ASA Central Network

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  • 1.  Sales Rep & Recruiter ROI

    Posted 10-27-2020 15:48
    Hello!  I was wondering if anybody's ROI models for Sales Reps and Recruiters has changed since the pandemic.  Have you adjusted your numbers up/down?   We work off a 5/1 minimum number and see that remaining.   Thanks !

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    Barry Vince
    Founder & Operator
    Two Roads Professional Resources Inc.
    Huntington Beach CA
    (714) 901-3804
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  • 2.  RE: Sales Rep & Recruiter ROI

    Posted 10-28-2020 08:13

    Barry,

    I am actually working on our model now and was leaning toward the 5:1 number calculated at gross margin.  Is that the number you calculate from?  I am interested in seeing how other calculate ROI as well.

     

    Thank you,

     

    Margaret Renaud

    Director of Operations

    Staff America

    SA LOGO JULY 2014 finalgoldseal_national

    "Building client partnerships while putting America back to work"   

     

    888-865-1140 Toll Free

    352-432-0080 Office

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  • 3.  RE: Sales Rep & Recruiter ROI

    Posted 10-29-2020 11:45
    Hi Barry,

    We built a 65 office / 30M- staffing co using "Affiliates" (ie 1099 sales reps that all had staffing sales exp.)  The temps were W-2's, but the Affiliates were 1099s-- paid comm only. We did have a very good back office and marketing support system for the Affiliates.

    This kept our sales costs very low and variable, thus increasing our profits and ability to service more clients nationwide.

    We found unless the staffing niche has high margins, or semi guaranteed business from clients, it is very hard to recruit very profitable sales people when you factor in management costs etc.

    Stay safe

    David

    --
      
      
    David Schek
    President
    Work Comp Staffing Solutions
    American Staffing Association Member
    ASA  Central 2019 Most Valuable Contributor
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    America's Leading Staffing Workers  Compensation Broker With 50 Years Experience. 
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  • 4.  RE: Sales Rep & Recruiter ROI

    Posted 11-03-2020 18:15
    Hi Margaret:

    I am basing my calculation off employee cost + commission  x Net GM -   I know some firms use GM, but I find the Net GM to be true.   Our employees have been trending closer to 3x right now.   Our contractor number has been growing over the past two months, so I may return closer to a 5x expectation.  We includes direct hire fees + contractor GM, so the number fluctuates a lot for us.   Hope this helps

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    Barry Vince
    Founder & Operator
    Two Roads Professional Resources Inc.
    Huntington Beach CA
    (714) 901-3804
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  • 5.  RE: Sales Rep & Recruiter ROI

    Posted 10-28-2020 08:43
    If it were three months ago, I would say that model isn't workable. Given where we are now, however, I tend to agree with Barry. Even though the underlying economic fundamentals right now are different from the normal expansion/contraction cycles, we still find ourselves in the same place we were before the pandemic began - strong demand for workers and a shortage of available workers to fill that demand.

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    Jay Mattern
    CEO
    Villing + Company
    South Bend IN
    (574) 277-0215
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  • 6.  RE: Sales Rep & Recruiter ROI

    Posted 11-03-2020 18:16
    Thanks Jay - fingers crossed for continued increase in business!!

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    Barry Vince
    Founder & Operator
    Two Roads Professional Resources Inc.
    Huntington Beach CA
    (714) 901-3804
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