Situation: A small staffing company doing direct hire office services has stagnated with minimal profitability and needed a growth plan. The owner was also getting on in years and needed a exit strategy.
SolutionWe relocated the company to mid sized metro location and gets into LI temp. Sales rose to $10 million, with 2 offices and an EBITDA of 3.5% and a P/E ratio of 3.75, but could find no buyers. We had a super sales rep who indicated she would like to run the company so we created an earn-out over the next 3 years using OPTIEXIT© which enabled the owner to sell the business and retain the net accounts receivable.
Situation: Our client was in office services in Silicon Valley with sales rising from $1.5 million to $12 million during our involvement. When the recession hit we no longer were servicing them. Sales crashed to $2.5 million, management was tired, and the top producers left as sales declined and a lot of dead wood remained.
SolutionOur client called us back to turn things around once again. We hired an IT professional to grow contracting, using our OPTICONTRACT© management retention plan. We are on our way to reaching our previous sales high, now with 2/3rds of our business in IT. We reorganized the company and eliminated our poor performers and have introduced our OPTIMAL/MATRIX© MSP/VMS system to significantly increase sales and profits.
Situation: Our client was a $40 million LI staffing company in a stagnant market with several unprofitable offices, marginal staff and a high concentration with three clients at low margins and meager profits.
SolutionWe had determined the IT contracting market was $900 million via OPTIMARKET© and brought on an IT team to penetrate IT. We closed down our marginal offices and increased the level of employees with a richer commission plan tied to margin $ and improved profits and used OPTPRICE© to determine the appropriate bill rate for a win-win proposal to the client.
Situation: Our client was in a narrow core segment of healthcare and their growth was hamstringed due to an insufficient candidate base which limited their ability to go after only high margin business.
SolutionWe expanded into 2 additional allied healthcare areas and doubled our business. Our level of recruiter and sales reps were not up to par as demonstrated with our OPTIPLANS© and profitability algorithms that allowed us to set standards of performance and change our hiring model. We increased our candidate flow in our core business with social media and are preparing to enter new geographic markets.
Situation: A large division of a multi billion staffing company had grown via acquisition and now had multiple comp plans that needed to be made uniform.
SolutionWe created a “win-win” comp plan using OPTICOMP©, including: Sales Staff, Recruiters, Regional and Divisional Managers. A compensation pie was created for the staff based on individual contribution in the placement process. Salary adjustments were made based on their level of responsibility and were phased in over a period of time with a safety net so that they would not make less then they made before and gave them time to adjust.