How To Start A Recruitment Agency

How To Start A Recruitment Agency

Wondering how to start a recruitment agency? What do you need? And where do you start?

We have 6 tips to get you on the right path to building your own recruitment business.

  • Know your skill set, knowledge and recruitment experience
  • Plan which services your recruitment business will offer
  • Know and follow the legalities, rules and regulations that you need to.
  • Funding - how will you fund your recruitment business?
  • Set up your company and create your identity
  • Run a smooth back office
  • Experience

1) Experience

Starting your own recruiting agency will require you to tap into your own experience. Know your skill set, what are your strengths and weaknesses in recruiting and where does your knowledge and experience lie? Your skill set may need support in certain areas but identifying this means you can build the perfect core team to balance your own strength. Knowing, for example which areas you have great experience in and which you have little experience in will be helpful when deciding what your startup will offer.

2) Plan Your Services

Plan which services you will be offering as a staffing agency based on your analysis of number 1. If you have experience in a certain sector or niche then this is obviously a good place to start. This could be that you concentrate on being a temp agency or industry specific employment agency perhaps. Alternatively, if you have identified a gap in the market where there is a specific demand for specific recruitment services, this may be another good place to start. If this is, however, an area you do not have much or any experience in then you may want to partner with a recruitment professional who does have experience here.

3) Know the Rules

Legalities, it's not an exciting one, but it's so important for recruitment businesses, and especially startups, to get right. As the owner of a staffing company you have many rules and regulations that you need to be aware of and keep on top of.

Knowing all you can about agency worker regulations (AWR), and equality in the workplace and insurance means you are not only well informed yourself, but can also offer helpful advice to professionals you recruit and keep a well-run startup! Take a look at the Gov.uk guidelines for a starting point.

4) Funding

How will you fund your recruitment business? Do you need to consider a loan or other financing methods? Most startup recruitment businesses will need some kind of financial support; by the nature of the agency you are starting there will be money coming both in and out of the company and this may not always coincide with the business's needs. Your workers may need to be paid before your client pays you. There are bank loans, but there are also companies that specialise in funding for recruitment startups and temp agencies.

5) Setting up

Setting up your company. It can be a little daunting wondering how to create one from scratch. Well, you'll likely be starting your employment agency from home, so don't think you have to rush to source a work space. Start by choosing a name and check that you can register it at companies' house. Create yourself a marketing plan, you need to know via which mediums you will be advertising and from where you will be bringing in business, if you work in recruitment already you may well have your own contacts. You will also need to set yourself up online; if you've decided you're going to be a purely online recruitment agency, this will be a given but even if you're not and, you need to make your services clear to those searching for them online. Creating your company's identity starts here!

6) Back office

Consider your running practices. How will you run your back office, payroll and invoicing, will you plan to do this in house or outsource? In house, it may take you awhile to get a smooth system running, even if you have experience working in recruitment businesses already. Payroll, timesheets, invoicing and more all need to be processed regularly, on time and in an organised fashion. Again you may look at outsourcing this.

So, the answer to 'how can I set up a recruitment agency?' start by working through these 6 steps as and go from there.

You can find much more help on getting your startup staffing agency right in our other blog posts too.

Jack Mellor


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