Big changes coming in 2023, according to the popular Austin, TX job board, Indeed! Known for its previous pay-per-click job board model, Indeed is now going full throttle into the pay-per-application direction. Now, I know this may come as a surprise to some, and a major headache to others (cue intense eye roll), but let’s break down what this model means, the benefits of this model, and how it will affect the job board and employers in the near future. 

According to Indeed’s Employer Help Center, “Cost per application is a pricing model offered by Indeed to employers which enables you to only pay for quality applications, so you can make hires faster.” As an employer, you may be asking the very important question: How does this benefit me when I post a job? Indeed’s Executive Vice President and General Manager for enterprise, Maggie Hulce, breaks it down in layman’s terms during an Indeed FutureWorks conference in New York City. 

“The main advantage of a pay-per-application model over a pay-per-click model is the reduction of unqualified, uninterested and even fraudulent “clicks” that the employer pays for. With the new model, the employer pays only for what is truly wanted—a qualified candidate.” 

Hulce continues her Keynote with the derivative behind the model change, “Indeed’s mission is to help people get jobs, and one of our values in support of our mission is pay for performance… we are transitioning from a model of pay-per-click to pay-per-started-application and pay-per-application, both steps getting employers closer to the hire.” Only time will tell if this will truly be beneficial to employers, or add to the “bottom line” for Indeed.

Now for the details… How does this affect employers? Hulce explains, 

“Employers will pay more for this upgraded experience, as the value of a legitimate candidate is higher than that of lots of unidentified clicks, but in the long run, pay-per-application will save employers money, as recruiters can zero in on more quality candidates faster… Pricing will be determined by labor market conditions for the job, including job location, job title and available job seekers in the market. If the market is less competitive at the time of the posting, the cost-per-application may go down, but if the market is more competitive, cost-per-application may increase.” 

To ensure the results of this model are in favor of what employers are seeking, Indeed integrated “guardrails” to promote the results employers want, removing the fluff from the job posting and recruiting experience. Employers are encouraged to create and include “deal breaker” questions, or must-have requirements to ensure the best candidates are being moved forward. Not finding the ideal candidate? No problem! Indeed will not charge employers if their current candidate pool does not align with the given requirements and deal breakers. Essentially, Indeed will reset the candidate pool to showcase more qualified candidates in alignment with the employers requirements.

To complement the price model update, and improve the job seeker’s experience, Indeed also created new features that would make it an “all-in-one” hiring platform. To start, Indeed embedded a “Quick Apply” button on their job listings, which integrates with over 300 different applicant tracking systems (ATS). Candidates are also able to take assessments, respond and confirm interview outreach directly to employers from the Indeed dashboard. These new features are brought to candidates by candidate-centered, direct feedback!

Hulce concludes her Keynote mentioning additional features such as screening and interviewing capabilities, new features like text, email and phone call interview reminders sent directly through Indeed to your candidate pool, and Indeed’s direct email campaign, notifying candidates of open positions that align with their preferences. 

Indeed has a list of innovative changes to improve the employer and applicant experience, coming your way in 2023. Need assistance walking through these changes? Clarity can help!!

We are on the journey with YOU.

Written by: Stephanie Calhoun

December 8, 2022

Sources

1. https://indeed.force.com/employerSupport1/s/article/What-is-cost-per-application-pricing?language=en
2. https://www.shrm.org/resourcesandtools/hr-topics/talent-acquisition/pages/indeed-shifts-pricing-to-pay-per-application.aspx