Starting a recruitment business in 2016 is an ambition many employed recruitment professionals are currently daydreaming at their desks about. But could 2016 be the year to make the break into starting your own agency?
There have been a range of employment studies over the last couple of years that have come to the same conclusion that workers are generally discontent in their current workplace, role or even industry. Now, we know the grass is always greener on the other side, but a number of factors are likely to be affecting this noticeable trend for uninspired employees with itchy feet, or at least the freedom they now feel to express their desire to move on or change course. The whole way people work is changing. People’s expectations, outlook on life, career goals and passion for a work-life balance are causing a shift in the world of employment. Although if you’re in the recruitment industry, you are likely know this already, and furthermore if you’re thinking of starting a recruitment business yourself you’ll probably be familiar with the desire to break out of an unhappy or unsatisfying role.
2016 has been dubbed the year of the start-up on a number of occasions, seemingly down to the fact that the way people now view their career is changing. Particularly the younger generations, want freedom, flexibility and a balance of working hard but also having the time to enjoy the fruits of their labour. According to a survey by Indeed 52% of young people in the UK are seeking a career change in 2016, so if the opportunity for going it alone, and in this case starting a recruitment business of your own, arises it seems the nation now has the confidence and determination to get up and just do it. It’s also worth noting that last year saw the UK’s startup survival rate at its highest for the last three years.
Finding a Niche
One of the reasons new startups are gaining the staying power they need to succeed could be down to the fact that people are keen to support local, independent firms. Competition is still as strong as ever but if you’re starting a recruitment business that is specialist and niche you’re competition is immediately and significantly reduced. As a specialist in one niche area you become an expert who can offer expert advice and create expert placements. As the skills shortage continues, niche agencies are thriving as they help match specific skills to specific roles.
A Strong Market
According to the REC, 83% of employers in the UK plan to up their hiring agenda and take on more staff in 2016. Unemployment rates have been falling significantly over the last 12 months meaning there’s more people in work, willing to work and eager to progress. It’s no longer as frowned upon for workers to move around, change jobs and even completely switch careers, so as candidates gain confidence to search for their ideal job, your pool of talent widens.
A Diverse Pool of Talent
Years of developing and implementing equal opportunities practices means the UK workplace is a diverse and exciting mix of gender, race and age. It’s not unusual to find a multi-generational workforce with up to five generations working side by side. This makes for a melting pot of experience, knowledge and skills, and as a recruiter, this melting pot is at your disposal. In fact, there is even a rise of entrepreneurs over the age of fifty, proving that there’s always still time to go for your goals.
Starting a recruitment business may be your ultimate aspiration because you’re good at what you do. You’re great at bringing in new business, you have amazing connections and you perfectly match candidates to jobs every time. Yet, you’re not a payroll expert, admin isn’t your strong point and you know there’s a whole host of back office systems and processes you’ve never had to deal with before. This is where technology comes in, as an iPad is great while on the move, or cloud storage helps you keep track of your CV files, online payroll and back office platforms can now be easily managed from anywhere in the world. New Millennia offer one of the most sophisticated digital interfaces for the recruitment industry covering everything from timesheets to contracts, to weekly payroll.
So, what’s holding you back?
Startups are thriving, niche is the way forward, the market looks promising, there’s some great talent out there and technology growth is on your side. However we understand it can feel risky to leave the relative safety of an employed job and take the plunge into working for yourself. Funding is the number one reason would-be-entrepreneurs cite for not starting their own venture. There are always startup costs involved; office space, business cards and perhaps even salaries. Becoming your own boss is appealing, but you need to pay your workers weekly, while usually paying your clients monthly, often causing unavoidable cash flow problems. The answer is often borrowing, bank loans or overdrafts - not so appealing. However worry not, this isn’t the only option. As well as back office and payroll management, New Millennia offer 100% genuine funding specifically for those starting a recruitment business. You don’t pay until you’re earning, offering you the peace of mind to know you can get up and running without running up a debt.
2016 offers huge opportunities for new recruitment agencies as many skilled workers see temping and contracts as a flexible option, and the skills shortage means employers are willing to offer more temporary contracts. Having the right finance in place can mean the world, giving you more opportunities and peace of mind. As an official business partner of the REC New Millennia offer funding and full back office support for anyone starting a recruitment business in 2016 and beyond. If you’d like to find out more, contact us for a chat.