Why recruitment agency How is business attractive to new entrepreneurs? There are two main reasons: small start-up investments and weak legal control over the activities of recruitment agencies.
Here we will look at information about how to open a recruitment agency, a business plan for opening it and what is needed for this.
Who are the clients of such agencies?
Clients of recruitment agencies are companies that, for one reason or another, do not want to independently search and select employees.
Such reasons may include:
- The need to maintain your own staff of HR managers.
- The presence of a large number of associated hassles, such as reviewing resumes, communicating with all calling and incoming candidates, selecting the best of them, etc.
- The need for additional investments, because access to specialized Internet resources is often paid.
- Slow search speed the right employee. At the same time, the work mechanism in recruitment agencies is well-established, and selection is carried out faster and more productively. In addition, recruitment firms have an extensive database of applicants, which significantly speeds up the search for the right employee.
Business plan
Here is the most detailed ready-made example business plan for a recruitment agency with all possible and impossible calculations. Do not forget that all numbers are conditional, because... in each case they will be completely different, because they vary from city to city.
Please note that this type entrepreneurship requires very little investment, which makes it even more attractive to you. In addition, in many cities there is still a lack of them or low professionalism of those who already have them, so you will have plenty of work.
How to open a recruitment agency
The way a recruitment agency works is quite simple. The employing company submits an application to search for an employee, which specifies the requirements for the candidate and the deadline for completing the order. The recruitment agency begins a search in the database or, in the absence required quantity suitable applicants - advertises the vacancy. Applicants who, in the opinion of recruitment agency managers, best meet the requirements are sent for an interview with the client-employer. If the applicant is given a place in the company, a fee is paid to the recruitment agency.
List of recruitment agency services
The standard list of recruitment agency services includes:
- Search and selection of applicants for the position. The price of the issue is a minimum of 7-9% of annual income if we are talking about a qualified working specialist, and a minimum of 10-15% for a senior manager.
- Preparation of a screening resume. Simple and cheap option. In essence, it is a mechanical selection of applicants from a database according to specified criteria (gender, age, education, work experience, etc.). At the same time, neither personal qualities, nor the candidate’s motivation are not considered.
- Organization of trainings and advanced training courses. An optional service that recruitment agencies introduce at later stages of their existence.
Types of agencies
The presence of high competition in the field forces us to specialize. As a result, recruitment agencies are divided into:
- Recruiting. The fee for such recruitment agencies is 10-20% of annual income, depending on the degree of complexity of the search and its urgency. You can narrow your specialization to providing services to employers in a specific business area. For example, work only with customers from the service sector, or plant managers, or foreign companies, etc.
- Specialized. They are engaged in the selection of workers of a certain profile. Some are looking for domestic servants, others for cooks, and others for builders. However, the head of such a recruitment agency cannot do without special knowledge on the selection of candidates.
- Headhunting(from eng. “head-hunting” - “head hunting”). This is a special, elite type of recruitment agency. It is their responsibility to attract the highest class specialists to the customer company, the number of which is always limited in society. To successfully complete the task, headhunters have to resort to unimaginable tricks, but one such closed application means a couple of months of comfortable existence.
Location of interviews
It should be comfortable for the applicant and inspire confidence in the recruitment agency. Sometimes general positive impressions about the company can remain even after a simple cup of coffee, which the manager offered with a smile. And the transport accessibility of the office directly determines its trafficability and, accordingly, profitability.
Politeness as a professional quality
You need to inform the applicant about the refusal as politely as possible. If this good specialist, other customers will definitely be interested in it, so it is very important to maintain mutual respect.
Opening a staffing business: benefits
- Low initial investment. At first, you can even work from home, if you have access to specialized Internet resources, such as Superjob.ru and Headhunters.ru, and a room for conducting interviews. Of course, advertising and having your own website play an important role.
- There is no need to obtain a license – registration of an individual entrepreneur or LLC is sufficient.
- To achieve success, special knowledge is not necessary (with the exception of specialized recruitment agencies).
Possible difficulties
- Sometimes the terms of the agency-applicant and agency-employer contracts are not respected.
- The employer may well evade repayment. For example, take a proposed employee to probation and fire. And then call you to work again, but bypassing the recruitment agency.
- Candidates do not always provide truthful information about themselves. And if managers fail to recognize the catch in time, the employer has problems with the employee, and he remains dissatisfied with the work of the recruitment agency.
- The employer himself may be the one with the catch. Then claims will begin to pour in from the candidate.
We looked at the question of how to open a recruitment agency. We hope this information will help you in this business.
Instructions
Write a plan in which you need to describe in as much detail as possible the service you are going to offer. Decide what kind of personnel you are going to select - managerial, technical, production, maintenance. Each specialization has its own specifics in the selection itself, and in promotion, and in finding customers. Don’t strive to become a “multi-machine” person - vague specialization will not lead to anything good. This is due, first of all, to the competition that exists in the recruiting market.
Compose staffing table. It depends on the business model you choose for your business. As a rule, agency By selection personnel should have three departments, the functionality of which can be very roughly described as follows: attracting a customer, searching for an applicant, finance. If you decide to take money for employment (that is, from applicants) - this is one model; for selection (that is, with ) – another. In both cases, you should have at least 3-4 managers for each of the two departments involved directly with personnel, a lawyer who understands labor law, a psychologist, a marketer and technical staff.
Consider qualification characteristics (or competency cards). They should indicate exactly what knowledge and skills your future employees should have. It is also necessary to reflect additional ones (gender, age, education, etc.). Based on these documents, create job descriptions, which when hiring employees, ask them to sign.
Develop test batteries, as well as cases - if you are going to select a managerial personnel. Provide general questions for projection or situational interviews. Clear criteria for assessing applicants' resumes would also be useful. The more formalized the assessment of candidates is, the higher the chance that the selection will be carried out at a high technical level, and the so-called “human factor” - the personal sympathy or antipathy of the interviewer - will not interfere with the matter.
Video on the topic
Sources:
- Opening a domestic staff recruitment agency in 2019
- How to open a recruitment agency in 2019
Nannies and housekeepers, housekeepers and caregivers, cooks and gardeners - all these professionals are in great demand in the labor market. If you are thinking about own business, try to take advantage of the current situation. Open agency for renting a household personnel. If you set up the business correctly, it will provide you with a constant income.
You will need
- - Status of individual entrepreneur or registered legal entity;
- - money for business development.
Instructions
Study the market. Find out how many similar agencies already operate in your city. Visit them anonymously, under the guise of a customer. Once you feel yourself “on the other side of the barricades,” you will understand what mistakes you should avoid in the future, and what techniques you can adopt. Try to chat with employees, sometimes you can extract a lot of valuable information from such informal conversations.
Get a license to work. It can be issued to both an individual entrepreneur and a legal entity.
Find office space. It is desirable that it be located on a busy street or have convenient access for cars. A separate entrance is not required; you can open an agency in a business center, institute or any other suitable building. It is advisable that there is no strict access system at the entrance, as your future clients may not like it.
Sometimes it's very hard to find interesting work with a decent wages, then the employer is unreliable, then the salary is too low. But for employers, finding worthy candidates for the position is no less of a hassle. Sometimes a small enterprise or firm does not have a human resources department. Therefore, they do not have people with the necessary skills to select qualified personnel. Therefore, a business that allows you to bring together an employer and an employee will be quite in demand.
How to open a recruitment agency
Today there are several types of recruitment agencies
Recruitment agencies
Such agencies are busy searching for employees on behalf of enterprises and firms. Accordingly, the employer pays the money. This form is convenient for both employers and job seekers. By submitting an application to a recruiting agency, the employer expects a competent selection of suitable personnel.
Job search agencies
As a rule, unemployed people turn to such offices so that the agency can find them a suitable vacancy. The services are paid for by the applicant.
Combining employee search and job search
This type is the most common. Such a company creates a database of applicants and employers. They can work both at the request of the employee and at the request of employers.
Headhunters
These are special agencies engaged in luring highly paid employees from one company to another. Providing this type of service is associated with certain difficulties. The search for highly qualified employees is complicated by the fact that they, as a rule, already have a job, there are few of them, and a lot of effort must be made to get them to change it.
What is needed to open
Let's look at what needs to be done to open a recruitment agency step by step. Here are the main stages that you should go through before setting up a business:
- prepare documents for ownership;
- select a room;
- purchase equipment;
- draw up a business plan.
Documents
First you need to register with the tax office. Registration can be done as follows: individual entrepreneur(IP), or you can register a company with limited liability(OOO). To become an individual entrepreneur and pay a single tax, you need to select codes from the All-Russian Classifier of Types of Economic Activities (OKVED).
Below are the OKVED codes that must be entered to open a recruitment agency:
- provision of labor recruitment services 74.50.1;
- provision of personnel selection services 74.50.2.
In almost every company, sales and customer service managers earn the most, since they directly bring profit to the company. However, given that now in any organization the most important asset is personnel, the HR department is a key link.
Wanting to work for themselves and have significantly more income, many people seek to open their own recruitment agency. This comes with certain risks and difficulties that must be taken into account in order to achieve the desired result.
The first and rather global difficulty in Russia for an entrepreneur who wants to open such an enterprise is the fact that not all employers are ready to invest extra money in paying for the services of this kind of company. Instead, they prefer to work through their own HR department.
The second problem is that those companies that do understand the advantages of working with a staffing company, for the most part, are quite large and already have a partner in this area. Finally, the third problem is high level competition in this market.
The following advantages can be highlighted:
- Low payback period.
- High profit level.
- No need for a large amount of initial investment.
- The market does not depend much on seasonality.
- The opportunity to build partnerships with your clients through the search for highly qualified personnel.
- There is interest in this form of business on the part of employers and employees, since the search is carried out confidentially.
- The simplicity of organizing such a business.
- Low operating costs.
- Almost complete absence of barriers to entry into the market (this is both an advantage for a new company and a disadvantage, since due to their absence a sharp increase in competition can occur in a short period of time).
- Possibility to choose different formats for carrying out activities.
Registration of the form of activity
In order to start officially working, the agency must be registered. So, preferably a limited liability company. Also acceptable if there are no expansion plans. In this case, the company can have only one founder.
Registration must be carried out as per tax office, and in extra-budgetary forms. Accordingly, the owner will have to pay a state fee. Recently, obtaining a license is no longer required.
In addition, at legal entity must open a bank account. When registering, it is advisable to choose so that tax is paid on net profit. This is beneficial because such an enterprise has minimal operating costs.
Types of agencies and typical services
There are 2 large categories of companies:
- who are searching for personnel for a specific position;
- who help staff find employment (that is, they search for a vacancy for a person, and not a person for a vacancy).
The second type makes money thanks to contributions from people who are looking for work: this can be either a fixed amount for information about companies that are looking for a specialist of the relevant profile, or a fee for access to the database for a certain amount of time. Finally, the third option is to receive money from a person after his employment in the amount of the average monthly salary.
Many agencies combine these two forms above.
Among those companies that select personnel for any position, there are the following varieties:
- Headhunting agency. Literally speaking, such companies are engaged in “headhunting.” A special feature of this type is working with large companies. In this case, there is not just a search for a free specialist, but actions are taken to transfer him from one company to another.
- Specialized recruiting agencies. These are those companies that focus on one specific area. This can be either hiring employees for only one organization, or recruiting personnel only for certain positions (for example, warehouse personnel), or searching for workers for a certain area, be it pharmaceuticals or the food industry.
- Regular recruiting companies. In their scheme, they are similar to those enterprises that search for vacancies for people. The level of payment for their services varies from 1-2 to 4 salaries of the found employee.
Services include:
- Recruiting regular staff.
- Exclusive recruiting of the company's top management.
- Recruitment of personnel according to specific requirements.
- Market surveys (eg salary-related data).
- Assessment Center (monitoring the competence and motivation of personnel).
You can learn how to open such an organization without investments from the following video:
Selecting premises and purchasing the necessary equipment
Opening an agency is quite simple: you can choose the location based on the rental price. It is also important to understand that the office should be located in a place with good transport accessibility. There should be convenient access to it. It is also desirable that it be located closer to the city center in areas with high traffic.
There are no requirements for office space as such. However, zoning must be done in it: first of all, you will need an office in which individual interviews will be conducted.
The agency does not require specialized equipment. It will be enough to equip each workplace a standard set of equipment - a computer, telephone, copier, scanner, printer (the last 3 items may not be available to every employee, but in single quantities for the entire office). In addition, you will need to organize Internet access.
Company personnel
To begin with, it will be enough to hire 2 employees who will search for personnel and make calls. In addition, the company will need managers with good education and experience in human resource management. These two factors will guarantee their ability to identify strong and weaknesses potential employee, and also understand whether he is suitable for the vacancy.
If an entrepreneur wants to provide services for analyzing the market situation, it is necessary to hire 1 or 2 competent analysts.
The quality of reports will determine the demand for such services. Only these employees will receive a fixed salary. The rest of the frames, as a rule, receive a certain percentage of the transaction performed searching and hiring an employee.
For small company it is not critical to have specialists such as an accountant, lawyer or system administrator. It will be enough to hire a lawyer and administrator only when they are needed. An accountant can work part-time 1-2 days a week or at the end of the reporting period. This will significantly reduce costs.
Searching for client-employers, creating a database of potential personnel
In our country on initial stage Finding clients is quite difficult. This happens because many Russian companies(especially small and medium-sized ones) underestimate the level of payment for such services and do not take the agency’s work seriously. As a result, they do not get the result they wanted, and most likely stop using such services.
To overcome this situation, at the first stage you will have to call large companies and offer them the services of a new agency at a fairly low cost. Despite the fact that most of them have regular partners, many agree to such offers.
In addition, you can search for clients using various recruitment and job search sites: medium-sized companies that search through such services usually do not have a permanent partner among recruitment organizations.
Finally, an agency may be needed by companies that are just entering the market or are seriously expanding their scope of activity or region of presence. In this case, employers understand that conducting a personnel search on their own will require a large amount of time and money, and therefore turn to recruiting organizations.
Costs, approximate profit and payback period
A recruiting agency is a type of business that does not require a large amount of investment. The most expensive part is paying office rent several months in advance. Depending on its size, the entrepreneur will have to pay 25-50 thousand per month.
Another equally significant cost item is advertising (20-30 thousand per month). It should be posted on specialized portals, as well as in large circulation publications supplied free of charge. Only in this case will it be possible to quickly attract customers.
Other costs include:
- Preparation necessary documents and registration – 10-20 thousand rubles.
- Office renovation costs about 150 thousand rubles, depending on the chosen interior and the size of the room.
- Purchase of the necessary equipment - about 35-40 thousand rubles based on one workplace (in the case of purchasing 1-2 printers, scanners and copiers for the entire office).
- Internet connection - 2-4 thousand rubles.
The payback period is from 2 to 4 months with an order value of 25-30 thousand rubles. At the same time, monthly net profit will be about 100-250 thousand rubles depending on the number of orders and employees. Business profitability is about 10-15%.
The success and fastest possible payback period for a business directly depend on the work of the company’s employees. Therefore, special attention should be paid to personnel selection.
It is worth noting that, despite total unemployment in the country, there is a shortage of highly qualified specialists. Large enterprises are fighting in every possible way for qualified personnel and are ready to pay high salaries employees who meet all their requirements. However, finding truly responsible and trained people is not easy.
Not every entrepreneur understands human psychology and knows how to select wide-profile specialists, in connection with this, there is an urgent need for the existence of recruitment agencies. Therefore, in this publication, we will talk about how to open a recruitment agency from scratch and make it popular.
Why are recruitment agencies needed?
There are quite a few profitable ideas business, one of them is opening a recruitment agency.
What is it and what is its purpose?
The recruitment agency is engaged in the selection and training of personnel for factories, private enterprises and firms different specializations and direction.
The main goal of the agency is to save time and money for managers of large enterprises and firms, to provide them with qualified staff who meet all the requirements.
It would seem much easier to hire a person who will form a staff, conduct interviews and hire good personnel. But the fact is that not everyone has the skill of selecting and training personnel; this is a delicate matter that cannot be entrusted to just anyone. It is worth noting that about 80% of business success directly depends on the work of employees. Therefore, it is an unaffordable luxury to be irresponsible in the formation of staff.
It has been proven by many experiments that it is much more profitable to entrust the selection and training of personnel to a recruitment agency than to pay for the work of an employee who will be involved in this matter.
Where to start opening a recruitment agency? As in any other field of activity, opening a recruitment agency should start with choosing a direction.
Video on the topic
Types of recruitment agencies
Recruiting agencies
These agencies search for workers for factories, enterprises, companies of various specializations and directions. The purpose of such organizations is that they receive a certain percentage for the employment of each citizen. The services of recruiting agencies are entirely paid for by the employer, thus this organization is an intermediary between the employer and the person seeking income. To attract as many employees as possible, you should convince them of the correct choice and advisability of contacting your agency. To do this, it is necessary to short terms find a candidate necessary work, meeting his wishes, while taking into account the stated requirements of the employer.
Narrow-profile recruitment agencies
These organizations specialize in a specific area. Their task is to constantly select and train employees who meet the stated requirements. It's not easy to do this this work She is very responsible and therefore paid quite well. As a rule, such agencies take money from employers, who, in turn, guarantee employees who meet all the criteria. Most often, such agencies specialize in the selection of domestic staff to work in private homes and hotels.
Headhunters
These are agencies that recruit highly qualified and already trained employees with work experience. Most often, these organizations are engaged in luring workers from one organization to another. The cost of services from such an agency is very high, but it is worth it. Large entrepreneurs spare no expense in paying for high-quality work and forming a highly qualified staff of workers.
International recruitment agencies
These organizations are engaged in the employment of workers abroad in reputable companies and companies. For such an agency to exist, you will need to obtain a license. In turn, you guarantee the employee official employment and job security, and he pays for the agency’s services. Today it is quite difficult to find a job abroad on your own; many scammers only defraud people of money. And the existence of international agencies is an opportunity to get a good position abroad. Therefore, there are quite a lot of people who want to use the services of international employment agencies.
How to open your own recruitment agency?
Having understood the types of agencies that offer recruitment services, you can start opening your own recruitment agency.
Business registration
To get started, you should register with tax service. First of all, choose the most suitable form activities. You can register as a sole proprietor or as a limited liability company.
After registration and receipt of all permits for activity, it is necessary to rent an office, make repairs there and equip a place for employees. Next, you can get to work.
Creating a Database
Scheme of work of recruitment agencies
The work of recruitment agencies seems simple and easy only in appearance, but in fact it is a lot of work. To succeed in the recruitment business, you need to clearly understand and follow the work flow of a recruitment agency. Let's talk about this in more detail.
The activity of a recruitment agency consists of several stages:
- Search for a customer. At this stage, you collect all information about the employer, company, conditions of employment, vacant positions. Next, you need to enter into cooperation agreements with firms, factories, and large companies that require employees.
- Search for employees. At this stage you already have necessary information about current positions and vacant positions, it is necessary to select personnel that meet the customer’s requirements. To do this, you need to create a questionnaire to search for employees. The application must include as much as possible detailed information, documented.
About the candidate you should know:
- Personal data (name, surname, place of residence);
- Education, which is confirmed by a diploma of the appropriate type;
- Work experience confirmed by documents ( work book with records, recommendations from previous employers);
- Age and family background;
- Additional information at your discretion.
How to find candidates?
There are several options for finding employees:
- Advertisements in the media. Job advertisements are submitted to newspapers, magazines, television and radio advertising is ordered;
- Direct search for candidates from students who have graduated from the institute. Your agency can establish cooperation with senior educational institutions, and thus obtain trained employees that meet customer requirements;
- Searching for employees via the Internet. By using social networks and forums, you can find qualified workers and offer them mutually beneficial cooperation.
After creating a database of clients and employers, employees of the recruitment agency conduct interviews, during which they determine the capabilities of job seekers and offer them possible option and help you find a job in your desired position. Some recruitment agencies also provide training for workers, for an additional fee, of course.
Profit from a recruitment agency
Naturally, such organizations were not created and, moreover, did not work for free. The profit of a recruitment agency directly depends on its specialization and the number of prisoners employment contracts. It is worth noting that this type of business does not guarantee you a stable and passive income. In this field of activity, more than anywhere else, everything depends on the well-coordinated work of the team and the authority of the agency. Earn money good reviews It’s not easy, but you can lose your authority in a moment. Therefore, in order to survive among such a large number of competitors, you need to work hard all year round.
