Empleados Ya: A Head Hunter for the Poor Harvard Case Solution & Analysis

The case opens in March 2008 with Andrés González, the entrepreneurial head at the back of Empleados Ya (EY), anxious about the financial condition of his new scheme. González and Salvador Sáez, both faculty member at one of Chile's most illustrious business schools, had shaped EY with startup capital of only US$ 10,000. In a country were unemployment was historically high the partners planned to attain a double function, namely to make a profit (i.e. create economical value) while making a contribution to solve a pervasive societal issue (i.e. create societal value).) Chile had a ancient headhunting industry geared towards extremely qualified professionals, but job brokerage for the low-skilled employment sector had been managed by the authorities through a network of municipal employment offices (Municipal Labour Intermediation Offices, henceforth OMIL).

These offices, however, were ineffective in brokering businesses and employment didn't use them to fill vacancies. González believed that the lack of information available about the job market was among the reasons for unemployment in low-skilled sectors: Job seekers didn't know where to locate work, and big businesses did not trust the OMIL offices to find good workers. This left a niche open for a trustworthy intermediary service to match companies with possible candidates from the low-skills sector. Its leaders had formed a venture with an international labor brokerage organization that had not produced the desired consequences. Gonzalez is not while Sáez is willing to cut his losses and close up shop. However, given EY's unsatisfactory financial results, González has to make some important choices in order to make the business profitable.


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