Why Competing on Price is Bad - For Everyone!

Why Competing on Price is Bad - For Everyone! If you’ve been hiding under a rock for the last couple of months, the news of the Tesco horsemeat scandal may have passed you by. If not, then you’re aware that a large number of FMCG retailers have been suffering supply chain issues where horsemeat has been found in beef products. Although this is a complex issue, a simple explanation is that FMCG retailers, in an effort to protect and enhance their profit margins (which are typically low), have been squeezing prices paid to their suppliers, which pressured their suppliers to cut their own costs. As a result, they sourced their meat from cheaper suppliers in the supply network, and somewhere along the line a load of cheap horsemeat got sold as beef. This got me thinking about costs in the recruitment industry. A recruitment agency is a supplier to its clients, and as a supplier, price is often a major factor. Clients want to reduce their costs wherever possible, particularly in the current economic climate. To do this they may engage agencies willing to work to lower fees, forcing other agencies to match if they want to gain business. The similarities to the horsemeat issue are striking: could recruitment have its own horsemeat crisis in the works? Cost Analysis To illustrate my point, I’m going to do some basic cost analysis â€" for any readers with an economic/accounting background this will seem simplistic, but hopefully it will be of value. Cost analysis suggests that broadly there are three types of business costs: fixed costs, variable costs and semi-fixed costs. Fixed costs remain the same regardless of the output of the business, e.g. rent â€" an office that costs £10,000 a year to rent will cost that regardless of whether the business’ turnover is £10,000 or £100,000. Variable costs vary according to level of output. If the cost of material to make a product is £5 per unit, then the variable costs are £5 x number of units produced. Semi-fixed costs have a fixed element and a variable element. A phone line is a great example; annual line rental may be £200, and then each call costs a certain amount per minute. The more calls that are made, the higher the variable aspect, but the line rental cost is constant regardless of us age. There are many complex factors involved in cost analysis (e.g. economies of scale), but for the sake of simplicity I will disregard those for now. Imagine a recruitment consultancy with 5 employees, which only works permanent roles. Its main fixed costs are salaries, office rental (including all utilities), software costs (a database, office software licenses etc.), line rental, and assorted administration costs (e.g. insurance and accounting). Its main variable costs are commission payments, job-advertising costs (such as job posting), and phone calls. Each employee has a basic salary of £20,000, office rental is £10,000 a year, software costs are £5,000 a year, line rental is £1,000 a year and administration costs are £4,000 a year. That gives us fixed costs of £120,000 a year. Next, lets assume that each employee averages £1,000 in commission a month, job advertising averages at £500 a month, and around £500 worth of phone calls are made every month. That gives us variable costs of £60,000 in commission, £6,000 in advertising and £6,000 in phone calls £72,000 a year. As a result, we have total costs of £192,00 0 a year. In total, the business turned over £250,000, with an average placement fee of £5,000. With a single-product business like recruitment, theres a useful tool we can use to work out how much ‘product’ (in this case, placements) the business needs to sell in order to break even â€" the Break Even Point (BEP). The concept behind this is very simple; if a business comprises of both fixed and variable costs, then there is a point at which the business turnover will cover all fixed costs and all variable costs needed to achieve that level of output. To calculate the BEP, the formula is fixed costs / (sales revenue per unit â€" variable costs per unit). The fixed costs for the year are £120,000. The sales revenue per unit is £5,000. The variable costs per unit can be worked out by finding the variable cost margin, which is variable costs / sales revenue. As revenue was £250,000, and variable costs were £92,000, then the variable costs margin was 36.8%. Therefore, the variable cost for each placement was £1,840 (36.8% of £5,000). Thus, the BEP is £120,000 / ( £5,000 £1840) = 38 placements per year. We can prove this: 38 placements would give us £190,000 in revenue. If each placement generates £1,840 of variable costs, then 38 placements will generate £69,920 in variable costs. As fixed costs remain the same regardless of volume, £120,000 + £69,920 gives us total costs of £189,920 to generate £190,000 in revenue (slight discrepancy due to rounding required placements to a whole number). Now, let’s imagine that for the following year all those variables remain the same, with the sole exception that, due to increased competition in fees, the average placement fee was £3,000. In this case the BEP is different: the variable cost for each placement would be £1,104 (36.8% of £3,000). Therefore the BEP is £120,000 / (3000 â€" £1,104) = 64 placements! This means that our agency has to make 64 placements just to break even, when previously it made a profit of £58,000 with only 50 placements. Ramifications What are the ramifications for this? Well, we know what happened when Tesco started putting the squeeze on its suppliers. Although the above example does simplify matters, it highlights the problems of competing on price. In order to turnover £250,000 our agency had to make 84 placements, as opposed to 50. The risks here are clear; to operate at that higher volume, corners will be cut. Recruiters will spend less time qualifying each candidate, there will be an increase in tactics such as spray-and-pray, and the clients will get less commitment from their agencies. This is the ‘horsemeat’ that I worry about. In forcing agencies to compete on price, clients will inevitably see less value â€" less ‘beef’ â€" being delivered. Agencies already tend to have a bad rap, a lot of which is undeserved. In a purely cost-driven environment however, agency horror stories will become the norm, rather than the exception. We all know that quality costs more, which is why premium brands are more expensive than value brands. However, this cost is for a reason; no quality brand has been affected by the horsemeat scandal. The bottom line is that clients who treat their agencies as value-adding partners, who are willing to pay them at market rate or above and who work consultatively with them can be assured a regular flow of juicy, quality steak. Those who see agencies as liabilities and costs, who work with the cheapest bidder and dont build relationships with their suppliers, are at risk of horsemeat in their supply.

Resume Writing For First Time Job-Seekers

Resume Writing For First Time Job-SeekersFor those who are just getting started in the job market, and those who don't have any work experience, resume writing for first time job-seekers is a very important part of the job search process. It is your first step to getting your foot in the door and the first impression you make with prospective employers will be crucial in deciding whether or not you are hired.In this article we'll explore some things to consider when writing your resume for first time job-seekers. While most of these points apply to all kinds of jobs, in this case the general guidelines should be applied to those seeking positions as teachers, doctors, and lawyers.The biggest mistake made by many first time job-seekers is that they focus only on the format of their resume. Most forget that resumes should also reflect who you are as a person. A resume, no matter how well written it is, is still a letter. It is a reflection of you and what you have accomplished. The mor e attention you pay to the format of your resume, the better your chances of landing a position and the more likely it is that someone will actually read it.Employers have too many other things to worry about as far as resumes are concerned, and they don't want to take the time to read them, much less remember them. Keep your resume brief and simple, and don't ever use too many spelling or grammar mistakes. If you are just starting out in your career and have no work experience, it may be in your best interest to have a professional writer to put together your resume. However, if you do have work experience or have had prior work experience in the same field, you can always contact the personnel office at the company you are applying to and ask them to send you a resume outline. Many times they will be able to provide this information for you.For first time job-seekers, it is important to ensure that the personal details you write on your resume are correct. You will be making a las ting impression upon future employers, so it is important to put down the important details. When you are selecting a resume template, always be sure to select one that contains professional, legible fonts, is easy to read, and has all of the information contained in your cover letter on the front page. Additionally, it should include your contact information as well as a 'to'from' line for your letter of reference.Following this rule is important if you are going to be successful at getting any kind of interview. First impressions count in this industry, and a poorly written resume are sure to ruin your chance of getting hired. Make sure your resume is 100% error free. There are lots of resume writing services available online, and a number of them offer this service at a low cost. Always make sure that you are only paying for the service that is worth using, or if you can't find a good service for yourself, do your research and hire someone who will. Also make sure to get an overv iew of the charges you will be required to pay before signing up.Some of the most important pieces of advice for first time job-seekers are to be sure to have a list of work experience, preferably prior to beginning work in your field, which can prove helpful when you make the initial phone call to prospective employers. Also, be sure to get a detailed description of your educational background, as this is usually where you will get the most grief when trying to figure out what sort of educational requirements you will need.First time job-seekers should also take the time to familiarize themselves with the kind of things they will be covering on their resume. While it is important to have a work experience section, don't overlook the area of interest. It is best to mention your previous employment and then go into more detail about that before giving a job description.

One example of why its great to be a mentor

One example of why its great to be a mentor One of my best experiences as a mentor was when I inherited an IT department where the average age was 18. There were many men and one woman and no leaders. I sniffed around for who might be good at what in preparation for a departmental reorg. The woman, Sari, looked homeless at best, a drug addict at worst. I started taking steps to fire her, but she kept turning in the best work each week. So when I met with her alone, I asked her a little bit about her situation what does she want to do, what sort of experience does she have. It took only a little prodding for her to tell me that she was 16 and a high school dropout and she ran away from home. I made it my mission to get her back into school. I gave her responsibilities that she would succeed at to show her that she was smart and capable. For months, I met with her each week: She told me that her family had drug and alcohol problems; I told her if she would look like she could command authority then I could make her a supervisor. Miraculously, almost overnight, she had a new haircut and a new wardrobe. After two promotions, Sari gained enough self-confidence from work to apply to college two years later. I couldnt have been more proud writing a recommendation. Today Sari is a rising star in the software industry. And while she always thanks me for helping her to get back on solid footing, I am always thankful to her for teaching me how much we can do for each other, even in the workplace. Sari single-handedly gave my work meaning.

Clinical Research Associate Job Description - Algrim.co

Clinical Research Associate Job Description - Algrim.co Clinical Research Associate Job Description Template Download our job description template in Word or PDF format. Instant download. No email required. Download Template Using Your Template Follow these instructions to use your new job description template Step one: Fill out all details in your job description template using the provided sample on this page. Step two: Customize your requirements or duties to anything special to your workplace. Be sure to speak with team members and managers to gauge what's required of the position. Step three: When the census of the team has agreed on the description of the work, add in a Equal Employment Opportunity statement to the bottom of your job description. Step four: Check with your legal department, management team, and other team members to ensure the job description looks correct before creating a job advertisement. Choose a job board that's specific to your needs.

Writing a Resume For Counselor Position

Writing a Resume For Counselor PositionOne of the first things that you need to do before writing a resume for a counselor position is to come up with a list of your career objectives. This list should include what type of counselor you want to be and what type of work you wish to do.When you are preparing a resume for a counselor position, it is important to put emphasis on the job duties required. Make sure that you also list the length of the course and the number of students. Also, make sure that you mention how long you have been working in this field and how many years you have been actively involved in the career.If you have experience of debt or student loan debt, indicate how much you owe. There may be many questions you can ask in answering this question. Write down the number of inquiries you may have had, and determine the total amount of your debt.It is important to highlight the successes and achievements that you have had in the past so that prospective employers can s ee that you are an effective and efficient counselor. Write down any awards or certificates that you have won. The point is to let potential employers know how accomplished you are.One of the most significant parts of writing a resume for a counselor position is your contact information. You must include your phone number, your email address, and your physical address. You should not forget to include your current office address and other postal mail address.After you have written down all of your education and experience information, it is time to research and complete the course work that is required for your counselor position. This means studying for the SAT, AP Chemistry, or other standardized tests that are required for licensure. One thing that you should include is your training and volunteer work in the past. After completing the necessary coursework for your counselor position, your resume should show that you have completed the required coursework. By using a separate doc ument from your application, you will be able to make a resume for a counselor position. However, one idea is to use a Word document that includes the same information as your other applications.When you are writing a resume for a counselor position, remember that you should not forget to put emphasis on the special skills that you possess. You should also remember to include your achievements, including volunteer work, educational accomplishments, and career goals. Finally, a good resume for counselor position should include the type of counseling that you wish to do.

Unemployed and forgotten Senate extends unemployment 14-20 weeks

Unemployed and forgotten Senate extends unemployment 14-20 weeks 0 Flares 0 Flares In unison, millions of unemployed Americans let out a huge sigh of relief yesterday as Senate extended jobless benefits 14-20 weeks.  Many americans, however, share a feeling of frustration, believing that their countrys decision makers were worried more about devouring lobster and steak, than the well being of jobless workers.  Have millions of unemployed Americans been forgotten? How many were forgotten? 600,000 Americans exhausted their benefits in September and October 1.3 million Americans are expected to exhaust their benefits by the end of 2009 Explaining their frustration It was nearly a month ago when Senate introduced this legislation.  Weeks of delay sent millions of unemployed workers into a state of anger and frustration.  Specifically, a number of Republicans were found unfavorable for an additional extension.  With 600,000 Americans exhausting benefits in September and October, its not hard to understand their anguish.  Last week I covered an update on this legislation, and opened it up for discussion.  Here are a few frsutrated comments from my Corn Heads: I know we have been forgotten. The politicians only care about themselves. As long as their bills are paid and they can sit down to their steak or lobster every night, they couldn’t care less. I guess they think the 100’s of thousands of unemployed persons will never vote again. Watching our government debate whether or not to add amendments to the unemployment benefit extension is ludicrous. Has anyone else been following this? I mean come on..people are literally losing homes because of this ridiculous politicking. Why just keep on extending the benefits for a few weeks when all the experts say it will be at least a year before there starts to be any real jobs. It feels like the same stress as a person a death row that keeps getting a last minute reprieve. Just pass it for at least 52 weeks and give us a chance to breathe and find something. This is mental and emotionally abuse of the very people that for generations paid the taxes that line their pockets. Explaining this extension On November 4th, Senate voted 98-0 for a 14-20 week extension.  Here are critical points surrounding the legislation: Close, but not over.  Senates vote pushes this legislation to the House, who should quickly approve the extension.  Its expected to be finalized this week, or at least 1.3 million people hope so. Each state will receive 14 weeks of jobless benefits.  States that have unemployment rates exceeding 8.5% will receive an additional 6 weeks of benefits.   Extension will not be retroactive, meaning anyone that has exhausted their benefits will not receive a lump sum payment for unpaid weeks.  Instead, they should expect their benefits to begin immediately. Is it Americas duty to catch the fallen?  What are your thoughts?

10 Tips for a Successful Phone Interview - CareerEnlightenment.com

10 Tips for a Successful Phone Interview Erin Greene is a guest blogger for My Dog Ate My Blog.So you’ve landed a phone interview with the company of your dreams and you’re still in your pajamas.   Now what?   Make sure to follow these simple guidelines for getting a call back:1.         Know the game.   While the recruiter may have told you she’d like to schedule you for a phone interview, I guarantee her calendar entry reads “Phone Screen.”   Why?   Nobody’s going to pay money to fly you out to their corporate headquarters if you’re a complete dolt over the phone.2.         Smile.   No, they can’t see you (unless you agreed to video Skype, which I rarely recommend for a first interview).   But they can hear the positive attitude in your voice, which is oh-so-important during a phone call.   Face it, you aren’t wowing anyone with your fancy briefcase or snappy shoes over the phone, so do yourself a favor and inject some personality into the tone of your voice.3.         Be aware of time zone differences.   Don’t schedule a phone interview for a time that is convenient for you, only to discover later that your time slot is painfully early in the morning for the recruiter.4.         Get a babysitter.     Yes, it’s illegal to discriminate against parents of young children.   However, you won’t be earning yourself any points in the “ability to multi-task” department if your child is screaming in the background chucking soiled diapers at your head. Want to Read More Articles Like This One?Sign up here to receive weekly updates from Career Enlightenment, and never miss another powerful job searching tip! SUBSCRIBE! You have Successfully Subscribed!We hate spam too. Unsubscribe any time. 5.         Practice.   Have a friend (of the employed variety) call you on his lunch break, preferably from his office.   He’ll be in the corporate mindset, and rehearsing with him in this setting will get you ‘in the zone,’ so to speak.6.         Have a pen and paper next to you.   Un comfortable pauses while you fumble for writing utensils will impress nobody.7.         If it’s a telecommuting job you’re after, be prepared to answer questions about your self-discipline.   This is a “show, don’t tell” type of question.   Give examples of your previous experience working from home, and have electronic copies of documents and/or presentations ready to share with your interviewer.8.         Familiarize yourself with telecommunication software ahead of time.   Download Skype to your desktop.   Educate yourself on oDesk and eLance, as many companies use electronic accounting services to pay their consultants.9.         Know the company’s website inside and out.  Since you won’t be able to compliment your interviewer on the cute pictures of his kids on his desk (at least, not without sounding like a total creep), make small talk by letting him know what you like about the company’s online presence.   After all, someone from their side is likely checkin g out your Facebook pageâ€"it only makes sense to look them up, too.10.   Keep an electronic tracking sheet of your phone interviews.   Trust me, when you can’t put a face with a name, you will easily forget who called you from where.   Save phone numbers in your cell phone as “Jane from XYZ Corp.” so you won’t be caught off guard if called back unexpectedly.