Finding Candidates in an Online Job Marketplace

Finding the right candidates for some positions can be really difficult, even in this economy. Search firms and headhunters are knocking down our doors, often times with less than qualified candidates. At the same time, many of us still need to turn to these third-party agencies for their expertise in filling these challenging positions. And you wonder—if there could only be a mediator to help you manage these search firms and headhunters without the laborious contracts (not to mention extra vendor management work) and your phone ringing off the hook.

Some organizations have turned to a new brand of service: online talent marketplaces. Vendors like Bounty Jobs, Recruit Alliance, and Dayak create an online job marketplace—a spot where you can post your available jobs and search firms/headhunters can view and submit candidates to fill those jobs. These marketplace vendors manage the third-party agency contracts, and get paid either by taking a cut of the payment made to the search firm/headhunter once a placement is made or by the organization paying a monthly fee.

Initial review of these marketplace sites are somewhat mixed. Some organizations love the freedom from contracts and vendor management, while others complain of quality issues. Search firms and headhunters aren’t particularly the biggest fans—they face increased competition when using online job marketplaces, share fees with the marketplace vendor, and lose the protection guaranteed to them through direct contracts. As hiring picks up, it will be interesting to see how well these marketplaces fair going forward.