This is a nice, non-promotional, introduction to the stepping stones to starting, managing, and growing a recruitment business. Written for us by By Chris Phillips, Marketing Manager at Access Recruitment
Businesses across the UK are experiencing a candidate deficit at present. For the first time since records began, there are fewer unemployed people than job vacancies, according to the ONS.
The shifting candidate market should be a source of motivation for those looking to set up a recruitment agency. The opportunity is there for recruiters to think outside of the box, building a business underpinned by tech and enabled for scalability. When establishing a business, and indeed as you manage and grow, there are key practical steps to consider.
Establishing the early stage building blocks
The first stage is a research phase, which begins with deciding your niche. Determine what sector to focus on; it’s usually best to stick with what you know, as you will need to be a specialist in your field to succeed. Once your niche is locked down, expand your research by delving into your target audience and any new roles that may be emerging in your target sector. Cast your net far and wide – at this stage there is no such thing as a bad idea.
Once the research phase is complete you should put together the foundation of what will become your agency’s mission and purpose. Before creating a detailed business plan, define your values and purpose. This involves asking yourself some challenging questions: why does your agency exist? Why should candidates and clients work with you? Why are you passionate about recruitment? The answers should help you articulate your mission, which can then be distilled down into your principles and differentiator, in turn feeding into a more formal and extended business plan.
Assembling your tech stack
Armed with a solid business plan, the crucial next step is to select the technology that will power your agency. Your recruitment software is vital to candidate attraction and retention, which is a recruitment agency’s bread and butter. It is never too early to invest in systems with the capacity to scale – during later periods of growth your technology must enable your business plan, not impede it.
There are two sides to recruitment tech: the ‘shop window’ and the backend. Your website is your ‘shop window’, and as such, should be designed with candidate attraction in mind. It’s always best to work with a recruitment specific web provider who already understands the market needs. You can then collaborate with them on the essential ingredients, such as search engine optimisation (SEO), imagery and content management. Reporting capability is also key so you can track your best sources of candidates and enhance your website for better conversions.
Behind your external appearance is your backend technology, generally comprised of a recruitment customer relationship management (CRM) software, back office, and candidate screening process. Your CRM should eliminate manual processes, speed up the recruitment cycle, and offer efficient reporting, allowing you to move candidates quickly and easily through the system. The CRM can then work alongside two additional systems: your back office and candidate screening process. This software respectively handles payroll and billing, and pre-employment screening checks for your candidates. Today’s advances in recruitment technology have made these systems more efficient than ever, with automation helping to streamline steps across the sourcing and placement process.
Planning for growth and scaling-up
When starting from a solid foundation, many opportunities for growth become available to you. Perhaps you want to diversify into new sectors or roles you specialise in, or expand your reach outside of the UK. However, for your business to thrive, you need to look inwards before moving to big picture approaches.
Creating a welcoming and productive internal culture is essential and requires good communication, team building, and the ability to empower and give responsibility to others. The success of your agency relies upon your recruiters and offering them a positive employee experience will pay dividends when it comes to your bottom-line revenue.
Putting into place the basic building blocks from day one, carrying out thorough research, taking the time to prepare a comprehensive business plan, and carefully assembling a tech stack, will pay dividends in the long run.
