Recruitment agencies don’t just identify and contact candidates for their clients. They aim to provide better career choices for the candidates as well. This win-win spirit is what motivates a recruiter to do their best every day.
If you are keen on starting your own recruitment business to help more dreams come true, you should know these 8 key steps.
Step 1. Determine Your Niche
To start with, you need to determine which type of recruitment agency you are. You could be an IT-focused agency or a retail business-oriented staffing team. Just examine the network you have and the knowledge you excel at, and choose a market to provide your service. Also, consider which candidates you have the strongest connection with. Are they fresh graduates or are they seniors? Asking yourself these questions will help you better position your business.
Step 2. Assess Your Competitors
Once you decide on a market, you should assess what other staffing agencies you are competing with. Use simple SWOT (strengths, weaknesses, opportunities, threats) and 4 Ps (product, place, price, promotion) analysis to find out how you stand out and where you need to improve your game. As one ancient Chinese saying states, “know the enemy, know yourself, and in every battle, you’ll never be in peril.”
Step 3. Assess Your Finances
Starting a recruitment agency doesn’t require as much money like most other startups. However, you should still consider costs like office equipment, digital tools, staff, insurance, etc. Create a budget spreadsheet and get proper financial advice if needed.
Step 4. Research Laws and Regulations
Most companies depend on lawyers and counsel to take care of legal business. Yet, as the founder of your agency, you ought to spend time doing research on relevant laws and regulations to prevent further legal problems. The latest regulation recruitment agencies need to follow is GDPR, which focuses on data protection.
Step 5. Build Marketing Plans
First, create a logo and image that meet your agency’s style. First impressions matter much more than you notice. Once you set up the look, draft a marketing structure and match each process with tools and skills you can use. For instance, there are various graphic design tools for creating images. As for reaching out to clients and candidates, LinkedIn is a must. Pick the right channels to connect and you’ll have won half the battle.
Step 6. Set Up Business Goals
Want to go big? Objectivity is the key. A successful staffing agency counts on not only experiences and a massive amount of candidates but also clear business goals. Adopt a comprehensive yet flexible business model for your agency. Set up short and long term goals to inspire your recruiters. For example, you could aim to increase stable clients by 10% in 2 months. Maybe you’d like to expand your service area during the next half year.
Step 7. Invest in Tech Tools
Recruitment agencies nowadays are enormously affected by technological tools. Invest in the right tool, you will end up saving a great deal of time and money. One of the most popular and reliable digital software used by recruiters is Applicant Tracking System. Use one that can automatically collect candidates’ LinkedIn profiles, score out the best candidate, and easily track candidates’ status. You’ll see how much faster and simpler it is to manage your talented applicants and keep your work organized.
Step 8. Invest in People
Last but not least, you need to hire good recruiters and invest in them. Knowing tips on Recruiting a Recruiter definitely allows you to meet and hire recruiters with rich experience. However, don’t give up on junior recruiters. Spot each recruiter’s strength and help them thrive, you are doing a huge favor to yourself too.