How to start a recruitment company

Written by kevin watson Google
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How to start a recruitment company
A recruitment company supplies staff to public and private organisations. (Stockbyte/Stockbyte/Getty Images)

Recruitment is the process that affects the amount and type of people who apply for a job. The process also influences a person's decision about a job offer. Recruitment activities include writing the content of job advertisements, deciding where to place advertisements and managing advertising budgets. The purpose of a recruitment company is to use these activities to help an organisation find the right person for a job. Although previous industry experience is useful, starting a recruitment company requires above all the ability to sell candidates to employers.

Skill level:
Moderately Challenging


  1. 1

    Take a training course with the Recruitment and Employment Confederation (REC). The REC is the trade body that represents UK recruitment companies. REC courses aim to provide a new recruitment company with skills and guidance.

  2. 2

    Read the regulations that govern the recruitment industry. The main legislation is the Employment Agencies Act 1973.

  3. 3

    Decide on the type of industry and candidates the recruitment company will handle. Some recruitment companies focus on specific industry sectors such as education. Other companies take a generic approach and deal with recruitment for all sectors of the economy.

  4. 4

    Work out the costs of the recruitment company. A basic recruitment company that operates on the Internet needs a computer, a website and access to an online job board that contains CV's. A high street recruitment company is a more traditional but also more expensive option.

  5. 5

    Decide on the level of the recruitment company's fees for successful job placements. Options include charging an organisation between 20 and 30 per cent of a post's annual salary or imposing a set fee. The Employment Agencies Act 1973 prevents a recruitment company from charging a fee to most people who are seeking work. The exceptions are au pairs who take jobs abroad, entertainers and models.

  6. 6

    Consider joining the Recruitment and Employment Confederation. Membership gives candidates and employers confidence in the credibility of a recruitment company.

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