Say It Ain’t So: Paying Candidates for Placements?

Have you heard the one about the new career network that shifts the commission fees to the candidates?

If you’re waiting for the punchline, sorry, but this is no joke.

The reality is that PaidInterviews has launched a new service that pays candidates when hired. It combines social networking and matching technology in a new way, in a style that allows candidates to market themselves in their job quest, and of course, get paid for their efforts.

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According to the company, candidates will name their asking fee, which is then matched with an employer’s bid fee. The candidate, when hired, is paid a percentage of the first year’s salary.

Will this model transform the hiring process? Or is it simply a gimmick? Are you scared? Or simply laughing?

Elaine Rigoli has nearly 15 years of experience managing content and community for various B2B and consumer websites. Elaine has written thousands of business and technology articles and has been quoted in The Wall Street Journal and eWeek, among other publications.

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15 Comments on “Say It Ain’t So: Paying Candidates for Placements?

  1. Laughing. It’s another gimmick with no legs.

    Recruiting is more than matching resumes. This process ignores the filtering and the negotiation, and turns it into a signing bonus for the candidates.

    If it caught on, top candidates would simply hold out and demand the commission percentage. In other words, success would simply drive top performers to get signing bonuses based on a recruiter’s commission without the work.

    And what happens when the entire workforce finds out? What happens to the suckers who applied to the human resources department instead of paidinterviews?

    Hmmm. A gimmick.

  2. Huh? I don’t get it. Its like a sign on bonus? Let’s say I am looking for work. I find a job but I tell them (the employer) it is going to cost you $4,000 to get me. Is that it? Yeah, that’ll last.

  3. This BeyondDumb.com. Funny story: When a newspaper reporter asked John Dillinger why he robbed banks, Mr. Dillinger said dryly “Because that’s where the money is.”

    Candidates have no money. Companies do. Imagine a company asking me to get a signed fee agreement from every single candidate I plan to submit. That is *so* not gonna happen.

    In the incredibly remote chance that it did, however, I would have NO qualms about poaching that company’s talent — even after I placed a candidate with them. After all, it take a paid invoice to make a company a client of mine.

    And if they don’t pay the invoice, then they are not my client.

    Bring it.
    Harry

  4. I’ve taken a similar approach… but, I did not leave out the recruiters and employers from the value proposition (I’m a former recruiter). I did not leave it up to the candidate to determine what the fee should be. However, my system does recognize the value of the candidate, and the candidate does benefit by connecting through my service. Here’s a link if you’d like to have a look for comparison: http://www.gohcro.com/staffingexchangemedicalhire.html

    I’m a member of The Fordyce Letter Network… you can find me there if needed. I’m going to go review PaidInterviews to learn more about their method.

  5. Can you reduce your fee over time. Im not feeling confident that I will get my first asking price and I wouldn’t want to miss out on a new job with anyone willing to pay me to join them. How many times in a year can I get paid by different employers…

  6. This has to be the single dumbest “recruiter” site I’ve ever seen. Only an idiot would use that site to get a job. Bring it on!

    – HH

  7. I don’t know what I’m laughing harder at, the article itself or the comments above. This just sounds ridiculous and is a bad idea for a number of reasons, three that come to mind immediately. First of all, candidates can get greedy and price themselves out of the market or price themselves too cheaply and devalue themselves. Secondly, this complicates the hiring process, giving the employer and employee one more area to negotiate, the more negotiations the more likely it is that the deal will fall through. Lastly, this model encourages candidates to leave to get another commission on themselves. Basically PaidInterviews makes hires less likely and decreases tenure – exactly the opposite of what clients want.

  8. Highly doubtful it’ll become a reality again but I witnessed “recruiters” making money hand over fist in the late ’80’s doing just this. There will always be candidates who undervalue themselves enough to pay a fee for a job.

  9. I’m just basically scanning but it looks like a Haldane vending machine. As long as they’ve been around, I am surprised someone took this long to automate the fleecing of the unsuspecting.

  10. Another crack at trying to invent the ‘magic bullet’ of making placements without doing the hard work. The best thing about this bullet is it explodes in the chamber and kills the shooter.

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