5 things you need to know before you start a recruitment business
The role of recruitment agencies is to connect candidates and employers. This process involves researching and interviewing job-seekers to then suggest them to clients with job vacancies for consideration.
As we near the end of the Coronavirus pandemic, human resources (HR) organizations predict a boom in hiring. If you have worked in the recruitment industry and are confident in your networking skills, this is a great time to start your own recruitment business. Although the market is extremely competitive, small agencies have the advantage of being agile. This means it is easier and faster to implement innovations compared to larger rivals.
Here are the 5 things you need to know before you start a recruitment business:
- Find your market sector
The most important decision you will have to make before starting a recruitment business is choosing an industry to specialize in. Defining a specific field makes it easier to develop relationships and effectively use targeted marketing strategies. Most commonly, recruiters favor the sector in which they have the most experience and connections.
It is also crucial to assess your competition after having determined your niche. This is necessary in order to diversify your offerings and find a competitive advantage.
2. Have an always-available mindset
Working in the recruiting industry is very demanding, even more so if you start your own business. This is because speaking to both clients and candidates requires you to be available even after working hours. Networking is the key to success in this business, but it takes time and energy to build a trusted referral network.
3. Research laws and regulations
Before you begin your recruitment business you must know the legal requirements that you will have to comply with. For example, you will need to have insurance and register your business with a name that ends in “Limited.” In Hong Kong, you must also have an HR license to set up your company and prove that you have a physical office.
4. Invest in technology tools
Recruitment businesses are reliant on tech tools and online presence, especially after the Covid-19 pandemic. You will need an interactive website that lists job opportunities and allows candidates to post their CVs. LinkedIn is also a vital platform for a recruiter. Additionally, a digital software like Applicant Tracking System (ATS) that can automatically track candidates will make your work a lot easier.
5. Consider the costs
Setting up a recruitment business doesn’t involve many front up costs. However, some of the ones to consider are: registering your company, purchasing equipment (such as computers, mobile phones and broadband connection), opening a business bank account, designing a brand identity, and creating a website and a LinkedIn company page. Moreover, you will want to invest in a customer relationship management (CRM) software to track applicants and organize the recruitment process.
Most likely, you will need to spend money before you make it, such as paying your staff before you receive payment from your client. Zetl can help you finance your business and ensure that you can pay your staff on time.
If you feel ready to start your own recruitment business check out Castle Peak, a recruiter hub that helps recruiters strike out on their own by assisting with the administration and finance overhead.