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Goes Around Comes Back Fixed
We spent a couple hours grilling Kent Harris on the phone. Kent was the
recruiter behind Amazon's growth to 12,000 employees. He worked building the
culture at Walmart.com. He's been a recruiter for a long time. These days, he's
building a new company called "Other
Resources". Like NotJobs and Cruel World before him, he's bound and
determined to make the outsourcing for recruiters business work. He survived the grilling well enough to earn a passing grade (we were certain
that no one could!). It's the Recruiting Management experience that makes him likely to succeed
(the large bucketful of brains and sophistication doesn't hurt.) The long term
tricks in developing this sort of business involve balancing economic cycles,
professional targets, growth rates and regional influences. The prospect of
building an integrated plan that really accounts for all of those variables
gives us a headache. But, Kent has envisioned an operation that is sophisticated
enough to account for the variations that killed off the others. The value proposition is simple. For $24,000 you get 5 "qualified"
candidates in 21 days for each of 20 jobs. Pricing
drops from there based on volume. Other
Resources does the grunge work, recruiters do recruiting. It's delightfully
simple and a great play in the post cost-cutting environment. (In fact, if you
are still looking for some cost-cutting measures, this is a great way to reduce
costs and non-essential functions.) Kent understands that he can't grow this company in the cancerous ways that
dot-coms tried to grow. The system behind the simple proposition is enormously
complex with sales compensation that shifts to account for market conditions and
customer requirements. He's smart enough to know that all competitors within a
niche can't be customers at the same time.
(November 9, 2001) We have seen it before. Remember
NotJobs, Cruel World and the other short lived services that promised to do the
prenegotiation part of the recruiter's job? Their sales pitch was that they
waded through the complexity to find and screen the right shortlist of
candidates. It was a daunting proposition that was befuddled by the realities of
talent availability, the difficulties of follow up and a general lack of market
planning. We'd written off the idea as a good theory that simply didn't work.
Currently, the company has nearly 200 customers, all developed in an extremely stealthy sales mode. They are just about ready for prime time.
Our guess is that the services are worth more than the current price (customers consistently thought so). That means that the price will rise as the company gains experience and delivers real results. We'd suggest that if you might be in the market for these sorts of services, the time to buy is now while the price is low.
- John Sumser
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Index (ERI)
- 2003 HCI
- 2002 ERI
- 2001 ERI
- 2000 ERI
- 1999 ERI
- 1997 ERI
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- Report Pricing
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- Recruiting Then/Now
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