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Last week a fascinating new experiment in Australian recruitment services quietly launched.   

RecruitLoop  is a pay-as-you-use recruitment service where clients have a choice of how much, or how little, they wish to use ‘recruitment support’ (an external recruiter), based on agreed fees.   

It’s a classic unbundled recruitment service model with the five components; Specify   (writing a full job description and assignment brief), Source   (advice on best sourcing channels), Screen   (review resumes and shortlist), Refine   (testing and reference checks) and Select   (negotiate offer and advise unsuccessful candidates).   

All the services are provided online and it appears that face-to-face client meetings or candidate interviews are not part of the service. Instead video interviews are promoted as a cost effective alternative with selected candidates being sent a URL to log in with and then answer questions that appear on the screen, via webcam.   

RecruitLoop do not (as far as I can see) provide a database of candidates so all sourcing aspects of each recruitment assignment would be heavily reliant upon advertising or the individual recruiter’s internet search capability.   

Client fees and charges are transparent. Recruitment support costs $95 per hour, recorded video interviews are $25 each and testing averages $100 per test (exclusive of GST). No success or placement fees are charged.   

Each recruiter joins the RecruitLoop network as an independent contractor and as RecruitLoop clients register jobs, the recruiters submit their interest in working on that assignment via an online portal to the client who then selects the recruiter they wish to use.   

RecruitLoop issues all the client invoices on behalf of their recruiters and pays each recruiter within a week of payment being received from the client, minus a 15% commission.   

According to the website, there are 17 recruiters (9 in Sydney, 6 in Melbourne, 1 in Brisbane and 1 on the Gold Coast) who have already joined the network and they are actively recruiting for more to join the network.   

The three founders (Michael Overell, Denis Zubkov and Garry Visontay) have no recruitment industry experience (except as end users).   

RecruitLoop generates the client, the client and the recruiter use the RecruitLoop platform to undertake the agreed parts of the recruitment process and then RecruitLoop sends the invoice for services rendered.   

It offers a sound but unspectacular income potential for recruiters. I estimate a maximum annual revenue of $125,000 is achievable after deductions for RecruitLoop’s commission but before any self-employment costs eg insurance, home office, telephone etc.   

I’ve seen it all before. Let’s see how this version of the unbundled recruitment services model goes.

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Michael Overell

Ross – thanks for the writeup. As one of the RecruitLoop founders, I hope you don't mind me jumping in with a few clarifications?

Service offer: Online vs offline. You're right that clients can receive the majority of recruitment services online through RecruitLoop. Recorded video interviews in particular are saving employers hours of time screening candidates. However, we certainly don't attempt to remove human contact from the process. Recruiters can still meet candidates and visit clients in person. Clients absolutely meet the final candidates in person before making a decision. Our overall philosophy is to streamline the (numerous) parts of the recruitment process that can be improved through online interaction, while recognising the critical importance of human contact.

Database of candidates. As a relative newcomer, you're right that we don't yet offer a deep pool of existing candidates. However, our experience is that the majority of traditional recruiters typically also start with advertising. Particularly for the types of roles and clients that we focus on serving.

The founders. You're right (again) – we are industry 'outsiders', focused on solving a recruitment problem for employers. This hasn't been an issue at all for our clients, as they work with the recruiters in our network, not us directly. Now, the recruiters they work with DO have deep industry experience (ten years on average), and are actively verified before joining. Having said that, we'll be announcing an interesting addition to our core team within the next 5-6 weeks…

Benefits for recruiters. Interestingly, dollars are not the primary motivation for most recruiters in the network. Flexibility, autonomy, community, and a focus on client service rather than sales have made the RecruitLoop model a compelling alternative (or complement) for almost all of them.

As you mention, we are expanding the network of recruiters. We'd love to hear from experienced recruiters with a passion for client delivery, not sales. Please email [email protected], or call me directly on +61 408 791 984.

Michael Overell, CEO and cofounder.

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