Generally, when people are approached by recruiters about a possible new job, they don’t have to worry about paying any sort of fee. That’s typically covered by the company doing the hiring. But this is the age of artificial intelligence — and everything is different now.
A new startup called Refer approaches recruitment and job hunting in a novel manner, but it’s one that puts the onus of payment on the job seeker, who will have to surrender 20% of their first month’s salary once they start the new gig.
Refer uses AI and handles the recruitment process in a mirror version of how it typically goes. Instead of working for the companies, its AI agent, which it calls Lia, acts on behalf of the job seeker. Think of it as a virtual talent agent of sorts.
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You’ll initially tell Lia what sort of job you’re looking for, your experience, preferred salary and additional details. From there, it will search for potential matches and, if you give it permission, Lia will send an email to the hiring manager on your behalf.
Lia’s track record
The system seems to be working. Refer’s founder says more than half of the service’s users secure an interview within 24 hours of an introduction. To date, it has facilitated over 5,000 interviews.
Introductions come after both the job seeker and the potential employer express interest. Users can request for Lia to make up to five introductions per day. Employers then have three days to respond. The service bypasses traditional online applications entirely, saying they don’t work.
If a candidate decides the job isn’t for them, they explain why to the AI, which helps to train it to find more appropriate openings.
Refer works with approximately 2,000 employers and its current database spans 7,000 jobs, with a heavy emphasis on software engineering and other tech openings. That work, however, is handled by the humans on staff.
“While we use AI in our processes, our (human) team works hard to build and maintain relationships with decision makers at top tech companies, ‘networking’ on your behalf,” the company writes on its website.
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A workaround for ghosting
While paying for the opportunity to work is certainly an unusual model, Refer is arriving on the job-hunting scene right as worker’s frustrations hit new peaks. An estimated 84% of all job applications are ignored today, and nearly 40% of job seekers say they are sending 20 applications per week, according to Robert Walters.
Hiring managers, meanwhile, are receiving a flood of AI-written resumes and cover letters that workers try to pass as their own work. That only increases the ghosting by potential employers.
In June, 4.3% of the U.S. population was unemployed, a notable jump from three years ago.
Refer’s methods are turning heads in financial circles as well. The company has raised $10 million in seed funding over two rounds.
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Chris Morris is a veteran journalist with more than 35 years of experience at many of the internet's biggest news outlets. In addition to his activities as a writer, reporter and editor, Chris is also a frequent panel moderator and speaker at major conferences, including CES and South by Southwest.
