This week we had a meeting with one of our agencies who wanted our advice on whether they should take on a new recruitment consultant who was a “Big-Hitter” at another agency.
The new recruitment consultant was looking for a large starting salary and shares within the business. We looked at the current figures and agreed that the business could support the salary based on the figures being proposed by the new consultant.
However regarding giving shares of the business, we discussed if this was entirely necessary from day one and the cost implications of giving shares. We discussed that as the company had a value then the consultant would effectively have to buy the shares from the business (either in cash or as a loan note paid off from future dividends) and also to have a shareholders agreement showing the status of the shares.
On reflection the agency decided to give the new consultants some targets to hit before giving any shares and explain how the share transfer would work to get buy in from the consultant.
There’s a reason why so many people ask TBOS for help and advice on those big business decisions, that’s because we have years of experience assisting recruitment companies manage their finances and business. Contact TBOS today on 0845 8811 112 or visit our contact us page and complete our web enquiry form and we’ll get back to you to discuss your requirements.