China's largest human resources service provider, 51job (NASDAQ: JOBS), recently released its financial report for 2011. The report shows that in 2011, 51job achieved a revenue of RMB 1.37 billion and a profit of RMB 390 million, both setting the highest records since the company’s establishment. After the Spring Festival, the number of job postings released by 51job increased by 10% compared to the same period in 2011, indicating a robust supply and demand situation in China's talent market at the beginning of 2012. Due to its outstanding performance, 51job's stock price surged by 12% on the second day after the release of the financial report, leading the rise among Chinese concept stocks on NASDAQ.
In 2011, 51job's revenue grew by 25.7%. The company attributes this primarily to strong hiring demands from employers. In 2011, the company provided recruitment services to over 240,000 independent employers, representing a 14% increase in customer numbers. A survey report by 51job also revealed that the employee turnover rate in 2011 reached 19%, the highest ever recorded. Secondly, in the past year, 51job broke away from the traditional method of establishing branch offices to expand into new markets. Through its Call Center and regional business centers, the company now covers more than 80 cities.
Notably, 51job's other human resources-related income grew by 33% in the fourth quarter of 2011. This refers to the increasing demand from employers for human resources outsourcing, campus recruitment, and training services. It demonstrates the strengthening ability of this currently sole listed Chinese human resources service company to generate income from multiple sources.
Despite the global economic downturn, especially the risk of recession in Europe, the hiring needs of Chinese enterprises have not been significantly affected. On the contrary, China's multiple acquisitions in the European market have even increased the demand for talent. After the Chinese Spring Festival, 51job released data on talent demand, showing a 10% increase in the total number of job positions. The data indicates that most industries have intensified their recruitment efforts, including real estate companies that are subject to macro-control, which show no signs of reducing recruitment. A recent piece of news reported that China Vanke Co., Ltd. plans to hire 5,300 employees this spring, more than doubling the average recruitment scale of previous years. However, the trade and electronics industries have been somewhat affected by the global economy, with the number of job positions decreasing by more than 2% compared to the same period last year.
Meanwhile, the way recruitment services are delivered is quietly changing. This currently sole listed Chinese human resources service company has frequently been asked about "the impact of social networking sites on talent recruitment" in the past year. CEO Rick Yan said that there is still no clear charging model for social networking sites, and these sites need to reach a certain scale to function effectively and produce results. There are currently no fewer than ten social networking sites in China, with users scattered across them, necessitating patience to allow them time to grow. However, 51job has added some features similar to those of social networking sites while serving its 45 million individual users. For example, a feature called "Join Fan Club" allows users who join the club to promptly understand the employer's hiring needs and chat with other users in the same fan club, receiving user preferences. Rick Yan indicated that before the new model matures, 51job is more willing to incorporate some functions of social networking sites into its existing products and services. When social networks and mobile communications mature, 51job will also be a beneficiary.