Online job service to develop software in Austin
BountyJobs eyeing tech talent as it expands offerings to help connect employers, recruiters
BountyJobs Inc., a New York-based online recruiting company, is opening a software development office in Austin to tap into the talent pool in Central Texas.
Founded in 2006, BountyJobs operates a web- site that connects employers with recruiters.
BountyJobs says it counts a third of the companies in the Fortune 500 as customers, including Colgate-Palmolive Co., Procter & Gamble Co. and Pepsi Co. Inc. The service is used by more than 50 Austin employers, including by St. Da- vid’s Healthcare to hire registered nurses and by Freescale Semiconductor Inc. and Cirrus Logic Inc. to find engineers.
BountyJobs CEO Mike Hard said all of the company’s software development will be handled in Austin. The company, which has 30 employees, is looking for office space in Northwest Austin and plans to hire up to 10 software developers over the next year, he said.
Hard said the company, which has raised $15.5 million from investors including Greylock Partners and Accel Partners, looked at other
cities for its technology team and also considered keeping it in New York. It ultimately chose Austin because of its strong base of technology talent with experience serving business markets.
“In New York, the software developers you tend to find are doing work for large financial institutions or for Silicon Alley, which is heavily media. Austin has a tremendous pool of people doing (businessto-business) work, and many have experience working at startups,” Hard said.
BountyJob’s website lets companies post job openings and the “bounty” or fee they will pay if they fill them. Recruiters respond to the postings, and the company chooses one based on their pitch. (BountyJobs has 10,000 search professionals from around the world in its search system.)
When a recruiter makes a placement, BountyJobs keeps 25 percent of the final bounty; the recruiter gets the remaining 75 percent. If the new hire doesn’t last for a specified period of up to 90 days, the employer gets a refund.
BountyJobs said its average bounty transaction is more than $20,000.
Erica Berger, a recruiter at Las Colinas Medical Center in Irving, said BountyJobs has reduced the time needed to fill a number of specialized positions at her hospital. After searching for a director of quality and case management for more than a year, BountyJobs made a successful match in 13 days, she said.
“It’s a very easy program to use, and it really speeds up the recruitment process,” Berger said. “People with these kinds of skills aren’t on CareerBuilder or other general job sites. They’ve got their own headhunters, and finding them can be very time consuming.”
Hard said that despite a dismal job market, BountyJobs’ revenue increased mod- estly in 2009 over the previous year and that it expects revenue to grow 50 percent in 2010 over 2009.
Hard said the company is investing in software development in an effort to expand its offerings.
“We’ve had a lot of momentum in the last year penetrating the Fortune 500, and those customers are asking to give us more business if we can build more into our software,” Hard said. “We’re planning a major new release of our platform by the end of the year, which is why we’re hiring the team in Austin.”
Jerry Aubin, BountyJobs vice president of marketplace operations, said the company’s Austin offices could expand in the future.
“Right now the focus is software development, but there are other areas of the company that could work well here, such as support,” Aubin said.
Mike Hard CEO says BountyJobs plans to hire 10 workers during next year to allow company to handle all its software development in Austin.