Finding a ride and finding new employee might not have much in common at first blush, but Brin McCagg made a connection between the two that's lead to RecruitiFi, a new service that he hopes will change the recruiting industry.
McCagg, co-founder, got the idea for RecruitiFi while using car sharing service Uber. He thought of how Uber had soaked up the excess capacity of town cars in cities like New York. He translated the idea into recruiting.
For every job search that ends or gets canceled, recruiters have left over candidates that they've already vetted.
"It's like going fishing, eating one, and throwing the bucket of fish — half a dozen — away every time," he said. With RecruitiFi, the idea is that a recruiter could submit up to four of those candidates to an employer looking to fill a relevant position.
For employers, McCagg said it's a better option than a job board, for example, because they can chose to work with recruiters based on location, expertise, or what level they focus on - the candidates are more likely to be on target for the job.
"It's like yelling out across a city like New York, 'Hey I'm looking for this exact person,' but the only people that hear you are relevant recruiters," McCagg said.
Once the recruiter submits the candidate (with full info including email, phone number, resume, and LinkedIn), the candidate then confirms that he or she is interested in the job. The employer can swipe through the candidates and sort them into "yes," "no," and "maybe" folders.
This is where McCagg said RecruitiFi is really doing something different - the service incorporates gamification into recruiting.
Traditionally, the recruiter whose candidate gets placed receives a fee in a winner-takes-all-type situation.
"It's very demoralizing and demotivating for the runner up recruiters. If you want to keep them engaged, we realized we should give them a little bit of a reward for good candidates," McCagg said.
Instead, RecruitiFi uses a 14-point system based on 14% of the first-year salary. But instead of all of that going to the winning recruiter, RecruitiFi gives them 10 points and divvies up 1 point amongst the recruiters who also had candidates placed in the "yes" and "maybe" folders, and takes two and a half points for themselves. The candidates, get a half point for coming back and confirming their date of hire and starting salary.
This plays into another way in which RecruitiFi is trying to change things in the industry. Earning points positively affects the algorithm that determines a recruiter's ranking within the system. That means they don't necessarily have to work at large recruiting firm to have a higher profile.
Norman Clausen, RecruitiFi's director of marketing, said that because the recruiting industry is so fragmented, it's difficult for recruiters to quickly prove to companies that they are as effective as they say they are. There's a lot of cold calling to convince employers to use their services. Clausen said the rankings will hopefully simplify the process because "their positive actions and their successes in the past have brought them to the top."
Building a network
So far, McCagg said RecruitiFi has compiled 1000s of recruiters and 100s of companies in its network. One of those companies is student lending platform CommonBond. For General Manager Robb Granado, there are multiple features he likes about the service, starting with the efficiency of aspects like organizing candidates.
"That's one of the major weaknesses with other [services] out there," he said referencing Recruitifi's folder system. He also said that for finding qualified candidates using something like LinkedIn, "the funnel is too wide."
He also finds efficiency in not having to hire one recruiter, take them through the whole rundown of what CommonBond is looking for, sign a contract, and then pay a steep fee.
So far, CommonBond has screened and brought in to interview 12 candidates. They haven't made a hire yet, but Granado said they've been very happy with the quality of the people they've gotten.
"It's the search for the unicorn that we're all on," Granado said.
The return of the recruiter
RecruitiFi could be good news for recruiters. McCagg describes an industry shift in the past decade or so where things like job boards and LinkedIn have taken out the "human element" from recruiting, meaning companies are seeing less of a need to rely on a recruiter who possibly has an expertise in a certain area to do the leg work required when evaluating if a person is really suited for a job.
"What we want to do is help re-engage those third party recruiting agencies and help them in a sense get back in the game," McCagg said.
Erin Carson has nothing to disclose. She doesn't hold investments in the technology companies she covers.
Erin Carson is a Staff Reporter for CNET and a former Multimedia Editor for TechRepublic.