By: Roy Maurer
Summary:
- Pay-per-application (PPA) pricing, introduced in 2022, is being discontinued by Indeed as of December 18th. This model charged employers only when candidates applied, unlike the traditional pay-per-click (PPC) system.
- The move comes after widespread criticism, primarily from smaller businesses, who found PPA confusing and expensive.
- Indeed will revert to PPC pricing for all users by January 15, 2024. The company’s “pay-per-started application” option for larger employers remains unaffected.
Key Points:
- Industry Shocked: The decision surprised many, as Indeed recently expressed confidence in PPA’s success. Critics see it as a “misstep” by the leading job board. (SHRM Online, RecTech Media)
- Initial Pause: PPA was already paused in April due to user concerns. Billing caps and choice between models were implemented then. (SHRM Online)
- Small Businesses Burned: Smaller employers were disproportionately affected by PPA’s complexity and unexpected costs. (The Wall Street Journal)
- Promised Benefits Unfulfilled: PPA aimed to improve candidate quality and reduce unqualified clicks, but concerns about application quality remained. (SHRM Online)
Further Reading:
- SHRM Online: https://www.shrm.org/resourcesandtools/hr-topics/talent-acquisition/pages/indeed-shifts-pricing-to-pay-per-application.aspx
- The Wall Street Journal: https://www.wsj.com/articles/indeeds-price-changes-leave-small-businesses-feeling-burned-43edf62
- RecTech Media: https://www.rectechmedia.com/about
Overall, Indeed’s short-lived PPA experiment highlights the challenges of innovating in a complex industry. The return to PPC provides stability, but questions remain about the future of job board pricing models.