Atlassian’s social hiring spree pays off

 

Recruitment agencies told to ‘lift their game’.

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Australian software company Atlassian has halved its recruitment costs in a hiring spree that was driven by word-of-mouth and social media.

Last August, the company announced that it would hire 32 staff by the end of the financial year. It now needs only eight new hires to meet its quota.

The so-called 'Atlassian 32' recruitment campaign has received 2500 applications so far, Atlassian's head of human resources Joris Luijke told iTnews.

Of the 24 new hires since August 2009, 14 were referred by Atlassian employees, and nine had applied directly to the company.

Only one new employee, representing 4 percent of the new hires, was referred by a recruitment agency. The company was previously making 26 percent of its hires through recruitment agencies.

 "The increase in the number of applicants has decreased our reliance on recruiters," Luijke said.

"I think recruitment agencies really have to lift their game and realise that organisations are able to do it themselves at a much lower cost," he said.

Lujike attributes the wide reach of the Atlassian 32 campaign to a marketing strategy that involved the entire company, as well as the use of rewards that were likely to be virally discussed.

Already, Atlassian has invested $3m in its recruitment spree, and plans to spend an additional $2m during the next six months.

"We used messages that were likely to be talked about in social media," Luijke said, referring to Atlassian's referral bonuses that ranged from $2,000 to $10,000, and paid holiday offerings for new hires.

Prior to its social media push, Atlassian was averaging one hire per 25 candidates. It is now hiring only one in 125 applicants.

Luijke compared Atlassian's current hiring statistic to that of Google's, which in 2007 was reported to only hire one in 130 applicants.

"We're very diligent about the quality of people we hire," he said. "We're really only trying to hire the best."

Among the 8 remaining job vacancies are positions ranging from support engineers that pay upwards of $60,000 per year to a vice-president of engineering, who Luijke said would have "significant experience in a senior position at a large IT firm".

It is also seeking up to four more recruits for 'supporting roles' and will be inviting applications for its graduate program in a months' time.


""This story is a viral campaign gone wrong!" I'm detecting a campaign, but not in the story."
By Sams
 
 
 
Comments: 16
argybargy
Feb 17, 2010 9:54 AM
Pays off whom?

Uhm, $3m spent hiring 24 employees, so cost per hire $125,000. Using an agency average fee possibly $10k - $20k per hire. Is there something I'm missing here?
Ace
Feb 17, 2010 10:00 AM
It would seem quite a burden to have to wade through 5 times as many candidates. Maybe they have had to hire more HR staff to handle to work load?
argybargy
Feb 17, 2010 10:07 AM
For a $60k package for some poor soul, they seem to be spending twice that on hiring them.
Digger11
Feb 17, 2010 10:19 AM
I think you will find the figures have been miquoted. They have halved their recruitment costs. I doubt they wer payiogn agencies $250k per employee. I think the $3m should maybe be $300,000 ?

Good on them - most recruitng firms are a waste of space and add little to no value to the hiring process.
Ace
Feb 17, 2010 10:28 AM
ITNews would never misquote anyone. They are the cornerstone of credibility and accuracy in IT reporting on the web. I think you can take their word as gospel.
argybargy
Feb 17, 2010 10:36 AM
Lets hear it Liz did you get you facts right?
jorisluijke
Feb 17, 2010 12:13 PM
Hi

Great to see so many comments. The numbers are correct, but maybe not specific enough :-) We are investing $5M in new IT jobs (not in the campaign itself). This is not a per hire cost, but employment costs. The main campaign was designed to find 32 engineers.Also, some support staff was included.

Recruitment costs (or the per hire costs) have almost halved.
argybargy
Feb 17, 2010 12:40 PM
Hi Joris,

Good to see you here. Can you give us a little more detail on your numbers. You say you are hiring 1 in 125 applicants, are you interviewing 125 applicants for one hire or just reviewing the CV's?

How much time would you give to review each CV, is this calculated into you cost per hire?

I would imagine that if you received 2500 applicants, hired 14 out of internal referral (most of whom you would expect to be on the money) that the bulk of the applicants applied directly. If you had 200 out of internal referal for 14 hires, that's a 1 in 14 hit rate, that still leaves 2300 applicants for 9 successful hires or 1 in 255?

Reviewing 2500 applicants seems like a lot of work for a company thats core business is making great software, what's your view on this?
argybargy
Feb 17, 2010 1:25 PM
Hi Joris,

Just one more question, you quote that previously you were hiring 1 out of 25 candidates and now you are hiring 1 in 125?

I am assuming that you were previously hiring good staff?

Are you trying to hire better quality staff than your existing staff?

It kind of begs the question then that if you are only hiring 1 out of 125 now that the quality of applicants has gone down. Does this say anything about the quality of applicants that are coming through social media?
jorisluijke
Feb 17, 2010 2:42 PM
You are right; the quality of applicants hasn't generally gone down. We did find that the people who we ended up hiring mostly came from internal and external referrals.

In the past, most hires came from referrals from people working at Atlassian. 27% of new hires came from recruiters.

Now we have added the option for external people to refer staff (which was communicated widely through social media). We found that the external referrers have generally submitted better candidates than recruiters have. They have basically taken over from recruiters in terms of delivering quality hires.

The increase in the number of applications has helped us find some very talented people, especially for roles that normally attracted only very few applications (our Developer roles traditionally attract more candidates).
jorisluijke
Feb 17, 2010 2:51 PM
Yes, it takes extra time to deal with the increase in load. The past 6 months campaign, we had a student assist us 2 days p/w. We have also re-adjusted the selection process with more effective written and phone screening steps. It is a good problem to have though.
Liz Tay
Feb 17, 2010 5:38 PM
Thanks for clarifying the $5m figure, Joris.

And thanks for sticking up for us, Ace ;)
argybargy
Feb 17, 2010 9:24 PM
Hi Joris,

So you have a student with no practical experience vetting your applicants?

None of the facts or figures stand up.

This story is a viral campaign gone wrong!

Sorry.
aprillove
Feb 18, 2010 10:46 PM
Pay off to whom..?
BrettWinterford
Feb 19, 2010 5:59 PM
Argy mate, do you have an interest to declare? :)
Sams
Feb 20, 2010 9:06 AM
"This story is a viral campaign gone wrong!"

I'm detecting a campaign, but not in the story.
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