Recession's Effect On An Employer!

Dear all,

We have had lot of articles and comments on recessions effect on employees. But what about employers. And i do not mean the big corporations who are taken care of by governments and bodies. What about the small timers dependent on these corporations?

As a case: I run an recruitment firm with atleast 25 people dependent on me for their survival. It's a vicious circle. The flow of work has drastically come down and where ever we have done business the payments are not forthcoming. It is become a difficult task to maintain the team or pay them. As a business decision i may have to fire most of them and this is very disheartening as they are really good. cutting on salaries etc doesnt work as they too are in need of money.

I have thought of many options but right now need some fast answers, in the form of business leads.

I invite suggestions from all. What are the other Industry domains open to recruitment and which companies are actively doing so?

Maybe one of your ideas may help in retaining a team i have grown to love a lot. So do respond!

Warm regards,
Sagar prince
09886790878
[IMG]https://www.citehr.com/misc.php?do=email_dev&email=c2FnYXJwcmluY2VAZ21haW wuY29t[/IMG]

Hi,

It's very true and agree with the global scenario. Apart from the regular services of assisting companies in their recruitment process; below addition may be carried out. It a matter of survival and hence every one must be communicated to do best effort to expand the scope of services. Efforts will be needed to hit and grab the client. I believe that following may be useful in the present scenario.

1. Addon services to the small business enterprises:
a. Talk with the candidate (on behalf of the client) : under this service, consultant talk with the candidate suggested by the client and gives update to the client. Consultant charges a lump sum amount for the same. These services are mainly prevails in the small IT Development companies; where the candidates do not interested but their employers are interested or useful for the value for money employers.
b. Legal Services: Installation and maintenance of legal set up. Installation charges may be a one time cost and besides the maintenance charges may be Rs 50.00 to Rs 75.00 per employee per month.
c. Employee graviance handling services
d. Business Development and providing Technical Know How to SME's. Help in the international certifications like ISO and Quality Management Systems.
e. Explore new avenues of business, go, search and evaluate the potential of service that can be provided. Even in the field of Mgmt education where a number of institutions neither the infrastracture nor the teaching aid and facuilty; we can organise the presentations/seminars. Ofcourse this may give us the publicity as well as the revenue.
f. Lastely, ofcourse, the possible price cut in the services and cut in the manpower also.
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Hi Sagar,

I am agreed with the global scenario. We have to expend the blend of services as per the below options:
1. Call a candidate: Usually popular in the small companies, where the candidates are not much interested but the employers are interested in the candidate. Employer ask to the consultant to proceed the matter on their behalf. A lump sum amount can be charged by the consultant.
2. Expand recruitment services: offer legal services and their maintenance on monthly basis. Most popular is the payroll services.
3. Conduct seminars and workshops in the management institutions on chargeable basis.
4. Provide solutions to the small medium business enterprises problems.
5. Market Surveys and analysis.
6. Engage and instruct the manpower to do the above for the survival.
7. If situation doesn’t improves; go for the cut in the manpower and price cut in the value of services offered.
8. Deal with the good clients.
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Things should improve by next Jan, till then am sure there would be no big challenges coming your way in the field of recruitments...........
Just hang on till things improve.

Thanks for all the responses...
But what best can you suggest me... I had started a recruitment firm 1.5 yrs back.. that time there was no sign of the recession... and now due to this I have closed down the company... Im very strong in recruitment and my other two partners are good at sales... they both got a job... And i have still not.. Im making so many coldcalls to comapnies.. but there is no use... tried thru references also but losing hopes... And i have lost my saved money as i invested in this company.
Im losing hopes... Please guide me what the best i can do????
Thnks & Rgds,
Lost Hopes

The best and shortcut in other words, fast solution is use the expertise of your staff for example you can diversify as providing accounts audit services, business restructuring services, some consultings on project basis.......
This will work after all this is not rocket science it requires only graduates with some experience and your staff can do this jobs and yeild revenue in difficult times......
regards
Badlu

HI Searching4hiddenanswers!
Could you plz tell me where are you based.I mean which city in india.If you are in mumbai............

Diversify.....
The question asked by you should have come across your mind probably a year ago. Any business model should never be focussed on only one revenue stream.
There is no quick fix solution to your problem as of now. However, you ought to plan and diversify your business now. Being in recruitment consultancy, first step would be to diversify the domain of your clientele. Next are the steps probably you should evaluate depending on their feasibility with respect to your goals and ambitions.
As for your teammembers, its sad, but a crude fact. They will have to accept it and move ahead....
Regards,
Arudreya Thapliyal
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Yes, good solutions being prescribed by our friends...in this market scenario, we really need to understand that the available opportunities need to be picked up as appropriate.
As a recruitment firm, you will be allocating specific accounts to each of your team members for resourcing activities. Why not create a differentiator by deputing your resource at the client's office (the client could provide the infra support)...your resource could also help the client with administration or HR operations..your client can save on one resource, pay for your resource instead.
Removal of a resource should not be resorted to as much as possible..you could put them onto marketing, market intelligence and survey, data mining, campus presentations, career counselling for students, test administration for educational institutions and training institutes, training for students, etc..consider the same as an investment for the next financial year...

Hi All,
I am looking for a paper/analysis on the recruitment costs(whether it has come down/remained same) in IT/ITES sector considering the global economic recession.
Can you please help me with this. If you have any papers, please post the same to this site or mail to [Login to view]
Thanks,