Launching their public beta today, September 1, is Australia’s newest social recruiting service called 2Vouch. (Disclosure: I have done some work for 2Vouch.) Having been in private alpha testing over the last month or so the Melbourne based company is for the first time allowing the public access to their service. The best way to describe the tool is really to quote 2Vouch General Manager Jeremy Samuel:
2Vouch is a social recruiting system that pays professionals $1,400-$2,800 when they make referrals someone who gets hired. For companies, it is free to advertise. They only pay when they place someone through the system and we offer a 110% money back guarantee if the person doesn’t work out.
The service is fundamentally similar to Hoojano which I spoke about back in February this year, with a few differences. Both basically rely on the refer a friend approach to filling roles.
Employee referral programs are a very common approach used by many organisations and research has shown they are the lowest cost source for hiring in today’s marketplace, even lower than using job boards! In certain industries within the US best in class companies hire over 46% of employees through referral programs.
Cost is not the only benefit research by Professor Emilio Castilla from MIT Sloan School of Management found that employees recruited through employee referral programs can have a higher performance over employees recruited through other means. But back to the tool.
One of the biggest differences between Hoojano and 2Vouch are how they match jobs, although both would say otherwise. Where as Hoojano requires the member to actively review their contacts to find matches 2Vouch uses their Job Genie™ to email the member when possible jobs that match their contacts are available.
Payment is only made on placement, not to advertise so there is no harm for recruiters and employers giving the tool a test run. Further 2Vouch is offering a 110% refund for recruiters and employers if they hire someone through the tool and they do not work out. While this might sound impressive I think 2Vouch will keep their money as research has shown internationally that placements made through referrals are of far higher quality than regular placements.
Members get referral payments, ranging from AU$1,400 – AU$2,800 once someone has been successfully hired. These payments can be made to the members PayPal account or donated to charity.
2Vouch are ranked #26 in the Ross Dawson’s BRW Top 100 Web Applications, original development was completed by Ben Barren and his team from FeedCorp and have recently become part of the Pollenizer gang, Australia leading startup management garage, to create a very compelling tool for the Australian market.
A final note, and a plug, as part of my work with Inspecht we have a research report available on building a business case for using referrals in hiring.