LinkedIn is about 13 years old. It was created in 2002 during the time of MySpace and and Friendster. This was during the dot-com bubble when Internet sites were viewed as risky investments. They really had to differentiate themselves at this time and it is amazing at how long it has lasted and how much success it has had along the way. This post will be dedicated to the history of Linkedin and the highlights of its affect on business today.
LinkedIn revenues today come from three main sources: the talent solutions business, advertising on the page and the premium subscription model. The majority of the revenue comes from the talent solutions business, which allows recruiters to look into candidates and based on their experiences and connections and recommend them a job. The company went for its IPO on May 19, 2011 as the first social networking site to go public. The business model of LinkedIn has changed drastically since its inception in 2002.
It began as a social network to connect professionals. People could post their resume online and connect with employers that may be interested. Professionals would build credibility by having others recommend them on the site. Today, the platform has advanced into a contact relationship management service for individuals. It has changed how we acquire jobs and how we connect with employers. The goal of LinkedIn for the future in the words of the co-founder include a world where,”people are doing what the love, not just what they want to do. Where professionals understand that the work they do is one of the most significant ways in which they can contribute to their communities and the world.” This was said in 2012, so one can look at how close they have come to reaching this goal.
For recruiters, the job search has transformed from the “post and prey” mentality and action to more of a hunt. If recruiters are looking for a particular person with a particular skill set, there is now LinkedIn, a place where this is advertised to the public. There are many people out there who are working but are not content at their jobs and simply do not have the time or energy to go searching for another job. This is when recruiters can take the initiative and search for the right people given their skills via a LinkedIn search. A 2013 study by the Society for Human Resource Management indicated that 77% of employers are using social media to recruit.
For employers, this is a huge burden as well because current employees are constantly being poached to leave their jobs. I remember listening to many Deloitte employees talk about getting emails every single day from Google or Facebook asking if they were interested in interviewing. Of course, these are some of the top consultants in the world but this places an incredible pressure on the employers to retain their employees.
My Summer Internship Team taking a picture with a Selfie Stick
My internship this past summer is a great example of a small company that has acquired some amazing talent because of the type of culture they have created. Since jobs are increasingly becoming a full-time occupation with many millennials taking work home with them on the weekends, employers have to create an awesome work environment. Furthermore, during my job search this year, I was trying to figure out how to connect with BC alumni at places I was interested in working. For the prior year, I mainly made the connections through teachers or seniors that knew someone at the company that I could contact. This year, I realized there is a group on LinkedIn called the “Boston College Career Community” so I simply searched the group for people that worked at the companies I was interested in and made tons of connections. The website helped me achieve many of the interviews I was able to and I would not know nearly as much as I do about all of the companies I am interested in if it were not for LinkedIn.
It will be interesting to see where LinkedIn takes the world in the future or if it will be combined with other social media platforms to for a massive network for finding friends and professionals. At the moment, I don’t see this occurring any time soon, as LinkedIn has developed a niche in the social networking arena to provide connections for professionals and recruiters.