Staffing Databases are Irrelevant

Posted in Big Thought, Business, People by Harsha on December 13, 2010

Staffing companies pride themselves in their “database”.

Ask ANY sales person that works in the industry and it will most definitely be one of the main selling points that they will make to you. They will shill for their vast database of resumes (1m, or 5m or whatever) giving you the impression that they know so many people that they can find you any skill set for any project or need that you have. Period.

I take a different approach.

I believe that owing a large database is highly overrated. When I started in this business, it was with a startup with barely any database. In fact, the founders has a set of 5,000 some names, none of which were ever used in my knowledge, at least by me. That company then went on to becoming one of the 500 fastest growing private companies in America in 2008, as ranked by Inc Magazine. So I came to the conclusion that owning a large database, or any database is highly overrated. There is one exception to this statement – a database is highly relevant in niche skill sets. At the same company, I have seen this in play. My constertation is with a generic across-the-board staffing agency sales person pounding the desk claiming to have a large database that includes tons of resumes across tons of skill sets.

It is never the database but the data mining tools and data mining strategies that are much more important. Oracle probably recognizes this through its various acquisitions. The database company is now almost ubiquitous in many other unrelated areas of software development and delivery. The art of mining for candidates is the true differentiator between one agency and another. More specifically, the abilities of individual recruiters and their tenacity in finding the right person for the open job outranks a database, in my humble opinion, by a million times to one.

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