The Dayak Model Grows

The Dayak team is keeping up its impressive growth, particularly among independent recruiters who like the company for the exposure it provides to larger companies.

Dayak, which was nominated for OnRec’s “2008 Game Changing Recruiting Technology Award,” is also flaunting its 832 new recruiters who joined the site in August. This figure, the Carlsbad, California-based company says, is more than double its original projection of 400. In addition, new job postings on the site jumped 24% from July to August.

The online recruiting marketplace has seen over 1,200 jobs posted on its site. Dayak prompts employers to choose the fee they’re willing to pay recruiters for a successful hire, a clear shift away from percentage-based fees.

Dayak’s chief executive officer, Allan Sabol, notes that in our current weak economy, his company’s service may help to “drive down recruiting expenses at a time when most companies are seeking ways to cut costs.”

Both Dayak and its competitor BountyJobs went home empty-handed after OnRec’s “2008 Game Changing Recruiting Technology” award ultimately went to JobStick, but their inclusion in the award nomination says something about the changing potential for recruiting technologies around the world.

R.D. Whitney, Onrec’s chief executive officer, notes that “the recruiting marketplace is rapidly changing and Dayak is an obvious change agent.”

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Whitney added that Dayak “establishes a unique marketplace in the talent management quest — it speeds up the hunt, and lowers recruiting expenses for organizations.”

In an interview on Cheezhead, Sabol said Dayak is focused on linking employers with the 80,000 independent recruiters in the United States who may not have otherwise been given the opportunity to work for the kind of companies posting on Dayak.

Unlike competitor BountyJobs, Sabol says Dayak gives “small and large companies the ability to leverage the experience and skill of the independent recruiters and boutique firms who can fill positions quickly and for a much more reasonable fee.”

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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6 Comments on “The Dayak Model Grows

  1. I am very surprised that Fordyce gave this company any kind of recommendation by putting their information in the Fordyce Letter. Recruiters spend a lot of time defending their fees. We don’t want or need to discount our fees. Finding good qualified employees is difficult for everyone right now. I do appreciate companies want to cut costs but for a recruiter to go out of their way to “drive down recruiting expenses at a time when most companies are seeking ways to cut costs.” is wrong. I know this is a free market etc. But, to tell companies and recruiters to work on jobs at a 50% fee reduction is ridiculous. This preys on desperate recruiters and uninformed companies. More than anything this is a resume service. There is no consulting with the company. There is no working with the client and candidate. It is send a resume and hope for the best. Come on! I know different markets have different expectations. I found Dayak because a company I work with decided this was their answer to recruiting and sent me the link. I was appalled at what I saw. I normally work at 30% fees. I will consider 25% but never lower. Dayak was telling companies right on the website that normal fees are 22% and it is best to start out at 50% BELOW that. My client had a job for a Director of Engineering for $100K salary with a fee of $8000. What respectable recruiter would give a company a Director of Engineering for $8000! Not me. This was my answer to my client: It is a website for “submitting resumes”. We are search consultants. We present candidates not resumes. We offer information beyond a resume. We do not take assignments for less than 25%. Many of our best clients pay us 30% to find the best candidates for their important openings. This website is for recruiters to submit their “C” candidates. Ones they have no interest or chance of placing for a full fee. It is what recruiters refer to as “passive” jobs. Dayak claims to only have experienced recruiters using the site. But, they don’t ask for any verification or background check. All I had to do was put in my name and email. Other organizations that have asked us to join required a lengthy form and references. I am leery of their ability to protect my and your interests. I see a huge opportunity for fraud. I told them when they needed me to work on a search personally with them they could call but I can not at this time work with a company such as Dayak. Dayak should come with a warning for all…BUYER BEWARE!

  2. Hi Maureen,

    I owned a search firm back in the 90’s for close to 10 years, and did it all. Let me just say; it was exhausting. Getting the job orders, finding the candidates, then going through the interview and hiring process. Plus having to worry about the guarantee period, refunding their money or finding a replacement. I would have welcomed a company like Dayak with the business model they have. As far as ethics, some of the most unethical people I have ever met worked for well known recruiting companies. That is why the industry was referred to as body snatchers and flesh pushers. I remember recruiters placing people at companies, and then going back a few months later and recruiting them out. Every industry out there has honest people and dishonest people; so even if there was a way to check on a recruiting company, if someone wants to cheat
    the system they will.

    What I see Dayak doing is giving independent recruiters and recruiting firms another way to make money, or supplement their income. If certain recruiters don’t want to use Dayak, then they don’t have to. I am sure there are plenty of clients who are posting job orders at 25% and 30% fees, but I bet there are alot more who aren’t. Why not make an income from both?

    What you may not understand is that alot of the companies that are starting to use Dayak are companies that have had bad experiences with recruiting firms bombarding them with unqualified resumes and too many calls. Once a client hears that they can control the process they feel better about working with the recruiters and posting more job orders on Dayak. As far as working with the client, the Dayak account managers work very closely with the client to define their needs and the recruiters can also communicate with the client. You are misinformed about the recruiter consulting with the client, they can be in communication through the Dayak site. Also, Dayak’s network of recruiters prescreen their candidates just as well as any search firms out there. So yes, the recruiters are in communication with their candidates, but probably by phone unless their candidates are local. Our recruiters definitely do not send in a resume, and wish for the best. Once a client has an interest in the candidate, there is ongoing communication between the candidate, recruiter and the client through written feedback. I don’t know where you got your information about Dayak, but I suggest you take another look. They are constantly making enhancements to their site because they listen to what their clients, both recruiters and employers want.

    I wish you the best.

    Nancy

  3. I love the two comments by Nancy and Maureen as they represent the dichotomy of views stemming from the impact of technology and global economics on workforce management.

    If you are a recruiter, “talent scout”, “executive searcher” expert, sourcer, researcher, employer, staffing agency, hiring manager, whatever… You cannot be disinterested in this subject, as your very livelihood depends on how you respond to these issues.

    That said, the time of 30%+ recruiting fees may be coming to an end; maybe not. But economic pressures and marketplace drivers like Dayak are not going to go away.
    The question is “what are YOU going to do? Ignore it (and die), or adjust appropriately?”

  4. A lot has been said about Dayak here and I respect all the views. I did not want to comment here until experiencing it. We are a small Technology recruiting firm based out of MA. As mentioned by Sabol, it has been really tough for us to get large companies as our client because of their strict vendor requirements while bounty jobs did not allow us to join because we did not have a “reference”. I read about Dayak online and decided to work on their requirements. I am really excited to see the kind of response that we are getting from clients as well as Dayak.

    I am sure that Dayak is helping existing companies in cost saving; however the bigger benefit is that it is encouraging lot of companies that earlier shied away from third-party recruiters because of their exorbitant costs or previous experience. This is going to result in net new business coming to recruiters. The game is really changing!!!

  5. My firm, CST National was one of the first search firms to become members of DAYAK. We have been successful at utilizing the website to generate new and repeat business.

    It’s very important for all recruiters to remember that DAYAK is not only a website, it is a portal to future business relationships. It is a way to network into companies that normally wouldn’t give a small recruiting company the time of day, let alone a search contract.

    In these very tough times, the days of 30% fees are long gone. The party is over. We must embrace instead of resist change and utilize every tool at our disposal to get new business. If you place a candidate through Dayak, you can be assured that the company will approach you outside of Dayak for their next position if they are happy with your service. Again, it’s a portal to build relationships and network.

    I know Splits used to be viewed as the ultimate evil in our business but most recruiters are relying on them now to sustain them until the economy turns around. We must still exercise caution with splits due to candidate theft but they work… for now.

    Bottomline, Dayak is the right solution for this industry and either you move forward with it, or risk falling behind and going extinct.

  6. Mike, You are out of touch. splits are never looked at as an evil and based on your comment, I would think the only person who would say what you just said must be getting some sort of compensation from dayak.

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