Every year, the hiring and recruiting industry spends about $9 billion on job ads for a pitiful success rate of under 4 percent. KarmaHire is is trying to change that — and it’s succeeding, so far.
Realistically, the company will need a lot of its own good karma to win in this super-competitive startup niche. But CEO James Clift is optimistic:
“We’ve been able to convert about three times better than the industry average,” Clift says. “And we’re just getting started.”
Above: KarmaHire CEO James Clift
Image Credit: John Koetsier
KarmaHire’s flipping the funnel, in a sense, on recruiting. While most job ads these days are about what companies want from people, Clift is switching that to what people want from companies. A huge shift the company has uncovered, he says, is that huge numbers of people are not looking or that starter job or the subsistence salary. Instead, they’re looking for a great working environment and hard problems to solve.
Seventy-five percent of job ad viewers, the company says, are already employed.
They don’t just want a job; they want an awesome job. So KarmaHire, which just graduated this week from Vancouver-based accelerator GrowLab, built a platform to make that happen.
“We transform job postings into job advertisements,” he said.
That means they look like elegant, designed — not like Craigslist or Monster.com listings:
Above: KarmaHire’s job “ads”
Image Credit: KarmaHire
The company has seen success and is helping companies find talent faster.
But it has a ton of competition in the recruiting space. Zao is gamifying recruiting. Path.to is following the eHarmony match-made-in-heaven model. GetHired is doing daily deals for jobs. Quixey wants you to solve puzzles to get recruited. And any number of new video-based interviewing companies like Wowzer, enRecruit, VisualCV, Spark Hire, and InnovateCV want to make video the center point of the hiring experience.
All of which means that recruiting is a vastly competitive marketplace.
Clift, however, thinks KarmaHire has what it takes, saying the company is already successful and has a lot of room to grow.
KarmaHire is based in Vancouver and is in the process of raising a $250,000 seed round, some of which is already committed. The service is in a private beta test right now and will launch into public beta next week.
Are you making or losing money with marketing automation? VB is working with marketing expert Ian Cleary to investigate marketing automation ROI. Help us out by answering a few questions
, and we'll help you out with the data.