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Village Model Is Future - 09/2000

Pure Play Direct Marketplaces Gaining Momentum

E-cruitment business models of different flavours have won prominence over recent months. Big deals between publishers and recruiters (e.g. NewMonday.com) have breathed new life into the flagging traditional staffing industry. Second generation career sites like Jobsite have also contributed to the rallying of traditional recruitment agencies. But this rebirth will be short lived.

Some e-cruiters take the niche tactic to acquire market share. Others, likes Jobs4u have adapted the clicks model to incorporate locally orientated advertising. The online community is another up and coming solution to the crowding of the e-cruitment marketplace. One company, which is offering an unusual approach, is thepeoplevillage.com.

The concept behind the ëvillageí is one of a free and open marketplace. Rather like an Arabian Souk, sellers offer their services at a price, and buyers respond with their own suggestions. In the case of thepeoplevillage, IT skills are currently the main commodity being bartered over. Employers post details of skills required and to be undertaken, and contractors offer services to the project.

This methodology completely disintermediates the recruitment consultant. HR practitioners are given the accessibility to candidates they desire, without the headache of advertising and basic level resourcing. Thepeoplevillage charges for providing ìhighly qualified introductionsî, and then allows both parties to deal without further encroachment.

According to Julian Howison, MD of thepeoplevillage, ìours is a win-win proposition ñ a win for the freelancer and a win for the client companyî. Clearly, such a disintermediated site will cut the costs for employers and increase access for candidates. But, is there something to be said for the value added model, that more traditional e-crutiers apply? Only time will tell.

www.thepeoplevillage.com