Recruitment Banking and Finance Management
Recruitment businesses need excellent money management.
People are needed to place candidates in open vacancies. For permanent recruitment, a commission fee is secured after the placed candidate passes a 'safe' period in the role.
Talent management (or HR) suppliers need professionals who provide the talent management expertise (and business development / sales professionals to generate clients).
Temporary recruitment is akin to product retail. There is a retail price per hour (the role budget) and a wholesale price (the amount from the retail price that the candidate earns per hour - the recruitment professional or agency only makes money in temporary recruitment from the 'margin' the difference between the retail price and the wholesale price. Temporary recruitment is complicated further because the temporary workers who are placed are usually paid on a weekly basis, whereas the employer client usually pays in monthly cycles - at best!
Latest Issue - Quarter 1 2016: The Innovation & Disruption Issue
This issue is dedicated to exploring where recruitment and talent engagement will change and innovate it's services and processes.
So money management for talent businesses should focus on:
- the internal resources (the people who provide the services and who win the client business)
- the technology and marketing ecosystem required to support the internal resources and the business operations
- the cost of access to talent acquisition data / networks
- the base (the office)
- The cost of marketing and promotion
(If in temporary recruitment)
- covering the weekly payroll for the temporary workers
- financial survival duration (waiting for sluggish, late paying clients)
This section will serve as a forum where we discuss innovation in funding talent businesses.
Exclusive industry insight in the print issue (Quarter 1, 2016): click here >