CONSULTANCY AND managed services firm Version 1 has described a Cork-based start-up’s software, which uses the social-media connections of its employees to find new staff, as game-changing.

The system by Zartis is designed to make it easier for employees to refer people they know for a vacancy in their company and can utilise their Facebook, Twitter and LinkedIn connections to identify suitable people for the job.

According to Version 1’s human resources and operations director Jarlath Dooley, the software has proven to be an instant success for them.

“Traditionally, employee referral is done by email. I send out an email to staff, they might send it on to their friend, they might send it back” said Mr Dooley. “It’s haphazard, it’s hard to track and out of nearly 300 staff, we’d be lucky to get three referrals back.”

By contrast, Mr Dooley said the company has gathered the names of more than 100 potential interviewees after going live with the software just over a week ago. One job offer has already been made and further interviews are taking place this week.

Version 1 currently employs around 280 people and is looking to hire about 40 more this quarter. Mr Dooley said he expected another 70 to be added to that again by the end of the year, and Zartis would play a big part in that. “That’s game-changing,” he said, adding that it was good for two indigenous companies to work together to solve a common problem.

Zartis allows employees to upload details of current vacancies, which staff can then recommend to people they know. Based on the job’s spec sheet, the software may suggest suitable social connections for recommendation.

As the software does not collect, store or pass on information from the networks – bar whatever employees choose to refer on – Mr Dooley said it has not been a problem getting staff to tap into their own contacts.

“They have the security that they’re not making their social network available to the company . . . their social network is still their own,” he said.

The software also allows the company – and employees – to track the progress of referrals, while incentives can be created to make it more attractive to suggest suitable people.

Mr Dooley said they have offered bonuses of anything up to €3,000 for a successful referral, which compares to the €10,000 a recruitment agency might earn for filling a role.

He said he could see many companies in that industry looking on in fear as this could undermine their entire business model.

“If a company turns its entire workforce into recruiters, that’s a big threat to the recruitment industry,” he said.