The Glassdoor Acquisition – How Will It Affect the Reviews of Your Company?

The Glassdoor Acquisition – How Will It Affect the Reviews of Your Company?

With Recruit Holdings acquiring Glassdoor, a lot will change in the recruiting industry. From access to candidates to the pricing of job postings, the acquisition is impacting recruiters in many areas. Find out how the Glassdoor acquisition may affect your company’s reviews.

Details of the Acquisition

Tokyo-based HR conglomerate Recruit Holdings purchased Glassdoor on May 8, 2018, for $1.2 billion cash. Subject to regulatory approval, the deal should close in September. Glassdoor allows users to anonymously share company reviews, CEO approval ratings, salary information, photos and more. Revenue is generated from employers sponsoring jobs and managing company profiles to promote their brand to candidates. Recruit Holdings owns Indeed, the world’s largest job search engine. The company plans to keep Glassdoor, the second-largest job site in the United States, a distinct and separate part of its HR technology business segment and Robert Hohman as CEO of Glassdoor. However, experts believe that Indeed and Glassdoor may consolidate in the future to stay competitive with online recruiting sites such as LinkedIn, Facebook Jobs and Google for Jobs.

Reasons for the Glassdoor Acquisition

Industry experts believe that Recruit Holdings acquired Glassdoor because Indeed lost Google’s organic job search traffic after the creation of Google for Jobs. Google sweeps the web for content from employers, applicant tracking systems and job boards such as Glassdoor, but not from Indeed. Recruit Holdings will own two of the biggest job sites and prevent Google or Microsoft, owner of LinkedIn, from controlling online recruiting.

Pricing Projections

Employers who rely on Indeed to find candidates were affected when they lost free traffic to Google. They ended up paying more for less, increasing costs of hiring and raising prices for customers. Because Glassdoor receives a substantial amount of traffic from Google, once Recruit Holdings acquires Glassdoor, Indeed again will be able to leverage that free traffic. However, Google may decide to stop indexing Glassdoor if they are viewed as competitors. As a result, Indeed customers may be able to purchase a discounted package that includes ads on Indeed and Glassdoor and a license to manage their brand on Glassdoor.

Potential Impact on Company Reviews

Because Indeed and Glassdoor make up the majority of company reviews, they almost have a monopoly on where companies go to manage their brand. A recent study from a social recruiting firm shows that almost all candidates seek at least one resource to evaluate an employer’s brand before applying for a role. Of those candidates, less than one-fourth would apply to a 1-star-rated company. Approximately one-third would apply to a 2-star company. Once Indeed and Glassdoor are under the same umbrella, rather than having employers potentially experience one rating on Indeed and another on Glassdoor, with different volumes and disparity in comments, Glassdoor and Indeed may offer a more harmonized and consolidated profile for companies.

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