A few days back, I bookmarked an article about online job sites, like Monster.com
(via Steve O’Grady). I’ve been interested in the hiring market since I scored a couple rounds of referral bonuses at work from want-ads. In addition to that, there’re several good quotes in the article:
- On Monster suffering from the innovator’s dilemma: “Anytime companies get big, they innovate less.”
- On the importance of referrals in the job process: “If you ask Americans how they found their current job 60 percent will say they got it through a network or a referral.”
As I’ve written in the past, I’m a big fan of what I call “grass-roots recruiting.” By that, (1.) I mean using your employees for sourcing when it comes to job leads by offering them referral fees, and, (2.) your employees re-posting the job on places like craigslist or linked in to get leads.
The company — H3 — profiled in this article has taken this to a meta-level, cross company:
“They produced very bad quality candidates,” Gieskes says of Refer, “because they allowed any stranger to put forward names of people to try to get a reward.”
With H3, he says, “in order to refer someone, you have to be approached by someone who knows you,” and who sends you an e-mail first about the job. If there’s a $3,000 bounty, for example, and you pass the e-mail along to someone who gets hired, you keep the three grand. If you pass it to a friend, who sends it to another friend, who sends it to someone who lands the gig, the three referrers each get $1,000. H3 demands a 10 percent fee, paid by the employer, on top of every bounty that successfully fills a cubicle.
Now, so far I haven’t been too big a fan of all the social network things out there: they never seem to do quite enough once I finally get all The Usual Suspects to create YetAnotherProfile, we can rarely figure out what to do next.
I’m not quite sure if H3 will cook the biscuits, but it looks promising: once you start handing 1,000’s of dollars out to your users, you’re onto something.