Even though Monster has been profitable for 12 consecutive quarters, CEO Jeff Taylor must tackle several big challenges to maintain his lead in the online recruiting market.
Monster.com is the gorilla of online recruitment, but there are 35,000 other such sites, some specializing in specific industries and locations. HotJobs (HOTJ), its closest competitor, issued a Pepsi/Coca-Cola challenge to Monster to see which job board is more effective, but Monster declined.
The Slowing Economy
Companies are expected to become more selective in their hiring and more price-sensitive. Since a job posting costs $300 on Monster, vs. $100 on many niche boards, corporations may take their business elsewhere.
Customers complain that too many other companies have access to Monster's 10 million r?sum?s. And TMP (TMPW), Monster's parent company, has been buying staffing companies, prompting clients to worry that TMP firms may get early access to new r?sum?s.
Companies realize they need much more than job and r?sum? listings. They want their online recruiters to sort through r?sum?s and track applicants through the hiring process.