Best Tips to start Recruitment Agency

Recruitment agencies are a bridge that connects employers with the potential candidates for the available vacancies. Recruitment agencies help companies find the right hires for their vacant job roles. Simultaneously, they offer better career choices for the candidates in the process.

The coming of the pandemic has created an unprecedented future both for the companies and the candidates. The relevance of recruitment agencies has shot up as both the people and the companies are looking forward to filling positions to continue operations and survive during the health crisis.

If you are keen on helping companies achieve their goals and want to assist the candidates in landing them in their dream jobs, then having your own recruitment business will help you achieve your goal. The whole process of setting up your recruitment agency can be both exciting and daunting at the same time. You will be faced with many perplexing thoughts on how to set up your leading recruitment company.  Here are some best tips that will be of help for starting your recruitment agency.

Check if Recruiting fits your personality

You must have had some prior experience in recruiting, or this might be your first shot. If you have some knowledge in recruiting business, you will be able to figure things out to some extent. However, if you don't have any prior experience, you should understand that recruiting is not everybody's business. The whole industry of recruitment is filled with ups and downs, hits and misses. In short, entering into the recruitment business is nothing short of getting into a roller coaster ride. If you prefer stability in life and like a steady paycheck every month, then starting a recruitment business is not for you.

Understand your recruiting experience

You can consider skipping this step if you possess no experience in the field. However, if you do have some experience, it is time for you to reflect on it. Being an owner of a recruitment agency comes with many responsibilities. These responsibilities will be very much different from that of a recruiter working for the firm. Being an owner, you will face the double duties of being a recruiter and running the business.

Sharpen your recruiting skills

Once you are done with your self-assessment, it is time to sharpen your skills. If you have worked as a recruiter with an agency, you are very much aware of the recruiting world- you will know how to train your employees and many other things. However, if you have no experience working in a recruitment agency, you should probably start by working in one to gain experience before you start your agency. If you wish to skip this step, you always have another option to equip yourself with the required skill. The internet is filled with numerous training materials and recruiter training videos to assist people who lack experience in this field.

Decide Your Niche

There are various types of recruiting agencies in the market. You need to determine the kind of recruitment agency you want to establish. Businesses that work within a niche are more likely to succeed. You need to properly analyze your network and the knowledge you possess to help you decide your niche. Check the type of candidates you have more connections with. Having a solid network is a prerequisite to establishing a successful recruitment business. Here's a list of four different types of recruitment agencies.

Traditional Recruitment Agency

Being the most common recruitment agency, traditional recruitment agencies' sole aim is to fill certain positions as per the clients' requirements. The agency specifically works towards serving long-term, high-entry level roles. These agencies make money by charging a flat fee or a percentage of the salary from the candidates once they are successfully onboarded.

Staffing Agency

Staffing agencies, also known as manpower agencies, share similarities with traditional recruitment agencies on various levels. The only thing that differentiates the two is the positions filled and the recruitment process. Additionally, they act as HR to their clients- interviewing, screening, and training candidates for the given job roles. They work for providing temporary, contract-based-direct hiring. This type of agency generally makes money by charging a mark-up on the posted employee's wages.

Headhunting Agency

They make money by working on a retainer basis or by charging a percentage on the candidate's fee, or a mix of both. If you plan to start your headhunting agency, you will require a strong team of experienced recruits.

Niche Recruiting Agency

The sole aim of a niche 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. However, if you find the right momentum in your field, you will become unstoppable and thriving in the area you chose.

Know your competition

Once you have decided on the niche of your recruitment agency, you need to take time to understand your market and get hold of your competitors. For this, use SWOT analysis and 4Ps to know where you are standing on par with your competitor and what you need to do to improve the game and carve out a space for yourself in that particular niche.

Calculate your finances

Establishing a recruitment agency doesn't require much investment as compared to other businesses. However, you should consider spending on- office equipment, the latest technological tools, staff, and other office requirements just like any other business. Start by making a spreadsheet of your budget. Seek financial advice if necessary. If you are running short on your budget, don't hesitate to get into partnership with others.

Decide on your area of operations

You must set up a physical location for your agency. Decide on- the town/city you want to work at, area you need to set up your office, etc. It will be better for you to choose the most economical way out.

Once you have decided on the location of your office, it is time for you to determine where your business operates. Take a look at your competitors and know their area of operations. Your agency can be physically located in a particular state, but you can offer your services throughout the country. Once you establish yourself successfully, you can expand to provide your services globally.

Know the laws of the place

Every place has its own rules and laws in place. In addition to this, establishing any business requires you to follow specific 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.

Research and invest in the latest tools

The market is filled with a variety of tools to speed up the whole process of recruitment. Having the latest technology in place will make you stand out amongst your competitors. Here's a small list of tools you should consider investing in recruitment tracking software, recruitment website design, recruiting network, etc. Be sure to invest in the right software.

The tips mentioned above will provide you with a framework on how to start a recruitment agency. Things won't work out overnight. You need to remain persistent and believe in hard work to establish a leading recruitment agency.