Site Reflects Evolution of Recruiting Exchanges

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<p><strong>Carlsbad, Calif. &mdash; Nov. 20</strong><br />For nearly a decade, recruiting exchanges have sprung up across the Web, spawned by frustration in the human resources community with online job boards and big recruiting firms. With the introduction of companies like Dayak, the evolution of recruiting exchanges seems to have reached its logical conclusion.<br /><br />Dayak is an online recruiting marketplace that matches employers to a nationwide network of recruiters. Unlike most recruiting methods available to employers, the Web site allows them to set their own fees for each job they post.<br /><br />The first recruiting exchanges were actually recruiter-to-recruiter networks used for commission splits. Over time, innovative companies began to offer employers the ability to share their open positions with these recruiter networks to fill positions more quickly. <br /><br />Until recently, though, these services had two fundamental shortcomings. First, most recruiting exchanges charged a monthly membership fee, registration fee or other access or usage fee for recruiters and/or employers. Second, most exchanges acted as a referral service rather than a marketplace, which did little to drive down employers&rsquo; cost per placement.  <br /><br />However, the newest generation of recruiting exchanges is a natural evolutionary leap toward a true free-market system that saves employers money. <br /><br />&ldquo;What employers like about Dayak is that it is as quick and easy to post a job on our Web site as it is on a job board, but the resulting resume submissions are in a different league,&rdquo; says Allan Sabol, Dayak chief executive officer. <br /><br />Dayak is reminiscent of eBay, which created an online marketplace where buyers and sellers can interact safely to buy and sell products. This year, Dayak created an online marketplace where buyers (employers) and sellers (recruiters) can interact to buy and sell job candidates. Dayak does not charge anything to use the site, other than a transaction fee for completed recruiting transactions. <br /><br />&ldquo;It never costs a penny for employers to post a job, receive prescreened resumes from recruiters or conduct interviews. Employers only pay for a successful hire,&rdquo; says Sabol. Because of the transaction-based billing structure, there is almost no risk for employers who use the site.<br /><br />New recruiting exchanges like Dayak leverage a nationwide network of recruiters, so there is tremendous competition among recruiters to fill jobs quickly and provide better quality candidates. And competition has one other major advantage &mdash; lower fees. <br /><br />&ldquo;We encourage our employers to set fees at about half of what they would normally pay with a traditional recruiting firm,&rdquo; explains Sal Cepeda, Dayak COO. &ldquo;Our goal is to save corporate America $4 billion annually, which is about half of what corporations spend on contingent recruiting firms each year.&rdquo;<br /><br />Dayak is also the first site to publicly offer a 60-day, 100 percent refund guarantee to employers. The vast majority of recruiting firms offer a replacement guarantee, not a refund guarantee.<br /><br />It is still unclear whether recruiting exchanges will be able to shift the recruiting landscape as powerfully as online marketplaces have transformed other industries. One thing is certain: Employers stand to benefit from the speed, simplicity and cost savings offered by the newest generation of recruiting exchanges. </p>

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