How To Start a Recruitment Agency: Starting a New Business

Learn How To Start Job Recruitment Agencies for Employment Placement

Photo of recruitment agency

Learning how to start a recruitment agency, also referred to as an employment agency or job agency, requires the desire to be the one who helps people looking for jobs and assists employers in their staffing requirements. A new graduate or any individual seeking a new position can post his resume with a recruitment agency. A recruitment consultant will then match the candidate's qualifications to job postings from various employers. That way, the agency profits both from the applicant and the employer. If you intend to start your own recruitment agency, first determine in which sector you would like to specialize. Would you focus on sales recruitment, construction recruitment, medical recruitment, IT recruitment or general recruitment?

  1. Create a business plan for your recruitment agency. A business plan is an essential tool to help you organize and operate your recruitment agency.  It basically contains your targets and objectives, mission, market analysis, sales and marketing strategies, pricing, promotion and distribution strategies including where you are setting up your business. It will help you determine whether or not the venture is financially viable in the first place. If it is, you can constructively pursue your enterprise and run it efficiently with carefully structured strategies reflected in your business plan, which you will need to monitor regularly in order to optimize your progress. If you need help on getting started with your planning, The SCORE Model for Business Success is a resource business partner with the US Small Business Administration (SBA), which provides business templates and free business counseling for newbies.
  2. Starting a new business always means needing financing unless you are independently wealthy or have a hefty savings. Good for you if you can provide sufficient funding straight from your personal account. If, however, you do not have the adequate financial means to start up your employment agency, and family and friends could not lend you financial support either, you need to consider bank funding, investor funding, and even charitable funding. Financial institutions and experienced investors can also give you pieces of commercial advice and help you enlarge your network. Whichever is fitting in your condition, ensure that you have studied each option and that you understand the terms of repayment before you make a deal.
  3. Research your competition. When starting a new business, be sure you do not price yourself out of the market, so check current rates or service charges of existing employment or job placement agencies. Know what kind of services they provide, and think of how you can make your agency different and more favorable. The strategies you come up with to attract clients to your business are of course reflected in your business plan.
  4. Know all legal issues and documentation pertaining to starting and running an employment agency or job recruitment agencies. Never start your business without necessary licenses and permits. Consider hiring a business attorney to help you comply with all federal or state requirements. Your lawyer will also help you identify your obligations as owner of a recruitment agency.  It is likewise highly important to understand your workers' or recruits' employment rights, which include wages, deductions from pay, and working hours among others, thus it is best to have a lawyer's service attend to these matters. 

You have to be clear in your motives, goals and implementation when you start your own recruitment agency. Job placement agencies can be rewarding as well as frustrating. You have great competition out there with other job recruitment agencies, so you need to find out what will make you stand out among the crowd.  To keep your company competitive, it's a good idea to periodically take online classes in the latest business innovations.


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