Can We Talk About the “Uberization” of Recruitment?
21.11.2017
François Humblot, Managing Partner at Grant Alexander, shares his perspective on the evolution of the recruiter’s role in light of new digital hiring methods.
François Humblot:
In my previous talk at the Head Hunters Club in 2008, I concluded:
“The recruitment consulting market still has considerable growth potential but will face increased competition from temporary staffing companies—that was our main concern at the time.
Recruitment consultants must provide:
real added value,
greater imagination and creativity to build lasting relationships between client, candidate, and consultant.
Candidates and clients will become more sought-after and demanding; we will need to build stronger relationships with them. Three major evolutions were emerging in the profession:
probable consolidation of firms to withstand various crises (this hasn’t really happened),
specialization of firms for better sector expertise (this remains true),
opening recruitment to diverse candidate profiles, implying a change in mindset (this hasn’t really occurred).
Tomorrow, the recruitment consulting profession will continue to evolve.”
In today’s analysis, I will draw parallels with what happened to the taxi industry.
Why the threat of “Uberization” in recruitment is real and how it has begun
A bit of history:
Recruitment consulting firms emerged during the “Trente Glorieuses” (1945–1975) when companies needed to hire:
junior and experienced managers in volume,
high-quality executives.
At the time, companies had no HR departments or specialized recruitment expertise. To meet these needs, the following appeared:
job advertisements in the press to attract candidates,
employment communication agencies to advise on media, purchase ad space, and design announcements,
selection firms with psychologists to handle mass recruitment and candidate evaluation,
headhunters to find executives, as internal referrals in French companies had reached their limits.
From 1974, headhunting expanded to middle management. Firms had only two tools to reach candidates when press ads failed:
their contact networks and telephone calls in the evenings,
mailings based on alumni directories.
From 1995/2000 onwards:
With mobile phones and the Internet, job boards developed rapidly.
Cadremploi, initially on Minitel, moved online in 1997 and replaced major print platforms.
Press and employment communication agencies were disrupted: job boards killed print (90% of the market), and agencies lost their value-added services. Almost all disappeared except for ORC.
Recruitment firms adapted until 2000 because growth was strong. Mobile phones allowed constant candidate contact, and print ads were gradually replaced by job boards.
However, the 2001–2004 crisis changed everything:
Companies’ recruitment needs fell sharply,
Firms professionalized their HR functions and recruitment internally,
Companies used new tools and consultant expertise themselves,
Easy mandates were no longer outsourced; remaining assignments were all difficult, and fees dropped significantly.
Between 2004 and 2008, the market recovered:
Fees did not increase,
Competition remained intense,
Temporary staffing firms began entering the market.
The 2009–2013 crisis further impacted the sector.
Recent developments:
Social networks: LinkedIn became a key candidate search tool and database. Viadeo collapsed but may revive under FigaroClassified. Job boards such as Cadremploi and APEC have resisted competition by leveraging large CV databases and developing matching features.
New actors emerge daily:
recruitment platforms (Kudoz, Seeqle, Welcome to the Jungle, Y Border…),
online referral tools (Myjobcompany, Keycoopt.com…),
candidate-job matching tools (Qapa, Météojob),
specialized digital firms (Edgar People, Mobiskill).
Candidate assessment tools online have also emerged (AssessFirst, OPQ, WAVE, SOSIE…), and Skype allows remote interviews. In the future, AI and robots may partially replace interviews.
These new actors do not compete with the full range of traditional firms but can replace them partially in certain recruitment types. Some target niches and appeal to a new generation of clients. All these tools are highly accessible to both clients and candidates.
Why traditional firms have survived:
Most existing firms are resilient and have navigated multiple crises, adapting quickly.
They embraced new tools early (mobile, job boards, CV databases, social networks).
They automated processes and candidate databases.
They adopted online assessments and performance-based compensation.
They reduced costs and specialized consultants by sector/function.
AI and robots will come, but recruitment experts will remain essential for programming them.
Niche and specialized small firms remain competitive. Large multi-specialist firms expand. Both have access to low-cost technology and tools. Success depends on a strong reputation for quality—attractive to candidates, consultants, and clients.
Parallels with taxis and Uber:
Uber unified the market, offered lower prices, superior service (mobile app, GPS, in-car quality, online payment), and made traditional taxi training obsolete. Only large players with technology survived; solo operators were left behind.
Future prospects:
Even Uber faces limits: technology is easily copied, drivers are rebelling, and social image issues are emerging. Similarly, companies internalizing recruitment functions encounter limitations:
Large companies’ internal recruitment is costly and challenged by rapid technological change.
SMEs struggle to navigate new tools.
Big staffing and HR consulting groups have adjusted through specialized subsidiaries.
Some new platforms succeed in niches but are not easily scalable.
How traditional recruitment firms can continue to thrive:
Upstream advice: organization, job definition, market knowledge, candidate profile, legal guidance
Candidate evaluation: using new assessment tools effectively
Candidate coaching
Downstream advice: candidate selection, decision support, onboarding guidance
The most challenged area remains candidate sourcing. Success lies in:
Selecting the right tools
Maintaining strong sourcing capabilities per market
Differentiation in the value chain (consultant specialization, profile advice, assessment, candidate interaction, network building, retention, onboarding support)
Conclusion:
“Uberization” in recruitment is real. It provides new tools and pushes firms to optimize practices and service quality. The keys to success must be constantly revisited.
— November 2017 —
François Humblot, Managing Partner, Grant Alexander