The recruitment industry in the UK is booming and the job market is thriving. Subsequently the sector is worth over £35 billion to the UK economy. It’s also relatively low-cost to set-up a recruitment business. So it comes as no surprise that the recruitment sector in the UK is so heavily saturated – at present there are 39,232 recruitment agencies trading.
We’ve put together a few things you should consider before you set up your own recruitment business. Of course there are obvious considerations such as ensuring that you are passionate about recruitment.
With starting any business you will need to put the hours in. Even more so with working in recruitment. A lot of your candidates will already be in work and you will need to keep that in mind. Ensuring you are available to them outside of standard office hours is really important. Here are a couple of pointers to help steer you in the right direction if you are thinking of setting up shop in the recruitment industry.
Know your niche
Who is your target audience and for which industry? In such an active market it’s really important that your business stands out from the crowd. One of the ways that this can be achieved is by identifying your niche market. Concentrating on industries with less competition will allow you to provide a unique service. Your services will ultimately be in higher demand than if you were to focus on an already oversaturated sector.
Know your value
Typically recruitment firms charge clients using one of two methods – commission or via a flat rate placement fee. The commission-based figure will be based upon the candidates salary. This structure involves taking a percentage of the candidate’s annual wage usually around 10 – 20%. Alternatively you have the flat rate fee which is a one-off sum. This figure can vary depending on the arrangement between the recruitment agency and the client. Firms that are starting out usually opt for the flat rate method – in an effort to appeal to more clients.
Know Your Limitations
Accept that you can’t do it all – which is totally fine. Human limitations are the reason behind many great inventions. You might not be able to focus on your pipeline, push out content and build a state-of-the-art website simultaneously. This is where a CMS comes into the mix – a content management system. This software makes creating and managing content on a website super easy. Effectively it provides you with a website without having to build it from scratch.
WordPress is an incredibly popular CMS – its basic form is free. There are additional extras that you can add on – the costs for these are minimal when compared to other website systems. Users have complete freedom in terms of the way in which they use WordPress. WordPress-powered websites can be modified simply and easily, extra functionality can also be added and extra pages created with minimal effort. WordPress is relatively easy to use. It boasts thousands of pre-designed themes and an abundance of add-ons. Furthermore WordPress is regarded as the best CMS of all when it comes to web development.
Know Your Competition
Although this sounds slightly sinister – it is really important to be aware of what the competition is up to. Look at the successful recruitment firms in the market that you want to enter. Get an understanding of why they are successful. You can then incorporate these elements into your business to help it grow. With the recruitment industry being such an active space it is understandably quite competitive. It is vital to learn from the recruitment firms that are thriving in order to push your business forward.
These are just a handful of suggestions to think over. Why not check out some of the other articles available in the FoxNitro knowledge base – there’s plenty of helpful posts to choose from!