LiveHire wins direct sourcing recruitment contract with major US retail group
Disruptive talent sourcing, mobility and engagement platform LiveHire (ASX: LVH) has won a $440,000 per year direct sourcing contract with a major US retail group managed by staffing company Set and Services Resources (SASR).
Under the terms of the contract, SASR will implement the LiveHire platform to recruit high volumes of contract retail workers on behalf of the group, invoiced in US dollars in line with pay rates for the total number of monthly hires.
The contract will have an initial term of 24 months with the ability to rollover for successive 12-month periods unless terminated earlier.
The estimated annual contract value is based on projected hires currently required by the retail group and the annual revenue run rate is expected to be surpassed once the platform is fully deployed and fulfilling optimal contractor roles across all US states.
LiveHire chief executive officer Christy Forest said the company is well-positioned to service the large US retail customer.
“We are thrilled to partner with SASR on the deployment of our technology for this retailer,” she said.
“We continue to see our technology solve the most acute business needs in this current environment and we take pride in the flexibility [it has] to meet the needs of organisations who understand that agility in workforce management and talent deployment is a vital and ongoing source of competitive advantage,” Ms Forest added.
Direct sourcing market
The direct sourcing market is a recent and rapid evolution in the US$130 billion (A$186 billion) contingent workforce management industry.
It is typically managed through procurement and involves building “clouds” of contractor talent which can be directly sourced, hired and pay-rolled.
Direct sourcing has accelerated on the back of COVID-19 as organisations seek to reduce their contingent workforce management spend while creating more flexible workforces.
“With 23% of employers surveyed by [human resources research firm] Gartner planning to replace full-time equivalent roles with contingent roles post COVID-19, this market is expected to dramatically accelerate,” Ms Forest said.
“With this growth comes a focus from procurement [divisions] to drive down excessive program costs while ensuring their organisations are best placed to attract and hire the highest quality talent,” she added.
LiveHire’s managed direct sourcing model helps reduce the contractor pay-rate mark-up that organisations typically pay to staffing suppliers, providing big savings in the total contractor program spend.
The model is based on a percentage of contractor pay rates, which is smaller than the percentage imposed by staffing suppliers, though delivered at scale to manage the majority of contractor hires into an organisation.
At midday, shares in LiveHire were trading 15.56% higher at $0.26.