Herbert Smith Freehills (HSF) is leading law firm that produces large amount of profits each year. The firm has 2800 lawyers, as counted by the end of 2012 (Herbert Smith Freehills, 2013). The Melbourne office has around 60 partners and 300 lawyers (Herbert Smith Freehills, 2013). The total sale of HSF is up to a thousands millions dollars per years. Most of the profit arises from legal service in financial, government and sector, and real estate. For example: The advising on the recommended 963 millions takeover offer by Royal bank of Canada,acting in respect of unauthorised trading by Kweku Adoboli which resulted in a loss of US $2.3billion (Herbert Smith Freehills,2013). According to Kevin Bells, director of HSF, the international firm has a long way to go in the future. This pilot program is a part of training the next generation for company. Some of the students who can show the excellent skill and capability in the whole process of the course will be accepted to work for the company after they graduate. The personal contribution to the learning of these students helps HSF guarantee top quality lawyers, and therefore sustained profit in the future. Based on the Fair Work Australia, we determined the suitable salary for prospective students in the pilot program. The figures ranged from $18-$28(Fair work announce minimum the wage rise, 2012). We want to motivate more students to join this pilot program; hence we have included salary as $26. Students will work for the company 10 hours per week which is divided into 2 shifts. The timetable will be arranged based on the avaiblity of each student. Our company will try to find the most suitable timetable for each student . Those who may not be able to comply with the timetable will be unable to remain in the program. In the pilot program the salary of the student will be $26/hours so they can receive $260/week. HSF will be spending $5200/week on the students’ salary alone. That is $240 700 in a year (Because, this pilot program will continue with others 20 student when the last course finish with 20 students come out). This requires the company to limit the intake of students to 20, in the pilot program. Our company will advertise about the program through posters and catologues. Through our established partnerships with the targeted young law schools of Victoria (Victoria, Deakin, ACU), we will gain funds to advertise. The funding from the universities means our comany will not spend too much money on advertising and marketing the program. Finally, in the end of each month, one financial report should be done to control the income from the partnerships and the salaries. Another issue with budgeting could be external companies or personal mis-quoting for the project, which could throw-out the budget and potentially the timing of completion (SmartMoney, 2009). This pilot program will be test in the HSF’s Melbourne office for 1 years and upon its success , we propose the application of this program for all the other major HSF offices around the world.
Projected Income Statement as 31 st December , 2014
(Adding a section in catalogues and posters around the company and the university)
Additional Staff Salary $270,400
Miscellaneous Hardware $6,050 ( BYO house )
Total projected cost for year ending as 31st December,2014 $281, 450
In total, this bring the estimated cost of completion the course for over 1 year is $281, 450. These activity will widen the positive image to the society and also training the future