Recruitment markets & Talent Pooling – Amit Somaiya interview with Steve – Part 5
Amit Somaiya is co-founder and CEO of IMS People, a part of the highly regarded Empresaria Group plc UK. Amit discusses the Do’s and Don’ts of outsourcing, what it’s like to build up businesses including dealing with failure, and personal attitudes and philosophies that got him where he is today.
This fifth part asks: 1. You see recruitment services in many different countries – what trends are you observing? 2. If you were going to setup a business in recruitment, how would you do it? 3. What do you think about Talent Pooling? Part 5 will focus on business advice and personal belief.
Steve: You see recruitment services in many different countries – what trends are you observing?
Amit: One thing I’m seeing in the UK markets – we seldom heard about the Vendor Management System 15, 18 months ago – but in the last year there have been a lot of conversations in that space. VMS is all the more evidently seen out there in the markets so the associated management services are becoming flavour of the season.
Compared to UK, the US economy is on a different tangent. The US is a much more mature market than the UK.
Steve: Mature in what sense?
Amit: Mature in terms of the adoption in technology and to change. I think they have a phenomenal appetite for change.
Steve: You put them as the most advanced in terms of technological use?
Amit: Yes, and more advanced in terms of embracing change. I think its because their clients are far more advanced. As a result, when the clients want change, the entire supply chain moves. And the flavor of the season in US markets currently is the gig economy. Use of technology for the direct placement of temporary workers without any human interventions. That’s something which we are seeing a lot of now. You know, crowdsourcing, gig economy models, that’s something which is prevalent within the US.
Steve: If you’re going to setup a business in recruitment, how would you do it?
Amit: I would not setup a business in recruitment. I think the markets are extremely challenging. Our industry is in the midst of some phenomenal change. It’s actually very tricky setting up a business in the current environment.
Steve: It’s cheaper than ever to setup a recruitment agency business…
Amit: Yeah, because technology has been the destructor.
Knowledge is freely available now, so the barriers to entry are lower than say 20 years ago. My rule of the thumb is when the entry barrier to a particular industry is too low, that’s not necessarily an industry that you should be entering.
If I had a choice between a recruitment company or to invest in a developed technology for the recruitment sector, I would choose the later. Because the odds are, that’s going to be more successful and we’ll have better longevity compared to starting a recruitment business.
Steve: So what do you think about talent pooling? Moving away from having searchable databases of static, CV data and turning that data into a living entity where you have on-going updates from the candidates. This is something that we focus on idibu. And we see talent pooling as a large growth area as brands develop their own candidate pools they use as a means to engage with the candidates over a long term basis.
Amit: I think that’s an excellent idea. The candidate community that you’re referring to which is more active and engage with a particular brand eventually has a better life compared to static databases. I have seen some of the larger Fortune 500 companies investing in creating these communities for their brands. That is definitely an area which is going to see high growth traction in the years to come.