In this blog, we will discuss the topic “how does handshake make money. Areas covered in this blog include the What is the handshake, Overview of the company, how does handshake function, and most importantly how does handshake generate revenue. If you are interested in the topic, keep on reading.
how does handshake make money
Handshake generates income via two types of services: career management tools (which produce revenue for the institution) and premium employer services (which generate premium employer fees) (Employer Revenue). Let’s take a closer look at how each of these services operates and generates income through CMS and premium services offered to employees.
- Career Management Suite of Tools
Handshake is a back-office management system that universities use to keep track of administrative chores. Handshake streamlines all areas of center administration, from career fair management to appointment scheduling among others.
Engineering and development teams are costly, and university career services budgets cannot afford to provide these services. Historically, many institutions have been reimbursed by legacy platforms for services such as job advertising to augment university income while simultaneously building a viable business from the start. Employers reaped little practical benefit from this opportunity tax on the flow of employment, but it was critical for the country’s long-term economic survival.
- Premium services for employers
In comparison to other networks, Handshake is a completely free service that provides a higher level of value to businesses. Each business is allowed to advertise job openings at as many different institutions as they like. Employers benefit from several services, including event management, job fair registration, application monitoring, and sourcing.
Additionally, the handshake provides innovative access to services that are made available by the network architecture. These premium services are being given to assist firms in gaining a more full understanding of their data.
Handshake’s Impact on Schools
School Explorer leverages Handshake’s university connections to assist employers in identifying institutions that they would not have considered hiring at without knowing about Handshake’s university affiliations. If you’re looking for software developers in the Midwest, here is the ideal place to look. If you want to be competitive, you should recruit to colleges such as Michigan Tech, MSOE, Rose-Hulman, and a slew of others that you may have overlooked before.
Students in schools throughout the United States (and, later, the United Kingdom) benefit from having access to high-quality programs they would not have had otherwise. School Explorer is one of the tools that help to this progress, which is only possible because of the relationships that they have developed with students, businesses, and educational institutions.
What Is Handshake and how did it come about?
Handshake is a next-generation collegiate career network to streamline the recruitment process for students, career centers, and employers. The National Career Development Association designed it. Their objective is to democratize opportunity by assisting every college student in identifying the best career path for them, regardless of where they attend school, what they major in, or whom they know in business.
Handshake links college students and alumni around the country to a nationwide network of peers via its fast, scalable, and mobile infrastructure. With the assistance of Handshake’s network, students get access to more professional opportunities and insights, businesses gain more comprehensive and efficient access to talent, and institutions gain additional tools to promote student participation and employment.
It was founded in 2014 as the ultimate professional network and recruitment tool for college students and recent graduates. Since then, it has evolved to become a worldwide organization. Handshake’s mission is to completely transform the recruitment process for students, recruiters, and career centers.
Collaborations of Handshake
It currently represents more than 500 universities around the United States, 9 million students and graduates, and 250,000 companies (including 100 percent of the Fortune 500). Handshake, based in San Francisco, has raised $34 million from investors including Spark Capital, KPCB, Lightspeed Ventures, True Ventures, and Lowercase Capital.
Growth of Handshake
Handshake is a networking service for students interested in starting professions as well as companies wishing to connect with them. The Handshake has been accessible in the United States of America just so far. While Handshake is still in its infancy and growing, it seems to be positioning itself as a platform that is researching and thinking about how to deal with diversity from the ground up, as a natural component of its platform’s architecture.
Additionally, Handshake engages with over 100 minority-serving schools around the country, including Historically Black Colleges and Universities and Hispanic Serving Institutions, to connect them and their students via networking and educational opportunities.
Employers will gain from more search tools that enable recruiters to search for applicants using more precise criteria, enabling them to make more diverse recruiting decisions in the future.
Overview of the company
|Name of the company||Handshake|
|Headquarters of Handshake||San Francisco, CA the USA|
|Total funding of Handshake||$231 Million|
|Industry of Handshake||Education, Technology|
|Founded in the year||2014|
|Lead investors of Handshake||EQT Ventures fund|
|Number of Employees||482 Employees|
|Pricing of Handshake||$479 per year|
How does Handshake function and its relevance with Data?
According to The Economist, data surpassed oil as the world’s most valuable commodity in 2017. When you hear this term, it’s easy to imagine businesses purchasing and selling data in the same way they purchase and sell crude oil. While this image aids in visualizing an abstract issue, it often misrepresents how data works and contributes to the spread of misinformation about the subject.
It’s necessary to clarify the obvious: Handshake does not sell personal information and will never do so. Along with being a grave breach of customer’s trust, this would be a legal infraction, since it would violate Handshake’s terms of service (the contract that they have with them), Handshake’s contracts with their schools, and federal legislation safeguarding student data. Selling Handshake data would be inefficient since it would obviate the need for Handshake, making it an unprofitable business model.
Handshake provides Career-related Services
Handshake is the network’s heart, enabling universities and institutions to automate even the most complex operations, communicate with students, and manage employment connections. Over 900 institutions and organizations in the United States already utilize Handshake, and the number of users continues to grow.
Handshake paves way for Trusted Employers
Historically, personnel in the area of career services have had to deal with a high incidence of fraud. False job advertisements would be created and sent to educational institutions, preying on naive students. Due to the multiplicity of legacy systems in use at each site, fraudsters may utilize this strategy at any institution without being detected.
Handshake Collaborates with institutions
If they were detected by one institution, they could simply move on to the next. Since then, each service has implemented manual checks of all employers and postings, resulting in a plethora of new laws. Universities formed email groups to notify one another of scams before they spread across the university.
Handshake’s impact on Security
Due to the network nature of Handshake, they may utilize information about an employer gathered from throughout the network to establish whether or not they are a potential fraudster. They educate universities about this to inform their admissions, which results in a significant drop in the number of fraudulent employers throughout the nation.
Better Data and Benchmarking in Handshake
For decades, colleges have collaborated to exchange best practises and compare notes on a wide range of problems affecting students. Due to the fact that each school had its own fields and reporting methods, statistical comparisons were challenging, and the data were not comparable across schools, drawing conclusions was difficult.
Handshake provides statistics on schools and information on how they compare to other comparable institutions of higher learning as part of its networked approach. Having this data on hand may be valuable for benchmarking discussions and evaluating the progress of various campus projects.
Handshakes provides More Diverse Opportunities to students in Universities
Since the dawn of time, universities have sought to establish significance by carefully selecting professors and personnel. This often meant that they would accept posts only if they believed the students in their respective student demographics would be interested.
Due to the technique’s inherent bias, it overlooks the intricacies of what children may want depending on their circumstances. The Handshake network, which connects schools, enhances companies’ possibilities for posting jobs at universities by an average of 300 percent (based on US data). This is critical because they need a diverse selection of alternatives to give students the amount of customization they want.
In conclusion, we answered the question “How does Handshake make money”. We found out that handshake makes money by two types of services: career management tools (which produce revenue for the institution) and premium employer services (which generate premium employer fees) (Employer Revenue). Tell us what you think about the topic or if you would like to add anything to the topic down below.
Frequently asked Questions (FAQ): How does Handshake make money
Does it cost money to post jobs on Handshake?
Along with job posting, event registration, and career fair attendance, Handshake offers a free edition that enables Users to network with other professionals in the field. They do not charge for job advertising or university access since Handshake itself does not feel that these services should be charged for.
How much revenue does Handshake make?
Handshake’s yearly revenue is presently expected to be 43.1 million dollars.
How much is Handshake worth?
Handshake, a job-search website for college students, has been valued at $1.5 billion after a fresh round of fundraising, according to the company.
What is the Handshake business model?
It operates on a freemium revenue model and has registered 500,000 employees, including 100% of the Fortune 500. Both advertising jobs and registering for events are completely free.
Who is the CEO of Handshake?
Garrett Lord has over a decade of experience in the technology business as the founder and CEO of Handshake and launched the best early-career professional network and recruitment platform.
Who invested in Handshake?
Handshake is a San Francisco-based job service for college students that was valued at more than $1.5 billion in an $80 million Series E funding round headed by previous investors Spark Capital and Lightspeed Venture Partners. Spark Capital and Lightspeed Venture Partners led the Monetory financing. This fundraising round occurs only seven months before the company’s Series D round, slated for October 2020.
Handshake Competitors, Revenue, Alternatives, and Pricing. (n.d.). Retrieved from Growjo: https://growjo.com/company/Handshake
Lunden, I. (2018, October 31). Handshake, a LinkedIn for university students and diversity, raises $40M. Retrieved from Tech crunch: https://techcrunch.com/2018/10/31/handshake-a-linkedin-for-university-students-and-diversity-raises-40m-on-a-275m-valuation/
Personalization at Scale: The Future of Career Services. (n.d.). Retrieved from Handshake Blog: https://joinhandshake.com/blog/career-centers/personalization-at-scale-the-future-of-career-services/#:~:text=Handshake%20makes%20money%20in%20two,services%20for%20employers%20(Employer%20Revenue)