Internet job search narrows

By ADAM GIFFORD

Number two jobsite nzjobs.co.nz has been sold to its market leader, Seek, marking the end of what started as a dotcom defence strategy by recruitment ad specialist Haines New Zealand.

Haines was formed in late 1997 through a management buyout of the recruitment advertising division of Charles Haines Advertising, and launched nzjobs.co.nz in early 1998.

Chairman David Wilson said they were "interesting times".

"A lot of people were saying recruitment ads in print would die or fall back, and what would win would be the online players. As it transpired, there is room for both," he said.

"It was a similar story to the threat radio faced with the advent of television. Everyone said there would be problems for radio, but in fact it found other ways to do business."

Wilson said that after six years of profitable operation, the offer from Seek got Haines' directors thinking.

"Our question was whether we need to own a jobsite to participate in the medium. Ultimately, we don't think we need to have direct ownership to have a role." .

He said there were "goals Haines wants to kick".

"The prospects for the Haines' side of the business are strong. Obviously the employment market is linked to the fortunes of the economy, so right now business is good.

"Other factors like immigration and demographics play a role. In 2006 the baby- boomers start retiring, so there will be a declining talent pool for jobs, so we see Haines having a role to play helping customers spot talent, getting the right message to the right candidates in the right media nationally or internationally."

Already about 10 per cent of Haines advertisements are placed overseas.

The company works mainly for large employers or for recruitment firms who want the specialist experience it can offer preparing and placing ads.

Wilson said the sale should have little impact on staff, although some could shift to Seek. Haines runs a hybrid model, with staff selling for both print and online placement.

When the two sites merge on May 1, Seek.co.nz will carry about 6500 current job ads and attract 190,000 jobseekers a month.

General manager Jude Manuel said that represents an increase of about 25 per cent in traffic for Seek customers and a 150 per cent increase in traffic on what nzjobs.co.nz is at present enjoying.

Seek has already enjoyed 227 per cent annual growth over the past three years, taking a dominant number one position.

Its success was one of the factors in seeing off United States-based competitor Monster WorldWide, which quit the Australasian market last year after years of losses.

"The New Zealand market is very New Zealand-centric, which is probably why we are successful," Manuel said.

There had been a migration of jobseekers online, especially younger people who have grown up with computers and the internet and are now joining the workforce, she said.

Seek launched in New Zealand in 1999 as a subsidiary of an Australian pure internet play set up by brothers Paul and Andrew Bassat and Matthew Rockman.

After three years of losses totalling $1.7 million, in the year to last June 30 Seek New Zealand made a $14,000 profit on revenue of $1.9 million. It is able to share systems and infrastructure with Seek Australia, cutting down expenses. Last year it paid the parent about $75,000 for website expenses and $268,000 for accounting and administrative help.

Across the Tasman, Seek also made its first profit last year. The previous year it lost A$1.4 million ($1.6 million) on revenue of $17.3 million.

In August, Kerry Packer's Publishing & Broadcasting bought 25 per cent of Seek for A$33 million ($37 million) after ditching its relationship with Monster. The Bassats own 21 per cent and the Rockman family 11.6 per cent. Other shareholders include Yahoo!, Macquarie Technology Fund and Australasian Media & Communications Fund. Seek Australia's biggest competitors are the Fairfax MyCareer service and News Limited's CareerOne.

In New Zealand, remaining competitors are the New Zealand Herald's online jobs service, the Jobstuff service offered by the Fairfax-owned newspapers, and Netcheck, which is associated with The Radio Network.