Here’s Why Facebook Is Introducing Job Postings On Its Platform
Recently Facebook (NASDAQ:FB) confirmed that it is experimenting with recruiting features. The company is running a test for Page admins to create job postings and receive applications from candidates. This move comes after the company saw a large number of its business page owners using the social media network to post jobs and find candidates. While social recruiting is on the rise, and this feature – if rolled out on a broader scale – could compete with LinkedIn, we believe it is in line with Facebook’s efforts to make its platform a “go to” place for small businesses. There are more than 50 million business pages on Facebook, and these businesses are potential advertisers on its platform. Apart from promoting their products and making actual transactions on Facebook, in addition to using the messenger app for handling consumer queries, Facebook is looking at providing these businesses with a tool to advertise open positions and collect job applications. This initiative could increase engagement of small businesses on Facebook, and – once they are converted into advertisers – drive revenues for the company.
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Supporting Small Businesses, Leveraging The Social Recruiting Trend
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Facebook is looking to become a “one stop shop” for small businesses – empowering them to conduct several aspects of their business via their Facebook page. The “Shop Now” button, customer support options via messenger and now a feature to post jobs are aimed towards making the Facebook platform a critical feature for these businesses. Companies can also promote their job postings on News Feeds of the target audience, which could become another source of revenue for Facebook.
Social media is increasingly becoming the primary channel for recruiting, and nearly 92% companies are using social media for hiring. For smaller businesses, hiring within their network through a Facebook post or targeting a certain section of Facebook users through a promoted News Feed post can work well. By providing this option to business page owners, Facebook can make it even more attractive to have a Facebook page and eventually advertise on its platform. This could potentially impact LinkedIn negatively; however, the audiences for the two platforms could be different. LinkedIn is more focussed on larger enterprises, while Facebook’s job postings would likely be more aimed at small businesses. We believe that, more than competing with existing social recruiting sites such as LinkedIn, Facebook is looking to use this feature to engage small business owners on its platform and grow its advertising revenue in the long term.
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