Help wanted: Recruiting on Craigslist

-- Deborah L. Cohen covers small business for Reuters.com. She can be reached at smallbusinessbigissues@yahoo.com --

By Deborah L. Cohen

CHICAGO (Reuters.com) -- In the past five years, roughly half the new hires at manufacturer Handi-Ramp have been recruited from the online city networking site Craigslist. For those battling to contain costs, it's becoming an increasingly popular way to recruit staff.

Handi-ramp, a 35-man operation in Libertyville, Illinois that has been expanding and has revenue of roughly $5 million, has recruited sales and accounting staff from the grass roots site; just last week it placed a listing for a sales manager. The draw? The classified ads cost the maker of ramps, handrails and treads only $25 a pop.

"I have to admit I'm cheap," says Thom Disch, the company's chief executive. "I look at it as a good resource."

Disch is not alone. While newspaper classified ad sales have fallen sharply in recent months due to recessionary cutbacks, Craigslist has picked up much of the slack. Its revenue is expected to increase more than 23 percent to over $100 million in 2009, according to one industry study. The privately held company does not reveal its results.

Small to mid-sized firms facing shrinking budgets are heavy users of the site, which is believed to garner the bulk of its revenue from classified recruitment ads for everything from barhops to bikini-clad models.

"Craigslist has become a very cheap and effective way for small businesses to hire," says Peter Zollman, principal at the AIM Group, the consulting firm that authored the study. "Given the price, there's not a lot of reason to be wary of it."

In AIM Group's latest issue of Classified Intelligence Report, an industry update sent to classified advertising clients, Zollman predicts that Craigslist will generate nearly $60 million in help-wanted ads in 2009. In 18 U.S. cities, including New York, Chicago, Los Angeles and Washington, D.C., the site charges $25 per ad; elsewhere in the country the service is free.