I am an IT contractor with my own LTD company, however with the current job market in peril, I wanted to see If could put my skills to use and startup a recruitment agency for IT personnel. Do I simply advertise my LTD company to potential employers? How do I get candidates to send me their CV's so I can then put them forward to those clients who wish to do business with me?
(Mr Suran Kularatna, 27 November 2008)
While it is a good idea to be open to new ideas at times of economic difficulty, you may want to reconsider your plans.
The Bad News
Recruitment agencies traditionally have a hard time during economic downturns as potential clients are keen to reduce their overheads. As recruitment fees are typically 10 to 20 per cent of the candidates first year annual salary, cutting recruitment agency budgets is a popular way to cut costs.
It is true to say that recruitment still occurs at such times, but it is unlikely that a new recruitment agency will flourish under such conditions. Even the major players find they need to substantially reduce their fees and many smaller agencies find cash flow problematic. This is even worse if you provide temporary employment solutions as your temps will still need paying even if your clients are slow to pay their invoices.
The Good News
However, there is no need to simply look at the glass half empty. Many companies find that they can take advantage of economic crises by adding value to their offer and responding quickly to changing market demands. When the recent banking redundancies occurred, some quick thinking recruitment consultants set themselves up in coffee shops to make sure they had access to the best financial employees just as they got their P45s.
If you have considerable knowledge of the IT sector and a bulging client list, not to mention plenty of money to help you through early-days cash flow issues, you may be able to make a go of it.
You would need to gain some expert advice as to changing the nature of your LTD company and to register as an employment agency. Your local Business Link can help with this, as can the Recruitment and Employment Confederation (REC). There may even be grants and support available if you look in the right places.
You will also be able to gain information about advertising for both clients and candidates. There are a number of rules and regulations that require you to state clearly that you are an agency (you will recognise the ‘agy’ at the bottom of newspaper adverts). You will also need to have a clear Terms of Business drawn up - there are basic templates available on the Internet.
Recruitment is a rewarding and satisfying career choice, especially if you are the one taking the lions share of the fees, but do be prepared to get on the phone and work hard.
Hi there, I'm a mover guy since 4 years ago and I am thinking to run an recruitment agency business to provide movers specialists guys to contractors who need them part time.
Valy - 5-Sep-14 @ 8:36 AM
Hi there,i have been a driver for 20 years and i always had in the back of my mind,setting up a recruitment platform online for professionals drivers class 1 and class 2.i have the capital saved and think I would start off from home with just the website and phone line.what do you think?how do I go about dis?what do I need to consider?how do I get my first clients?how do I register my recruitment agency?
nico - 4-Jun-14 @ 8:05 PM
Hi Everyone I am thinking of setting up a recruitment agency that will specialise in recruiting social worker, social work assistance, and contact supervisor for Children and families, but I have no idea how to go about this. Can anybody advise me what I need to do and consider at first hand. Thanks Mac
Mac - 22-Nov-13 @ 5:47 PM
I am thinking of setting up a recruitment agency that will recruit social worker and social worker assistance, and contact supervisor for Children and families, but I have no idea how to go about this. Can anybody advise me what I need to do and consider at first hand.
Mac - 22-Nov-13 @ 5:43 PM
My name is Tanika Rogers and I am currently pursuing my Degree in Human Resource Management, I would like to get some advice on how I can get into this field to gain some experience I posses the knowledge about Human Resources but it is difficult to get into the field because many employers ask for at least 3 to 5 years experience. Can you give me some advise on what I can do because my goal on day is to become a Human Resource Manager.
niki - 21-Jun-13 @ 12:49 AM
Hi to all,
Thanks for the posts that are posted on this site as they helped me a lot.
I want to start my own Recruitment agency.I dont know how to approach a company and how to deal with them. What rthe commission slabs and what legal formalities have to be done once we tie up with the company for their recruitment solutions as i have started getting candidates for start. I know their are many ???? at first shot .
Thanks in Advance. Eagerly Awaiting for reply
Viva - 27-Nov-11 @ 12:59 PM
Hi there,I have been working in sales for over 6 years and have always had in the back of my mind, setting up a recruitment platform online for professionals with language skills. I have the capital saved and think I would start off from home with just the website and a phone line. What do you think? How do I go about this? What do I need to consider? How do I get my first few clients when at first there are no job adds on there at all?