Small firms need to unite

By Adam Gifford

Ten small independent recruitment and human resource service providers have teamed up so they can match the range of services offered by the bigger firms.

Principals Inc will allow the companies to share resources in a formal way without compromising existing personal or professional relationships, says spokesman Kevin Chappell, the managing director of Executive Taskforce.

He says members were starting to face problems relating to their size, but as owner-operators they were not willing to sacrifice personal service for bulk.

"Bigger organisations like to deal with bigger organisations.

"We realised the reasons we were losing some business was nothing to do with service but because companies said, 'This organisation is bigger.'

"Our research indicated our clients wanted the best of both worlds - personalised service and access to the best resources."

Through Principals Inc, he says, clients will be able to tap into the skills, networks and databases of more than 50 consultants across the 10 companies, representing more than 300 years of experience.

"This whole initiative is based around bringing together people in the industry who are well regarded, who have high reputations and strong relationships with clients. Everyone is a specialist in some area.

"We are still in the industry because we are good at it."

Clients are guaranteed personalised service from experienced consultants, rather than the more "mechanical" and impersonal approach of some larger firms.

"With some of the bigger companies, you think you are dealing with someone with experience and you could be dealing with someone wet behind the ears. This could be their first job."

He says globalisation often means local affiliates are told by the head office in the United States or Europe which multinational recruiting firm they should be using.

"The sad thing is some of the top operators are squeezed - not because they are not doing good job but because someone makes a decision for the wrong reasons."

Mr Chappell says Principals Inc recognises the trend towards master supplier or preferred supplier arrangements, where a large company deals with only one recruiting company for all its needs.

"Principals Inc will be the vehicle if a large client wants one of us to bid for preferred supplier status."

By consolidating the niche operators, he says, the group is in a strong position to not only meet the challenge of the preferred supplier trend, but to add momentum to it.

Principals Inc members are IT recruiter Aacorn International, Berkeley MSL, Beuvink Williscroft Associates, Executive Taskforce, Gaulter Russell, HR Solutions/PeopleSearch Consulting, The Workforce Group/Tempforce, Lawson Williams Consulting Group, Lowyim Partners, and The Recruiters.

All hold an equal number of shares.

Mr Chappell says other small companies can be brought in later and members are free to continue working with other partners or associates outside the network.

He says protocols will be established to ensure consistency in fees and how services are delivered.