h a l f b a k e r yA few slices short of a loaf.
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I want to open a business that finds employees for
companies in need. Not like Labor Ready though the two
might seem similar.
In my store there are 3 main departments.
1. Purchasing - An employee goes to local companies and
convinces them to pay us to screen/train employees for
them. Then
they can fire their entire HR dept. saving
them 10's of thousands a year.
2. Advertising - A team advertises via radio or TV that we
have jobs for sale. And gets people walking through the
door.
3. Resume receiving - Staff members meet with and
screen potential hirees and help them get the necessary
tools and training and then send them off to local
companies in need of such employee.
So basically one could walk into my store and pay me for a
job. They would buy whatever job they want whether or
not they are qualified. College recruiters would be on hand
to get them the training they need to acquire this job. We
would get paid by the recruiters as well. Then we would set
up the employees with cell phones and work boots/clothes
etc. After the employee has successfully completed a few
months at work he/she must begin paying back whatever
amount we loaned him for tools/training and the sticker
price for the job he purchased.
[link]
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Clarificatory question: is this a bi-directional HR service, where you (a) provide outsourced HR services to employers (for a fee) and (b) provide CV/resume-screening, training and job placement services to employees (for a fee)? |
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That's the beauty of it I make money on both. And
recruit for Colleges too. |
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Oh, I see the beauty of this idea is that as an entity facing prospective employees, you can pretty much guarantee them employment with one of your dupe corporate clients, irrespective of the ability of the prospective employee and, as HR service provider to the dupe corporate client, you can rack up molto fees by having to process a massive number of grievance claims and dismissal processes, hollowing out the client a little each day, until they crumble and the JRU juggernaut rolls on to the next host enterprise. |
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On a separate note (and assuming that you are US-based), how does college recruitment work in the States? |
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It's a fairly common model employed by large offshore resourcing firms who pluck the best and brightest from academia and farm them out to western organisations. |
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Employing their services does mean you can save cash on HR and recruitment - although you do instead have to spend lots more on corporate lawyers to draw up and pour over complicated liability clauses and service delivery contracts. |
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In one particularly expensive case, after a series of delivery deadlines were missed, the HR supplier was finally held liable for all costs (building, staff, electricity, everything) until completion of the contracted job (at the cost of a few hundred million) You'll need to hire a few lawyers yourself. |
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//spend lots more on corporate lawyers //
I cannot think of a circumstance where this would not be a good idea. |
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To be honest, the difficulty in obtaining true accountability with such an outsourced service means that any large corporate who would want to employ a bidirectional HR outsourcing arrangement would manage the inherent conflict of interest risk by squeezing so hard on price that it wouldn't be worth ya while. |
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Some obvious holes that have been already pointed
out in your idea, but the intent behind it is very kind
so a semi-bun. (Which is really none in a nice way,
sorry.) |
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As an aside, and drifting away from the specifics of the idea itself, the savings you make for shaving 2-3 FTEs from your headcount are appreciable. If you shave off 2-3 HR lads and replace them with a fixed cost outsourcing you are likely to make your business more profitable, not only through the net decrease in direct spend, but also in terms of the generalised costs in the business (for example, you don't need an office with space for 15 desks, you need one that is 10-20% smaller, or, as HR staff are preponderously female, you don't have the temping inefficiencies in covering maternity leave). For an idea of per capita staff costs: in the professional services sector, the general rule is that a fee earning employee must bring in 3.5 times their salary in order for their existence to be financially justified. Outsourcing HR function does make bottom line economic sense, but might be a bit of a mare generally. |
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//but might be a bit of a mare// - high quality legal advice. |
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That'll be six guineas, thank you. |
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So, this is a contract shop that requires you to pay for membership as a contract employee? Nah, not going to fly. The brighter employees will move on to more cost-efficient means of finding employment, and the not-so-bright ones are usually too broke. |
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Calum I'm not US based. Nobody I know has ever
been sued. We don't do that where I'm from. Ever.
Also this idea helps employed people find better
employment, with out taking too much time off
work to do so. Also, to the corporations that use
our service, we offer a money back guarantee. The
largest Grocery store in our city (one of five large
ones) hires 350 people per year. They can't screen
potential candidates very well so this service will
assist them greatly, thus justifying the cost. Also
some people might not know exactly what they
are good at, and they also may not know what
jobs are available in our area. Helping these folks
with that issue, justifies the cost to them. My
employees would work their buns off to create a
more efficient job placement program than the
one currently in place. I think this is a good idea,
but I realize that if it was, then it would have
been baked a long time ago. Nothing like it exists
in my area, but if it did, I would buy into it.
Oh yeah, we have allot of private run trades
Colleges here so I am pretty sure I could get some
form of financial recognition for sending clients
their way. (maybe not though) |
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RayfordSteel, wow! what made you think I was going
to milk these people out of thier hard earned cash on
an ongoing basis? Nah, just a one time fee which is
based on a cost plus 30% price structure. Not like the
Unions I've heard about that take 5% of your wage.
We don't have that here either. |
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No bashing Unions here. I'm surprised You like them
but only because they are defunct around here. I
don't personally know anyone who subscribes to one.
Of course none of us pay (full price)for medical and
we have almost guaranteed Employment Insurance.
So unions would be kinda silly for us. Actually getting
jobs is easy here too, I just thought it would be cool
if you could go to one place to look for jobs, after all
people like to shop. |
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