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.