Germany-based HiPeople announced a USD $3 million Seed round of VC to automate candidate reference checks during the recruiting process.
The recruiting world is divided when it comes to candidate reference checks, like seemingly all types of candidate assessments. There are two camps: those that believe it’s a complete waste of time and only done to cover employer risk in the process and those that believe it’s a valuable exercise providing valuable insights. There’s no one in the middle.
Typically reference checks have been automated by recruiting tech platforms (ATS) in a rudimentary fashion – largely an email-powered form-based survey. Employers looking for more than that have had two competing firms to choose from: SkillSurvey or Checkster (now part of Outmatch).
It will be interesting to see what kind of adoption HiPeople experiences.