(4 of 4)
As in any emerging sector, the struggle to find the right formula causes flameouts. One company, Path.to, drummed up more than a million bucks in funding last year only to shut down this summer. "Unfortunately, we have learned just how hard it is to innovate in the hiring space," the company wrote in a July 16 blog post.
One not insignificant issue is how these outfits will make money. Many are relying on variants of the traditional model--charging businesses for their services or specifically when a hire is made. Others are trying different pricing: RoundPegg, for instance, offers companies a culture analysis for a one-time fee--from $5,000 for a small organization up to hundreds of thousands for huge ones. Once a matchmaking firm reaches scale, something a giant like eHarmony could achieve quickly, the real cash would come from monthly subscriptions. LinkedIn, which makes most of its money as a recruiting tool, already does something similar.
The more-cautious innovators in the hiring market believe in the long-term matchmaking promise of Big Data but are reluctant to wait for the computer oomph to become available. GroupTalent is a marketplace for software-engineering jobs and relies on lightweight interviews to assist its matchmaking. But co-founder Manuel Medina says he doesn't think the science is there yet to create lasting matches based on personality tests and surveys alone.
As he grew his business, one of its incidental features became a hit--brokering "try before you buy" deals, in which workers and companies test compatibility on-site for a few weeks before committing to a long-term relationship. Clients kept telling Medina that the arrangement reminded them of something, and eventually Medina had to agree. "Get paid to date companies," his website now proclaims.
FOR MORE IDEAS FOR THE FUTURE, VISIT time.com/breakthrough