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

The case will open in March 2008 with the LEZ Andr Gonzalez, the entrepreneurial mind behind Empleados J. (EY), concerned about the financial situation of their new venture. LEZ and Salvador Gonzalez S-ez, as faculty in one of the most respected business schools in Chile, created EY with starting capital of just $ 10,000. The country had been historically high unemployment partners to achieve a dual purpose, namely to make a profit (that is to create economic value), and to contribute to the solution of common social problems (ie, create social value). Chile has been a long-standing industry recruitment is aimed at highly skilled professionals, but for low-skilled labor brokerage sector was controlled by the state through a network of municipal employment services (municipal labor mediation offices, now OMIL). These offices, however, were not effective in brokering employment, and companies do not use them to fill vacancies. LEZ Gonzalez believes that the lack of information on the labor market was one of the causes of unemployment in low-skilled sectors: Applicants do not know where to find work, and the big companies do not trust OMIL offices to find good employees. This left a gap open for trusted intermediary services to meet the company with potential candidates from low-skill sectors. The case presents challenges for EY to stay afloat after three years of operation. Its leaders have formed a partnership with an international organization of labor brokering, which have not led to the desired results. While the S-ez ready to cut their losses and close up shop, Gonzalez is not. However, given the poor financial results EY, Gonzalez LEZ must make some important decisions to make the business profitable. "Hide
by Mladen Koljatic, Monica Silva, Jorge Herrera Source: Social Enterprise Knowledge Network 16 pages. Publication Date: September 1, 2009. Prod. #: SKE129-PDF-ENG

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