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A Northumberland man who gave up a career in recruitment after becoming disillusioned with the industry has launched a start-up he calls a “recruitment agency killer”.
Andrew Philipson and his family ended their life in London and moved to Alnmouth, where Philipson grew up, before plowing £50,000 from the sale of their property into Jobba. The startup provides a platform that connects independent technology industry headhunters with hiring managers and connects these headhunters with jobs that match their expertise.
The concept, which aims to “take the ugliness out of the recruitment industry”, has so far attracted £150,000 in investment from a group of angels and attracted interest from US investors. Joba’s verification process is designed to combat the “throwing mud on the wall” approach, which Phillipson said has given the recruitment industry a bad name in some cases.
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Mr Phillipson explained: “My theory is that the business model of recruitment agencies has not changed in 40 years. You pay recruiters a low base salary and give them a small percentage of any fees they bring in – 10 -20% – And the other thing about the attrition rate is, every recruiting agency has a whiteboard on the wall that says, “By the way, how many interviews did you have this week, how many companies did you talk to, Wait,” which creates this do-or-die attitude. to recruitment. “
Jobba, which generates revenue by charging a 20% placement fee, is said to provide companies with headhunting capabilities unmatched by any agency and gives recruiters the opportunity to go it alone and earn richer rewards. Numerous industry experts, including former Meta human resources manager Rick Kershaw, provided advice on its progress.
Mr Phillipson added: “The average technology recruitment agency has 10 principals. So if you’re Amazon and you’re looking for a software engineer with very specialized skills, an agency with 10 staff – there may only be one Data-focused Amazon, for example, will typically pay 20-25% more, usually around £25,000, because techies are well paid, whereas you might only be paying a huge fee for one or two people looking for a needle in a haystack across the country.
“So, you’re putting all your eggs in a very expensive basket. Not only that, but recruiters aren’t really incentivized because they’re only going to take about 10-20% of the £25,000. But on our platform Companies can post a job, choose any fee they like, and when it goes live, every data recruiter on the platform across the country will be instantly notified of the job.”
Phillipson said the industry faced the same shortcomings in almost every market, so there was a desire to take Jobba global. He is now hoping to raise £200,000 of investment through the Enterprise Investment Scheme as the company hopes to generate profits and employ staff in about six months.
Mr Phillipson added: “Because everyone despises the recruitment department, when I call them or do a Zoom call, they love what we’re doing. People can’t believe it hasn’t been done before. It eliminates All the noise coming from the recruiting department.” In the recruiting world, we’re trying to create an ecosystem that supports hiring managers by supporting great recruiters, and that’s where the Cowboys don’t operate. “
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