Temp Recruitment. Agency Idea
I live in a town where almost all of its employment is through agency and find it very difficult to get a job direct from an employer. Because of the many agencies here, I assumed there wouldn’t be much chance of a nÉw one succeeding… Until… A recruitment agency was kicked out of one of the majour warehouses in the uk, which happens to be situated in my town. It has over 2,000 workers I’m sure, a lot if not most of them recruited via agencies. They were kicked out due to there high prices, so I came up with an udea… This company pays its contracted workers about 15 pound an hour, the agency takes this money and pays the recruited 7.50, thus making a fair wod every hour. If I put myself forward and offered to take 9 pound an hour for each worker, still pay the recruited 7.50 and only take 1.50 an hour for myself, would this work or would it not add up to anything else I have to pay? I’m not sure on the expenses as all I have seen is the need to buy a few licenses and the rent or cost of buying an office. Any help on this topic would be greatly appreciated, thanks. Andy
No, it is not as simple as you think. There is a reason why they charged 7.50 margin! Having worked in a recruitment agency, I have some background knowledge.
Think about it, firstly you need an item system manage these temporary agents and ensures the payroll is met. This payroll would be paid in advance of you receiving cash from your customer
Secondly, should you take on any of these contractors then for each of them you need to set up a contract for the term of employment – you need a standard set and then a contract unique to each individual.
Thirdly, should any of those temps leave, you as a recruitment agency would be expected to fill the gap. You need great databases of local workers and a large number of staff in order to fulfill this.
There are a number of other reasons too why this would not work – the largest being you have no reputation or credibility as a business to merit being awarded such a large contract.
As the Dragoon’s would say, this is a no-goer !
To setup and run a successful recruitment agency is not as hard as people would like to make it out to be. Going in to under cut the competition is a good start, and it looks like you have done a bit of home work on temps and their agencies. I would suggest you take a look at what type of infrastructure you need setup to operate in this market as there are services available that are not to costly, and that can get you up and running in no time at all.
You don’t need to have years of experience in recruitment to be a player in the recruitment sector, as I have helped many people set up recruitment agencies who have no recruitment experience at all, but had the willingness to learn what it is that makes recruiters successful.
I wouldn’t mind going into more detail on how exactly you could accomplish this, so please do contact me if you would like to explore this and are serious about your idea.
A word of advice, get all the information you need on starting up a recruitment agency and the requirements that go with it, and then make your mind up on if you’re going to persue your goals or not. Don’t listen to hear say.
Dean Robinson New Business Advisor email@example.com www.recruitmentpartners.co.uk
Hi Dean just wondering if you have any experience in recruiting from abroad eg eu and maybe in IT sector. The country im in at present has of late recruited many people from the u.k and a lot of residents in country are now considering moving to u.k. Ive been considering ging into the field of recruitment but dont have the education but am willing to learn and know people and companies that do recruite here in scandinavia. any advice ,info would be helpfull.