July 22, 2023
After a brief slump due to the Covid-19 pandemic, like most businesses worldwide, the staffing industry is now reviving and expanding year by year. So, if you were to start a new staffing agency in your area but your plans got hindered by the pandemic, now is the perfect time to go back to your initial plan and proceed with your business plan.
After all, in this digitally-driven age, it's simpler than ever to manage a profitable recruitment business from home or while on the road without having to invest in physical office space and burn your money on rent. For that reason, the time to act on your staffing agency is now.
Nevertheless, whether you've been in recruiting for a while and want to take the next step in your career, or you're a serial entrepreneur looking for a new opportunity, there are some points to note about how to start a staffing agency and more importantly, how to foster development.
In truth, launching your own recruiting agency entails a ton of processes. Or, maybe a ton is a bit of an overstatement. At the very least, there are seven essential stages for launching your own hiring company that you should go through and develop a business that will pass the test of time.
Starting a staffing agency involves a series of essential steps, including self-assessment, skill development, and understanding the legal landscape. It is crucial to delve deep into each stage to establish a firm foundation for your recruitment business. Remember, the recruitment field is unpredictable, and being prepared can help in navigating the challenges successfully.
Perhaps you've done some recruitment in the past. Perhaps you haven't, and you're wondering how to start a staffing agency from the beginning. If you have, you probably have an idea of whether or not it is a good fit for you. If you haven't already, a word of caution: recruitment is not for everyone.
The profession is full of peaks and valleys, as well as ups and downs. Indeed, it is sometimes described as a "roller coaster." Starting a recruitment company is probably not for you if you prefer a consistent income every two weeks over recruiting.
Again, if you don't have any, there's not much to look at. However, if you do have the knowledge, consider it and extrapolate from it. Remember that the owner of a recruitment business has many more duties than an agency recruiter who works for that firm. If you've never run your own company before, the level of difficulty will be increased. Because you'll have to be a recruiter as well as operate a company as an owner.
So, now that you've finished your self-examination and evaluation, it's time to improve. If you've previously operated as a recruiter for an organisation, you'll have a solid base of experience. If you have never worked for a recruiting agency, you should consider working for one before launching your own. Regardless, for those that are interested, there are endless recruitment seminars, training courses, and recruiter training videos accessible.
There are several sorts of recruiting businesses. If you already have industry expertise, you undoubtedly have an idea of the type of agency you want to launch. Here are several examples:
As a recruiting agency, you can offer a variety of different services. Examine different companies and perform extra research to see which ones interest you.
As you ponder on the services your agency will offer, it is also worth considering the scope of your services. While some agencies focus on temporary or contract positions, others might specialise in helping clients hire private staff for more personalised services. Diversifying your offerings to include such niche services can set your agency apart in a competitive market.
Those starting a recruiting agency have various tools at their disposal. Here are some tools you should think about:
Software for recruiting. How will you manage all of your job orders, applicants, and contact details? Of course, with an applicant tracking system for recruiters. You'll want to choose one that is not just online, but also easy and effective. For example, you can use a LinkedIn recruiter automation tool to recruit new potential employees and keep their information all organised. You don't have time to get bogged down in details.
Network for recruiting. You may require assistance in completing work orders with competent individuals at times. Perhaps you have competent individuals but require task instructions instead. Whatever the situation may be, a split distribution network can help your recruitment team.
The most profitable recruiters and recruitment business owners are those who operate in a high-demand specialty. In other terms, a niche of companies that are struggling to locate highly sought-after individuals.
Essentially, you want a specialty where there are only a limited number of individuals who can perform what companies want. As a response, they are more than eager to pay you a price to lure them away from their rival.
We're not just talking about rules and regulations that apply to your agency, but specifically to a recruiting business. Here are some more things to think about:
That's all there is to it. You may (and should) go deeper into these stages and ideas, but they give a strong foundation for how to establish a recruiting firm. Given the unpredictability of the job and the presence of humans on both sides of the transaction, it cannot possibly prepare you for all you may experience.
The most critical first step is self-assessment. You need to determine if the recruitment industry is a good match for you. The profession is known for its 'peaks and valleys', so it's not ideal if you require a completely stable, predictable income.
While not strictly mandatory, having prior experience is highly recommended. If you're new to the field, it's a good idea to work for an existing recruitment agency first. This allows you to gain invaluable hands-on experience and learn the business from the inside before taking on the risks of ownership.
To increase your chances of profitability, focus on a high-demand specialty niche. Identify an area where companies struggle to find individuals with specific, sought-after skills. Operating in a niche with a limited talent pool often means businesses are willing to pay higher fees to secure the right person.
Essential tools include recruiting software, such as an Applicant Tracking System (ATS), to manage job orders, applicants, and contact information efficiently. You should also consider using professional networks and automation tools to streamline your recruitment process and stay organised.
You must be aware of several legal requirements. These include obtaining the necessary business permits, understanding employment regulations, securing the right types of insurance (especially if you hire staff), and complying with all business taxation laws.
