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Many small businesses don’t have the funds to hire an HR employee or professional recruiter. Enter Unrabble, an online service dedicated to saving businesses money by analyzing and tracking potential job candidates.

“Making a bad hire can be an expensive mistake,” Unrabble CEO Kevin Watson told VentureBeat. “We want to make the overall process easier and help companies find the best possible employees.”

Unrabble formally launched its service Tuesday morning at the DEMO Fall 2011 conference, with the goal of giving small and medium-sized businesses access to high-level tools to analyze hiring candidates.

The software is basically an online dashboard (see above) that lets you compare candidates based on perimeters you set. You can compare candidates using skills, education and more. It also enables you to interact with candidates behind a wall and offers automated skill matching that removes the need for manual resume screening.

Watson said one of the founders’ primary reasons for starting Unrabble came from the cost and frustration of working with recruiters.

“We found that recruiters would often just give us a stack of resumes,” Watson said. “We thought it would be better and cost less to just do it ourselves.”

The company has been in private beta adding new tools since March. It offers two tiers of pricing. The basic version costs $29 per month and follows 1 open position with five job posting links. The pro version runs $49 per month and follows 10 open positions with 20 job posting links. And there’s a free 30-day trial that lets your business follow one open position with five postings.

The company is led by an experienced team. Unrabble co-founders Watson, Chris Rickborn and Marc Slack founded Verid, a provider of identity verification software to financial services that was eventually sold to EMC in 2007. Watson also co-founded C/Max Capital and served as acting CFO of About.com when it put forth its $86 million IPO.

Fort Lauderdale, Fla.-based Unrabble has raised $3.5 million to date, with funding coming from C/max Capital and Morgenthau Ventures.

Unrabble is one of 80 companies chosen by VentureBeat to launch at the DEMO Fall 2011 event taking place this week in Silicon Valley. After our selection, the companies pay a fee to present. Our coverage of them remains objective.

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