Such a great recruitment business. So I bought it! And why.

Such a great recruitment business. So I bought it! And why.

Well, I didn’t buy the whole business. But I did invest a significant amount of money for a significant shareholding, and a place on the Board.

I thought long and hard about publishing this blog. This is personal financial information after all. Not really something to ‘share’. And I have invested in plenty of other businesses before, some public knowledge like people2people and Livehire, but others too where my involvement is more silent, and I never blogged about them in detail.

So why share with you that in the last month I have invested in Consult Recruitment, a specialist New Zealand accounting and finance recruiter, with two offices in Auckland?

Well, I have toured the world preaching that I do not believe that the agency recruitment industry is dying. As much as I believe technology will change it profoundly, I do not see agency recruiters being usurped. I want to show that I am putting my money where my mouth is. I continue to invest in recruitment and related businesses. Mainly startups, but also established businesses like Consult Recruitment, if I foresee a stellar future.

But only if they are special.

So this is why I parted with a big chunk of my hard-earned, and why I believe that money will be multiplied many times over in the years to come.

And this is where it could be interesting to you.

Why would I do it? Why this company?

You could consider this my checklist of reasons recruitment businesses will thrive in the new era. It is certainly my template for when to consider getting involved. This is why I invested in Consult Recruitment.

I like the people: The owners are genuine people. They are honest. They share my work ethic and my view of recruitment, and service, and quality. We laugh at the same things (except rugby results). It may seem simple, or even trite, but believe me when you are going into business together; it’s like entering a marriage. There will be ups and downs, disagreements, and challenges. You have to be able to work together. Trust each other. Think of the long term.

The leaders are brave: They are prepared to take risk. Not only with money, but also risking pride, ego and the status quo. That’s big. It’s inertia and complacency and fear that cripples so many owners of recruitment businesses. The Consult team are prepared to tackle things they have never done before. Indeed, they know that they must!

They take advice: Not only mine, but definitely mine. Not blindly. But with thought and consideration. I like they they know there is much that they do not know, and are open to new ways of thinking. And then they act on that. This mindset of constant internal disruption is key to future success I believe.

They follow through: If we agree it needs to be done, mostly, it gets done. Now, with my new involvement, I will be upping my role as an ‘outside voice keeping us accountable’. It’s so common in business for big plans to be made, massive visions laid out, expansive goals set. And nothing actually ever gets done. Not so at Consult.

They are digital: Not digital natives necessarily. But digital converts. Believers in social, online marketing and talent communities. Have a look at their Blog, Twitter, Facebook, Instagram, LinkedIn. They have hired two marketing staff in a team of only 20. They ‘get’ that the future of recruitment is marketing. Especially to candidates.

They love temp and contract: Live and breathe it. They started their business with a temp desk. High-margin, juicy stuff too. 65% of total GP is made up of temporary and contract net margin. This I love because it’s a gorgeous thing to behold. And it will maximise profit in the good time, and protect us from disaster in the bad.

They turn away crappy business: Low margin? Jerk of a client? Forget it! Consult believes in their value and that flows though to client relationships, and happily, to higher margins. And profits. Despite doubling revenue over the past 18 months Consult retains an EBIT margin (OP as % of sales) of over 10%. This is how it needs to be. Transactional commoditised recruiters will be replaced by algorithms. True consultants who know how to bring unique talent to the hiring table will not. That’s why I invested in Consult.

They invest: In digital. In technology. In marketing. In people. In learning. Have a look at their clever ‘What’s my worth’ idea, which is much smarter than it looks, generating client-visits and streams of inbound inquiries.

They train their staff: Investments in Recruitment Juice for a start, but also building a training methodology and library. Most of their staff are hired from outside recruitment. So development is the Consult ethos and I think that is smart.

They build relationships: They love technology, but they get in front of clients and candidates at every opportunity. The guys at Consult are at one with me in the belief that the future of recruitment is the best use of cutting edge technology, blended with the most sophisticated of human influencing skills.

So there it is. I will be spending more time in New Zealand, and we have plans to grow this business strongly. If you would like to help, email me directly, and 100% confidentially, at greg@gregsavage.com.au because I know that Consult is looking to hire smart recruiters looking for a new, and different, home.

********************************************************************************************************************

You are not subscribed to The Savage Truth? No, seriously? You said you work in recruitment right? Really?

*******************************************************************************************************************

 

About Greg Savage

Over a career spanning thirty years, Greg Savage has established himself as a global recruitment leader. Greg is a regular keynote speaker at staffing and recruitment conferences around the world.

Connect & Subscribe

Subscribe to this blog and join me on social media. I have a lot to say. Some of it even quite good.

Subscribe (Why wouldn't you?)
Facebook (A great recruiter hangout)
Twitter (50,000+ other people do)
LinkedIn (Find out who I actually am!)
YouTube (A great face for radio)
Instagram (Pics of my recruiting travels)
Pinterest (Pin me down)
Google+ (.. because.. it's... Google?)

, , , , , ,

2 Responses to Such a great recruitment business. So I bought it! And why.

  1. Mark Chote July 26, 2016 at 7:54 am #

    Good to hear. Looks like an investment in a group on the rise. Love seeing new capital investment into our industry!

  2. Alan Allebone July 26, 2016 at 9:05 am #

    Hope all works out for you Greg!

    I am sure it will

Leave a Reply