Recruiting is one of the latest industries to get a data science makeover through companies like Hired and Triplebyte, but the former hopes to turn it into a subscription business just like other enterprise software companies — and has raised a new pile of funding to do that.
Hired looks to serve as a one-stop recruiting point for both companies and potential candidates. The startup collects information like a basic profile, some thoughts on what those candidates are looking for, and your resume information, and then crunches that through a series of back-end algorithms and processes in order to figure out the best match for that candidate. It then points those candidates to hiring managers at companies that are looking for a strong pipeline of candidates, though the company now hopes that they will be able to build a kind of recurring revenue model for those companies with its subscription business. Hired today also said it has raised $30 million in new financing led by the Investment Management Corporation of Ontario.
“Outside of your choice of life partner your choice of where to work is the second most important decision to make,” CEO Mehul Patel said. “You spend most of your time at work, and any misery or joy you take back to your life partner. When you look at recruiting, it’s a massive industry, and to companies it’s existential to find great talent — but it’s massively broken. Ask anyone who searches for a job whether it works great, and you are going to get a unanimous answer that it doesn’t.”
Chances are you’ve gotten a few pitches on LinkedIn to go throw your information on Hired, but that’s all part of the performance marketing that the company hopes to use to get a robust set of candidates onto the platform. By doing that, it can continue to not only have a steady stream of candidates, but also collect more and more information on what candidates might be the best fit. For example, a school might not be the best indicator of future success, while the number of followers on a Github account could be a better barometer for the performance of the candidate. It’s a pretty intuitive result, but not one that hiring managers are likely actively tracking unless they already know that’s the best protocol.
Through that, Hired tries to compress the amount of time it takes for a company to say it needs a candidate and then that candidate actually getting hired. The subscription idea is that hiring managers will be able to just post a position — whether it’s new or back-filling an existing role — and keep that steady stream of candidates coming. Patel said the company has been able to squish that threshold down to around 25 days, which was one data point they could flag investors on in order to convince them that the model was working. (The company, which did not disclose its bookings, also said its bookings grew 300% year-over-year, which is a big number but without a point of reference isn’t so useful.)
“We’re seeing the importance of data not just to drive the outcomes — that data lets you compare against other companies and makes sure you’re better hiring for any company,” Patel said. “We have data about which companies are successful, or why aren’t they successful, and we can share that and help companies figure out their best practices. That combination of helping companies hire predictably, or using high quality talent and doing that with great insight, is [where we think we’ll succeed].”
That subscription model is also going to be an important one as a hedge against a potential downturn, where hiring might slow. If the startup is able to convince companies that it is a viable pipeline that they should be paying a recurring fee, it might be able to absorb the shock of a recession and a slowdown in hiring and prove useful in cases like incremental hiring and back-filling old roles. The company also said that it has hired John Kelly to be its Vice President of revenue, who previously worked at companies like SAP, Oracle, and FindView.
There’s going to be plenty of competition, especially as these companies are able to collect more and more data. There’s Recruit Holdings, the mega-Frankenstein of companies that include Indeed and GlassDoor (which the company acquired for $1.2 billion), that would likely provide the largest hurdle to cover. Patel said Hired should be able to close the time gap between finding the candidate and the hiring process, which would be the primary metric of success for the company, faster than other companies.