Recruitment is a continuous process and no matter if you are a new business or a well-established one, you’ll always need new talents in order to grow your business. This makes recruitment a very competitive landscape and often companies find it quite hard to find the right talent who can help them grow their business. Moreover, switching jobs frequently to grow in their career is another reason that has further made the UK job market a great opportunity for recruitment agencies to come forward and grab the opportunity.
With so much opportunity out there, if you are eyeing to start your own Recruitment Agency, then it is the right time to do so. However, you’ll need a plan before you jump into the recruitment business. Here are a few tips that can be of help to you.
Starting a Recruitment Agency:
Selecting a relevant business name:
It all starts with a name and then working hard towards making that name a brand. So if you are looking to start your own recruitment agency, start with selecting a relevant name that appeals to the job seekers. While you are searching for a name for your new agency, here’s what you should know:
- Make sure you are following the legal norms of nomenclature. For more details, click here.
- Check for the availability of the name that you wish to own. You can check the availability here.
- Consider future growth plans too while choosing the right name.
Also See: Interview Guide for Contractors
Selecting the nature of recruitment
The recruitment industry is a vast ocean but if you try to conquer the ocean itself then you are digging a grave for yourself. Do your research and then balance it out with your skills and network to decide what recruitment sector is the best suited for you. Once you have built a name for yourself in a specific sector, only then consider expanding. In today’s competitive market, being a jack of all trades and master of none will do you no good. Moreover, the more recruitment sectors you are involved in, the more it will be difficult to rank your business in the google search (discussed below).
Build a pricing model
Pricing model is one of the very important factors that will decide the success of your recruitment agency. When in the initial phase, try prioritising building long term-relationships over the costs involved. Obviously cost is important but offers like discounts and referrals work both ways and will ultimately help both the parties achieve their desired goals and objectives.
Take your business online
Getting your business online has become really important in today’s digital world. Everyone wants to get the job done in a way they can both save time and money. Online recruitment portals have become a common way for job seekers to get in touch with the desired employers. Remember that being a recruitment agency means that you are a mediator and to be an effective mediator, you have to have a vast database and reach out to as many job searchers as possible. Also, it is a known fact that the most widely used search tool is Google, and to make your presence on the Google search, you need to get your business online.
Reach out to Accountants and Umbrella companies
If you are in the contracting sector, reaching out to Accountants and Umbrella companies and collaborating with them can help you grow faster. Working with these professionals means it is a win-win situation for both parties wherein both can benefit immensely.
Keep up with the GDPR guidelines
Even after Brexit, GDPR will still apply to businesses operating in the UK. And being a recruitment agency means that you have access to personal/professional details of a number of individuals which makes it very important for you to comply with the GDPR guidelines. Keeping up with the GDPR guidelines will help you avoid any legal troubles.
Also See: Agency Workers Regulations
Other laws that recruitment agencies need to comply with:
- Agency Workers Regulations 2010: The Agency Workers Regulations 2010 falls under the labour laws of the UK and directed at eliminating the discrimination of individuals working under employment agencies. Wikipedia states the law as “Agency workers should be no less favourably treated in pay and working time than their full-time counterparts, who do the same work. It gives effect in UK law to the Temporary and Agency Workers Directive.”
- Off-payroll rules: As a recruitment agency dealing with temporary workers, you have the responsibility to ensure a worker’s employment status for off-payroll purposes has been assessed correctly, or else the liability of tax and NI could fall on you.
- Criminal Finance Act 2017: You will need to ensure there is no tax evasion within your supply chain or you could be liable to unlimited fines, a criminal record, and will be barred from public sector procurement.
- Intermediaries Reporting to HMRC: By law, intermediaries reporting requires you to submit details of all the workers you place with clients who are not paid as PAYE (pay as you earn)
- Accreditations: Recruitment Companies Accreditations like REC, APSCo etc. will help you go a long-way and build the credibility you need to run the business.
- Insurance Policies: You will need to maintain insurance policies like Professional Indemnity, Employer’s Liability Insurance, Public Liability, AWR Insurance, Legal and Professional Fee Protection etc.
Starting any business isn’t as tough a task as it is to ensure its longevity. The same goes when it comes to starting your own recruitment agency. Be well-prepared before you jump in.
Research, plan, and execute!!