Seems like a win-win to me - companies get a list of somewhat-vetted potential employees, and if looking for a team can potentially hire a team already used to working with each other; the people get their details seen by a wider pool of employers and may find a new role quicker/with less effect on their part.

I don't think it in anyway implies they couldn't find a job using the more traditional routes; this is just an alternative avenue to try.