UK-based Playter announced a USD $1.4 million Seed round of VC to finance employment agency fees for small businesses. Yes, you read that correctly. The model is straight forward, the small business that hires from an employment agency pays the agency fee 2% fees to Playter over six months but Playter pays the employment agency upon invoice.
I get how hard hiring is, especially for a small business. But, we have to say it – negotiate terms with your employment agencies, and if you can’t get good payment terms or can’t afford to look at funding or banking for your business that encompasses more than just agency fees, may be you shouldn’t be hiring. Better yet, in this economy and job market get creative with your recruiting and ad strategy – consider freelancers or contractors – students – consider ways to reach out to underserved communities for talent that’s been overlooked.
Do we need another party in the middle? I’d rather see you pay that additional 2% to your employees in compensation or benefits.