HR Marketing that actually makes sense!!!
By Double Dubs
So Workstream.com has an offer out to Webhire.com clients to convert them at a "significant discount." 1 "Workstream guarantees to reduce current WebHire recruiting software costs by up to 50% for qualified WebHire Recruiter and Restrac customers. " What exactly does "up to 50%" mean? Isn't a reduction of 1% a fulfillment of the guarantee?
Ok - that's not really what I wanted to talk about. Let's start from the beginning. Kenexa purchases WebHire which I think is a brilliant move. Why you ask? (you were going to ask, right?) Does WebHire have the best software out there? Nope.
Are they old and sometimes considered legacy software? Yes - not to say they are not pretty decent.
So Kenexa makes a move to supplement it's TMS (talent management) with a mediocre TAS (talent acquisition) ? Pretty much.
Ok - here's the brilliance. For all the hype with modern, cutting edge TAS systems, I'm guessing that WebHire was among the healthiest. WebHire had a huge subscriber base. True, they may not have ever upgraded from ResTrac, and also true that fees were not what Taleo charges, but they had FAR more clients than anyone else (kinda an educated guess - I don't have money riding on this one). What does this mean? It means that Kenexa bout into a huge base of clients to market to.
Due to WebHire's rather low comparative costs, they were among the healthiest of the TAS's out there. So these two factors combined, and this was actually one of the smarter moves of the year. Workstream's offer also makes sense. Sure, they might be buying the business (losing $$$ up front), but the potential for future gain is incredible. For each WebHire client they convert, if they can sell an additional performance module, things are looking up. Personally I think Webhire has tons clients from the good 'ol days, so this is a ripe market.2 Add to that the fact that Kenexa can't possibly integrate the WebHire system any time soon (next few quarters) and a few conversions to a fully integrated WorkStream solution starts sounding pretty good. Anyway, for once I like how a couple vendors are marketing in this space. There's a window of opportunity and both Kenexa and Workstream are trying to jump through.