Find Good Humans

Starting a human-resource company in 2006 might seem counterintuitive, as the recession and massive layoffs would begin a year later.

More surprising is buying the company in October 2008, soon after Lehman Brothers collapsed and dreams of corporate expansion evaporated.

But that's what Austin Shanfelter did when he acquired a majority stake in Global HR Research in the fall of 2008, a small Bonita Springs-based firm that has been growing through the downturn by targeting medium-sized businesses that are largely ignored by big human-resource outfits.

“There wasn't a good, boutique regional player in the marketplace,” reasoned Shanfelter, 53, chairman of Global HR.

Shanfelter, a Fort Myers resident, has a history of hiring people. He retired as CEO of Mas Tec in March 2007, turning around the publicly traded Miami-based specialty contractor after he was hired in 2001.

Shanfelter won't reveal Global HR's financial results, but he says the company's revenues and profits have grown 100-fold in the last 18 months. The firm has 600 clients today, including Naples-based hospital operator Health Management Associates.

Global HR targets companies that aren't well served by large human-resource firms and who have multiple contracts that can be bundled for a lower price. For example, Global HR offers to conduct psychological tests, drug screening and other functions — jobs that are typically handled by different firms.

Leading Global HR is 32-year-old Brandon Phillips, the young entrepreneur who started the company in 2006. Previously, Phillips had moved to the Gulf Coast from Michigan to be in charge of sales and marketing for the Florida Flame, the equivalent of a minor-league basketball team.

The Flame went out of business in 2006 because of poor ticket sales and Phillips launched Global HR because he remembered how difficult it was to find a firm that could help the team hire good employees. Initially, Phillips started doing background screening from a 185-square-foot office. His first client was developer Bonita Bay Group and he grew that list to 50 clients a year later.

Using software designed by HR Diagnostics, a firm based in Stuttgart, Germany, Phillips is now able to combine assessment, evaluation and tracking of prospective employees for his clients. Prices range from $69.99 to do a background check on one person to $2 million annual fee to manage employee screening for a Fortune 500 company.

To grow the company, Phillips turned to Shanfelter, who bought majority control in October 2008 and infused capital. Terms were not disclosed, but the move opened doors. “We get appointments that would have been very hard for me to get otherwise,” says Phillips, the company's president and CEO.

Despite the downturn, companies are still hiring and both Phillips and Shanfelter say their customers are talking about hiring more people in 2011. “When you service a customer at that low point, you become an integral part of their growth and expansion,” Shanfelter says. “Real solid companies, well-run companies can get through these kinds of times.”

Global HR plans to do some expanding of its own. It recently opened an office in Harrisburg, Pa., and plans to open three more around the country to be closer to customers.