Interesting article. So many things for investors to consider...
So far, more than 800 companies have signed up to use the site, but Nvoi has converted just 25% to post 209 assignments between them, of which 22 have been filled by its talent pool.
Listed contract workforce platform Nvoi aims to address clients' key complaints about the hiring process, but isn't trying to compete with traditional recruiters, says its CEO.
"The recruitment process is terrible; it's very manual and labour intensive, tedious and time consuming... The combination of technology, and skills shortages, plus a sh-tty process quite frankly means that the workplace needs something new," Nvoi CEO Jennifer Maritz told Shortlist.
Nvoi soft-launched in 2016 but considers March this year the official launch of its platform, which charges a flat fee of $2.99 per hour for each contract assignment. If a client wants to directly hire an Nvoi contractor after an assignment, Nvoi charges $1,499 – equivalent to three months of fees.
It differs from platforms such as Freelancer and Airtasker by being the employer of record, and claims to be the only end-to-end contractor solution, offering services from job posting through to matching, vetting, supplying and rating talent.
So far, more than 800 companies have signed up to use the site, but Nvoi has converted just 25% to post 209 assignments between them, of which 22 have been filled by its talent pool.
The platform works using algorithms to match available contract talent with the skills hiring managers are seeking, and can prioritise those in close proximity to the job's location. It also incorporates an Uber-like ratings system for both contractors and clients.
Maritz, who previously held senior executive roles at IBM, says Nvoi has targeted the "low-hanging fruit" initially: marketing, finance, technology and accounting professionals who have grown accustomed to contracting and operating in a digital environment.
She says Nvoi only needs 775 active assignments to break even, so it doesn't pose a real threat to the traditional recruitment industry. In any case, it won't appeal to traditionalists with long-standing recruiter relationships. "You're not seeing people do away with car service just because Lube Mobile came about."
CFO and company secretary Michael Bermeister (ex-Talent2) notes there will always be people willing to pay for a full recruitment service and, "we're just offering a cheap digital alternative".
Seek, however, moved to ban the company from advertising on its platform in February.
"We're assuming they must have something in the wings that must compete with our platform, but we don't yet know what it is," Maritz says.
If Seek is going to do something similar, that simply validates Nvoi's vision, Bermeister adds.
Maritz says plans are underway to build a candidate care program and a 'skills exchange', or talent pool, to group contractors with similar skillsets and provide them to clients as complete teams. Targeting procurement
Nvoi's target customers are organisations running transformation projects, which are more adaptable to change and are thus more likely to adopt new technology, says Maritz.
"Because we're a digital platform, we're promoting ourselves to procurement through technology, rather than recruiters. Leave them with their current PSAs around recruiting, because really what we're doing is enabling their direct line of engagement and hiring."
Not competing directly with recruiters seems to be working, she says, because "we are starting to get engagement in that manner".
NVO Price at posting:
2.8¢ Sentiment: None Disclosure: Not Held
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