8 Critical Steps You Should Take to Launch Your Recruitment Agency

The rapid growth of the global economy means recruitment agencies are now more crucial than ever. Many candidates all over the world are looking for better career opportunities, and there are empty positions waiting to be filled.

For those of you willing to make the most out of this and launch a recruitment agency, we have developed a complete guide to maximizing your chances of success.

Without further ado, here are eight key steps in order to start your recruitment agency.

Step 1: Determine Your Niche

Before starting a business, research the market and understand the factors that affect your future success. That will help you decide what direction to take and choose your niche.

Although you can choose to start a recruitment agency with a broad scope that seeks job applicants across all levels and industries, the data will show whether that market is oversaturated. In that case, you might prefer to minimize the risk and narrow your operational approach, opting for something more specialized.

Thus, if you’re not a veteran yet in human resources, it’s better to know what you’re getting yourself into before opening a company. Knowing the relevant facts and industry-related insights will help you be more careful and ensure you’re not rushing or overlooking details.

Even if you have substantial experience in the HR field, the latest reports will make your decision-making data-driven and result in a business that has higher odds of success. Once you gather the information you need for a well-informed decision, it’s time to determine which type of recruitment agency you want to establish.

Perhaps you could be an IT-focused agency or a retail business-oriented staffing team. Consider your network, knowledge, and expertise when choosing a market to provide your service.

Also, think about the candidates you worked with in the past or kept in touch with. — Are they fresh graduates or seniors? Ask yourself these questions to get insights that will help you better position your business.

Here’s a list of the five types of recruitment services commonly offered by agencies in the market.

1. Executive Recruitment

Alternatively known as ‘executive headhunting,’ executive recruitment is a type of recruitment service that seeks out high-qualified candidates for senior or executive positions across the industries such as CXOs, directors, etc. These are passive candidates who already have huge expertise and experience in their field. At the same time, executive recruitment also sorts after and recruits specialists or highly skilled candidates for specific and competitive job positions such as the best Data Scientists.

Usually, companies or organizations rely on leading executive recruitment agencies like Korn Ferry International, N2Growth, JB Hired, Heidrick & Struggles, Egon Zehnder, Spencer Stuart for their executive search. Headhunters would usually scout for talents who are working for competitors or organizations in the related industry. Once candidates are identified and the shortlist has been made, the executive recruitment agency will then approach candidates and offer them the opportunity to join their client’s team. Executive recruitment firms usually support their clients during the whole recruitment process, the offer stage and will keep in touch with the candidate past the onboarding to ensure that all parties are satisfied.

The typical fee for executive recruitment services is between 25 to 35% of the candidate’s total annual income for their first year of service. Contracts can also include a retainer for the headhunting agency to begin the search and exclusivity rights (meaning that only one agency is offered to work on the job).

2. Temporary Recruitment

As the name suggests, this recruitment service revolves around employment for companies or organizations that require a workforce in a specific role for a limited amount of time. This type of recruitment is under a fixed contract. The demand for temporary employment arises when a company is in need of additional workforce in response to increasing workload or when full-time employees are on maternity and/or sick leave. In some cases, companies require temporary staff for special projects requiring a specific skill set for a limited period.

Agencies that provide temporary recruitment like Manpower, Randstad, Adecco, Aquent, or Kelly would advertise open job positions via their websites, social media platforms, job boards, and mass emailing. Once they have sourced candidates, an agency will conduct background checks and interviews, and finally, offer work contracts. Once candidates are employed, those agencies usually take care of payroll and employee benefits.

The regular fees for temporary recruitment service are between 20% to 75% of temporary staff’s compensation.

*First published on Manatal.com.

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Manatal is an end-to-end recruitment and onboarding SaaS platform trusted by thousands of brands in over 135 countries worldwide. It is an AI-powered Applicant Tracking System (ATS) and Customer Relationship Management (CRM) tool that allows companies to hire faster, better and save costs.