What is a Recruitment Marketplace?
So we often get asked, what is a recruitment marketplace? This is not a surprising question given that only 3% of outsourced recruitment currently takes place through a digital platform, aka recruitment aggregator, aka talent acquisition platform, aka recruitment marketplace such as TalentVine.
In recent years we’ve seen this shift to marketplaces take place with taxis to Uber, hotels to AirBnB and retail stores to eBay and now to recruitment marketplaces such as TalentVine. And the same way users are saving time and money through Uber and eBay, we’ve found that employers are now saving an average of 40% in recruitment fees and bringing the time to hire down from 62 to 22 days through TalentVine.
So you didn’t answer my question, what is a recruitment marketplace exactly?
A recruitment marketplace is a platform that enables employers to connect with right recruiters, to do faster, more accurate and more cost-effective recruitment placements. This is helped by the capturing key metrics and ratings so employers can make decisions backed by data on who the right recruiter to work with is.
But aren’t robots and the likes of LinkedIn killing off the concept of a recruiter?
Well, not quite. LinkedIn have been saying for 12 years that they will be eliminating the need for recruiters. The demand for this service, however, is higher than it’s ever been, with 78% of recruitment agencies increasing their revenue in the last 12 months. This is because (good) recruiters have unique skills: the personal touch, the candidate reach, networks, domain expertise and relationships that hiring managers and business owners don’t have the time to focus on. And AI isn’t advanced enough yet to help a potential candidate, who has three other job offers on the table, with something like selling the idea of moving interstate to their spouse.
Back to the idea of a recruitment marketplace…
“employers are able to piggyback off the time and costs their competitors have already invested”
The recruitment marketplace connects an employer to the most suitable recruiters who have recently been working on similar roles. Because these recruiters have been working on similar roles where the same candidates are being sourced, employers are able to piggyback off the time and cost that their competitors have already invested in filling these roles.
Historically, employers have been happy to pay fees up to 25% because they know the recruiter is starting their process from the very beginning. However, when a marketplace is able to connect an employer to recruiters that have recently advertised a similar role, shortlisted twenty candidates, interviewed five and sent three to an employer where one was hired, this means the recruiter already has two amazing candidates ready to go. These are candidates who can be sent to an employer in a much faster time frame, and at a much lower fee.
An effective marketplace should also let you track your recruitment spending and your ROI. This proves the value to the rest of the business, as well as providing access to some cutting-edge recruitment tools that will make your life a whole lot easier.