"If we keep basing this business on margins and fees, you're not going to get the innovation you want to. So I decided to change the revenue model completely...I'm destroying margins and fees forever." That statement was made by Steve Hutson, co-founder of Superstars, a London-based staffing company. I was recently doing some research online, looking for some disruptive staffing start-ups to write about, when I came across Hutson's video. His isn't a start-up, Superstars launched in 2011, but they are certainly disruptive.
Starting from his first job in his parents’ fish ‘n’ chip shop, Hutson says he has held the same principles throughout his career in digital and creative recruitment: build a great team, provide great quality and enjoy a great laugh that lets people feel they’re part of a family.
He wanted to build a recruitment company where he could put those things into practice, minus the traditional staffing revenue model.
"There's still a margin and a fee," he says about the staffing industry in general in a video on his website. "It's like, why are you still doing the same kind of processes from 60 years ago? It's completely wrong and irrelevant and redundant."
"There's still a margin and a fee. It's like, why are you still doing the same kind of processes from 60 years ago? It's completely wrong and irrelevant and redundant."
So if Superstars doesn't take a fee, collect a commission, or mark up the talent they provide, how the heck do they make their money?
With a subscription model. A client simply "subscribes" and then gets access to the talent they need. And Superstars claims such blue chip companies as Thomson Reuters and Accenture as clients.
[caption id="attachment_20371" align="alignright" width="300" caption="Steve Hutson, Superstars Staffing"][/caption]
"I wanted to give ultimate talent service," says Hutson. "I wanted to give ultimate client service...Clients get more savings. And the talent gets in front of the best projects, with fantastic rate increases because there are no margins and fees involved. I'm just basically being their friend and introducing them to my friends, who can put them to work on this brilliant project."
"Clients get more savings. And the talent gets in front of the best projects, with fantastic rate increases because there are no margins and fees involved."
Okay, since we're all among friends, staffing pros, what do you think of that statement? Is this working for you at all? Anything ringing true?
In the comments section of dozens of Staffing Talk posts have been some gentle - as well as not-so-gentle - reminders that you are not a job seeker's friend, you are not their career counselor, and you are not part of a government agency tasked with helping people find jobs.
Staffing agencies find candidates for their clients jobs, not jobs for their candidates. Right? And you collect money in several ways for doing that.
Things are different with Hutson and Supertstars obviously.
"We don't have to worry about the commissions. We don't have to worry about the financials. We just have to worry about you."
My question for the staffing pros reading this, are you worried about this model?