Recession tested: Staffing firm chief learns lessons, and rolls witha few recessions
May 8 , 2009-
Recessions don’t scare Kip Hollister.
Indeed, the CEO of Boston Recruiting Agency Hollister Inc. learnedthe most about how best to run her company during stressful economic stretchesin the early 1990s and the dot-com bust. “Tough times make me even morepassionate,” Hollister says.
After Sept. 11, Hollister learned her most challenging lesson to date: Nevergrow simply for growth’s sake. During the late 1990s Hollister expanded herfirm into five offices as it became heavily entrenched in the booming businessof staffing up dot-coms.
When the bubble burst, Hollister, 46, learned the hard way that multipleoffices were not a good fit for her firm, so she closed them and took out ahome equity loan to fund her business. “I looked every employee in the eye, andsaid, ‘We’re in this together.’ ”
Hollister saw revenue grow to $23 million in 2008, up from $21 million in2007. The 60-person firm handles direct hire, contract and temp-to-hire postsacross a few main sectors including accounting and financing, technology, humanresources, and administration.
This year, however, revenue at the company is expected to drop about 25percent. Also this year, 15 employees were cut, mainly throughperformance-based reductions.
Hollister first embarked on her staffing-firm career after graduation fromSusquehanna University in Pennsylvania with a degree in sociology in 1984. Shelaunched her business four years later.
Hollister was drawn to the staffing industry for a variety of reasons, manyof which relate back to sociology.
“It’s a job of counseling and listening and networking and buildingrelationships,” Hollister says. “It’s all about people. That’s the core of whoI am.”
Hollister cobbled together financing for the business with personal savingsand a small bank loan. Paying the salaries of her first three staffers wasmotivation enough to start winning business.
Her company was profitable in its first year and early on she crafted herbusiness philosophy based on the core values of transparency, honesty andworking with the client to reach a common goal, she said.
“Open communication and honesty and integrity — that to me is the core ofany good relationship,” Hollister says. “The bottom line is that we’re a salesorganization, so what typically can happen is that it can be more about youthan your client. That is what I have no interest in being a part of.”
Hollister’s first big challenge came in 1990, when her advisers warned herof the impending downturn, but she plowed on and decided to triple her officespace.
“I had to allay my employees’ fears,” says Hollister. “I was very humbled(by the experience).”
Leading up to the dot-com bust, Hollister capitalized on the Internet boomby opening up four new offices in quick succession. Revenue went to $21 millionin 2000 from $3 million in 1994, and Hollister employed more than 100 people. Alavish company trip capped off the extravagant era.
When the tech market crashed, Hollister held layoffs, closed the extraoffices, took out a personal loan and hunkered down for a two-yearrecovery.
In addition to learning an important lesson about growth, Hollister alsorealized that she had to groom strong leaders within her company so that thecompany wasn’t so reliant on her.
“It’s been a fascinating transformation. I do feel that now my firm has asignature behavior based on values,” she says. “It’s not just Kip-centric. I’mthe one who seeks advice, I love getting help. I know that I don’t knoweverything.”
Clients of Hollister are quick to make note of the values she oftenmentions.
“She collaborates and she partners with you — it’s not just about gettingthe deal or closing the sale,” says Donna Sinnery, co-managing director ofGlobally Hip in New York, who has known Hollister for 10 years and worked withthe firm when she handled recruitment at Fidelity and State Street.
Meanwhile, Hollister again finds herself guiding her firm through arecession.
“Anyone can lead when times are going great,” Hollister says. “How you leadduring turmoil is key to building yourself a living legacy, because it’s noteasy.”
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http://www.bizjournals.com/boston/stories/2009/05/11/smallb1.html?t=printable
About Hollister:
Founded in 1988, Hollister is a leading full-service Boston Staffing Agency passionate aboutconnecting Massachusetts’ opportunities with talent. Based in the GreaterBoston region, the Career Consultants at Hollister are well positioned tosee the Massachusetts job market from two perspectives. Hollister’s clienteleincludes Massachusetts companies and active and passive jobseekers. For 20years, Hollister has been the bridge that connects professionals with jobs inMassachusetts and companies with the best employees.