Draftboard enables companies to list referral bonuses accessible to anyone.

Draftboard revolutionizes the referral process by allowing companies to publicly list referral bonuses, making them accessible to everyone. This platform enhances the visibility of incentive programs and broadens the potential pool of referees, promoting a more inclusive and extensive network for talent acquisition.

Draftboard, co-founded by Zach Roseman, former CEO of mobile app development group Mosaic, introduces a novel concept by allowing companies to extend referral bonuses beyond their employee base. This platform enables employers to post referral bonuses, enticing external individuals to compete for rewards by leveraging their networks to identify suitable talent.

Roseman highlighted the challenges faced by large enterprises in managing the influx of resumes for each job posting. He explained that conventional approaches involve extensive manual screening by talent teams or significant investments in AI screening solutions, both of which have drawbacks such as privacy concerns, biases, and errors.

With Draftboard, companies can harness the power of external networks to identify potential candidates, thereby streamlining the recruitment process and reducing reliance on traditional methods.

Draftboard marks Roseman's debut project following his tenure at Mosaic and IAC, an American holding company with a diverse portfolio including consumer brands like Allrecipes, Handy, and Care.com. During his time at IAC, Roseman served as Senior Director of Strategy and Mergers and Acquisitions, where he frequently navigated the challenges of talent acquisition.

Roseman explained the rationale behind Draftboard, emphasizing the utilization of existing referral bonus programs and the interconnected nature of the modern world to identify top-tier candidates. By tapping into referral networks, Draftboard facilitates the creation of a smaller yet higher-quality pool of applicants, thereby expediting the hiring process for organizations.

So how does Draftboard work?

Draftboard operates on a free model for companies, leveraging a network of approximately 1,000 referrers, referred to as "scouts" within Draftboard's framework. These scouts receive notifications as referrals progress through various stages of the recruiting process. Referrers are evaluated based on the quality of their referrals, with Draftboard receiving a 20% commission from each referral bonus.

When asked about how Draftboard initially recruited its group of referrers, Roseman revealed that the company employed cold calling strategies. They reached out to individuals within their network through platforms like WhatsApp groups, listservs, and LinkedIn, particularly targeting those who managed or owned tech communities. Roseman explained that they conducted discovery calls with these individuals to understand their pain points. Additionally, every conversation with founders or talent personnel regarding listing roles on Draftboard often led to referrals of potential scouts.

Roseman clarified that there are no formal requirements to become a referrer on Draftboard, a deliberate decision that might seem risky for companies at first glance. However, he emphasized that this approach actually democratizes the process in a meritocratic manner.

"There aren't strict requirements to be a referrer, and that's intentional," Roseman explained. "I envisioned a system that is data-driven and self-reinforcing. Companies can establish minimum referral scores, and if a referrer's score falls below this threshold, they are no longer permitted to submit referrals to that company. Rather than us imposing top-down restrictions on who can participate as a referrer, we empower referrers to regulate their own behavior in a decentralized manner."

While some may argue that Draftboard resembles a form of outsourced headhunting and recruiting, Roseman refutes this notion. He contends that many recruiters actually endorse the platform, leveraging it to pursue side ventures.

"Scouts come from various backgrounds, spanning from Substack creators to recruiters to regular employees at tech giants such as Amazon, Spotify, Deel, and TikTok," Roseman explained. "We believe that referrals should be accessible to everyone, not solely restricted to company employees, as long as we can ensure quality control, which we achieve through our reputation score system."

Draftboard's business model has garnered significant interest from brands, with approximately 70 currently utilizing the platform, including SeatGeek, Via, and Formlabs.

Moreover, investors have shown keen interest in Draftboard, evidenced by its impressive fundraising efforts. The company has secured $4.1 million from investors such as Founder Collective and Twelve Below, achieving a valuation of $13 million.

Roseman emphasized the distinctiveness of Draftboard's approach compared to traditional job boards like LinkedIn, Indeed, and ZipRecruiter. He highlighted that while these platforms primarily focus on connecting job seekers with companies, Draftboard operates differently by connecting referrers with companies. Referrers, in turn, bring in talent, whether actively seeking employment or passively exploring opportunities. This unique approach aims to mitigate biases and incentives inherent in traditional job boards.

Draftboard, headquartered in New York and boasting a team of 10 employees, intends to allocate the majority of its initial capital towards expanding its workforce and cultivating growth on both sides of its marketplace — referrers and companies.

Source: techcrunch