Starting a Recruitment Agency

by Chris Hatton

So, you are thinking about starting a recruitment agency? I’m sure you know this is already but you are entering an already very crowded market and it might find it bit of a challenge to make your idea a success. That’s not to say that it’s impossible of course and the rewards are endless for the few who really do well. But how do you ensure you are one of the few that prosper? It’s about knowing where and how to focus your efforts and working hard to achieve where you want to be – no one said it was going to be easy after all.

It’s rare that people start with absolutely nothing in business. Perhaps you already have one or two clients and candidates, or perhaps you are leaving your job and your employer’s clients have shown an interest in working with you. Whatever your starting point you are going to need to think bigger. You are going to need to grow and you are going to be seriously organized and shout loud and clear about why your business is better than your competitors.

Differentiate and Shine

Starting a recruitment company – apart from the specific laws you need to know about which we will cover later – it is no different than starting any other service business. You need clients to spend money with you and they only that is going to happen is if:

  • You understand the needs of your clients and candidates.
  • You have something unique or better than your competitors to offer.
  • You can present what you have in the right way and to the right people.
  • You provide a first-class service and provide reasons for your clients to stay once you have them.

I suggest looking at the current market and see what is already working. Structure your business in a similar way to other smaller successful companies. I’m not saying be completely ridged in what paths you are following but it does help to specialize and get known for that specialty. If for instance you specialize in a certain industry then know your industry, clients and prospective clients well. If you specialize fast turnaround labor supply, then know your candidates even more. Choose a pricing model wisely. Remember that cheaper is not better. Just make sure you cover your outlay then price yourself somewhere in the middle of your competitors even if it does feel a little unjust. Whoever choses the cheapest or most expensive anyway– especially when you just need a good service?

The Laws of Recruitment

Try to kept abreast of the laws that you must adhere to. I’m definitely not saying you need to be a contract or employment law professional but be aware of the following laws and use your common sense with the addition of some recruitment tools such as Koodle® you should be ok.

Recruitment Standard Bodies

Perhaps one of the best ways for a new recruitment agency or even just a small recruitment agency to demonstrate their commitment to legal compliance and best practice driven culture is to join one of the many recruitment standard bodies that exist. There are quite a few these days but the first two here are the biggest and most well-known:

Becoming a member of one of these organization should be more than just displaying their logo on your website and stationery. They provide a structure and best practices that you should use to form the core of your business.

Tools of the Trade

Second only to knowledge are the software tools required to run a recruitment agency. Tools that help you keep clients and candidates happy. Tools that allow you to offer a better quality of service to your clients, and tools that allow you and your staff to focus on the more important aspects of running a recruitment agency other than endless administration work. If you are not at the stage where administration of your business is a problem, then it is the perfect time to mitigate the problem before it happens. That’s where Koodle Software is here to help. Have a look at our packages for new recruitment agencies. If you have any questions, then remember that we want you to succeed and we want to help in anyway we can to make that happen.

The Modern Recruiter
It's not enough for today's successful recruiters to be masters of communication and sales, they have to be masters of social marketing and have the knowledge to operate successfully in today's internet driven industry. Koodle are here to help in that respect. We provide you with the knowledge and tools to help you drive your business.