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How to Start a Recruitment Agency

Recruitment agencies, also known as staffing agencies, are agencies that interview and screen applicants for their clients. Their goal is to fill job vacancies; permanent or temporary. But, in some cases, a staffing agency may decide to concentrate on a specific niche, such as engineer recruitment. To start a successful agency, there must be a solid business plan in place, experience in recruitment strategies, and knowledge of laws about licensing, hiring and firing. Below, are few steps to consider when starting a recruitment agency.


  1. Determine the Type of Recruitment Services That is Provided: Study everything possible about other recruitment agencies. This will help in understanding the structure, the benefits and challenges associated with various agency types. After this, identify the niche. That is, be specific about which area of recruiting to concentrate on. One might decide to post only permanent job openings in different sectors or focus on a specific sector.
  2. Assess the Competition and Market Climate: Study the market environment, scan for competition, and determine if the demand for the services already exists. If the market is already overcrowded, it might be better to change alter the plan, and open the agency in a different vicinity or with a new angle.
  3. Recruiting Experience. It is best to start a business with some prior experience about it. To run an efficient agency, then looking at the necessary modern recruitment strategies is a must. As the business owner, we are expected to guide our employees, who may require direction. It is possible to gain experience by working for a recruitment agency for a couple of years, before deciding to start one as a business venture.
  4. Evaluate The Current Financial Situation: To start an agency one might want to look at using recruitment finance. These help to calculate the costs of recruitment staff, insurance, marketing, employee benefits amongst others. It is possible that looking at getting a loan or business grant to start and maintain the business will be needed.
  5. Research Related Recruitment Laws.
  • You may need a business license. It all depends on your jurisdiction. You have to consult your local government agency for the necessary requirements.
  • You should study laws related to advertising. Laws on avoidance of discriminatory services and equal opportunities should be at the fore-front of your research.
  • Business taxes are unavoidable. Find out the due date of your income tax.
  • Study insurance-related laws. Find out the types of insurance policies, your employees are entitled to.
  1. Find A Work Place. Don’t overthink the issue. It doesn’t matter where it is, you can rent a room, a suite, share a work space, use your garden, maybe your garage, anything, but you must certainly have a work place. Working from home might be distracting though, with aroma from the kitchen teasing your nose, mischievous siblings, and yes … access to TV with BBC Sport can prove enough distraction! But ultimately, working from home gives you flexibility and reduces your cost of operation. All you need to do is to add in a computer, mobile and internet broadband. Recruitment business doesn’t incur too many hidden expenses, so you should be fine.

With the above-listed steps, your agency will more than thrive. These combined with your zeal, commitment and strong work ethics will give you a step up, and you might soon be a force to reckon with.

Melissa Thompson writes about a wide range of topics, revealing interesting things we didn’t know before. She is a freelance USA Today producer, and a Technorati contributor.

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