This case will be affected in March 2008 Andr s Gonz lez, the entrepreneurial spirit behind empleados Ya (EY) on the financial situation of his new venture. Gonz lez and Salvador S ez, both faculty members at one of the most important companies in Chile schools, EY had formed with starting capital of only $ 10,000. In a nation was historically high unemployment were the partners to achieve a dual purpose, namely a profit (ie economic value) when making a contribut … Read more »

This case will be affected in March 2008 Andr s Gonz lez, the entrepreneurial spirit behind empleados Ya (EY) on the financial situation of his new venture. Gonz lez and Salvador S ez, both faculty members at one of the most important companies in Chile schools, EY had formed with starting capital of only $ 10,000. In a nation was historically high unemployment were the partners on a dual purpose, namely to make a profit (ie economic value) to achieve and at the same time contributing to a pervasive social problem (ie, create social value) solve. Chile had done many years of headhunting industry to highly skilled professionals, but labor brokerage for low-skilled employment sector had the government through a network of local employment offices (Local employment agencies henceforth Omil) managed. These offices, however, were ineffective in mediating employment and do not use companies to fill vacancies. Gonz lez feel that the lack of information available on the labor market was one of the causes of unemployment in low-skilled workers: job seekers do not know where they find work, and large companies have to find not trust the Omil offices, good workers. This left open a niche correspond to a trusted mediator in companies with potential candidates from the low-skilled sector. The case describes the challenges EY to stay afloat after three years of operation. Its leaders had formed a partnership with an international labor market brokerage organization that had not produced the desired results. While S ez is willing to limit its losses and close up shop, Gonzalez is not. Given the fact that EY unsatisfactory financial results Gonz lez has to make some important decisions to make the business profitable.
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from
Mladen Koljatic,
Monica Silva
Jorge Herrera
Source: Social Enterprise Knowledge Network
16 pages.
Release Date: 1 September 2009. Prod #: SKE129-PDF-ENG
Empleados Ya: A Head Hunter for the poor HBR case solution

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