by Tyler Cowen
on February 4, 2008 at 3:50 pm
1. New blog on Canadian economics
2. New blog on the bond market
3. Markets in everything: how much should you charge for a job interview?, via MV.
4. Russ Roberts podcast with Daniel Klein
5. Sounding the alarm
People want companies to pay to interview them for job openings?
Um… do any companies actually go for this? Because if anyone tried asking for this with us, they would be laughed off the phone/out of the office.
Who’s paying to interview people? Where are the incentives such? Can someone explain why that website isn’t BS?
I think part of it is screening the candidates before they get in. Unlike Monster or CareerBuilder, you actually have to pass a quality filter to post your resume. Therefore the resumes are worth more. For the time and effort saved, the savings are passed to you. Most companies pay the resume aggregators, this time the site splits some of the dough with you.
I’m also a Canadian Econ student with a blog. And an occasionally loyal reader. And a shameless self-promoter. http://mjakubowski.blogspot.com/
During the bubble, I heard estimates of cost-per-hire of senior technical positions (>10 years experience, multiple 7-figure systems shipped) starting at $30K and heading up to $50K. For those positions, a successful headhunter will get anywhere from 20-30% of the candidates yearly salary for the placement from the hiring company. Add interviewer costs, fly-downs, signing bonuses, referral bonuses, moving allowances, etc., and kicking back a few bucks for high-quality leads who might not otherwise be on the market makes a lot more sense. Hiring at that level is a big deal, particularly since the costs of a mis-hire are enormous. For executive-level search, increase those figures more-than-proportionally.
The Notchup calculator says I should probably charge $1K for an interview. At that price, I can feel comfortable that the hiring company isn’t jerking me around, I can justify spending an off day interviewing even though I love my current position, and it’s worthwhile getting the suit dry-cleaned and maybe even getting on a flight. Even at that price, it’s probably not worth doing unless the position is actually interesting. On the hiring side, I can be a bit more assured that HR isn’t just spamming my in-box with low-quality resumes, and figuring it won’t cost their bottom line anything if I have to kick them out in interview (not that that ever happens). As long as there are significant barriers to scam-artists (reputation system, no charge for non-serious candidates, fraud-detection rules), this sounds like it could be a very valuable service.
Comments on this entry are closed.
Previous post: Antitrust Protectionism
Next post: Bill Traylor
Email Tyler Cowen
Follow Tyler on Twitter
Email Alex Tabarrok
Follow Alex on Twitter
Subscribe in a reader
Follow Us on Twitter
Marginal Revolution on Twitter Counter.com
Get smart with the Thesis WordPress Theme from DIYthemes.