Updated Saturday, Aug. 27, with ZipRecruiter comment

ZipRecruiter has announced a price increase — and it’s a doozy.

A package of 10 “slots,” or listings that can be swapped, used to cost $50 per month. On Thursday (Sept. 1), it will go to $249 — a 500 percent increase. And a package of 50 job slots, which used to be “about $200,” is now $1,200, one advertiser told us.

ZipRecruiter is a listing aggregator and distributor, sending job posts to free sites and paid sites at the employer’s option. It provides employers a “dashboard” of applicants who come through the ZipRecruiter application tool, with a thumbs-up, thumbs-down ranking system and templated replies for easy replies from recruiters to applicants.

A ZipRecruiter “customer success representative” we spoke to said CSRs were “getting bombarded” with complaints from employers about the rate increase, but she had to refer them to “billing specialists.” She couldn’t give more information.

ZipRecruiter price-hike email

ZipRecruiter price-hike email

In a letter to customers, ZipRecruiter CEO Ian Siegel pointed out that when the company started six years ago, “we helped you post a job to 15 job sites with one click. Today that number has grown to over 100 job sites.” ZipRecruiter also increased sponsored job distribution on Google, Bing and Facebook and beefed up its mobile app.

“In order to continue this investment in innovation, ZipRecruiter will be raising prices for the first time,” Siegel wrote.

“I liked ZR for the first year or so,” advertiser Steve Trincanati of Buffalo, N.Y., told us in an email. “They even used me as a reference for prospects who wanted one. But they had a penchant for changing things without input from heavy users and I was continually badgering them to restore features they removed. They took away a resume scoring system. And they changed reporting capabilities that I used.

“For a couple of years we were looking at 100 resumes a day,” said Trincanati, managing director of BioVentive, a contract sales organization in healthcare and biotech. “I’d rough-sort them into no and maybe, and then whittle down the maybes into a handful of yesses. Don’t miss that a ton.”’

Scott Garner, spokesman for ZipRecruiter, told us: “It’s never an easy decision to raise prices, which is why we stuck with our original pricing structure for the first six years of the business. In that time we have built a service that has helped over 1 million businesses with their hiring, and assisted millions of people in finding a job.

“We’re proud that ZipRecruiter offers the best dollar-for-dollar value in the industry. Every job posted to our site is distributed to hundreds of leading job boards and millions of quality candidates, all at a price point that’s extremely competitive with other hiring services.”

He didn’t directly respond to our question — why 600 percent? However, he said “Based on the pricing you’re quoting, it’s possible he was on an older grandfathered plan.”

        — With additional editing and reporting by Peter M. Zollman

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