In recent years, more startups have been collaborating with each other to win the talent war by sharing applicants and leveraging network power.
Take, for example, the model of the venture capital fund JVP.
“A VC like JVP has a huge network, thanks to the business and interpersonal connections the partners have developed over the past 30 years. The network consists of talented individuals in Israel and abroad, both in large global companies and startups,” says Ricky Mozes, Chief People Officer and VP HR at JVP. “The fund supports our portfolio companies in recruiting employees, managers, and board members by locating applicants, screening them, and then choosing the most suitable candidate. If a candidate performs well in an interview but ultimately declines the position or the position is offered to someone else, I can offer him a position in another company in our portfolio. This leads to better outcomes for all of the fund’s companies due to relationships and resource optimization.”
JVP is not alone. More and more funds leverage the power of their network to improve the probability of successful hiring and help their members save money and time.
The traditional methods for recruiting are no longer enough. In order to stay competitive, we need to work together and make use of the (limited) resources we have as startup companies. But how exactly?
Referrals are the most efficient form of hiring and a major recruitment route in practically every business. Studies reveal that 70% of all jobs are not published publicly on jobs sites and as much as 80% of jobs are filled through personal and professional connections.
Moreover, 82% of employers rated referrals as generating the best ROI, above all other sources, and 88% said that referrals are the best source for above-average applicants.
In the US, 30% to 50% of all new employees were recruited through referrals. According to research published by LinkedIn, people who are referred for a job are a whopping nine times more likely to get it.
However, referrals are not limited to employee referrals. Much like what happens in funds and outplacement processes after layoffs, it is possible to further expand the referrals channel to outside the organization.
At Dueto, we have developed an AI-based collaborative recruitment platform that allows companies to make the recruitment process more efficient and humane by referring recommended candidates to other companies. What if, instead of another “thanks for your time” rejection letter, you could send applicants an automated link to all open positions in your community that match their skills and preferences?
This enables top candidates who have undergone thorough screening and advanced interviews or who have been laid off to access new opportunities in best-fit companies. The companies in the ecosystem also benefit from an additional, high-quality recruitment channel.
If you’re a startup, you can open a position and receive recommended candidates who are both interested and have been found suitable based on an AI analysis. The result is a quicker recruitment of qualified candidates and a superior recruitment experience for everyone involved.
If you’re a VC or an independent community, you can keep talents “in-house” by increasing the chances of finding the right position for applicants who may not be compatible with a specific company or role.
Nowadays, more than ever, it’s a win-win situation for everyone!
The article was written by Liat Ben Zvi Shevach, CEO at Dueto.
For a recruiting platform (ATS) for your startup or recruiting solutions for your VC or community
Contact liat@dueto.io or 052-5641664
