Investors who want to understand what is behind LiveHire’s meteoric rise on the ASX should put themselves in the shoes of LiveHire’s corporate clients and its talent community members.
Five years ago the average job posting received 40 applications, however, as today’s applicants need only push a button to apply for most positions, this number has swelled to 120, many of whom would be completely unsuitable. The damaging result for employers is that the average cost of hiring someone is now $6,000 and the process has blown out from an average 28 days to 68.
LiveHire’s founder and director, Mike Haywood, says the traditional reactive recruitment model is broken – it is too slow, too expensive and the experience for both company and candidate is fraught with difficulties and frustrations.
“LiveHire asks its corporate clients to abandon reactive recruitment, and instead, proactively builds talent communities that act as a reserve army of employees for the company. The trick is that LiveHire candidates own their data and can join the talent pools of as many companies as they want,” Mr Haywood said.
LiveHire clients that have adopted this model include the Alfred Hospital, Barwon Health (Victoria’s biggest regional healthcare provider), Queensland Health, health insurer Bupa, accountant KPMG and General Pants. It recently won the mandate to handle the Roy Hill iron ore mine and its 1700 workers.
LiveHire has completed the implementation and launch of the Randstad Talent Community for Accounting and Finance professionals in Singapore, which has more than 30,000 community connections.
If you want proof that LiveHire’s proactive recruitment process works, then you don’t need to look any further than its work with General Pants, an apparel retailer that needs to replace 600 of its 1300 staff each year. Using LiveHire the company has cut its hiring process from 28 days to two.
When we listed we were managing 56,000 talent community connections and now we have 362,000 across 50-plus talent communities,” Mr Haywood says.
“The future of recruitment for all industries and employers is in removing the unnecessary administration involved with reactive recruitment – procuring for applicants after a role becomes vacant – and instead shifting to 100 per cent proactive recruitment, having your talent pools of qualified, interested and available candidates for every role on-demand,” he said.
“The future of recruitment for candidates is controlling your own data, sharing it privately with the employers you wish to work for in the future, and communicating with the people inside organisations in a more human way, rather than competing with hundreds of applicants to receive automated email responses from HR software.
“This creates a more fluid and agile workforce that increases participation and in turn, the productivity of Australia,” Mr Haywood suggests.