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How to Start a Recruitment Agency

Wondering how to start a recruitment agency? We know that starting your own recruitment agency can seem daunting, but there are some straightforward steps you can take to get the ball rolling.

While the following checklist is not a comprehensive how-to guide, it does contain guidance, ideas and food for thought for new recruitment agency owners.

Your 101 checklist to start a recruitment agency

An accountant

Your accountant is one of your most important advisors. Good accountants are generally best found by referral. Finding an accountant with experience in recruitment is a nice-to-have, but more importantly, choose an accountant you like and trust. Poor advice, or a lack of advice, can be one of the fastest ways to bring your business undone, so take your time selecting the right accountant.

A company or business name

Selecting a name can be very time-consuming. The most important thing is finding a name where the domain name is available. Avoid less obvious high-level TLDs like .io, .jobs, .net etc. as they are less intuitive to find. You really want to get the name in the most common domain extension for the country in which you work – e.g. .com for the USA, .com.au for Australia, .co.uk for UK .co.nz for New Zealand and so on.

Cloud-based recruitment software solutions

Cloud-based recruitment software solutions will minimise your setup costs and hardware requirements, allowing you to get to work more quickly. They will also significantly cut down your manual admin and streamline your processes, crucial time-saving you’ll need in those important early days (not to mention later as you scale and grow!).

A website

The great news is that you don’t need to spend a fortune on a website. The days of $10,000 and $20,000 websites for small businesses are long gone.

As a startup, you only need to spend a few hundred dollars to get a great website up and running using a standard website builder, like WordPressTemplate MonsterWix or Sitebuilder. Take your time and shop around, ask your friends or colleagues as there is a very good chance that someone in your network will know someone who can put together a beautiful site using these simple builders.

Some things you don’t need to start a recruitment agency

Business cards, a printer, a scanner or a server!

You don’t need any of these things when starting out (and in our opinion, ever). Going paperless and wireless is easier than you might think. Connect with people via LinkedIn or Google, read resumes online and make notes before your interviews (reading resumes in interviews is lazy), and scan documents via your mobile phone. Use the money you save and take your partner out to dinner. (You might need the credit points in the months ahead!).

A few extra expert tips about starting out

Recruitment = relationships

Personal relationships are everything in recruitment. Spend time getting to know your clients personally. Take them to lunch, invite them to golf, call them and say hi each week and share information with them whenever you can. This may sound obvious, but the art of relationship building is slowly disappearing in many sectors of recruitment.

Give your time and expertise freely

There is a reason recruiters are called ‘consultants’. The best recruiters develop huge amounts of industry expertise and they share that knowledge openly with their clients. Company owners and hiring managers need experts they can call on to discuss the latest salary rates, availability of resources and so on. Be that person your clients turn to and do it for free – the benefits will follow.

Nurture your top candidates

Don’t just add a candidate to your talent pool and forget about them. Your top talent needs to be nurtured through consistent communication and engagement. A great candidate may not meet the requirements for one job but may be perfect for another job that comes up a month later. Utilising an applicant tracking system allows you to keep track of all your candidates and talent and can prompt you to reach out to people, follow up with clients and a whole range of other tasks.

Experiment with your terms and do deals that make sense

When starting out, it’s important not to get too fixated on your terms. This doesn’t necessarily mean you should discount, but you should be creative and experiment with different arrangements to find what works best for you and your clients. Talk to clients about fixed fee arrangements, retainers, exclusivity and so on. You’ll be surprised at the deals you can do if you are providing a higher level of personal service than your competitors.

Avoid working with companies you don’t know

Fee disputes can be dramatically minimised (if not eradicated) by working only with clients you have or can build relationships with. The majority of fee disputes in recruitment involve transactions with weak personal relationships between client and consultant. If a company holds you at arm’s length and you can’t get a relationship going then the chances of a successful recruiting relationship are slim especially when starting a staffing company.

We hope these 101 tips help you start your own recruitment agency! If you’d like more in-depth tips or advice around what software and tools could work best for your new agency, contact our friendly team to have a chat.

Service Provider Spotlight

This article has been provided by Sarah Linney at TEAM Service Provider –JobAdder.

JobAdder is an innovative B2B, cloud-based SaaS platform designed to help make recruiting more efficient and joyful for everyone.

Already trusted by thousands of businesses worldwide, JobAdder empowers both agency and in-house recruiters to spend more of their time delivering real human value to candidates and hiring managers and less time on repetitive admin.

About the author: TEAM Hub Support
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Andrew Sills
Andrew Sills

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Andrew Sills
October 13, 2022

TEAM is a fantastic network to join especially as a solo recruiter. I would recommend joining as the benefits will help grow any recruitment company.

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Tom Carr
June 29, 2022

We joined TEAM at the beginning of the year as a Service Provider. Such a close-knit group of great, like-minded people. The team put on some great events and give everyone a go at presenting!

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Julian Thompson
June 20, 2022

I have been a member of TEAM for over 10 years now and as an independent recruitment business owner its a no brainer! The whole ethos is designed to help build a strong network of allies with likeminded business owners and service providers who can use their knowledge and expertise to help you reach your business's true potential.

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Mark Bideleux
June 20, 2022

I have been a member of TEaM for over 7 years and always find the head office staff and service providers to be an excellent resource to lean on. For a small or medium sized recruitment business, membership and involvement is a must.

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Melanie Johnson
June 15, 2022

TEAM offers great support for all stages of your recruitment business. The service providers are all experts in the recruitment sector, so the advice you receive will be up to date and relevant to the recruitment market. What attracted me to TEAM was the ability to split fees with other TEAM members. This USP separates TEAM from other recruitment networks in the UK. They also partner with other global split fee recruitment networks, so becoming a member is a no-brainer!

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Tim Lane
June 15, 2022

One of the most inclusive, diverse and professional recruitment associations there is. If you're in recruitment but not in TEAM... Join. Now :)

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Maxine Hart
June 15, 2022

Best buying decision we've made in 32 years of business. Not only do we receive supplier discounts, help with documentation and back office support, we get to network and share business with like minded independent recruiters. Why wouldn't you want to do that?

Jonathan Pearson - Bluzinc
Jonathan Pearson - Bluzinc
April 9, 2022

Your growth and productivity can be transformed with proactive relationship building among TEAM Members.

Will Smith - Savanna Driver Recruitment
Will Smith - Savanna Driver Recruitment
April 9, 2022

Being able to listen and talk to other company owners going through the same experiences and facing the same challenges as me is reassuring.

Anthony McCormack - Macstaff
Anthony McCormack - Macstaff
April 9, 2022

I have probably been involved in over 50 split fees on both sides of the coin, sometimes our job, sometimes our candidate, and that is beneficial to everyone involved.

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Laura Sharpe
February 9, 2021

It’s refreshing to meet so many like minded independent recruiters in one place and be able to do everything online. It’s great to be able to share knowledge and split fees with each other. The supplier discounts are really helpful and the head office staff have all made me feel really welcome. TEAM has been invaluable in accelerating the success of Sharpe Recruitment so thank you very much!

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Sue Turney
February 3, 2021

TEAM have been fantastic for before lockdown, the growth and since lockdown, the survival of Aspire Personnel. TEAM offers great networking with agencies and like minded business owners across the UK, giving the opportunity to work with split fees, and more so building great relationships with other recruiters. TEAM HQ have also been a fantastic support, with answers from recruitment legislation, legal docs and more.

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Neil Johnson
February 1, 2021

TEAM have provided my business with great support for many years. It is great to be able to meet with other independent agency owners and TEAM provides us with the platform on which to do this. TEAM provide a variety of webinars and training opportunities which are always well thought out and informative. Throughout the COVID-19 period I also managed to do some "Split" business with other members which was a welcome boost to my business. Would thoroughly recommend membership to anyone

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Ieuan Savage
October 28, 2020

prosperIS Recruitment have been members of TEAM for many years and have benefited from their fantastic support throughout this period. Both the network itself and TEAM HQ create a highly supportive and collaborative environment and I would highly recommend to independently owned Recruitment businesses. Thank you to Tricia, Jackie and the team for all of your invaluable advice and support.

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Ronald Ravenhill
August 4, 2020

I'm really pleased that I joined Team since joining they have supported me and my business in a big way and I couldn't be without them now!

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John Stanton
July 31, 2020

MYNT Recruitment have been members of TEAM for many years and I now am one of its Regional Directors. TEAM is a wonderful organisation and brings together like minded professional recruiters across the UK, it is here to genuinely help support it members in every aspect of the recruitment sector. Added into this, is a wide range of service providers that offer excellent services and or products , tailored to the recruitment industry. TEAM "Working Together"

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Tracey Clay
July 31, 2020

It was an easy decision to join TEAM when I set up on my own as an independent recruiter in 2019 as Pivotal Recruit. I had already been an active participant and had seen first hand the direct and indirect value and return on investment this organisation brings. A more supportive and collaborative network of professionals you couldn't find anywhere else, providing knowledge, expertise and a few laughs along the way, what more could you ask for? I'm proud and thankful to be part of such a great organisation

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Lesley Whiting
July 30, 2020

It's the largest network of independent recruitment agencies who work alongside each other to fulfill their clients requirements in an efficient, professional manner. Excellent benefits and the support from H/O is second to none. The numerous suppliers as members means you can trust them and know you'll get a good deal. Brilliant organisation, wouldn't be without them.

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Michelle Theuma
July 21, 2020

I've been a TEAM member for a number of years and have gained so much from this organisation. To build a network with other professionally minded recruiters is invaluable. Add to that expert service providers in the recruitment sector, as well as specialist legal advisors and the opportunity to build a new revenue stream with trusted recruitment partners whilst supporting your existing Clients, makes this membership the most valued one I have.

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Susan Jones
July 15, 2020

We've been members of TEAM for several years, but during the Covid19 pandemic we've been especially grateful to be part of the network and really appreciated all that TEAM have been doing over the last few months, in very challenging circumstances. We’ve felt well supported and amongst knowledgeable people regarding all the legal stuff and amongst friendly (albeit distanced) colleagues for everything else. There haven’t always been easy answers but it’s helped to be part of the TEAM network, definitely!

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Will Smith
July 6, 2020

I was recommended to join TEAM by a couple of partners. I was sceptical at first, but then realised that the money we'd save on advertising is double the cost of the membership, so I signed up. Two years later, my only regret is not signing up earlier, as their documents library and free support would have made my life a lot easier when I set the business up. During the covid-19 period their support has been invaluable, with weekly video calls with legal experts and the ability to share challenges with other directors and being able to get advise there and then. Thanks to everyone at TEAM. Appreciate your help! The Savanna Team.

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John Docherty
June 25, 2020

A great network for small recruitment businesses who have shown to be very innovative during the Corona Virus crisis

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Natalie Taylor
May 14, 2019

Fabulous network! A well organised, professional and friendly group of independent recruiters. Wagstaff joined TEAM in 2011 and have enjoyed the support of like-minded industry professionals to deliver additional recruitment projects for our customers. This has been achieved by collaborating with other recruiters and sharing business. Additional benefits have included ongoing regular updates from legal professionals relating to employment law, a great annual conference with up to date and on topic training, plus a great event to network in a friendly environment with nice people! Highly recommend to any independent recruiter.

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Alex Dean
May 7, 2019

We have been members of TEAM for 15+ years and have found our membership to be invaluable. The support and expertise TEAM offer members is second to none and I would highly recommend that any burgeoning recruitment business join this incredible network.

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Great way to expand your business, benefits of discounts, support, ideas sharing and caoching.

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Fantastic fee sharing, supplier discount & peer to peer coaching network. TEAM has been invaluable in accelerating the success of Macstaff and I am proud to be an active member!

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Mark Rye
August 25, 2018

Elevate Recruitment & Training Consultants Limited (ElevateRTC) joined TEAM in September 2010, shortly after the business was established. We were enticed by the discounts offered by TEAM’s network of handpicked service providers - not least the exclusive job boards discounts. Since becoming a part of TEAM, our membership has literally saved us £000’s on essential products and services. Being a part of TEAM though, is so much more than just making savings: TEAM Xchange (TEAM’s fee sharing platform – which has helped us make placements we would not have made otherwise), free helplines manned by industry experts, the library of hundreds of documents and the networking opportunities afforded by a membership of over 700 locations makes TEAM a huge part of our company’s success.

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Maxine Hart
June 7, 2018

We have been members of TEAM for over 10 years now and it's always been a no brainer for us. Splitting fees with other like minded, independent agencies means that both our Candidates and our Clients get a much larger pool to choose from. It allows us to grow our turnover without immediate overheads. Then of course, there are the savings that buying as a larger group bring. The Employment Agents' Movement gives the smaller recruitment agency the ability to punch above their weight and compete with the high street agencies.

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Clare Wight
April 12, 2018

An amazing organisation that I am proud to be part of, helping independent agencies in many ways. Including a friendly, professional and inclusive support nework, training, market updates and the opportunity to win business through collaborative work with like minded businesses.