“Recruitment marketplaces” are a business model that has existed for some 20 years but may still prove to be among the most disruptive parts of the workforce solutions ecosystem, according to a report by Staffing Industry Analysts.
“Most recruitment marketplaces are growing their businesses ahead of general staffing market growth rates, some substantially so,” according to the report. “SIA expects this model to continue to benefit from greater market penetration as skills shortages increase and employers look for the most effective way of sourcing rare talent.”
The definition of a recruitment marketplace is a platform comprised of individual freelance recruiters and/or staffing firms. Client companies can engage a recruitment marketplace and get the power of its network with the convenience of single-supplier invoicing.
For staffing firms and recruiters, the platforms usually have a set placement fee that is split between the recruiter that ultimately places the candidate and the marketplace.
Recruitment marketplaces focus mostly on direct hire, although some also provide contingent placements. Examples of recruitment marketplaces include Scout Exchange, TalentHire, BountyJobs and Jobhuk.