<div><em>Technology companies are great acquisition targets provided they scale up their customer base, <strong>Vishal Krishna</strong> reports</em></div><div> </div><div>Legacy talent platforms have always had tons of CVs uploaded on them. These platforms were neither intelligent nor productive for organisations that used them.</div><div> </div><div>Organisations spent upwards of $2,000 per hire to close the right candidate in mid-level positions. This is an expensive proposition. All that is going to be history now.</div><div> </div><div>There are several startups that have cropped up to help organisations with intelligence-based lateral hiring. With the growth of small businesses, especially those that have raised money and are trying to scale up operations, the need to employ experienced individuals has also increased. Myparichay, Hiree, ZenRadius and Talview are some of these new talent hiring platforms that are making hiring intelligent and measurable. They also intend to help HR departments to reduce the time, cost and effort in finding the right person for the available roles.</div><div> </div><div>At any given point of time there are a million people scouting for new jobs. About 50 per cent of them are dormant seekers and the rest are active. Hiree, founded by Manjunath Talwar and Abhijith Khasnis, former Yahoo employees, has built a platform that can recognise the needs of the employer and potential employee. Its back-end engine matches the job profiles with the right connects.</div><div> </div><div>For example a developer who knows five computer languages would want to work in a company that is investing in its digital strategy. The process is quick and simple on the Hiree app. The engine of Hiree also scouts the entire social profile of the employing company and the employee to match both their needs. IDG Ventures has put in $3 million. The company has scaled up to close to 200,000 users and there are several startups already hiring through their platform.</div><div> </div><div><strong>Business Model </strong></div><div>The business model is based on paying an annual license fee for the data base. The company does not take a cut on the salary at which the employer offers to the candidate. "We are a technology platform that solves hiring and this can scale up faster than other legacy hiring models because they do not match skills," says Talwar.</div><div> </div><div>Similarly MyParichay too is using technology to connect with potential hires. This platform links to social networks and uses the connections of an individual to find people of similar profiles. The company has raised $1 million and has been funded by HT Media.</div><div> </div><div>Talview, another Bangalore-based startup, is using video technology to help employers, is scouting for funds. Their proposition is to get lateral hires on to a video platform with the employer. Tests and interviews are conducted on a device. Talview offers a login to the employee and they get on to a video platform with the employer at an instant. Talview was founded by Sanjoe Jose, Subramanian K, Jobin Jose and Tom Jose. "We charge for the technology used and it is a license model. They can interview as many employees as they like," says Jose.</div><div> </div><div>The central part of all three hiring startups is that they are using technology to disrupt hiring. But they are also building data analytics engines to sieve through the portfolio of registered hires and engage them on a long term basis. There will be 300 million Indians seeking jobs in 2030, even if these startups can cater to 50 million job seekers then these are potential $500 million businesses. Does that mean these companies are early to the party? Like in all such internet businesses, ones with the deepest pocket will survive.</div><div> </div><div>"Technology is the differentiator today and that is the theme of all investments today," says Venkatesh Peddi, Vice President at IDG Ventures. He adds that it is the only way to connect to the growing middle class and their changing methods of consumption with smart phones.</div><div> </div><div>However, this industry has seen its ups and downs. A Helion Ventures funded startup called Talentpad shut shop because it was not able to scale up in acquiring employees.</div><div> </div><div>Such is the nature of the business. Although there are 6 million graduates passing out in the country only 700,000 or 15 per cent are employable. This is also the core audience on the smart phone. According to Kronos, the human capital management product company, there are only 20 million white collar workers. It is large enough.</div><div> </div><div>The bet for these hiring platforms will be to raise more money and become the leaders in their industry to survive. Unless a large pool of workers in India start to actively use smartphones and enter the white-collar market, these hiring platforms will not become standalone companies. They will become acquisition targets, for their technology and team, to platforms with deeper pockets.</div>
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