Recruitment Industry Disrupted by Insurance Guys
Not one, but everyone will get a little piece of the action – in every transaction
A month ago, one of my candidates reached out to me. – he said digital matching technology was the new recruiting, and he had the perfect platform that will turn headhunters into super recruiters.
Even Goldman Sachs is using matching technology to change the way they hire talent.
His digital matching platform is called TerraTal.
What I found is that it is pretty much similar to the others in terms of functionalities and job matching capabilities.
But the reasons why TerraTal will gain traction over the others, is because of its compensation and distribution models.
He said, it will no longer be the big boys making money off the little guys, everyone will get a little piece of the action on all transactions – and the niche headhunters will lead this charge.
Two of the most successful models in the insurance Industry are incorporated. A pay-for-performance compensation model (first year & renewal commissions) and using re-sellers (Agents & Brokers) as the distribution channel to customers.
As a comparison, when Uber is entering a new market, they focus on recruiting drivers who are actively in the driving business. And the reason is because they own vehicles and have an existing customer base.
In the recruiting business, the re-sellers are niche headhunters. They are actively in the business – they have a network of talent and they have relationships with individuals in their network.
So the objective is to create multiple opportunities for headhunters to generate additional revenue – on top of their normal placement activities.
By simply introducing this matching technology to your clients, candidates and other headhunters in your niche market, you can create multiple revenue streams without investing time or money.
So, how will this distribution and compensation models turn headhunters into super recruiters?
I am going to use these two famous insurance concepts to explain it. – In-Network & Out-of-Network
There are 4 ways a niche headhunter can generate additional revenue: profile views, first year & renewal commissions, override commissions and fees.
Profile Views – A commission is earned every time an employer views a referred candidate’s profile. A referred candidate includes anyone that has accepted your invite to join the network. Examples of referred candidates include:
- Invite individuals in their database, connections, friends and followers to complete a profile, as a value ad
- Post a job to immediately find qualified & interested candidates for a job vacancy they are recruiting for
- Invite employers to complete a jobs profile and use the jobs matching technology as the first step in the interview process for applicants who applied to their job advertisement.
- Invite employers to send everyone in their ATS a link to complete a profile as a first step in their interview process.
- Invite employer to post a job vacancy through the network to immediately identify qualified & interested candidates
- Invite other headhunters in your niche market to invite individuals in their database, connections, friends and followers to complete a profile, as a value ad
- Invite other headhunters in your niche market to invite other headhunters to invite individuals in their database to complete a profile as a value ad
- Invite other headhunters to post a job profile to immediately find qualified & interested candidates for a job vacancy
- Refer unsolicited job seekers as a first step or value ad
- Invite Career Coaches to refer their clients (job seekers) as a value ad
- Invite Career Coaches to refer other Career Coaches to refer their clients (job seekers) as a value ad
- First year commissions ( a percentage of the annual subscription fee) is paid if/when a referred employer upgrades to a premium subscription package.
- Renewal commissions ( a percentage of the annual subscription fee) is paid each year the employer renews a premium subscription package.
- Override commissions ( a percentage of your 1st. & 2nd degree referrals‘ profile views and re-sellers’ transactions)
- Hourly billable rates for coaching employer clients in getting the most out of the platform.
- Subscription rates for coaching your referrals on how to strategically add candidates, employers and referrers to maximize their revenue potential.
Out-of-network is your present recruitment activities. However, it will be your in-network activities that will power your out-of-network activities. This will enable you to make more traditional placements by:
- Expanding your specialties to include other line of business with existing clients, other verticals, local or other countries
- Alerting you when a referred candidate becomes an active candidate
- Having access to more job orders and split fee opportunities with other recruiters in the network
- Working with only active candidates, no sourcing- no cold calling, no reviewing LinkedIn profiles
- More solutions for present clients -more reasons to reach out to them
- More reasons to reach out to your present candidates
- More solutions to reach to non-clients and new clients
This is how recruiting will be disrupted. By creating a profile of the job you are recruiting for – you will be able to immediately identify which of your candidates or another recruiters’ candidate is the best fit and the most interested in your job.
One last thing – everyone cannot join this global talent network, you have to be invited to join.
Click here to learn more.
Watch the short video below and click here if you ‘d like an invite.