Why Indeed Is Bad for Both Employers and Employees (And It’s On Purpose)

You’ve probably used Indeed. Maybe you’re using it right now. You apply to 50 jobs. Maybe 100. You hear back from… two? One? None?

Meanwhile, if you’re an employer, you post a job and get 500 applications in 48 hours. You’re drowning in resumes. 490 of them are clearly from people who didn’t even read the posting. The other 10 might be okay. Maybe.

Everyone hates Indeed. Job seekers say it’s a black hole. Employers say it’s a spam factory.

So why does everyone keep using it?

Because it’s the biggest. Because “that’s where the jobs are.” Because “that’s where the candidates are.”

But here’s what nobody wants to admit: Indeed isn’t broken. It’s working exactly as designed.

The problem is that Indeed’s design isn’t meant to help you get hired or help employers hire. It’s meant to make Indeed money.

And Indeed makes the most money when nobody gets hired.

The Business Model: Profiting From Failure

Here’s how Indeed actually makes money:

1. Sponsored Job Posts

Employers pay to have their listings appear at the top of search results. Why? Because otherwise their job gets buried under hundreds of other postings.

But here’s the thing: the more jobs that stay posted, the more employers need to pay for sponsorship.

If jobs filled quickly, there’d be less competition for attention. Less need to sponsor. Less revenue for Indeed.

2. Resume Database Access

Indeed charges employers for access to their resume database. Millions of resumes from desperate job seekers.

The larger the database, the more valuable it is. So Indeed needs a constant stream of unemployed people uploading resumes.

3. Advertising Revenue

Indeed gets massive traffic. Millions of job seekers spending hours searching, applying, refreshing.

The longer people stay on the site, the more ads they see. The more desperate and frustrated they are, the more time they spend searching.

4. Pay-Per-Click Revenue

Indeed aggregates jobs from other sites and charges those sites when someone clicks through.

The more clicks, the more money. Doesn’t matter if those clicks lead to hires.

Notice what’s missing from this list?

Indeed doesn’t make money when someone actually gets hired.

The Fast Apply Trap

Indeed’s “Fast Apply” feature seems like a gift. One click, and your resume goes to the employer. So convenient!

Here’s what actually happens:

For Job Seekers:

  • Fast Apply makes it SO easy that you apply to everything
  • You stop customizing your resume
  • You stop writing cover letters
  • You become one of 500 identical applications
  • Your application gets buried in noise
  • You never hear back

But you keep applying because it’s so easy. Click, click, click. Each click is engagement that Indeed can monetize.

For Employers:

  • Fast Apply generates hundreds of applications
  • Most are completely unqualified
  • People applying to jobs they’re not even remotely suited for
  • HR departments drown in spam
  • They can’t identify the good candidates in the noise
  • Roles stay open for months

But they keep the posting up because “we need more candidates.” More time posted = more money for Indeed.

Everyone loses except Indeed.

The Ghost Job Problem

Multiple analyses have found that a significant percentage of Indeed listings are:

  • Already filled
  • Never intended to be filled
  • Expired but still showing as active
  • Reposted automatically even after being filled
  • Posted by companies “just seeing what’s out there”

Why doesn’t Indeed remove these?

Because ghost jobs serve multiple purposes:

  1. They make the platform look active (millions of jobs!)
  2. They keep job seekers engaged (so many opportunities!)
  3. They generate clicks and applications
  4. They convince more employers to post (look how many jobs are here!)

If Indeed aggressively removed expired listings, the platform would look smaller, less active, less valuable.

The ghost jobs are a feature, not a bug.

The AI Filter Disaster

Indeed uses AI and automated systems to:

  • Screen resumes before humans see them
  • Match keywords in job descriptions
  • Filter out “unqualified” candidates
  • Rank applications

This sounds efficient. It’s actually catastrophic.

What happens in practice:

  • Good candidates get filtered out for arbitrary reasons (wrong keywords, formatting issues, gaps in employment)
  • People who game the system by keyword-stuffing get through
  • Hiring managers never see qualified candidates
  • Job seekers never know why they’re rejected

But here’s the thing: the AI doesn’t care if it’s accurate. Indeed cares about volume and engagement, not matching quality.

If the AI actually worked well, jobs would fill quickly. That’s bad for Indeed’s business model.

Why Good Candidates Avoid Indeed

Talk to successful job seekers and you’ll hear a pattern:

“I use Indeed to FIND jobs, then I apply on the company website.”

Why?

  1. Company applications show real interest (you took the extra step)
  2. You avoid the Indeed spam pile (fewer competing applications)
  3. Your application actually reaches humans (not filtered by Indeed’s AI)
  4. You can customize properly (company portals often allow more detail)

So the people who actually land jobs aren’t using Indeed’s application system.

Meanwhile, the people who DO use Fast Apply are the ones who:

  • Apply to everything
  • Don’t customize
  • Are desperate and frustrated
  • Generate noise for everyone else

Indeed has selected for the worst applicants by making it too easy.

Why Employers Can’t Leave

You’d think employers would abandon Indeed once they realize it doesn’t work.

But they can’t, because:

1. Network Effects

“That’s where the candidates are.” If you’re not on Indeed, you’re missing out on visibility.

Even if 90% of Indeed applications are garbage, the other 10% might include someone good. Maybe.

2. It’s “Free” (Sort Of)

Posting a basic job is free or cheap. Compared to paying a recruiting agency 20% of salary, it seems like a bargain.

Never mind that you waste 40 hours sorting through spam applications. That’s just “the cost of hiring.”

3. HR Departments Need Volume

Remember how corporate HR is optimized for ass-covering, not results?

HR loves Indeed because they can show executives: “Look, we got 500 applications! We’re being thorough!”

Never mind that 490 are garbage. The volume justifies their existence.

4. Procurement Departments Love “Cheap”

Recruiting agencies cost $15-25K per hire. Indeed costs $300/month for sponsored posts.

Finance departments see the second number and approve it instantly. They don’t see:

  • The HR salary cost sorting applications
  • The productivity loss from unfilled positions
  • The bad hires that result from poor screening

Indeed’s dysfunction is hidden in invisible costs.

The Reposting Scam

Here’s a dirty secret: when employers repost jobs on Indeed, it resets them to the top of search results.

This creates an incentive to repost frequently, even if the job is still active.

For job seekers, this means:

  • You apply to a “new” job that’s actually weeks old
  • Your previous application is buried or lost
  • You waste time applying again
  • The employer doesn’t see you because they’re still sorting through the previous 500 applications

For Indeed, this means:

  • More engagement (look at all these new jobs!)
  • More applications
  • More time on site
  • More revenue

The system rewards keeping jobs open longer.

Why Indeed Hates Successful Matches

Think about Indeed’s ideal scenario:

For job seekers:

  • Spend hours on the site every day
  • Apply to dozens of jobs
  • Stay hopeful but unemployed
  • Keep uploading updated resumes
  • Keep clicking job listings

For employers:

  • Keep jobs posted for months
  • Get enough applications to feel like it’s working
  • Need to pay for sponsorship to stand out
  • Eventually hire someone (but not too quickly)
  • Post another job soon after

The worst outcome for Indeed:

  • Job seeker applies to 3 carefully chosen jobs
  • Gets hired within 2 weeks
  • Leaves the platform
  • Employer fills position quickly
  • Removes listing
  • Doesn’t need Indeed for 6 months

Indeed’s business model requires ongoing failure.

The Alternative That Actually Works

Want to know what actually produces successful hires?

  • Smaller, curated talent pools (not millions of random applications)
  • Actual work samples (portfolios, projects, verified reviews)
  • Personal referrals (people vouching for people)
  • Direct company applications (showing real interest)
  • Recruiters with skin in the game (only get paid for successful hires)

Notice what’s missing? A massive job board with one-click applications and AI filtering.

The things that work are the opposite of Indeed’s model.

What This Means For You

If You’re a Job Seeker:

Stop using Indeed as your primary strategy.

Use it to FIND jobs, then:

  1. Go to the company website and apply directly
  2. Find someone at the company on LinkedIn and reach out
  3. Customize every application
  4. Focus on 10 quality applications over 100 spray-and-pray

Every hour you spend on Indeed Fast Apply is likely wasted. Use that time to craft 2-3 targeted applications instead.

If You’re an Employer:

Indeed is costing you more than you think.

Calculate:

  • HR time sorting garbage applications
  • Productivity loss from unfilled positions
  • Bad hires from poor candidate pool
  • Cost of reposting and sponsored listings

Compare that to:

  • Recruiting agency fees (20% but guaranteed results)
  • Employee referral bonuses (5-10K but vetted candidates)
  • Direct sourcing from niche platforms (work samples visible)

The “cheap” option might be the most expensive.

If You’re Building a Business:

This dysfunction is your opportunity.

Indeed has created a market failure. They profit from keeping it broken. That means:

  • Job seekers are desperate for something better
  • Employers are frustrated with garbage results
  • Nobody’s incentive is aligned
  • The market leader benefits from the status quo

There’s room for someone who actually wants to solve the problem.

The Bottom Line

Indeed isn’t bad at connecting job seekers with employers.

Indeed is extraordinarily good at generating revenue from the appearance of connecting job seekers with employers while systematically preventing successful matches.

It’s not incompetence. It’s the business model.

Understanding this won’t make Indeed work better for you. But it might help you stop wasting time on a platform that’s designed to waste your time.

The longer you stay searching, applying, and hoping, the more money Indeed makes.

The faster you get hired or fill your position, the sooner you leave the platform.

Guess which outcome Indeed optimizes for?

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