitable endeavor for the organization," says Deale.

With Boxwood's help, AIMR converted JobLine to an online database in 2000, netting tremendous gains in efficiency and effectiveness and adding self-service functionality, including searchable job and resume postings. A $150 fee for employers to post job openings makes the service profitable for the organization and keeps the service Free for members.

Today, more than 24,500 AIMR members world wide--40 percent of the total membership--are registered users on JobLine. More than 2,300 employers are also registered, with 75 percent being repeat purchasers. Averaging more than 140 new job postings every month, JobLine generates $21,000 in monthly revenue, a little more than $200,000 per year after maintenance costs. "JobLine is now the second most visited area of our Web site, second only to our Chartered Financial Analyst certification program," says Deale. "Considering it's a down economy and more companies are downsizing than hiring, that's fairly impressive."

Niche versus national

Why are hiring managers combing niche Web sites, including association career centers, to locate candidates? Despite a sluggish economy and a seemingly weak job market, many employers still struggle to find qualified workers. Monster.com, one of the most recognized brands in national job boards, consistently lists more than 800,000 available jobs. In 2002 the U.S. Department of Labor estimated 151 million jobs were open for a workforce of only 141 million--a challenge for hiring managers charged with producing sufficient return on investment for recruitment dollars.

According to the "2002 Cost-per-Hire Staffing Metrics Survey" conducted by the Society for Human Resource Management, Alexandria, Virginia, and its professional emphasis group the Employment Management Association, the cost-per-hire averages $6,943 for exempt positions and $2,546 for nonexempt positions. With numbers like this, it's no wonder that hiring managers are turning to niche association career centers for focused, cost-effective access to targeted talent pools.

The "Impact of the Internet on Source Hires Study"--conducted in 2002 by MMC Group, Kendall Park, New Jersey--states: "Employee referrals and Internet sources of hires combined now account for more than half of all external hires." The study also reported that niche job sites alone accounted for 22.7 percent of all hires sourced via the Internet--more than monster.com, careerbuilder.com, and hotjobs.com combined.

Size versus scope

When considering an online career center for your membership, size matters, but scope is equally important. Interestingly, a narrow market niche can not only be profitable but also set the stage for an association to claim a market leadership position--like the American Association of Blood Banks (AABB), Bethesda, Maryland, did.

In 2001 print and online job listings produced a good revenue stream with limited promotion for the 10,000-memher, 76-staff association. But day-to-day management of the service consumed too many staff hours and accounts receivables often turned into bad debt.

Initially unsure of the viability of an online career center, AABB staff analyzed what they knew about their members and the blood banking industry. "Our audience tends to be broad in terms of education and technical skills, from technicians with a high school degree all the way up to physicians with multiple degrees. But the industry itself is a very specific niche," explains Michelle Zinnert, AABB marketing director. "We also knew that younger people are not entering these professions as readily, so the demand for qualified professionals is very high." Another characteristic of the AABB target audience is their willingness to relocate. "These professionals are highly transient. They have no problem moving from one coast to the other for a blood banking position," Zinnert adds.

A scan of related industry organizations revealed AABB would be the first organization in the blood banking industry to offer an online career center. "We projected the service would not only be a good perk for members but also an opportunity to lead the market in providing a worthwhile service for the blood banking community at large," says Zinnert. The online career center, branded CareerLink, increases the value of membership to members and prospects. "Most members pay for dues out of their pockets," Zinnert states. "This product enhances the perceived value of the organization because it's one more tangible way we help people advance their careers."

In its first nine months, AABB CareerLink netted $13,000. "We're giving members a service they value that's not available anywhere else. It's difficult to find something like that," says Zinnert. "And for the first time we also achieved our revenue goals for the Web site."

Zinnert also chose to outsource the IT function along with customer service and billing to Boxwood, and retained control of the AABB and CareerLink brands. "That frees up more staff time, and we're no longer chasing bad debt," explains Zinnert. "Plus while CareerLink Web pages reside on an outside server, the look and feel match the rest of our Web site, and back-end functionality is seamless to the Web visitor."

Online career centers are an often underestimated and overlooked member service that can enable associations to strengthen their value proposition, improve service to existing members, and generate a steady stream of nondues revenue. Given the projected employment trends (see sidebar, "Hot Career Center Niches"), it makes sense for associations to explore this market opportunity, which has proven successful in any economic situation.

RELATED ARTICLE: Hot Career Center Niches

The U.S. Bureau of Labor Statistics anticipates the largest projected growth in the following 16 occupations between now and 2010. Associations serving professionals in these markets are likely to benefit from an online career center:

* accountants and auditors;

* auto mechanics;

* computer software engineers;

* computer support specialists;

* electricians;

* engineers;

* health therapists;

* lawyers;

* marketing and sales managers;

* police and sheriff's officers;

* recreation and fitness workers;

* registered nurses;

* sales representatives;

* social workers;

* teachers (K-12); and

* truck drivers.

Christine Smith is president of Boxwood Technology, Inc., which provides online career center technology to associations. E-mail: [e-mail]. Boxwood is an ASAE-sponsored program partner.