Three services of Hays
1.
Recruit, engage and retain people
2.
Provide industry training
3.
Provide leadership program
Recruiting company usually get paid
for placing a qualified candidate into a client's organization for a specific
vacancy. They do not find people jobs.
The most common fee structure is take some percentages of the annual remuneration of the placed candidate, payable when the candidate has signed his/her contract or starts working.
So for example say you are getting $10 an hour you’re probably actually getting $18 pound and hour but the agency is taking the $8. Some charge you a fee if you find employment through them. Some charge the company through getting an employee for them for advertising their company
The most common fee structure is take some percentages of the annual remuneration of the placed candidate, payable when the candidate has signed his/her contract or starts working.
So for example say you are getting $10 an hour you’re probably actually getting $18 pound and hour but the agency is taking the $8. Some charge you a fee if you find employment through them. Some charge the company through getting an employee for them for advertising their company
Contribution Margin (CM) = Sales (S) – Variable
Costs (VC)
Contribution
Margins are the difference between what a products cost (variable and fixed
costs) for the cost of the services.
Services
|
Recruit, engage and retain people
|
Provide industry training
|
Provide
leadership program
|
Selling price
|
$200 per
person
-5 hours /day
|
$800 per
person
-5day
course
|
$920 per
person
-5 day
course
|
Variable costs
|
$120
|
$550
|
$580
|
Contribution margin
|
$80
|
$250
|
$340
|
Traditionally
sales people have been remunerated on a combination of base salary and sales
commissions calculated as a percentage of their sales. This is a fixed and
variable component model and it makes “break-even point” the most important
item to manage.
Variable costs on the other hand, fluctuate with activity.
As activity rises, so do variable costs — things like advertisements,
commissions, and travel costs tend to be variable.
Managing the ratio between
fixed and variable costs is one of the few opportunities a recruiting manager
has to demonstrate business acumen. This cost structure lends a number of
advantages and becomes even more important when demand cycles are unpredictable.
Why
not only produce the product or service with the highest contribution margin?
Firm may have all different contribution
margin in each product. As long as it has a positive contribution margin, they
make profits and they can sell it for more than it cost to produce it.
So it is better to producing than not
producing at all.
Some of
constrains that my company might face are:
1. Reputation
of the company- the reputation influences recruitment process and people are
most interested in applying in a good reputation company
2.
Organisational Policies – people may not happy with
company’s policy that they are applying for.
3.
Unattractive Jobs – if job has lack of opportunities
for promotion or not good salaries and working condition may affect to
recruitment process.
4.
Training costs- Although providing training is an
essential benefit to both business and the employee as employee training programs ensure that all workers
have the skills, knowledge and experience to perform job tasks safely, it is
costly to provide to the all employees and workers.
5.
It is necessary
to introduce a new technology in order to improve their competitive and it cost
a lot.
