If you are into recruitment, starting your own recruitment agency can be the step forward you need to achieve your goals. However, many people see launching a new company as a relatively big decision. What many don’t know is that starting a recruitment business can be the most exciting journey they will ever come close to in their career.
The truth is, recruitment agencies (also known as staffing or temporary agencies) basically search for, interview and screen potential applicants for job placement in different industries. The end goal is to fill temporary job openings and be the most reliable agency that many businesses will rely on when searching for top talent in their industry.
So, how to start a recruitment agency in the right way?
In order to help you make the right decisions from the start, we are listing our 5-step guide to setting up a recruitment agency – below.
Step 1: Choose The Perfect Name For Your Recruitment Agency
Even if it seems simple, coming up with a business name for your recruitment agency can be trickier than expected. Some of the things you should consider here are the legal parameters and rules governing what can and cannot be used.
Additionally, you should check the availability of your chosen name – and make sure that you start a recruitment agency with a name that is unique and relevant to the industry. After all, your business name is the forefront of your company and is important to convey the right message about your brand and the market that you are targeting.
As soon as you do this, you should consider the future plans as well – mostly because a wrong name could potentially lead to troubles and headaches while expanding (ex. if your company name is ‘Real Estate Recruitment’ you may want to expand to different branches over time).
Step 2: Register Your Company Name
The second milestone you should be looking forward to when launching your recruitment agency is registering your company. It may sound scary – but this process is actually pretty quick and straightforward.
Still, you should be informed and have some of your information regarding your business ready so that you can get through the process quicker. For example, you should know the fields you should fill in with information – and if you come across ones that are confusing, you should immediately look for assistance.
At this point, it is essential to have some of the following details set up and running:
- Company name and office address in the UK
- Director name, your address, nationality, date of birth as well as business occupation
- Currency and number of stocks/shares you have in your company
- Subscriber details and address
- A form of payment (there is a £15 to complete the registration process)
As soon as you get these details up and running, it is time to register your company and make the first step as an official recruitment agency owner.
Step 3: Getting your recruitment agency online
In a digital era as the one nowadays, it is hard to even imagine starting a recruitment agency in the brick-and-mortar way. Instead, most of the recruitment agency owners are focusing on their online presence as the main channel of driving traffic.
The first step when launching your recruitment agency website is deciding which platform you would use. Personally, we would recommend WordPress as the most popular and widely recognized content management system with tons of plugins and customization options. As your company grows, WordPress will allow you to scale your website presence as well.
Some of the important points you should consider for your website include:
- choosing a good theme that is mobile-responsive and loading fast
- using great visuals and optimized content in order to rank higher and attract traffic
- using clear CTA (call to action) – in order to hook your viewers to leave their information or contact you immediately.
- providing accurate contact details – phone, email, working hours and social media channels are a must
From social media to email marketing, there are many ways to grow your recruitment agency. At this point, it is important to be versatile and focus on quality rather than quantity. If you want a professional website designed, check out our recruitment website design service.
Step 4: Income tax, tax returns, data protection and other regulations
Knowing some of the basic legal requirements related to tax, data protection and other regulations goes a long way when starting your own recruitment agency. Some of the most important within the UK include:
- the HRMC (Income Tax) regulations – where you are required to report on all payments made
- tax returns – your tax affairs, claim expenses and VAT returns should be all properly taxed
- the Data Protection Act – ensuring that you treat your candidates and clients in a professional, fair and confidential way
- Agency Worker Regulations (AWR) – related to the treatment of your agency workers
- the UK Code of Non-broadcast Advertising, Sales Promotion and Direct Marketing (CAP Code) – ensuring that every job you post represents a real one and is treated in the same way
- the Equality Act 2010 – including the Sex Discrimination Act, Race Relations Act and Disability Discrimination Act into a single Act
Step 5: Making most of your business plan and sorting your budget
Last but not the least on this list is your business plan – as the roadmap that guides your recruitment agency to success. Here, you should consider every strength and opportunity but also know how to plan your budget.
Luckily, there are a lot of free business plan for recruitment agency templates that you can use or find online for no price at all.
So, are you ready to start and grow your own recruitment agency? We hope this guide helped you sort out some of the basic questions regarding this topic!