The Internet has created a situation whereby a company can quite easily find available resources themselves. The margin, usually paid to job-agents, deployment-companies or agencies will be saved easily. With the right support, tools and knowledge.
The business model, based on staffing, hiring, deployment is therefore forced to implement changes.
The job-agent model has a number of conflicting interests within itself. Deployment of own employees makes money, so one will continue as long as possible and there is always a firm desire to extend their impact on staffing. The paradox is that the customer pays and will never be in the position to control the workforces. The perception concerning flexibility and convenience makes a sharp contrast with respect to the costs that are in driving margins.
Model 2: Partial support
The model with outsourced monitoring of contracts, is called Contractmanagement. This is an administrative service where the customer pays a fee (in most cases). The same applies to “Payrolling”, “Recruitment” , “selection/recruitment ” or “RPO”. These all are services of which the uplift is predetermined.
Model 3 : No -pay
New business models are increasingly focusing on cost, where services initially are free of charge and they will not result in funding if certain targets and/or performance is achieved. A no-pay approach. Here the influence of the job-agent/recruiter/broker is often minimized and they have less control over the choices of hiring. Yet we also see the arisen of a mix because broadcasters/recruiters/brokers still stand at the wheel of hiring and they even expand becauase of their control. Can we talk about neutrality here ? Is this the neutral vendor one wants ?.
Model 4: WE pay
Modern models focus on a “WE pay” approach, where the service-provider pays the customer an amount as a “deposit” on guaranteed success. This provider chooses a role in supporting the procurement/management rather than solely a role in the execution of services.
This is not possible to everyone, because the provider must be able to offer much more high-level business skills and solutions. The customer will not mind, because:
– It provides an immediate net profit
– The costs of the service-provider come out of its guaranteed savings
– The service provider who is able to do this has a financially strong position and that improves the continuity.