The Dark Side - Sept 2012


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The Dark Side - Sept 2012

  1. 1. Dark SEPTEMBER 2012 WANTTww TO KNOW w. the WHY?Why theGirls ‘r’ SEE winning! PAGE 11 Secrets, Lies & Hard Work! Inside this issue: Inside this issue: Spam, Spam, Spam Still Frustrated Girls, Girls, Girls Factoring Who? Stress Test! Clare & A Few “Myths” The Power of Three!
  2. 2. EDITOR’S NOTE Girls won, Boys....lost! 2012Why do girls always seem to win?In arguments about cooking, knitting or decorating,that seems fair enough, (lol!) but why do the fairer sex Why is this TRUE?seem to be winning everything else too these days?!No such thing as a glass ceiling in recruitment it wouldappear as we boys are definitely having to take it on thechin – as the girls turn up the heat, generating moreprofits, turnover and business than the tough guys withthe stubble and the dodgy attitudes. (or is it?!)Well, apparently it really does all comes down toattitude and commitment. GIRLS ON TOP - Page 11The girls are working harder, remain more consistent inwhat they do and are more prepared to ‘get their handsdirty’ when it matters. Take a look at the ‘Girls, Girls,Girls’ article in this edition of TDS and see what youthink. Today’s SpecialElsewhere, we are still being warned about theEurozone and the ECB & whatever else. Is it just SSG or Regular Stuffall we all getting a little sick of this phoney war on the 11 Girls, Girls, Girls!causes of the problem? I am beginning to hate all of thehype, the worry and the anxiety eroding the basic will to 4 19 The Stress Testpush on and get things done.It seems it is getting harder to do the same things and 15 What’s New?yet we all have to keep plugging away. 18 Grumpy Cat Nonsense!Having said all of that, the News Section this month ispacked full of great little stories about the successes 18 Pop’s Pantrythat keep flowing from the ventures we support –profits rising, babies being born and new toilet 8 Launches!configurations being installed (thanks for that oneBarnes Frank!). 14 Don’t ForgetIn addition, it is brilliant to read about Big Sky Additionswho go from strength to strength (see ‘On the Couch’)who having decided unilaterally that the recession is Serious Bitsnot for them have seemingly found the solution to thelarger economic issues surrounding us all – just ignoreit all and ‘hit the phones!’ 6 Factoring!So, all in all we are faced with the same situation as wehave been facing since 2008 – rubbish economy but 17 Employment Mythslots of reasons to push on and ignore what happens on 23 Chris & SpamWall Street & in Brussels and make sure that you getout of bed and make a placement!That’s all it takes guys!! The Power of Three! info@ 1. All the contents of The Dark Side are only for general information and/or use. Such contents do not constitute advice and should not be relied upon in making (or refraining from making) any decision. Any specific advice or replies to queries in any part of the publication is/are the personal opinion of such experts/consultants/persons. 2. The information in The Dark Side is provided on an "AS IS" basis, and all warranties, expressed or implied of any kind, regarding any matter pertaining to any information, advice or replies are disclaimed and excluded. 3. The Dark Side and its associates shall not be liable, at any time for damages including, without limitation, damages for loss of any kind(but excluding personal injury or death caused by negligence) arising in contract, tort or otherwise from the use of or inability to use the publication, or any of its contents, or from any action taken (or refrained from being taken) as a result of using the publication or any such contents or use of information contained in the publication. 4. No representations, warranties, or guarantees whatsoever are made as to the accuracy, adequacy, reliability, completeness, suitability, or applicability of the information to a particular situation. 5. Certain references in the publication refer to third parties over whom The Dark Side has no control or connection, business or otherwise. Material Submitted by Others Some sections in The Dark Side contain materials submitted by users. The Dark Side accepts no responsibility for the content, accuracy, and conformity to applicable laws of such material, and any views or opinions expressed by such third parties are those of the author alone, and do not necessarily reflect the views or opinions of the owners or publishers of the Dark Side. Effect of these Terms These terms constitute the sole basis on which the Dark Side is published and made available and supersede and replace all prior or contemporaneous understandings or agreements, written or oral, or any implied terms which might otherwise apply. 3
  3. 3. Key Justin and Sam worked together for 3 years • Home Based Facts • Two Owners before setting up Big Sky Additions, working in the local Norfolk market in • 2010 Launch • Temp & Perm ig ky B S additions Accountancy Search & Selection Accountancy & Finance. • Finance & Accounting MOTIVATIONS So, what made you decide to SYOB? Why did you NIGGLING ANXIETIES make the transition from Employee to Business Expectation Reality Owner? For all of the rhetoric & seemingly Expectation Reality endless discussions, was it money, freedom or Freedom & Autonomy 8 8 perhaps the children which finally made you ‘get Legal Formations 8.5 8 out of recruitment & into business’? What did you expect and what has been the reality? Accounting Issues 8.5 8 Financial / Earnings 8.5 8 The Tax Man 9 8 10 10 ? Long Term Ambition The VAT Man 9 7 Increased Family Time 9.5 9 Sourcing Vacancies 8.5 6.5 Reduction in Commute 7.5 9.5 Personal Cash Flow 8.5 8.5 Escape Office Politics 8 9.5 Personal Isolation 7 6 A Difficult Employer 6 7 Restrictive Covenants 8 6.5 Technical Issues 7 7 The ‘Right Time’ 8.5 9 And before you made the big decision to SYOB, what kept you awake at night? What were the Staying Organised 5 4.5 Prove Doubters Wrong 7.5 8.5 awful worries, the ‘niggles’ you couldn’t escape? Has the Tax man been friend or foe? Did your Impact on your Family 6 6 Work / Life Balance 8 9 Restrictive Covenant hold you back? What about Making Placements 5 5 cash flow? Technology? Do you have more time 5.5 5.5 for your family? Has it been tougher than you Shorter Working Day anticipated? Room in the Market 5 5 50 WORDS ON WHY! 50 WORDS ON WHY NOT! For us, we didn’t have any doubts about the concept Justin: my main aim was to achieve freedom and a better of going it alone but what was holding us back were lifestyle – not to have to save up the chores for the weekend, to blend work and non-work tasks over the full week. the mechanics of running a business – these were the elements that made us doubt whether we Sam: it was the chance to be financially secure – with a young should be doing this. We both wanted to family, the thought of working for someone else for the rest of concentrate on the recruiting side and we were not my life filled me with dread – I was bored where I was, I so confident on how to go about actually starting needed to try it and was confident that I could succeed and building a business. 8 A: Without a doubt, Cash 8 9 Biggest challenge? A: Overall we are very Flow and everything A: Certainly we both Major upsides? So far, so good? 10 that goes with that 10 10 happy with how things element of the business enjoy the job now and have gone – we have had a has been our biggest get a huge amount of challenge. We want to good solid start and we are increase the number of satisfaction from doing it for proud of what we have vacancies coming to us ourselves – we have the without us chasing after achieved so far – there is them and achieve a freedom to work how we still a lot more to do. consistency to the billing – want to work and are not we have very high billing months and then not so high restricted in any way. – our challenge is evening this out.4
  4. 4. 5 RUNNING YOUR BUSINESS We wanted to find a company who could help us 10 “Getting family andWhy choose SSG? with the mechanics of starting Expectation? Reality? and building a business so that we friends on side wasn’t could concentrate on recruiting. We an issue - our chose SSG principally because we met David and got on well with him challenge was to show Making Placements 5 5 – we really bought in to him and our clients that we when we needed to reconnect with could compete ” SSG, he was there to help us. Work Routine 7 7 7 Personal Cash Flow 6 8 10How was the launch? Once we had managed to get out of Norfolk through the Personal Routine 7 8 Big Sky snow, the launch went well and we found it pretty straightforward – it additions would have been ideal to have met Distractions 7 7 the team before the launch date as Accountancy Search & Selection the day itself was pretty full on but it has all worked out well. Feeling Isolated 8 6 Family Support 9 9 10 The Cash Flow forecasting Candidate Attraction 7 8Most important support that we have implemented 10 recently with the help of the Toolkit has been very useful and we “Long hours, high are getting a huge amount out of the stress - these aren’t a Client Attraction 8 7 meetings we are having with David. His recent support in a mentoring negative, we do it capacity has been invaluable and we because we love it. ” Working Hours 8 8 can see our business starting to grow. Stress Levels 8 9 ADVICE FOR OTHERS? BIGGEST MISTAKE? LONG-TERM GOALS? The main thing is to have confidence in your We think that possibly we have been too Justin: to be in a financial position that for own ability – if you can visualise yourself impatient at times and that has led to sometimes few years I wouldn’t need to work if I chose running your own business then do it! Have not being guarded enough when we come not to and to be able to look back and to a good support network around you and across business advisors at networking events – have been a success. we have been at risk of being sucked into making make sure you have enough money to Sam: without a doubt, financial freedom – the wrong decisions sometimes. Our growing survive for 6 months being able to do what I want when I want, confidence in the business now means that we think we should be more aggressive when we provide for my family and be proud of the know we are in the right! business and what we’ve achieved. We have been What to do Next? working with Big Sky for a Take the Challenge? couple of years Why not Volunteer to be Clare’s – passionate next with Last about their Clare? Words market and the In Sam’s opinion: area that they Surely, it is much better to serve, they are step forward and take a hitFootball Rugby Neither carving out a niche for themselves for the team than to be within the Accounting and Finance relentlessly tracked downEastenders Corrie Neither by a seemingly pleasant &Rock Opera Neither space. Some adjustment to the services fair minded pseudoJogging Crisps Neither that we provide and the addition of a Psychiatrist?Wine Beer Neither mentor has proved to be just what the company needed to kick-start a new To take part, please contactLiterature DVD’s Neither period of growth. Although Justin feelsCasual Suited Neither CLARE ARMSTRONG he has lost his ‘baby face’ features to theUK Hol’s Overseas Neither stress of running a business, we are 01442 200 957Glasses Contacts Neither confident that he and Sam will achieve clare@supportservicesgroup.tvHistory Sci-Fi Neither their goals. 5
  5. 5. Darren’s Helpful Hints Factoring : What is it? The first consideration for any temp client pays in the agreed terms of 14 days And the bank do this for free?!?! recruitment business is how am I going to so you get your £100 from Temp Client Ltd pay my contractors? in week 4. Well No! This is before Insurance, getting However this is after the wages have been The example above has deliberately timesheets signed, filling the vacancy and paid leaving you with a shortfall. ignored the fees that the Factoring all the other steps to running a temp desk. company charge for providing this The factoring company agree that service. And why is that I hear you ask? because you have raised an invoice of These can be split into 2 charges £100 in week 2 they will lend you 90% of The short answer is that if your temps that (£90) in week 2 as a result. Service charge don’t get paid you have no temp desk. Therefore you use the £90 to pay Joe This is the charge to you for the bank The slightly less short answer is that you Bloggs in week 2. “running” the facility. pay the contractors before you get paid by the client to cover those temp So now you are at the point of where you The service charge is worked out as a payments. have borrowed £90 to pay Joe Bloggs but percentage of the invoice value that you your client owes you £100 which will raise. Therefore you need some form of finance cover the repayment of the bank to cover the payments until the client borrowing. This can be anywhere from 0.08% to 1.5% pays you. of turnover that is factored, depending on In week 4 the bank receive £100 from your what you expect your turnover to be. This is where Factoring steps in: client. They take £90 of it straight away to get the So what is Factoring? money back they lent you. This leaves £10 remaining that is yours. Factoring is the bank (in our case, Lloyds Commercial Finance) lending you money WORDS TO UNDERSTAND Or to look at in its simplest form : against your sales invoices. Service Charge Usually this advance is up to 90% of You raised a £100 invoice which you invoice value. Drawdown received £90 up front and £10 when the client pays. Discount The factoring company then collect the money from your clients due on the Disallowed invoices and this is how they get their Avaliable Funds money back. This releases the final amount due to you which is the remaining 10% of the invoice that you have not received yet. The higher the turnover the lower the An example %age as Lloyds will earn more from higher turnover businesses. Joe Bloggs works for a week at Temp Client Ltd – We will call this week 1 However, don’t think you can just say you’ll do high turnover and get a lower The following Monday Joe Bloggs submits %age as they impose what they call a his timesheet to you and expects to be minimum service charge. paid his wages of £90 that Friday – we will call this week 2. This is a set amount that they will charge as a minimum regardless of the value of Still in week 2, you raise an invoice of £100 the invoices they raise. to your client for the supply of Joe Bloggs. “When you need to get your hands on So your great idea of saying you will raise You are one of the lucky ones and your the money....” £1million in the first year to lower your6
  6. 6. %age means you will be hit with a far Once logged in you will be presented with Funded – This is the total value of invoiceshigher minimum service charge and the my account screen that Lloyds expect to receive from youractually be worse off! clients. This gives you a summary of your wholeBut don’t think of the minimum as an factoring account. (Fig 1) So this is what they base the total fundingadditional charge on top of the Service figure that they will advance you on.charge. So lets work through the figures in the top half first So in our earlier example this would beYou pay one or the other, depending £100 giving a total allowed funding of £90which one is higher. Fig 1 IP – This just shows the“Discount” agreed percentage figure that Lloyds will advance onThis is really the interest charge for that we discussed earlierborrowing money and is the term usedby Lloyds. Current Account – This is your current borrowingsLooking back at our example, you from Lloyds. It is an ongoingborrowed £90 from week 2 until week 4 figure that increases orwhen the client paid. decreases.The factoring company will charge you So when Lloyds give youinterest on that £90 from week 2 till week funds against the invoices4. this figure increases (because your borrowings from LloydsSSG can arrange a meeting with Lloyds increase)for you and you will get a full quote thatwill outline all charges that you will pay When your Clients make afor the factoring facility. payment to Lloyds this decreases as you areUsing the Facility TOP TIP! borrowing less. Passwords changeWhen you actually use a factoring facility monthly on CashCon- nect so try to use Total available at start ofyour main contact with Lloyds will be numerical ones (01, day – The current account isthrough their web portal – 02 etc..) what is owed to However, Lloyds will advanceYou will be given your own unique login up to 90% of the Fundedand will be presented with information balance.that is unique to you and is all theinformation as to what is happening in Gross Debtors – This is the value of your If the Current account is below that figureyour factoring account. invoices that have not been paid to Lloyds then there are additional funds available yet. to borrow.It is here that you can “draw down” funds,see what your customers owe, see what So looking at our example earlier this This is what is known as the availabilityyou owe Lloyds, etc. figure would show £100 in week 2 and shown in this box.Let’s take a look and explain the When invoices are paid by your clients this It is calculated as follows :important areas and what they mean. figure reduces and when invoices are raised by you, it increases. Funded multiplied by IP %age Disapproved/capped – If a client says that an invoice will not be paid, or if a The result of this is the total available to be customer is over their credit limit then borrowed. Lloyds will not advance against these as they do not expect to get the money back. This total less the Current account (Current borrowings) gives you the So any figure in these will need to be remaining availability. looked at. And as a result Lloyds reduce it from the Using our example at the beginning : Gross Debtors to arrive at the funded “Cash is King!” figure. An invoice was raised for £100. 7
  7. 7. This would have shown in the gross debtors as £100 in week 2 and made the July funded figure £100. BLAST OFF! 2012 This would have created an availability in week 2 or £90. Home Counties Hero! Generalist Recruitment with a specialist twist! Lloyds advanced £90 to you in week 2 No CV Blasting here, which would have had 2 effects. just a great job with genuine focus RISE IN TEMPORARY ROLES The Current account would have & care is a sector ENCOURAGING FOR RECRUITERS increased by £90 (as you have borrowed better known Employers are increasingly turning to this amount) and the availability would for volume & recruitment businesses to provide temporary, have gone down to 0 as you have complaints! flexible workers to fill vacancies against the borrowed all you can. challenging business backdrop, enabling For more info, contact: firms to increase or decrease headcount in line with fluctuations in trading. In week 4 – When the client has paid their invoice the following would happen. The number of job vacancies available through recruitment companies continued to rise in July – albeit at a more modest Gross debtors would have decreased to 0 pace than previous months – particularly in as the £100 was paid. the engineering, construction and medical sectors, according to the latest REC/KPMG This would give a funded of 0 which July Report on Jobs. means that the Current account can only BLAST OFF! 2012 Conditions remain stable for young be 0 at its highest. recruitment businesses, particularly Young Gun shooting for specialists operating in resilient vertical However, the current account which was sectors, to realise their growth potential. South Coast Success! £90 would be decreased by £100 which Our Recruiter may only However, access to working capital to pay means it would become negative £10. be 25,but he has drive temporary workers, and the significant enthusiasm & a great administrative burden associated with As a result the availability would be would mental attitude. candidate and client management, can leave directors’ with their heads down in day to be £10 as the current account is actually Coupled with just over day activities, rather than above the parapet showing £10 due to you. 2 yrs of Technical focusing on expansion. Recruitment skills, SSG is happy to Cash Friday, the outsourced payroll finance So that is the overview. service from Lloyds TSB Commercial back this chap all the way Finance’s Recruitment Finance division, But how do you get at that money?! For more info, contact: comprises payroll management, a factoring facility and a credit insurance policy, and is well suited to remedying these issues. The Drawdown Payroll funding addresses the tasks which ensure temps are paid correctly and on Drawdown is the request of funds from time, whilst being compliant with tax and the factoring account to your business data protection legislation. Alternatively a bank account. factoring facility advances up to 90 per cent July of issued invoices, to make funds available This is registered at the amount in Fig 1. BLAST OFF! 2012 to reinvest in growth, while credit insurance covers businesses against losses due to unpaid accounts receivable. Sea Front Recruitment! The factoring account is not a bank How lucky is our latest The challenging market means that it is more account. Entrepreneurial Recruiter? important than ever for recruiters to position Living with the Devon themselves to capitalise on emerging growth You can’t make payments to other people beach literally on her opportunities. doorstep, this is a from it. fabulous opportunity to To learn more speak to our advisors on combine all of the All you can do is request to borrow money benefits of running a 0800 55 00 22 or visit that is accessible in the availability figure. business with looking after 2 young Once requested the money will show in children - did I mention STUART TALBOT living on the beach? Head of the Recruitment Finance Division your business bank account. For more info, contact: of Lloyds TSB Commercial Finance So when you require funds you enter the figure required in the amount box.8
  8. 8. You will then need to decide what Daily change report (Fig 2) Credit rating amendment – This showspayment method you require. This is the any changes in the credit ratings given byamount box (Fig 1) This gives you lots of information on Lloyds for any of your clients in the period what has changed on your account on aBut please be aware daily basis. Reconciled – Thisof the following shows payments Fig 2 received from yourThere is a 3:30 pm cut clients and whatoff to request funds invoices they werevia BACS but this reconciled with inmethod is free of the periodcharge. Cash Received –A BACS transfer takes TOP TIP! This just shows the3 working days to actual cashshow in your bank ALWAYS Check received in the Individual Clientaccount. credit limits against period their outstandingThere is a 10:30am cut balances New Customeroff point to request a details – ThisCHAPS and there is a shows any newcharge for this c u s t o m e r smethod of payment. submitted toHowever a CHAPS transfer will show in You will first see that there are date Lloyds in the periodyour bank account the same day. ranges so you can look at different Reassignment - this shows any invoices periods. that have been reassignedTo view previous drawdown paymentsmade just click on the last 10 payments Select the period you want and click So there is a lot of information there.icon and they will show. (Fig 1) Load report But the most important is cash received.The front page shows a summary of your This will bring up a host of other You need to know when payments areaccount. information that you can access for the being made to keep track on your period in question debtors.We shall now look at some of the otherpages (accessed by the menu’s at the side) Fig 3that you will look at in the course ofrunning the factoring account.You can find more information eon Factoring at the following k/ The slower your customers pay the k/ Clie Summary – This is the front page Client the discount charge as you are borrowinginvoice-finance- - tha I have explained above but for the that for longer so it is good practice to keepsolutions/factoring/ ring/ day in selected (Fig 2) days your own checks on outstanding invoices.Or contact me, Disapproval – This shows any invoices This leads us to look at how you look at DisDarren Hulbert on disapproved in the period dis what invoices are outstanding by01442 200961. customer. Payment Advice – This is any This page is accessed by selecting PayYou can also email me ail drawdowns paid in the period dra Customer on the left hand side menu thendarren@supportservices tservices customer list on any Schedule acknowledgement – This Sch shows totals for your sales invoices It does what it says on the tin – it gives a shoI look forward to hearing raised and submitted to Lloyds in the customer list. (Fig 3) raisfrom you! period. per It also includes estimated charges on those invoices cha However, it is not just a list of names, it 9
  9. 9. it also gives the customer’s credit limit, the There are a number of other areas to J JOKER! £50 balance outstanding, any disapproved explore on cashconnect but they are for Angela from Manchester values and over credit limit values. another day. Q: Driving up the motorway, my boss phoned me & told me Id been promoted. He Any element of information on Feel free to check them out yourself. then made me director and I went right off into a tree. cashconnect that is underlined means A: The police came and asked that you can click on it for further One last word of warning. g me what had happened. I information. said I careered off the road" WINNER! Lloyds may not use old fashion methods So if you click on the customer name, you of communication like the telephone if will get address, contact details, last they have a query. payment date and any diary notes of interaction with the client that Lloyds The whole point of having this online have had. portal is that is gives you all the information you need in real time and J JOKER! £50 If you click on the balance figure it will Michael from Lodnon online. Q: What do you see when you show all the invoices that make up that look into a Recruitment figure. Consultants eyes? Therefore do please keep a regular eye on A: The back of his head More importantly these are invoices that the memo tab (Fig 4) your client hasn’t paid yet. Clicking on this then memo List brings up WINNER! Looking at this screen also raises the new a list of items that Lloyds want to area of Client Credit limits. communicate to you. When a new 30 ventures in 2012 SSG has launched client is DID YOU KNOW?.... Fig 4 entered on cashconnect Lloyds will only fund a g a i n s t invoices to TOP TIP! that client up ALWAYS Check the to a certain amount. memo section for unread memos This is the Credit Limit. July While a client’s outstanding invoices with BLAST OFF! 2012 you are below that credit limit any new If you miss these you may miss some vital invoices will increase your availability as information. normal. Nowt grim about up North! But don’t fear, If you have some unread Yet another great However, if a client goes over their credit memos it also tells you on the front page Commercial recruitment limit then any further invoices will go in in the bottom left hand corner. venture based out of the capped figure and have no effect on Newcastle! the funded figure so do not increase your Super Star Recruiter availability. with a great accent and 10yrs of local This means you are not getting funding experience. on those invoices until the client pays so This just has to could have an adverse effect on your work! cashflow. For more info, contact: So credit limits are an important area to keep an eye on. So the customer list is quite important as J JOKER! £50 it lets you know what is happening with “Need Help? Luke from Herts Q: Why did the Recruitment each customer and assists in giving you Consultant scale the chain Give Darren a call link fence? the information you need to chase your clients. A: To see what was on the other side So now you have all the information in If you would like to get any further info front of you and a new understanding of please feel free to contact me on 01442 WINNER! how factoring works. 20096110
  10. 10. Girls, Girls, Girls!Never mind the Spice Girls,Female Recruiterslead the way!It might shame the boys to have to admit Read the national press, scour the tradeit but the Girls are winning so far in 2012! press or just talk to any sensible Recruiter & you will hear the same stories rehashedBearing in mind that approximately 50% one way or another. It isn’t good, thingsof all SSG client recruiters are female, they are tough and every day seems to Is it a Happy 2012?seem to be making more than 50% of the generate a new of all SSG Ventures since the startof the Olympic Year! The major players in the recruitment Same meat – different gravy! market are not making any more money –Is it the Jessica Ennis effect? Are we all we are seeing profits warnings, cut backs, OK – let’s focus on some of the obviousmore likely to work with the fairer sex redundancy notices or (again, at best) a indicators of how start-up recruiters andthan the boys or are female Recruiters just ‘reallocation of resources’ from the likes of their businesses are managing (asbetter? What can the little ladies teach us Robert Walters, Hays, Michael Page etc reflected by the SSG Experience!)big butch blokes?! Look further down the food chain with Applications The Trends since the independents and we see a similar story but with a slighter less pessimistic January 2012 outlook – things are ‘ok’, the outlook Since January 2012, SSG has registered a decrease in qualified Recruiters wantingOn a global basis, things are no better are remains ‘stable’ and the numbers seem to launch a new business. This is not athey? August is likely to be the same as fairly ‘predictable’. massive decrease but it is noticeable – aJanuary and February was not any tangible reduction in numbers (both indifferent to March whilst April seemed like absolute terms but also on a comparativeMay and June to me! basis). Work in theEvery news bulletin is (at best) cautious It would appear that Recruiters feel lessand usually fairly miserable. The Euro is Moment...... keen to take the plunge right now. Is this asinking, the unemployment numbers reflection of the market or is it just toughsoaring and the Sovereign dangers seem luck on SSG?determined to remain. And then right down in the dirt fightingNo one appears to be making the right for every penny and working hard to win Launchesmoves to solve this ‘perfect storm’ of any business ..... The battling Recruitment The numbers are solid – no change sinceeconomic woe & as individuals there Start-Up venture! the start of the year and in fact a littlewould seem to be little we can do to better than in 2011 and in 2010. In otherchange anything – the best that we can So, what about us? How are things since words, SSG is launching more businessesdo is to work in the moment – just go with January 2012? Are things getting better or than we have done in the first 6 months ofthe flow and not get too ambitious. worse? Any lessons to learn – apart from 2011 and 2010, but to be frank, that in the fact that it seems more profitable to itself is not much to shout about. be a girl than it is to be a boy! £ After all, is the quality going to be as good or just a skew of the curve? After all, if we MO Let’s look at the SSG KPIs are launching the same number of NTH S Just like you guys, SSG works to a number businesses but working with fewer of KPIs (you do work with KPIs don’t you?). applications, are we just lowering the bar? Revenues You guys might talk about interviews, offers and placements – whilst we focus Ok – here is a definite trend! on Business Launches, Revenues per Overall revenues per venture remain 2012 is going great for the girls! Venture, Expansion Rates and the like. almost the same (or ‘stagnant’ if you want 11
  11. 11. to be miserable or ‘robust’ if you want to be optimistic!). Girls won, Boys......lost! But, (& if you are a boy, you may want to 2012 look away now!), the girls are doing better – about 20% better in fact. SSG revenues from the boys are down. Legal Disputes What this KPI evidence seems to highlight is that as Recruiters we are almost too SSG Revenues from the girls are up. The optimistic! Perhaps we really do talk a Up, up & up! net result is the same. better game than we play? Maybe we No doubt here guys! 2012 has seen need to be a little more pessimistic – more So, the big question is really ‘what are the another increase in the number of legal prudent on our outlook. girls doing that the boys are not?’ disputes our ventures are involved in. Not only is the actual number rising but the progression of the actual dispute is going What about the Girls? further than they have traditionally done. This is the really interesting bit! The Girls make more money, In other words, more and more start up The girls are doing better – there is no seem to work Recruitment Ventures are being forced doubt about that. They seem to have into going to court to get their fees paid. suffered less and prospered more. harder & chat more! Expansion In other words, for those Recruiters who have suffered (seen their revenues Ah ha! At last – a rare taste of good news! actually fall in 2012 from the same period Business Failures in 2011) they seem to have suffered less. Although I need to add a caveat or two, Another miserable face I am sorry to say. there have been significantly more cases For those Recruiters who have prospered of expansion during the first six months of (i.e. seen their revenues increase in 2012 For nine years (since our launch in 2003) 2012 than there has been in either 2011 or from the same period in 2011) they seem we know that 1 in every 6 businesses SSG 2010. to have prospered more. launch with an eager fresh faced Recruiter will ‘fail’ (or more nicely put, the Recruiter The most significant caveat which I need Here are a few facts for you: will decide to do something ‘different’). to add is that this expansion has come more from well established ventures ‘Female Revenues’ now account for Since the start of 2012 and indeed looking which launched prior to 2010 than it has 61% of all SSG Revenues. back 12 months and even 18 months) that from Recruiters who set up in the last 18 number is slighter higher. months. ‘Female Revenues’ in 2012 are up 9% on the same period of 2011. Not so high that most analysts would What this suggests is that it has been more difficult to establish a foothold in ‘Female Revenues’ in 2012 are up advocate jumping off a tall building, but 11% on the same period of 2010. enough to make a reasonable Recruiter the market since the financial meltdown start to wonder why? It is tougher and of 2009 and onwards. I guess we would all ‘Male Revenues’ now account for again the boys are fairing less well. The know that anyway! 39% of all SSG Revenues. boys seem more susceptible to calling it a ‘Male Revenues’ in 2012 are down day than the girls do. Overall, the KPI view is that things are just as tough now as they have been in the 4% on the same period of 2011. Bad Debts recent past. It would appear that there has ‘Male Revenues’ in 2012 are down been no real improvement in 2012 and 7% on the same period of 2010. Yet another misery statistic! that we are flat lining at best! Of the 19 Ventures who have expanded their team in 2012, 12 Yep, you have guessed it – our ventures (& are owned by women. therefore SSG) are suffering more than we have with bad debts. More ‘’placed’’ Of the 5 Ventures who have ‘called candidates are not working to the end of a se it a day’ since January 2012, 4 were Ca s r t ion rebate period (damnation!) & more end BAD ou licat C p owned by the boys! DE Ap clients are failing to cough up on their BT S legitimate recruitment invoices. Another interesting set of facts relate to the type of recruitment which our Again, please don’t reach for the sleeping fabulous girls work in: pills just yet, but it is interesting that the bad debt numbers have crawled their way up for three consecutive years (2010, 2011 2012 has seen a BIG 74% of Female Revenues come and so far in 2012). increase in bad debts from PERM recruitment12
  12. 12. 56% of Male Revenues come aggressive or more determined, but and take their time to do the right thing, from PERM recruitment seemingly very focussed and able to not just to make a quick buck. concentrate on new business and revenue The average invoice value of earning opportunities. Process Driven Female PERM Revenue is just under £3,200 compared with SSG notice that the girls are always The girls have a plan and they stick to it! an average of £2,650 for the available – whatever the time of day. They boys. are sat at their desks or out on call. They This is not about being inflexible; this isSo, the girls maintain higher PERM fees are working, ready to talk and are about being focussed and process driven.than the boys since 2012 started and they obviously ‘out there’ doing ‘it’. The girls are not reliant upon inspirationalmake more of their money in the PERM recruitment but work hard against a clearmarket than the boys. The girls want to discuss how things are plan. going, they seem to want to canvassThis seems to support the clear opinions and contribute to conversations, It may take the girls longer to get going,recruitment market trend of lowering debates and The Dark Side. but once they start making money theyTEMP revenues and stable PERM fees. In seem to do it better!other words, it seems less difficult to makea PERM fee than it does to generate the Work Smartsame TEMP revenues. The TEMP market is Girls work hard & consistentlyharder & is contracting a little whilst the The girls don’t appear to work any longerPERM market is robust Girls build lasting relationships hours than the boys – indeed the impression that SSG has is that the girlsMore facts about girls Up-North: Girls make 61% of SSG revenues are usually responsible for things other than ‘just recruitment‘ (kids, shopping, They are (on average) nearly 25% Girls talk, listen and engage chores) but somehow manage to get it all more successful than their done. northern male equivalent! Do the girls work smarter or are they just Fees north of Birmingham have grown by around 10% for the girls so busy that they can’t waste time? but not shifted for the boys. Hard Working ToolsWhat about Down South? There is an almost tangible feeling of Ok guys, you might hate this but it seemsx Girls are not more successful than commitment from the girls. Running a the boys. recruitment business seems a very serious process for the girls – this is not simply that the girls make better use of the tools which are available to them via SSG! The boys are just as successful as about not wanting to work for someone More girls engage with SSG than not. the girls! else. They want to do well and seem More girls utilise some of the business determined to work hard, put in the hours tools than do not & more girls ask for helpWhy are the Girls doing better? and try every angle to make more money. than do not.Well, we have some theories of course, but Of course it is hard to be too empirical Big favourites include:it is impossible to be too definite for a here, but the girls really do seem to workmillion reasons; including harder ?? The KPI Tool Kit SSG might use be lucky that the Humility The Cash Flow Tool Kit girlie ventures are particularly It is very clear that the vast majority of the The Vacancy Spider good. female recruiters working with SSG are The Online Assessment product The boys might be unlucky right demonstratively humble! If they don’t now. know something, they come forward and The Business Strategy meetings with say so. If there is something which is SSG It is market led and the girls unclear, they seek clarity. happen to operate in more So, what is the advice then? buoyant markets. There is no bravado about it – just a tendency to want to know what they If you are girl and don’t feel that you are Luck may well be a factor. need to do to make more money and be doing better in 2012 than you were in more successful. Very impressive! 2011, then the advice to you is probably the same as it is to the boys!But, what have we noticed about thegirls? Relationships Focus Engage with SSG - talk to us, meet Most of our female clients seem to benefit with us and discuss ideas with us. WeOf course it is hard to be too empirical from ‘repeat business’. They work with may not know everything of coursehere, but the girls really do seem to be a smaller client numbers but in a more but we do hear a lot of great ideasfocussed bunch. Not necessarily more focussed way – they build relationships from a lot of great Recruiters. 13