LiveHire looking at Southeast Asia
04 Aug 2016
Melbourne-based technology company and job site LiveHire told AIM Group it will expand its business to Southeast Asia soon together with a still-undisclosed, new technology provider/partner.
This follows the announcement this week of a partnership between LiveHire and Randstad Sourceright, the recruitment processor outsourcer (RPO) of Randstad, a global recruitment company.
LiveHire, which describes itself as a cloud-based HR productivity platform for sourcing and recruiting, listed on the Australian Securities Exchange (ASX) in June. Launched in 2012 by Michael Hayward and Antonluigi Gozzi with a focus on the mining and resources sectors, it has since branched out to cover all job markets.
LiveHire’s business model is based on the concept of “talent communities”, private networks of talent created by companies on the LiveHire platform (at a fee) by inviting applicants. These communities provide both job seekers and employers the ability to make connections for both present and future employment opportunities and offer companies an accruing database of information on possible employees.
Gozzie, who is also managing director of LiveHire, told AIM Group the Southeast Asian expansion and the partnership announced this week will be followed by more announcements. He declined to name the partner, due to legal restrictions in Asia.
He added that partnerships with RPOs such as Randstad were key to the growth strategy of LiveHire, with up to 40 percent of large enterprises relying on outsourcing to RPOs for their recruitment needs.
By Gozzi’s estimate, the fifteen major RPOs globally control 90 percent of the recruitment market, and many are here in Australia, using it as a prime test market for employment services.
“What we offer RPOs, and other recruiters and job-seekers, is that we humanize technology to assist with the development of close and ongoing relationships between employers and employees,” Gozzi said.
“Current job site technology, such as used by aggregators and job sites, emphasize quantity over quality, and actually increases the time it takes to hire. In Australia, for example, the average time for hiring is over 50 days, doubled in the past five years. The best technologies, are those that get out of the way, and let two humans interact.”
Gozzie likened the LiveHire business concept to Airbnb or Uber, where candidates and employers are encouraged to make direct connections, through a platform which hardwired social media, peer communities and business communities.
He said this also worked to even out the power balance between employer and candidates and gave companies access to an “enormous database” of information about past and present candidates.
While the metrics promoted by LiveHire itself show good growth – the number of connections made between companies and employees was up 20 percent this quarter to 135,000 – the share price of the company has almost halved since listing on the ASX on June 10 at 20 cents per share. The share price hovered around 11 cent early in August.
At the time of listing, the company stated it planned to use the roughly AUD$40 million ($30 million U.S.) raised “to accelerate growth in existing and new markets in Australia and, in time, internationally” (full company statement at the time here).
According to the listing prospectus, LiveHire made a net loss of AUD$2 million in FY2015, on a turnover of only AUD$136,000.