Hodes Group Selling its Recruiting Technology System

Bernard Hodes Group is selling Hodes iQ to a company called Technomedia. The new company will be called Technomedia-Hodes iQ in the U.S., and Technomedia elsewhere. Like many other human resources vendors, it hopes to sell customers on the idea of what it calls a “complete talent management suite.”

You may be saying, “Techno-who?”

Indeed, notes Josh Bersin, Technomedia isn’t well-known, at least in the U.S. It has its roots in Canada, particularly as a sophisticated system for companies like Bell Canada to manage their learning/training. Bersin says that Technomedia is “highly respected” north of the border, and has gained traction not just in Canada, but due to the Montreal-French connection, in France. He says it has “struggled” a bit in getting exposure in the U.S. without a significant sales organization.

Bersin says it’s an interesting marriage, in that rather than one large firm buying another to dominate a market, it’s one company strong in one area (learning) buying one strong in another (recruiting). Similar, he says, to the Taleo/Learn.com deal.

Joe Fortunato, the Hodes COO/CFO, and Andy Katz, the digital VP, tell me that the acquisition was a good fit because Technomedia is customer-service oriented, and the product would end up, they felt, in the good hands of a buyer that wanted to keep the product, service customers well, and make it part of a larger software offering. “It’s not going to morph into something else,” says Fortunato.

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The two emphasize that Hodes is selling technology — not getting rid of key developers and creative talent needed to work on and create various Hodes social media tools, job distribution tools, and many other offerings. “We sold our ATS,” says Katz, “simply that.”

  • Martin Snyder

    Alas IQ, we knew you well. All of HR tech is a stage, and all the vendors merely players: they have their exits and their entrances; and one in its time plays many parts, its acts being seven versions and an asset sale, hanging the spectre of the final log-in should fashion wear out more HR Tech than the end-users.

    On a practical note, it’s interesting to think of various social media tools, job distribution tools, and many other offerings WITHOUT an ATS as the master record system.

    On a friendly note, the people at Hodes have a track record of having fun and enjoying sporting competition in the business, which is more than can be said of too many vendors…

  • Sylvia Dahlby

    If only I had a nickel for every time an ATS got bought, sold, rebranded or renamed. At the very first ERE Expo we witnessed the meltdown of iSearch – anyone reading this old enough to remember?

    Personally, I have nothing but respect for Hodes; I started my career in the recruitment industry there — back when Bernie Hodes & Marian Starr ran the company, and recruiters still ran in-column classified ads for most job openings. Fax machines were the height of technology then, and dinosaurs roamed the earth.

    It’s really not surprising Hodes IQ was finally sold off. Like many other recruiting industry providers that “diversified” from their core business to broaden the menu of service offerings in search of new revenue streams, it’s likely they found it had gotten too tough to compete in an increasingly competitive ATS market that had become more commoditized — or the product development had become a drain on resources better utilized on more profitable business lines.

    I’ve always believed in a “best of breed” approach to recruiting & HR technology – and finding solutions that play nice with each other rather than trying to find one vendor that “does it all” since nobody can do everything equally well.

    SmartSearch integrates with the Hodes SmartPost job distribution tool – which is excellent – and I hope Hodes will be keeping that!

  • http://www.safgcareers.com Gordon Frutiger

    It is very interesting to me that Hodes will continue to play in the job distribution tool segment. SmartPost is extremely weak overseas, so I can only assume that the remaining developers will work to beef up the number of overseas boards that they integrate with.