How to Start a Recruiting Agency

1. A recruiting agency, also referred to as a staffing or temporary agency, searches for, interviews and screens applicants for job placement. The goal of a recruiting agency may be to fill temporary job openings, permanent vacancies or both. Alternatively, a staffing agency may focus only on a specific industry niche, such as executive or nurse recruitment. The successful start of a recruiting agency involves a solid business plan, a background in recruitment strategies, knowledge of laws about licensing, hiring and taxes, and a marketing plan for gaining clients. Here are the steps for starting a recruiting agency.
   
   Step
   
   
   
   1.Determine the type of recruitment services you wish to provide. Study the structure of other recruitment agencies to understand the benefits and challenges of the various agency types. You might choose to fill only temporary job openings across many different industries or focus on a specific industry.
   Identify the recruitment niche. Be specific about the area of recruiting for which you wish to focus. For example, you might choose to focus on executive recruiting for the banking industry.
   
   
   
   2
   Assess the competition and market climate. Determine if a demand exists for your selected niche. If the market is already saturated, you might choose to change your focus, partner with an existing agency or open the agency in a different geographic location.
   
   
   
   3
   Examine your recruiting experience. To be effective in recruiting clients and finding appropriate employees, you need a solid understanding of recruitment strategies. As a business owner, you also will guide recruitment staff who may need direction and guidance.
   Strengthen your recruitment skills. Gain recruiting experience by working for a recruitment firm before starting your own agency. If your goal is to recruit for a specific industry, consider working in that industry first or working for a niche-specific recruitment agency.
   
   
   
   4
   Evaluate recruiting agency startup costs and your financial situation. Calculate the costs of overhead, recruitment staff, employee benefits, insurance, marketing and other business expenses. Determine if you have the funds or access to loans or small business grants to effectively start and sustain your business.
   
   
   
   
   
   5
   Research laws related to starting a recruiting agency in your jurisdiction.
   Determine if a business license is needed. In some jurisdictions and within certain industries, a license may be required. Consult your local government agency for requirements.
   Research laws related to advertising for employees. Become familiar with equal opportunity employment laws and restrictions about how to avoid discriminatory practices in advertising job openings.
   Learn about business taxes. Conduct research on the amount and due dates of payroll and income taxes.
   Research local laws related to insurance. Determine if you must carry disability, unemployment or other types insurance for your employees.
   
   
   
   6
   Select a location for your recruiting agency. To increase visibility and access for both clients and job applicants, choose a professional and centrally accessible location.
   
   
   
   7
   Create a recruiting agency marketing plan.
   Make a list of potential clients. These may be your own personal contacts, a list of companies in a particular industry or a general list you have obtained from an Internet search.
   Decide on the marketing approach. You might contact prospective clients by mailing letters, sending e-mails and/or following up with phone calls. Placing advertisements in newspapers, business magazines and online job sites are common approaches for recruiting job applicants.
   Produce marketing materials. Create a logo for office documents. Design a website. Develop a company newsletter to send to prospective clients. Design company business cards.
   
   
   
   8
   Hire recruitment staff. Through networking in the industry or by placing job ads, recruit staff to assist you with recruitment tasks. Hire administrative staff to answer the phones, compose office communications and handle mailings. Hire experienced recruitment staff to contact potential clients, and to interview and assess job applicants.