27 February 2024
Home / Entrepreneurship & Startup / Job Placement Business: How to Start a Recruitment Agency

Job Placement Business: How to Start a Recruitment Agency

Job Placement Business How to Start a Recruitment Agency

A Guide on How to Start a Recruitment Agency

The world is full of people looking for employment, so starting a recruitment firm to help them makes total sense. If you already have some experience in the field or have worked in staffing companies, you can use this knowledge to break out on your own with a job placement business.

A recruitment agency plays an important role for finding jobs. Many companies outsource their requirements to such agencies. The agency takes care of interviewing, checking references and shortlisting candidates for the companies.

When you’re in the recruitment agency business, companies approaching you will provide you with details of their employment needs.

You have to place advertisements on suitable sites. Job seekers apply for these and you sort through the applications, search for suitable candidates, check out their qualifications, credentials, references etc. and then offer the list to the companies.

Your final objective is that the company should be satisfied with the job seekers you put forward, so that their interview process is shortened and they save time.

So, without much ado, let’s kick start your recruitment company!

To begin with, check out the licenses, insurance, and business registrations needed for your new recruitment agency business.

Top Tips on Starting a Recruitment Agency

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Skills and How To’s for Starting Job Agencies

A proper market research could help you target qualified candidates for specific jobs when you start hiring agencies.

  • Consider your skills before starting employment agencies. If you have some experience working with recruiting agency, well and good! If not, try working for recruitment companies before you set out on your own.
  • Check out training materials or recruiter trainer videos available on the Internet.
  • There are also plenty of recruiting webinars that you could attend.
  • Try to get in depth understanding of the jobs for which you are recruiting.
  • Use tools, such as the Hoover database for getting passive information on candidates.
  • Employment recruiters can benefit from joining a relevant group on social media, such as LinkedIn professional groups, connected with positions for which you are recruiting.
  • Check out current compensations for relevant positions, as you’ll be better equipped for making an offer to a candidate through your staffing agency.

Getting Clients for Recruitment Companies

Now we’re really getting down to business! We all want to make those fat commissions from delighted clients, don’t we? How do you get business as a recruitment agency?

  • While starting out as a recruitment consultant, do a Google search for growing businesses in your area. If they’re growing, they’re probably hiring.
  • Start making those cold calls. Follow them on Twitter and LinkedIn and start connecting with them. Be persistent but not pushy, if you know what I mean. Use the right social media. For instance, if your target client hangs out on Twitter, there’s no point hanging around Instagram.
  • Check out job posting sites or recruitment sites when starting job placement agencies.
  • Start picking up candidates on job search sites to make bang on matches, armed with relevant knowledge of what the company is expecting. You are soon on your way to featuring on their PSL (preferred supplier list).

Tip: Remember that you need to offer a right match within the right timeframe to get on that PSL.

  • Start advertising your recruitment agency online. Optimize your website with SEO to drive more relevant traffic.

Tip: Use online directory services, so that leads come to you instead of you chasing them. Employers search for agencies based on your locality or specialization.

  • Join market places that act as platforms for recruiting agencies and employers. Employers post their jobs here and your agency can bid for getting the contract.
  • Start networking. Join recruitment agencies networks, such as TEAM.

Choosing Your Niche as a Recruitment Consultant

  • Decide on your niche when starting job agencies.
  • You can opt for IT recruitment agencies; lawyers; builders etc.

Tip: Recruitment Buzz says that the highest growth in recruitment could be in the IT& Technology sector.

  • On the other hand, you can also decide on the type of recruitment you’d like to focus on: permanent employees; temporary employees; executive category and so on.
  • Pick your niche based on your person expertise or industry knowledge.
  • Also check out your contact lists and see which category or type would suit you best.
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Start Up Costs

  • Cost of creating a professional website and SEO campaigns expenses.
  • Costs of advertising on job boards.
  • Computer, smartphone etc.

Tip: The ad cost varies based on word count; number of CTAs; popularity of the site and so on.

Market Research

  • Check out niche job boards, databases as a source for potential candidates.
  • Keep yourself abreast with latest news on lay offs, relocations and so on.

Tip: Sign up with local business alerts and news to get better insights into relevant markets.


In spite of increased options of digital enterprise, you will need a brick and mortar location where you can interview and screen candidates.

Select a location that looks professional, such as offices located in commercial complexes. It should also be accessible and centrally located.

Selecting a Name for Your Recruitment Agency

  • Make sure the name you select is a legal one. Find out the availability, ensuring that someone else has not registered it.

Tip: Check it out at sites like these.

  • Think about the target market and name appropriately. Choose a name that translates well in various prospective countries.
  • Register the name of your company.

Software / Tools Necessary

With mobile recruiting on the increase, you will need software tools for your recruitment agency business. There are several social recruiting tools for finding the right candidate.

  • Applicant tracking system for matching skills, posting jobs to social media and other channels.
  • Location technology for targeting a potential candidate based on his geographic position.
  • Video interviews and conferencing.

Make advanced Internet searches using the best recruiting software.

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Wrap Up

If you’ve made the decision to set up your own recruitment agency, this is your first step on an exciting journey. You need to find a company looking for employees. You then need to find the right candidates and match them to the relevant employers and then take your commission. That’s it!

All you need is a familiarity with your niche industry and good communication skills. You don’t need any technical skills. The start up costs is also quite low.  Just make sure that you meet candidates face to face and check on their CV before pitching them to your client. Work at gaining a reputation of supplying quality candidates.

So, are you ready to hop on to the genius recruiting agency bandwagon to become one of the best recruitment agencies?

Top Tips on Starting a Recruitment Agency
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Gaurav Jain
Article by Gaurav Jain
Hey There! My name is Gaurav Jain, a full time affiliate marketer since 2007. The reason for starting eMoneyIndeed.Com blog is to help you Save & Make Money Online. I write about Blogging, Online Marketing, Webhosting, SEO, Affiliate Marketing, Startups, Social Media, Email Marketing and more. Hope you enjoy the posts on eMoneyIndeed.com

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