Chapter 4 Black Holes and Purple Squirrels: A Tale of Two Online Labor Markets

Organizational perspectives on digital labor market intermediaries

“…They certainly speed and broaden transmission of employers' job advertisements, but they also ease the application process for job seekers, who can send the same materials to multiple employers with the click of a few buttons. This leads to hiring agents being flooded with more applicants than they can screen, which enlarges and complicates the task of reviewing and selecting finalists (McDonald et al., 2019). Many employers respond by piling on more technology, whether by using existing database search tools or by purchasing elaborate AHP and ATS systems.…”

“…Especially in fields with polyonymous tasks and skills, they may miss qualified candidates due to mismatched terminology (Gershon, 2017). Also, to the extent that dLMIs make search cheaper and easier, they may encourage over ‐search on both sides of the market, ratcheting up expectations and lengthening rather than shortening unemployment stints and job vacancies (Freeman, 2002; McDonald et al., 2019). Digital LMIs also promote job search by the already‐employed, a favorable situation for organizations that recruit “passive” candidates, but one that is also likely to result in increased turnover (Freeman, 2002; McDonald et al., 2019; Nakamura et al., 2009).…”

“…Also, to the extent that dLMIs make search cheaper and easier, they may encourage over ‐search on both sides of the market, ratcheting up expectations and lengthening rather than shortening unemployment stints and job vacancies (Freeman, 2002; McDonald et al., 2019). Digital LMIs also promote job search by the already‐employed, a favorable situation for organizations that recruit “passive” candidates, but one that is also likely to result in increased turnover (Freeman, 2002; McDonald et al., 2019; Nakamura et al., 2009). Thus, in addition to benefitting employers, dLMIs can generate economic costs, additional work demands, and instability in personnel.…”

“…The expanded role of dLMIs gives us another way to theorize labor force segmentation, most clearly seen by the ways that organizations use dLMIs to connect with potential job candidates. Organizations advertise different jobs on different platforms (McDonald et al., 2019). Mass posting websites are preferred for jobs that are general in skill and low in wages.…”

“…Individuals maintain profile pages that display work experiences and skills, and may link to colleagues or personal friends. This allows HR professionals to identify potential job candidates and encourage them to apply for job openings (McDonald et al., 2019). Other social media websites like Facebook, Instagram, and Twitter can serve similar purposes, though their impact on hiring is currently modest relative to LinkedIn.…”