Recruitment agencies act as a bridge connecting the employers with the potential employees. They don’t just provide the right hires for their clients but also provide the candidates with better career choices in this process. It is this win and win spirit that motivates and pushes the recruiters to give their best everyday.
With the pandemic situation everywhere, recruitment agencies are becoming more and more relevant as both the people and the companies are looking forward to fill positions to continue operations and survive during the health crisis.
If you are someone who wants to help businesses achieve their goals and assist candidates to land in their dream jobs, then establishing your own recruitment business will help you achieve this. The whole process of setting up your own recruitment agency can be both exciting and daunting at the same time.
You might be faced with many perplexing thoughts on how to set up your top recruitment agency. Here’s an outline of everything you will need to set up your own recruitment agency.
Decide Your Niche
The primary step before establishing your business is to determine the type of recruitment agency you want to establish. You can be an agency catering to the needs of one specific industry or multiple industries. To help you decide your niche, do a proper analysis of the network and knowledge you possess. Check which kind of candidates you have more connections with.
Having a strong network is very much necessary to establish a successful recruitment business. So, asking you these questions will help you position your business in a better way. Here’s a list of four different kinds of recruitment agencies.
Traditional Recruitment Agency
This is the most common kind of recruitment agency. Traditional recruitment agencies’ sole aim is to fill certain positions as per the client requirements. They work towards filling long-term, high-entry level roles. These types of agencies make money by charging a flat fee or a percentage of the salary from the candidate once he/she is successfully on boarded.
However, you should ensure that you screen only the best of candidates who can commit to long- term work. Failure to do so will put you in a position where you have to keep looking for a replacement every time someone appointed by your agency drops out.
Staffing agencies or manpower agencies are similar to traditional recruitment agencies on various levels. The only thing that differs is the positions filled and the recruitment process. Staffing agencies appoint candidates for contractual positions, filling short- term vacancies. In addition to this, they act as HR to their clients, interviewing, screening and training candidates for the given job roles.
Staffing agencies work for providing temporary, contract based and direct hiring. These kinds of agencies generally make money by charging a mark-up on the posted employee’s wages.
Also known as executive search firms, headhunting agencies work in sourcing high-level executives for their clients. They make money by working on retainer basis or by charging a percentage on the candidate’s fee, or a mix of both. Headhunting is time-consuming, yet an effective type of recruitment. You will need a strong team of experienced recruits if you are planning to start your own headhunting agency.
Niche Recruiting Agency
The sole aim of a niche recruitment agency or specialist recruitment agency is to understand and fill the talent gaps in the market by placing the potential candidates for specific or specialty roles. Niche recruitment agencies work with specific industries in the market, like IT, hospitality etc. The knowledge and experience in that particular industry will help the recruiters find highly qualified candidates for the given job role.
You might have a slow start once you establish your niche recruitment agency. However, if you find the right momentum in your field, you will become unstoppable and successful in the field you chose.
Know Your Competitors
Once you have decided on the type of recruitment agency you want to establish, you need to understand your market and get hold of your competitors. Use SWOT analysis and 4Ps to understand where you are standing on par with your competitor and what you need to do to improve the game.
Determine Your Finances
Establishing a recruitment agency doesn’t require much investment as compared to other businesses. However, you should consider expenses on office equipment, latest technological tools, staff etc. Start making a spreadsheet of your budget and get financial advice if necessary. If you are lacking the budget you need, seek help or consider getting into partnership with others.
Know The Laws
Every place has its own rules and laws in place. In addition to this, establishing any business requires you to follow certain rules and regulations to prevent any legal problems in the future. While most companies seek the help of lawyers to take care of these legalities, it is advisable for you as a founder to research all relevant laws.
Working on Marketing Structure
It is important that your logo and image meet your agency’s style. Once you have finalized the look, you should draft a marketing strategy to match each process with the tools and skills you can use. Pick the right channels to promote your business and reach out to clients and candidates.
Invest in The Latest Tools
You will need the latest tech tools to speed up the whole process of recruitment. Having the latest technology in place will make you stand out amongst your competitors. The most reliable digital software used by recruitment agencies is tracking software. So, be sure to invest in the right software. You need to choose a software that scores out and tracks the status of the best candidates.
One can’t establish a recruitment agency overnight. You need to work smart and plan things wisely to make your agency a top recruitment agency.