One huge reason many businesses are losing money. and they don’t know why
One of the most underrated and misunderstood professions is that of a head Hunter, many see the role as so easy and all too often you see the advertisements in the recruitment section of newspapers, yelling “No agencies!” I, in a Walter Mitty like reverie start to see more words appear in small print under the ad:
“If you are stuck at home right now with no friends and little ambition, and you find all your jobs out of the newspaper, well, you are just the kind of no -hoper we are looking for, come and start work with us tomorrow, and you will lift everyone’s spirit in our office and turn our fortunes around and your inspirational ideas will make us a tidy profit”
YEAH RIGHT!!
There is to me a fine line between ambition and a job hunter, if you are that ambitious and have supreme confidence, then you would probably be an entrepreneur, and be running a business for yourself and be pretty well off, so when people at interviews talk about ambition, I tend to wince a little!
Cue Liam Neeson in Taken:
“You’re probably looking for an employee, I, as head hunter, have a particular set of skills that make me a dream for people like you, (the employee) If you take the job out of the paper now, I will save you money, and heartaches and, I will hunt your dream employee down, and I will make him fit into your company, and I will… turn you a profit!
It is within the best head hunters remit to find not just someone with the skill to match the candidates skill sets with what the job requires, but to know how their personality fits in with yours and your business.
In my regular mastermind sessions with my head hunter friend who is one of the most dynamic people I have ever met who loves his industry with blind passion and defends it to the hilt, and has become successful through his conscious efforts to find longevity and boasts about the people he has placed who are loving their jobs even after many years and more so; how he loves to ring his clients regularly and asks “How’s Joe doing?” even though Joe was placed by him 5 years ago. He tells me if Joe was ever slacking that would mean a coffee and a slice;
“A slice of my mind” my friend laughs.
In my last mastermind he explained some fascinating, scary, but basic maths about how companies are strangling themselves without even knowing it:
“Industry Experts/ Research say that your company, (if you have at least 50 or more employees) is probably losing between 10,000 – 20,000 EURO per month or, an average of about 150,000 EURO per year for each and every Key Executive Position that is vacant in a properly structured enterprise.
How is this number derived?
To confirm this hypothesis, let us use a touch of “inductive” reasoning and we’ll do a little bit of “addition by subtraction”…
First premise, “The Standard Harvard Business School Model” states that in a properly operating organization, the aggregate labour cost should never exceed 35% of company’s total revenue.
Thus, roughly each key employee should generate around three times their worth.
Then, consider the salary of the given Key Person or Executive, whether they are earning the equivalent of 4,000 EURO per month in Thailand…or 6,000 EURO per month in the UK.
Then, multiply by 3. Then, multiply by 12.
Obviously, we have simplified the math and “streamlined” the hypothesis for ease of comprehension, but I’m sure that you see the underlying logic and the basic principle.
This should serve as a rough guide to understanding/quantifying the Financial Impact of having key vacancies or “holes” in your company”
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