Phoenix Business Journal: A tale of scale: ZipRecruiter surpasses Tempe hiring goal in under 1 year

Eric Toll, Phoenix Business Journal, August 3, 2016

Read the article on phoenixbusinessjournal.com

The ability to grow to scale across a number of industries is one big selling point Phoenix-area economic developers push when pitching the region to site selectors.

ZipRecruiter, an employer-employee job matching website, has outgrown its first Tempe location and is ready to scale up four-fold. The increase in hiring and floorspace comes after only a matter of months operating in the Phoenix market.

“The workforce here has been incredible," said Ian Siegel, co-founder and CEO of Santa Monica-based ZipRecruiter. "I’ve never seen an office with energy this good.”

Siegel is leading the way through the company’s first floor-plus-mezzanine open office as it looks for a place it can sit out of the hubbub. The three teams calling Hayden Ferry Lakeside’s middle building their workplace are crammed into the space overlooking the lake.

“I don’t know what comes together when looking for people in Phoenix, but we tested hiring in four markets before picking Phoenix,” Siegel said. “Phoenix far and away had the best workforce for us.”

ZipRecruiter is planning all of its expansion in the Phoenix area, Siegel said, and he’s looking for new space into which the company can grow.

“With three teams here, we’ll be hiring people for a variety of different skill sets," he said, adding the company pays "far more" than the median wage in Maricopa County.

ZipRecruiter has about 400 total employees. Right now there are 100 crammed into the Tempe office. Siegel said the company is interviewing 30 people a week.

“I don’t even know how many square feet we have, but we need about 50,000,” he said. “We promised to hire 100 within three years; we’ve done it in less than one.”

ZipRecruiter, when selecting the Phoenix market, made a 100-hire commitment. That’s the number reflected in Arizona Commerce Authority and Greater Phoenix Economic Council data for fiscal 2016 wins. Siegel said that the operation here has jelled so quickly, they’re looking at the next hiring milestone already.

“I could be a cheerleader for Phoenix, and I’m getting calls from companies asking, ‘So what’s it like with an office in Phoenix?’” Siegel said. “I tell them it’s great. But the word must be out, because I can see hiring costs inching up. Compared to Santa Monica, Tempe is a much better place to be in business.”

Siegel is sold on the ability to go to scale in the Phoenix market. He believes the region's history in the old call centers has created a culture of strong customer service-oriented for the workforce.

“We’re experiencing high double-digit growth," he said, "and being in Phoenix gives us workforce access to continue that growth rate for the next three years."