Business Models/Pricing Models - Suggestion - CiteHR
Management Consulting, Management Development,
Hr Head With Pmi
Management Consultant/business Advisor

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Hi Seniors ,
Requested to suggest on below topics -
1)Describe any Innovative Ideas or Business Models that will lead to sustainable Win-Win relationship with client
2)Suggest a Volume Based Pricing Model along with Service Level Agreements (Quality, Delivery, Response Times) that you would be willing to discuss and formalize with Client
3)What Speciality / Process / Skills do you offer to client that differentiates you from others in your domain/industry

Hello Nupur:

You're asking several different questions with this one posting.

First, sustainable business models. There are many sustainable business models that can be developed in HR. Does the client have a current HR Department, or are you becoming the key HR person making decisions and following up on requirements? I'd say that this first question depends entirely upon the size and complexity of the needs of the client you're addressing. If this is a SME, less than $100MU$D per year in volume, you're probably looking at less than 1000 employees, so any services you offered might be more focused on individual attributes of the specific employee rather than overall HR needs. I'd address specific management needs through a study based on--most likely--a 360 degree evaluative process.

If you're working with a larger employer, you're going to be looking at the various general situations that exist with HR and addressing each of them in order of importance. The order of importance will be fixed by the employer, or by the legalities of the situation, or by your own knowledge and experience in the importance of the challenges faced. If the company has an evaluative process built into its assessment phase for employees, a full study of both the evaluative process as well as the key employee base is warranted. The next review and changes I'd probably address are the key elements of motivation, which drive the revenues and profitability. What is the overall general tone of the work environment, and measure this objectively for a full management report?

Next, I'd focus a study on DCQV, or Developing Competency and Quantifying Value.

DCQV is a springboard against which you can measure the workplace output and its value from the Chairman of the Board of Directors to the newest hourly paid worker. Establishing the guidelines for DCQV can take time, because measurement and comparison to expectations is sometimes tedious, but once objective goals (no more than 5) have been identified for each individual, you have a baseline DCQV Evaluation which measures every employee across the enterprise. I generally price DCQV Studies in the $50 per employee category, which means that 5000 employees evaluated in this manner would run a company $250K or so, and would take approximately 7 weeks.

It's very difficult to offer group pricing, SLA's, or defined costs programs without knowing what the specific needs of the client might be, and I'd be at a loss to give you per group pricing without knowing or understanding the scope of your question more completely.

Specialty/Process/Skills that differentiate the purveyor? Immediate aspects of this that come to mind are these--if the purveyor has developed specific measurement tools, like DCQV, above, there can be no real comparison with other purveyors--there is no measurement against something which doesn't exist anywhere else.

One aspect that I always try to cover with clients---many ideas, concepts, thoughts are not entirely new...but they may be new to that industry, or the application of the ideas, concepts and thoughts may be new to that industry. This generally makes you a unique purveyor in that you are looking at application of procedures in a different way or different manner.

I hope that's helpful.


Thanx AG,
I am a freelancer consultant providing resourcing services in multiple sectors .the above mentions were asked by a probable client to be filled in , followed by an interview ..
I got stuck in filling the same in excel sheet which they asked to do ...
The major challenge is the reply of question "wht xtra you are offering from different vendors in the industry"
Good Day !!!

precisely what i thought that you had hiring in mind.

best answer is summed up in 4Ps of marketing.

when i was working with bpos: price per agent was initially 1 months salary. freelance consultants even got into the business of training people for a short while and then getting them placed. call center training institutes came up to plug the gap. companies released ads in mass media..

later with increasing volumes, price per agent hit rock bottom. small towns too figured in hiring campaigns.

small bpos came up to handle processes which big BPOs dint find lucrative

while working in EMEA/ APAC region, the revenues are esp high... 2 months salary plus one makes money in visa formalities can generate lacs. here also some firms have moved up the ladder to become contractors n supply labour at 1/2 to 2/3 rd of the wage cost of a normal company and immediate joining.

at one of the firms, we used dummy interviews for competitive intelligence.. this can be priced separately.

poaching involves extra cost and can be priced appropiately.

next comes "testing". some firms do not have the capability of assessing senior guys be it finance/ hr n so on.. the promoters in such places rely on contacts. This is one good area of revenue generation.

then there are times when a customer wants to save money... they decision is hiring inhouse employee/s vs consultancy.. here we can offer the services of a RPO... they pay a small markup over the salary/ infrastructure costs..

here the company saves real money cos infrastructure costs at consultancy end will be shared amongst several agents whereas the company would need dedicated resources...

in short, keep ur own costing at the back of the mind and make different offerings for different clients...

Hi Nupur,
Interesting approach to look for answers to heavy strategy questions :-)
You said you were to provide resourcing services in Strategy. Forgive my question, but does that means you are the strategy resource yourself or you are looking for someone who is a strategy resource?
Do let me know as your mandate is not very clear. As management consultants, we work in this area. So, we can provide you with appropriate inputs if you be a little more specific and clear.

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