Apologies for the terrible word play, but it is early. Last week I alluded to some big and sad recruitment news, but was asked by people I care about not to blog about it just yet. Demonstrating that I do actually have a heart, the dust has now settled allowing me to tell you something you probably already know; recruitment stalwarts OCG are closing their doors in New Zealand. I have two other big bits of recruitment news to share also, but once again, I’m sworn to secrecy…until next week.
For now, let’s talk about OCG. To understand what this is all about, or at least try to, we have to take a trip down memory lane. Firstly, it’s worth remembering that by New Zealand recruitment standards, OCG is really old. The original business which spawned OCG was the OPAL Consulting Group, which was founded before Liechtenstein gave women the vote (I kid you not), becoming the catchier “OCG” in 2000. Secondly, the history and ownership of the business is extremely complex. I blogged about this previously when OCGs current owners RGF Staffing launched the short-lived “Peoplebank” brand here in October 2021. To save me a job, let me cut and paste from my previous post:
Peoplebank were formed in Aussie in 1990, listed on the ASX in 2005, bought a load of IT recruitment firms, de-listed in 2009, tried to buy Julia Ross, but were outbid by Chandler Macleod, and were acquired by Recruit Holdings, themselves originating in Japan in 1960, in 2015. Chandler Macleod, themselves formed in 1959, were then acquired by Recruit Holdings a couple of months after Peoplebank, and then “merged” with Peoplebank. Chandler Macleod then started buying local operators OCG, formed in 2000, in 2007, taking full ownership in 2010.
To add to this history, it’s worth mentioning this blog from 2016, highlighting George Brooks’ exit from OCG and the launch of Bureau, helmed by George which took 8+ high-performers with him. In recent times, we’ve seen the Chandler MacLeod brand exit the market, the Peoplebank brand disappear as quickly as it arrived, and the group closing down their Christchurch office (even though you Cantabrian’s swear blind that it’s boomtown. Calm down. I’m joking OK?). What we’re left with is, according to their website (which contains the profile of a chap who left last November, and may possibly be dead) is a team of 14 across Auckland and Wellington operating solely under the “O.G.” brand of OCG (once again).
If it wasn’t for the history, OCG (or perhaps better described as the local brand of a global recruitment conglomerate) would just be added to the list of recruitment firms who have either gone bust or left New Zealand. This is of course very sad, but not uncommon. The last two years have been characterised by “downsizing” across the board. Sadly, as I have predicted previously, I think we’ll still see a bit more of this before the end of the financial year (I say “sadly” but some of you are enjoying the slow decay of one terminally ill accounting and finance/IT recruitment brand. Not me of course). There is something that strikes me as odd in this instance however.
If we disregard the quality recruiters that OCG employe, they still have a glaringly obvious asset which makes the business ripe for sale. An asset that I know other large recruitment firms are in the market for. The asset of course, is a spot on the infamous “All of Government” panel. Now I know this hasn’t proven to be the golden goose that many dropped their pants for, but should anti-abortionist Chris Luxon continue to ban School kids from learning Māori, we could see a Labour government who just love a bit of “big government”. As opposed to making everyone redundant and mothballing a brand that they’ll never be able to resuscitate, why not sell the business? Not only will the buyer get a spot on the panel, but they’ll inherit some good Consultants. And RGF will be able to say they “negotiated a successful exit from the New Zealand market” whilst also pocketing a few bucks. Am I missing something here?
Not that long ago, both Archway and Talent made “strategic acquisitions” which happened to give them a place on the panel. I don’t know the deal value of these transactions, but I’m sure they were enough to smart like a wet palm across the bare bumchops. Now I know that Jonathan Greening is a fan of this kind of “rough-housing”, and at the time of writing, Kara was unavailable for comment, but you get my point. In OCG, we have a business that still carries brand equity, has some really good consultants, and maintains a spot at that 6-recruiter briefing at the Department of Treaty Settlements. How in the name of Mick Hucknall does it make sense to shut up shop? Now we have Consultants finishing up their desks TODAY, a skeleton crew tasked with switching the lights off, and God knows what happens to the Contractors. I can run them if you’d like (but not for less than $25/hr margin OK?).
And so here’s a wild conspiracy theory that I hatched last night after two bottles of wine in the spa pool. Maybe a deal has already been done. Maybe someone is buying RGF Staffing New Zealand but doesn’t want to inherit the headcount. Imagine if we see some interloper or carpetbagger all of a sudden emerge on that AoG panel. If this wild idea is correct, you lot owe me fifteen pints of craft beer, two bags of the Devil’s dandruff, and a signed copy of “The Savage Truth”.
Anyway, sad and strange news indeed. Some more big stories to come next week folks.
^SW
