For many HR professionals, starting their own recruitment firm will be the culmination of their dreams. With their own company, they will be able to help people who are looking for better employment opportunities and firms that are also on the lookout for new talent. Of course, the compensation and incentives they will receive is something can be quite promising and motivating, too.
Starting A Recruitment Business
Although this is a dream worth looking forward to, it will come with a lot of hard work and challenges. Leading consultants share some tips below for entrepreneurs who need tips with their first recruitment business set up:
1. Make sure you have the right amount of relevant experience. Most recruitment firms are established by individuals or groups who are already working in the business. This is because they’ve seen what goes on behind the scenes, have learned a few tricks, made great contacts, and know how to make new ones. As such, before you decide to establish your recruitment business, think about the gaps in your own knowledge and experience and find ways to fill them.
2. Establish and work towards clear and concise goals. In general, businesses do better when they create targets and consistently measure how well they perform against them. This is because objectives bring focus to what business owners are doing and help them to understand what works and what needs to be changed. As such, take the time to write down your goals for your business and use them as a guide in all the steps you will take.
3. Know the law. Running and managing your own recruitment agency means you will have to be responsible for almost everything, including the rules and codes of practice governing your line of business. These include workers’ regulations and codes of conduct regarding employment agencies. Not being familiar with these rules can have negative effects on your company now and in the future.
4. Make sure you have sufficient working capital. With recruitment agencies, there is likely to be a two to three-month gap between issuing your first invoice and getting it paid. This is particularly true today, particularly if your clients are larger organisations. Recruitment business owners usually use invoice finance because it is an effective and reliable way to bridge the gap between sending out a big bill and getting it paid.
5. Lastly, develop an organised method of working. Much of a recruitment agency’s performance depends greatly on how well they manage data. Start with coming up with and following a good system on how to carefully maintain and access candidates’ CVs, job specifications, communication logs, and client contracts.
About the Author:
Chad Michaels is a recruitment business advisor. He recommends getting more tips about recruitment business set up on the website of SSG.