2016 Mid-year Predictions By David Brensilber – The FireBrick Group

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I know that most people make yearly predictions in December and January but I thought that in might be more fun to make some mid-year predictions. So here they are:

1. One or more foreign job boards will approach and made a bid for Monster. A deal will not be consummated in the near term. Monster will claim that that price offered will be too low. There are several international players in the recruitment space that have the resources and desire to enter the US market in a big fashion. Monster is an obvious choice especially with it trading a low multiple to revenue. Monster offers a potential acquirer many benefits starting with the size of its operations, valuable brand name and relationships with employers.

Unfortunately, no deal will happen now based upon where the stock is trading and the alleged upside to the stock.

2. With the departure of Simply Hired from the aggregator scene, Jobs2Careers will move into the Avis spot of being the number 2 player. They will see their stock rise as a result of their better matching than their competitors. To achieve this elevation, they will need to maintain their focus and avoid distractions that are impacting their competitors. I predict that Jobs2Careers will supplant ZipRecruiter due to ZipRecruiter’s focus on selling directly to employers and other distractions.

3. Snagajob will face an ever increasing number of competitors in their hourly and part time space. As we continue the movement towards the gig economy, more and more companies will focus their efforts in this space. The winning strategy has yet to be written especially in light of the changing demographics of the people in the gig economy.

4. Britain will hold a referendum on June 23 on whether the country will leave the European Union, a process often referred to as Brexit. The current polls have those in favor of leaving ahead by 10 percentage points. My prediction is that the vote will end up with the UK staying in the European Union. As we approach the voting date, people will be concerned with the potential financial impact and choose to remain for the known as opposed to the unknown.

5. The economy will continue its slowdown while avoiding a major crash. As it continues, more companies will become cautious in their hiring actions. The market will change from being tilted in favor of jobseekers to one in favor of employers. This changing nature will slow down the adoption of more jobseeker friendly actions like employer branding efforts and more efficient and streamline applications processes.

David Brensilber
FireBrick Group
david at firebrickgroup.com

2 thoughts on “2016 Mid-year Predictions By David Brensilber – The FireBrick Group

  • David,
    I don’t know much about prediction number 4, but agree:
    1. Someone is going to start sniffing around with Monster’s stock deteriorating. While they have a large presence, the internal culture of “Monster is #1” will be a liability. I’d also suspect that the internal numbers are actually worse then is being reported because Monster is booking contracts, and many of those contract values continue to erode as competition increases.
    2. I completely agree with Jobs2Careers in the 2nd position. I’d actually suggest that they already are #2. They’ve got an “A Team”, organic and financially profitable platform, and lots of room to grow… especially if they start picking up SimplyHired’s former partner network of sites.
    3. SnagaJob will see competition, however, they now have a war chest to acquire technology startups that are getting traction. They too, have an excellent team, so they will be fun to watch.
    5. Interest rates have to go up, so cheap money will go away too.

    Great predictions.
    JD

  • These predictions are coming at the right time when Jobboard industry is seeing a surge of investments and rise of technologies in automation sphere. We’ve seen many small players consolidating their offerings with major players in the job market .

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