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Recruitment agency business Models

Business model | Hays

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WHAT WE DO

We are focused on the specialist recruitment market. In the vast majority of our businesses, we operate a contingent fee model, with fees paid to us by our clients derived as a proportion of the salary of the candidate placed. In the permanent business, we recognise fees when the candidate starts work. For temporary placements, we earn fees when a candidate is active in an assignment.

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WHERE WE DO IT

Our organisational structure is simple and is built around three regions globally. Within this structure, our 5, 037 consultants operate from 239 offices in 33 countries – an unrivalled footprint in specialist recruitment. Critically, we have market-leading positions in many of the most important markets in the world, including Australia, Germany and the UK. All of this means we understand our clients’ challenges locally, with the ability to solve them globally.

A BALANCED, DIVERSE OFFERING

What makes Hays unique in the world of specialist recruitment is the diversity of our business model. The breadth of our expertise by contract type, geography and specialism positions us well to withstand various stages of the macroeconomic cycle and best serve our clients around the world, regardless of the challenges they face.


WHAT DRIVES GROWTH

The global specialist recruitment market is driven primarily by confidence amongst both businesses to replace people who leave and candidates to move jobs. We call this ‘job churn’. In addition, we identify four further factors currently driving fee growth: the emergence of structural growth markets; the macroeconomic cycle; skills shortages; and the globalisation of the flow of labour.

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Reasons

by navel

One reason is economies of scale. Unless your business model is very unique, it's a waste of resources to reinvent the wheel. Off the shelf or outsourced solutions have already solved the technical problems.
Another reason is traffic. You spend $20,000 on a slick e-commerce site with real time inventory and fulfillment (OK, more like $100K) then how long will it take for online sales volume to break even? One reason why Amazon, EBay, and Abebooks are successfull is because they alrady have millions of visitors and product-specific search engines.
That's why I asked about your brand

New power company was to be the next enron

by newwaystodefrauad

In November 1999, Enron Corp. Chief Executive Kenneth Lay and one of his senior executives, Lou Pai, set out to create the first online retailer of electricity and natural gas.
The new company, which they eventually called NewPower Holdings Inc., was aimed at allowing homeowners to shop for energy just like they bought books from Amazon.com Inc.
Like Enron's investments in industries as diverse as water treatment and broadband capacity, the NewPower venture was a high-risk gamble. Like those other projects, it contributed to the energy trader's demise.
In the first nine months of this year, NewPower lost $173 million on $245 million in revenue

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