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One temp worker for one week, and what a 3 percent rate cut does

You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.

Case timer

00:00

Target length:

1. Read the prompt aloud

Read it slowly, then pause. Let the candidate ask questions before they structure.

BrightShift Staffing (a fictional agency in Texas) places a warehouse worker with a client for a 40-hour week. It bills USD 30 an hour and pays the worker USD 20.50 an hour. Employer taxes, insurance and benefits add 18 percent to pay. Recruiters, the branch, sales and systems cost about 16 percent of revenue. What are the agency's gross profit, gross margin and operating profit for the week? The client then asks for a 3 percent lower bill rate. What is left?

2. Answers to clarifying questions

This case has no scripted clarifying answers. Answer from the prompt, and say "assume what you think is reasonable" if the prompt does not cover it.

3. A model structure

Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.

Operating profit = bill rate x hours, minus pay, minus employer costs, minus branch and staff costs
- Revenue = bill rate x hours
- Gross profit = revenue minus pay minus employer costs
- Operating profit = gross profit minus branch, recruiter, sales and system costs
- Test the change: a lower bill rate with the same pay and costs

4. The working, step by step

Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.

Step 1: Revenue for the week
What a strong candidate does: 40 hours at USD 30.
Revenue (USD): 30 × 40 = 1,200
Step 2: Worker's pay
What a strong candidate does: 40 hours at USD 20.50.
Pay (USD): 20.5 × 40 = 820
Step 3: Employer costs
What a strong candidate does: 18 percent on top of pay.
Employer costs (USD): 820 × 0.18 = 148
Step 4: Gross profit
What a strong candidate does: Revenue minus pay and employer costs.
Gross profit (USD): 1,200 - 820 - 147.6 = 232
Step 5: Gross margin
What a strong candidate does: Gross profit over revenue.
Gross margin (fraction): 232.4 ÷ 1,200 = 0.1937
Step 6: Operating profit
What a strong candidate does: Minus 16 percent of revenue for recruiters, the branch, sales and systems.
Operating profit (USD): 232.4 - 1,200 × 0.16 = 40.4
Step 7: Operating profit after a 3 percent rate cut
What a strong candidate does: Revenue falls to USD 1,164; pay, employer costs and the USD 192 of branch costs do not change.
Operating profit after the cut (USD): 30 × 0.97 × 40 - 820 - 147.6 - 192 = 4.4

The recommendation to listen for

At the end, say: "The CEO walks in. What is your recommendation?"

BrightShift should refuse a straight 3 percent cut, because it would remove about 90 percent of the profit on this worker, from USD 40.40 to USD 4.40 a week. First, the whole USD 36 cut comes off a gross profit of only USD 232.40, since pay and employer costs do not change. Second, the agency's 19 percent gross margin and 3 percent operating margin are close to what the large agencies report, so there is no hidden cushion. The risk is losing the client to a cheaper agency. As a next step, offer a lower rate only for more volume or a longer contract, which spreads branch costs over more hours.

Risks a strong answer names: Minimum wage or payroll tax rises squeeze the same spread from the other side; Clients can move the work to their own staff or to a shift app.

Score the candidate

Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.

This case has no exhibit. Score Exhibit reading on how the candidate used the data you gave them: did they pick out the number that matters and say what it means?

Structuring

1: No clear structure, or a memorized framework that does not fit the problem.
3: A sensible structure, but with some overlap, a gap, or no clear priority.
5: A structure built for this problem, with no overlap and no gaps, a stated hypothesis, and a clear first step.

Math

1: Frequent errors, no units, or needed heavy help to finish.
3: Right answers but slow or messy working, or one error caught late.
5: Accurate and clearly narrated, with units, a sense check, and what the number means.

Exhibit reading

1: Read the chart aloud without finding the number that matters.
3: Found the key number but gave only part of the so-what.
5: Pulled the right number quickly and said what it means for the case.

Synthesis

1: Summarized what was done, with no clear answer.
3: Gave an answer, but with weak reasons or no next step.
5: Answer first, then two or three reasons with numbers, the main risk, and next steps.

Communication

1: Hard to follow: long silences, no signposting.
3: Clear most of the time, with some rambling.
5: Calm and concise, signposted each step, and checked in with the interviewer.

Total

0 out of 25

Score all five criteria to see the band and the feedback template.

Next: another case in Partner mode

Swap roles and run the next case, so you both practise answering and scoring.

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