HOW ABOUT A 4 DAY WEEK? NO PROBLEM
Much as been written recently about companies, particularly in the recruitment sector, providing the opportunity to work in more flexible workplace arrangements, whether it be shorter working weeks, working from home, hybrid roles or on higher base salaries and more!
Why is this?
Companies have to offer these “apparent” benefits in order to keep their staff engaged and ensure they don’t resign or begin to underperform through job dissatisfaction. This approach is not new and most progressive organizations have been offering “softer” working conditions for some time, however if you think they are prepared to accept declining commercial outcomes you are mistaken.
The recruitment industry survives and thrives on increased productivity, so if employees are going to spend less time on the job, then they can expect more competition from within the organization, as more heads are employed to cover the revenue shortfall created by these new work arrangements.
Let’s just do the math at 4 days a week on the job, then there will be a need to increase the workforce by 20% to cover the shortfall. The company pays the same to recruiters, around 25% of billings and life goes on, easy. Your budget drops by 20%, so does your personal remuneration and the new consultant employed for each 4 consultants takes up the gap, productivity remains constant. The extra consultant provides an additional buffer should someone leave, so the commercial risk is lessened, plus the management is being complimented for being so employee aware and introducing innovative working environments. Revenue, margin, and profit are maintained, headcount increases but costs remain the same.
This is not as extraordinary an initiative as it is made out to be.
Soon they will be providing a day off but expecting the same billing outcome from recruiters, watch the space!
What say as an alternative that you had your own business to run, with no entrance costs, complimented by support and guidance from some of our industries most proven performers. Add to this a trusted, recognized brand, technology, back-office support, training and development and mentorship in growing your business, plus more
In terms of flexibility, it is completely your choice.
Based on the way in which revenue is distributed in theory you only need to work a fraction of the time previously needed to achieve the same result.
Simple, you receive 80% of what you bill.
With only a small percentage of income needed to run your business, your expense level is your choice, over time you will be taking a salary, share of profit and eventually most likely equity out of your business model.
If you are billing at the same level as you currently are, you will likely directly share in 60-65% of your gross billings (10-15% running costs). Put simply, if you bill $350k you will receive conservatively $220k, at $500k your net share becomes circa $310k.
You can do a similar calculation if it’s time you are looking for, 3 days a week on say $300k billings equals $190k net.
We can show you how to do this.
Be assured a number of our Licensees are already enjoying the flexibility around either less time at work or greater reward for the same time as they build their business.
The time is right to finally do your own thing. To know more , please call Peter Gleeson 0419367569, Ian Stacy 0417478229 or Peter Tanner 0419826637 or visit tannermenzies.net.au