Indeed is one of the most visited job sites on the internet today. The site considers itself the number one job board in the world, which receives over 300 million visitors monthly. The site’s primary objective is to connect hundreds of job seekers to new opportunities.
The site puts job seekers’ needs first by giving them free access to jobs and allowing them to post resumes and research companies. Indeed became popular on the web years ago, thanks to its minimalistic design and friendly interface.
It has also attracted businesses for its reasonable pricing and unparalleled reach. Companies find Indeed as an excellent tool for finding suitable candidates.
Indeed is well-built for job seekers and employers.
You can quickly post a job to Indeed for free. However, you need to sponsor your job postings to reach a bigger audience.
The job listings are easy to navigate, and with the one-click apply option, you can submit many applications at a time.
Indeed Background
Indeed is an American-based employment site for finding job listings. The site is a subsidiary of the Japan-based recruitment company, Recruit.Co.Ltd with co-headquarters in Austin, Texas and Stamford, Connecticut, among other offices worldwide.
Paul Forster and Rony Kahan co-founded Indeed in 2004. Indeed’s business idea came from a problem that Foster observed when working with IFC in Washington.
He found that his employers struggled to find suitable candidates for the job. Realizing that no job site specifically targeted finance experts, Foster reached out to Rony Kahan, his then-friend, to launch Jobsinthemoney.com.
The site grew significantly to become one of the world’s largest job sites for finance professionals.
In 2003, Paul Forster and Rony Kahan sold Jobsinthemoney.com to a British job website called eFinancialCareers.com.
The two returned to the drawing board to assess other opportunities, especially after noticing the pay-per-click model that had assisted Google to go public in 2004.
With the Pay-per-click model in mind, they launched Indeed, one of the most significant job listings search engines. Indeed has similar functionalities to Google, where it scrapes content from countless websites and lists information to suit any job seeker’s query.
Indeed became an overnight success. In five years, it already earned the title of the most visited job site in the US. Indeed was an instant hit, but the only funding it received was a $5 million grant from Union Square Ventures in 2005.
Indeed’s success led to its acquisition by a Japanese conglomerate Recruit Co., which paid $1 billion to acquire 100% of the company stake. Rony Kahan, the then CEO, resigned as Hisayuki Idekoba immediately took over, though he later stepped down in 2019.
Today Indeed is led by Chris Hyams, who is serving as the CEO. It has more than 10,000 employees spread around 20 global offices.
Outside the US, Indeed established offices in Amsterdam, London, Dublin, Dusseldorf, Paris, Hyderabad, Tokyo, Sydney, Toronto, and Zurich. Indeed is also available in 28 languages.
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Indeed Business Model: How Does it Make Money?
As a free website that connects job seekers to recruiters across the globe, the question of how it makes money is expected.
As mentioned earlier, Indeed uses the pay-per-click business model. The platform also makes its revenue from four additional sources:
1. Targeted job advertising
Posting jobs on Indeed is free. It is easy for an individual listing to get lost in the pool, so the platform introduced privileged listings. A business pays for the vacant positions to be more discoverable through Targeted job advertising.
The Indeed algorithm places targeted ads on its various spots, specifically on a mobile homepage, the view jobs page, or recommended job page. Indeed allows you to determine specific parameters affecting how, when, and where your ad should appear.
The site does not share prices for placing the ads publicly. So, the amount you will pay is highly likely affected by your target spot for the ad, targeted location, or the ad duration.
2. Sponsored listing
While the platform allows recruiters to post jobs for free, you can purchase sponsored job postings next to the search results tab.
Sponsored listings are funded by Indeed’s Pay-Per-Click budget to allow businesses to reach more candidates through specific keywords.
Sponsored listings give employers more visibility. The amount you will pay for a sponsored listing depends on the popularity of the keywords you use. But you can run a sponsored job ad for as low as $5 per day, with no upper limit on how much you should spend.
3. Resume search subscription
Indeed allows job seekers to upload their resumes to be recognized by potential employers. The Resume search subscription gives employers access to Indeed’s pool of job applicants.
Employers can quickly scan multiple applications through this subscription to find what fits their requirements.
A standard resume search subscription for a few hires, say 30, will cost you $100 monthly. But if you operate a large corporation that requires more hires, then Indeed will charge you about $250 for 100 contacts, with additional tools such as bulk messaging and analytics.
4. Branded company pages
You can use Indeed’s Branded company pages to promote your work culture and attract more candidates. Today’s candidates are more interested in joining a company that allows them to feel valued, respected, engaged, and fulfilled.
If you already have an account with Indeed and have posted a job before, you can claim a branded company page tied to your account. Edit and customize your page to start building a brand for your company.
Once you have an active page, you can promote your page to reach a specific set of candidates. There is no particular amount for boosting your branded company pages, as Indeed allows you to set a budget that works for you.
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Indeed Revenue
Indeed’s revenue is shared as part of its Japanese shareholder, Recruit.Co.Ltd. Recruit classifies Indeed as the HR technology division, which gathered total revenues of $2.97 billion in the fiscal year 2018.
In 2019, the Annual Report stated that Indeed’s combined earnings for the year amounted to 2,310.7 billion Yen with a year-to-year growth rate of 6.3%.
According to Zippia, Indeed generates a total of $890.0 Million in revenue per year. The company has a total of 12,7674 employees, and the revenue per employee ratio is $70,222. $890.0 Million was Indeed’s peak revenue in 2022.
From the above figures, Zippia established that Indeed makes $2.4 million daily, which translates to $74.2 Million per month.
While the amount of revenue created in the 2022 fiscal year seems large in our eyes, Indeed CEO refuted the big news saying that the profits were just numbers and that the company is yet to come even close to its goal of simplifying the recruitment process.
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Indeed Expenses
The company’s fixed expenses include employee salaries, website and database hosting, and maintenance. The expenses cost the company over 300 billion Yen yearly.
For instance, in the 2018/2019 financial year, the company incurred a cost of 374 billion Yen, including all expenses of maintaining sister websites and employees.
Following the COVID-19 pandemic, the company has since recorded such expenses as employee salaries as overwhelming. The company has announced its plans to downscale its employees by 2,200 (15%) of its total workforce.
According to Indeed CEO Chris Hyams, who also stated that he would be taking a 25% salary cut, noted that the company was too significant, bearing in mind that most companies are rationalizing their labor force.
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Indeed now joins the Corporate American companies, which have been laying off their staff fast following the current financial crisis.
For over a decade, America had not experienced a financial crisis, which triggered central banks to hike rates aggressively. Indeed revenue is projected to decline in the fiscal year 2023/2024, and according to Hyams, job openings might fall in the next two to three years.
The announcement, which was made in March 2023, also stated that the company would pay off affected employees their January through March salaries, bonuses, accrued leave days, and access to mental health services.
Indeed User Statistics
Image: SimilarWeb
Indeed generated profit immediately after its launch in 2004. By the time it earned the title of the most visited site in the US, it had generated nearly 170 million page views per month.
According to SimilarWeb, the Indeed website ranks at number 42 worldwide, number 26 in the United States, and the overall number one website in the jobs, career, and employment category in the United States.
Indeed has recorded 612.2 million website visits, with an average of 6:29 minutes spent on the site. The site is more prevalent in the United States, which makes up 43.53% of users.
Other countries are Canada at 8.9%, the United Kingdom at 8.72%, France at 3.82%, India at 3.63%, and the rest at 31.36%.
Indeed’s audience is 57.78% male and 48.22% female. The largest age group for Indeed desktop users is between 25 to 34 years.
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Indeed Competitors
1. ZipRecruiter
ZipRecruiter is one of the leading job sites created for making meaningful connections between candidates and recruiters.
The Santa Monica, California-based employment marketplace started as a platform to help startup businesses find the right employees and has since grown to become a leading marketplace connecting millions of job seekers with companies of all sizes.
ZipRecruiter app is a leading app on Android and iOS with a cumulative over 110 million users. Over 2.8 million businesses have used the platform, and many hail it for its sophisticated AI technology, making matching easier and seamless.
ZipRecruiter doesn’t charge job seekers for their services. It also allows recruiters to create accounts and post jobs for free. It has paid plans for targeted job advertising for businesses of all sizes. The plans go for $299 per month.
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2. CareerBuilder
CareerBuilder is another excellent alternative to Indeed that was created to guide candidates through their journey to success. The platform uses data-driven technology and personalized tools to match candidates with employers based on their needs, wants, and skill sets.
For over 20 years, CareerBuilder has helped thousands of employers get suitable candidates. The platform claims to be an expert in helping small and big businesses find, hire, and manage talent. It is also intentional in bridging the skills gap.
CareerBuilder partnered with Capella Learning Solutions to equip candidates with the right skills for their demanding careers. It is headquartered in Chicago, with other global hubs in Atlanta, London, and Shanghai, China.
The platform boasts over 90 million qualified users. It does not charge for posting a job but has paid plans to help recruiters narrow down to specific candidates. The plans include a one-time payment of $425 to access a maximum of 35 candidates.
Other plans include CareerBuilder Lite for $349 per month for 35 candidates, a Standard plan for $449 per month for 100 candidates, and Pro Plan for $749 for 150 candidates.
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3. Handshake Talent Engagement Suite
Handshake is an excellent platform for connecting candidates to unique opportunities like Indeed.
The platform is slightly different in its functionality as it primarily focuses on connecting over 12 million students and alumni from America’s top educational institutions to top-tier career opportunities. It has helped candidates of all kinds find the right jobs.
Experience is optional for you to apply for a job on this platform, and many students have grown to love Handshake Talent Engagement Site, for it allows them to have a one-on-one conversation with employers.
It is available on Google PlayStore and AppStore so students can access opportunities through their mobile devices.
You can post a job on Handshake for free, but if you wish to recruit at scale with enhanced branding, events check-in, campaigns, and analytics, you can subscribe to its premium version.
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4. TestGorilla
TestGorilla functions differently compared to Indeed. It is more of an assessment tool for screening candidates to make hiring easier for recruiters.
The platform uses multiple test types, including cognitive ability, software skills, programming, language, culture fit, and personality tests, to give the best value.
Like Indeed, TestGorilla helps recruiters screen and identify top candidates to make a bias-free hiring decision.
Over 9,000 companies have replaced candidate CVs with TestGorillas, and the platform predicts that more and more companies will entirely resort to scientifically validated tests.
You can start testing your candidates for free on TestGorilla. The free plan allows you to assess an unlimited number of candidates, though the plan has a limited test library and fewer features.
However, if you wish to access more tests and more features, consider subscribing to its paid plans starting at £22 per month.
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5. Hired
Lastly, we have Hired as an alternative to Indeed. Hired is a two-sided job marketplace created for engineers, designers, data scientists, and product managers looking for genuine job opportunities.
Hired claims to have the most effective and efficient way to fill tech and sales roles in the market. It works with over 10,000 companies worldwide, providing them with unbiased insights, skill assessment, and dedicated tools.
Additionally, it helps recruiters save up to 45% of the time of sourcing per role with outstanding data, curated matches, and higher acceptance rates.
Instead of the traditional way of candidates applying to recruiters for interviews, Hired lets companies view Candidates.
Create a profile as a candidate with background information featuring skills and career aspirations. Hired then promotes candidates’ profiles to companies for two weeks, who later request an interview whenever they spot a perfect fit.
It’s possible for a candidate to get multiple interview requests. It’s up to them to compare these requests based on their career goals and aspirations, then settle for a company that they feel will fit their interests. Hired also helps candidates prepare and ace those interviews.
Hired has plans for recruiters regardless of company size or hiring needs. The Pay Per Hire plan is perfect for teams that need flexibility, while the unlimited Hiring Plan suits teams looking for predictability.
The Unlimited Plan is a fixed annual fee with unlimited hiring and premium customer support.
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Final Thoughts: Is Indeed Worth it?
As a recruiter, whether Indeed is suitable for your business depends on the type of business and your hiring budget. Indeed is an excellent recruitment partner but not a perfect choice for executive roles.
It is essential to research the specific location of your target candidates and the positions you wish to fill before posting a job on Indeed.
If you are paying for a job posting, you’ll want to ensure that Indeed pulls the suitable candidates for you, so have the correct information from the word go.
As you can see, Indeed is also a worthy partner for job seekers. The site has relevant job seekers resources and partnered with Glassdoor, a sister company, to help candidates find as many job postings as possible.
