DeveoperAuction has begun recruiting engineers by using auctions. As reported in
TechCrunch, those who are interested in leaving their current companies and have good credentials can apply to be part of a batch of candidates that potential employers will then bid on to offer them interviews. Software developers can then choose which interviews they want to take. Rather than recruiting agencies' usual commission of 20-20% of base salary, if the process ends with a placement, the employer pays DeveloperAuction 15% which is shared with the applicant.
The company was founded when Matt Mickiewicz, who co-founded 99Designs and Flippa, and LiveOps founder Douglas Feirstein, ran into each other at a conference and started complaining about how difficult it was to hire decent engineers. They started thinking about how to apply auction and game theory to recruiting and from that, DeveloperAuction emerged.
They must have received A's in Managerial Economics.
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