Indeed's pay-per-application pricing model is no more. The global jobs site has confirmed to SHRM Online and various other outlets that it will no longer offer pay-per-application pricing beginning Dec. 18.
Pay-per-application pricing, in which employers would pay only when candidates applied to a job posting, was meant to replace the foundational pay-per-click pricing model.
The new pricing scheme was first announced in October 2022 and rolled out earlier this year, generating a wave of backlash from mostly smaller employers that reported confusion with the product and much larger than normal expenses.
"Pay-per-application was one recent test aimed at providing greater value to employers. Over time, we found that this option required additional effort from employers and was not easy enough to support the different needs of employers. Starting Dec. 18, we have decided to no longer offer pay-per-application," Indeed said in a statement.
The company said pay-per-application users will need to switch to the pay-per-click plan by Jan. 15, 2024.
Indeed also confirmed that pay-per-started-application pricing will continue. It's an option primarily used by larger employers with careers sites and applicant tracking systems (ATSs). Candidates are redirected from Indeed to apply through the employer's own ATS.
The announcement by Indeed essentially rolls their pricing model for job postings back to what it was a year ago, said Steven Rothberg, founder and chief visionary officer at College Recruiter, a jobs site for students and recent grads, based in Minneapolis. "The news shocked many in the job board and recruitment marketing industries as Indeed had signaled as recently as September that it was very, very close to being very successful with its new [pay-per-application] pricing model," Rothberg said.
"It was a pretty big misstep from the world's No. 1 jobs site," said Chris Russell, managing director of RecTech Media, a recruiting consulting company in Trumbull, Conn. "There was nothing wrong with pay-per-click, it worked just fine, and introducing a new model was a risk."
We've rounded up articles from SHRM Online and other sources to provide more context on the news.
Initial Pause
The rollout of pay-for-application pricing was first paused in April, after some customers expressed some confusion and pushed back against it.
At that time, employers were given a choice between the traditional pay-per-click model and a pay-per-application plan. Indeed also implemented billing caps that would automatically turn off a job campaign when billing reached a certain threshold.
Small Businesses Feeling Burned
Indeed's shift to a pay-per-application model primarily negatively impacted small employers, creating confusion and unexpected costs.
Paying for Results
The new pricing plan was first announced as an effort to improve candidate quality and get employers closer to a qualified hire. The main advantage of a pay-per-application model over a pay-per-click model was seen to be the reduction of unqualified "clicks" that the employer pays for. It was thought employers would agree to pay more for higher-quality candidates, but the quality assurance of submitted applications was never quite worked out.
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