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March 21, 2007


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Steven Rothberg, CollegeRecruiter.com

We've been successfully providing our clients with a pay-per-lead option under which they pay for each qualified and valid lead a/k/a resume as those are relatively easy to track both for the employer and our systems. But we've been unwilling to do pay-per-hire deals because those deals require our clients to be both honest (the vast majority are) and capable of providing accurate information (the vast majority fail this I.T. test). The fundamental problem is that their applicant tracking systems are not set up to automatically track a candidate from the point of application to the point of hire in such a way that the employer knows with absolute certainty from where that candidate was truly sourced. Most employers that we talk with will claim that they know but almost none actually know because they rely on the candidates to tell them. Study after study prove that candidate self-identification leads to improperly attributed sources in over 80 percent of the cases.

Until the ATS vendors are able to work through these issues with their clients, I can't see success for any pay-per-hire model.

Dave Lefkow

Based on experience (I've done several ROI projects for companies) I have a hard time believing that 80% number. But you're right - it's not completely accurate, which makes your job more difficult. There are ATSes that have "true source codes," but they're relatively rare.

The return might still be worth the risk - if you got an additional amount of revenue from a customer even within 20% inaccuracy, you could more than make up the difference. I believe that customers will pay a significant premium for a cost per hire model.

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