Mike Bachman, founder of Preferhired, worked in the staffing, recruiting and the human resources technology space for 20 years before leveraging that deep experience to conceive and launch his innovative hiring platform.
"I worked directly for staffing firms for my first 10 years before transferring to Monster.com and then to Indeed as one of the original employees," he said. "I then went to work for a startup that assisted companies identify their ROI on their job board spend. That's where I got the idea for Preferhired. Companies spend $510 billion globally on job boards and other staffing resources, yet referrals are the number one source of hiring. The problem is that only five percent of employees participate in the referral process and many are still relying on spreadsheets to track their referrals. If 5 became 15 percent, companies would spend less on job boards and other staffing resources. The lightbulb of how to correct this engagement issue with automation and real-time transparency went off in my head, and I knew I was on to something. I pitched my idea to a couple of people who thought it was a great idea, and just like that, I started building. Preferhired has a solid network of partners and investors and we're growing."
The Preferhired platform allows companies to post job openings and offer referral rewards at multiple steps of the hiring process while enabling both employees and external individuals to promote the jobs and earn referral rewards from them.
"We cover the facilitation of the transaction on a pay-by-transaction basis so there is no upfront cost to the employer. It's pay for success only," Bachman explained. "Just like Uber, there is a rating system to determine who is a successful referrer and who is not. Our patent pending process breaks the referral process into three stages that are accepted applicants, interviews and hires. That means there are three opportunities for referrers to make money."
Looking ahead, Bachman is thrilled about Preferhired's new partnership with ZipRecruiter. The integration between these two platforms allows for jobs and candidates to be easily shared. The result is a much improved qualification process that speeds up the process for everyone.
Bachman's advice to aspiring entrepreneurs is that it is no secret. Hard work and great teams breed success.
"Be prepared to work harder than you’ve ever worked before," he said. "Looking back at every job I had, the amount of work was peanuts in comparison, but the good news is I don’t wake up on Monday dreading driving to work. I, along with the rest of the team, have a 24/7 mentality right now. We’re excited about what we are building, how we are transforming an industry and are driven by passion.”