How to Make Employment Agencies More Profitable
Employment agencies: A recruiting agency, also referred to as a staffing or temporary agency, searches for, interviews, and screens applicants for job placement— temporary, permanent, or both. A staffing agency may also focus only on a specific industry niche, such as executive or nurse recruitment. The successful start of a recruiting agency involves a solid business plan, a background in recruitment strategies, knowledge of laws about licensing, hiring and taxes, and a marketing plan for gaining clients.
Read on: How To Find Booming Staffing Agencies near me
Employment agencies
Determine the recruitment services you want to provide. Decide if you want to focus on a specific industry—such as builders, lawyers, or IT professionals—or multiple. Afterwards, decide if you’re going to put candidates on a contract (temporary or part-time), direct hire employment (full-time), or both.
- Study the structure of other recruitment agencies to understand the benefits and challenges of the various agency types to help you decide the best focus for you. For example, you might decide to fill only temporary job openings across many different industries.
Identify a recruitment niche within your chosen industry. Be specific about the area of recruiting for which you wish to focus, such as executive recruiting for the banking industry. Whatever your choice, make sure you have interest in the niche, as well as some sort of value (such as a list of contacts or industry knowledge).
- Make a list of all of the niches in your industry of choice and compare your experience and contacts in each to help you make your decision.
See also: Tips for Gaining Employment through Staffing Agency
Employment agencies
- For example, work for a recruitment firm for lawyers if you are interested in law or have a relevant degree. Get a feel for the kind of law you’re most comfortable with to help you narrow down the focus for your own business.
- Search for local recruitment courses near you if you prefer face-to-face training.
- Research the trainers and industry experts that take part in your chosen courses or webinars to ensure they are applicable to your interests.
Read on: How do I Locate Temp Agencies near me( Read this tips)
Employment agencies
Consider a business partner to compensate for any lack of experience or knowledge. After getting some experience and training, ask yourself how comfortable you are working on your own. If you’re still not confident, ask contacts within the industry you plan to focus on if they know of potential partners.
- For example, if you are experienced in recruitment but not in running a business, find someone who is familiar with running a business (or both).
- Search databases like Business Partners for potential partners in your area.
Select a location for your recruiting agency. Whether this means working from your home or an office setting, determine your location. To increase visibility and access for both clients and job applicants, choose a professional and centrally accessible location. But bear in mind that you can still place candidates at businesses in locations that are not physically close to you.
- Determine the small business tax deductions you are eligible for after deciding on your location. For example, if you work from home, you can likely claim office costs, including rent.
- Estimate the space you will need to conduct your operation and don’t pay for anything more than that.
Employment agencies
- Become familiar with equal opportunity employment laws and restrictions about how to avoid discriminatory practices in advertising job openings.
- Conduct research on the amount and due dates of payroll and income taxes.
- Remember that you are responsible for paying temporary workers out of your own pocket until clients pay, which can be anywhere from 45 to 60 days past the date of a given invoice.
See also: Top Jobs Agencies That can Link you Up
Employment agencies
- Keep in mind that a business license is not the same as forming an LLC or corporation.
Apply for a small business grant or loan. If you don’t have the funds to cover all of the start-up costs and some extra funding would help, consider a grant or loan. Visit Grants.gov (https://www.grants.gov/) for a database of business grants around the world. Contact the banks in your area and inquire about business loans and interest rates.
- Don’t hesitate to switch banks for a better rate or to open up a separate account.
Employment agencies
Take out public liability, professional indemnity, and employers’ liability insurance. Contact local insurance companies and inquire about small business packages with these 3 types of insurance, which are the minimum that you should have for your recruiting agency. These insurances will protect against compensation claims, protect your advice or services, and keep your employees safe, respectively.
- Check your region’s laws about workers’ compensation insurance (medical, disability, and injury costs) and general liability insurance (damage to property or injury to people). Even if they’re not required, consider investing in them.
- Ask local businesses how much they are paying for recruitment services, what would make them change services, and what they look for in a recruitment agency.
- Differentiate your business from others in one of “The Four Ps:” Price, Product, Promotion, or Place. For example, offering a lower price point or unique promotional offer is one way of standing out from competitors.
Read also: How to Join MTA Employment Agency
Employment agencies
- Place advertisements in newspapers, business magazines, and online job sites to recruit job applicants.
- Produce marketing materials, such as a logo for office documents, a company newsletter to send to prospective clients, and company business cards.
Select a name and create a limited liability company (LLC). Choose a name that follows that LLC rules of your state or region. Afterwards, file out the formal paperwork—typically referred to as articles of organization—and pay the $100 to $800 filing fee to the state or regional agency that handles business filings.
- Create an LLC operating agreement to determine who manages the LLC and how to deal with profits. This is not required, but recommended.
See also: How to Fill Out an Employment Verification Form
Employment agencies
Create a “.com” website domain. When selecting a domain, avoid using hyphens and use a “.com” extension whenever possible. Remember that your URL defines your brand as it’s the first thing visitors see—it’s arguably more important than your business name! Take your time to decide on the right one.
- Register a free domain using HostGator or Bluehost, or pay through services like GoDaddy.com or NameCheap.com.
Design your website or hire a professional to do so. If you have web design experience or are up to learn how to use a content management system like WordPress, you can create one for little to no money. Of course, hiring a professional is also an option—just be sure to select a person with experience in design and SEO for recruiting agencies.
- Be sure to create a mobile-enabled site—this is important for catering to mobile users, which will likely be a big chunk of your traffic.
Employment agencies
Open up a small business account at your bank. In order to open a business account, you need a business ID. You might be able to use your Social Security number, but most banks require an ID—in the U.S., this is in the form of an Employer Identification Number (EIN) provided by the IRS. You also need applicable documents, such as LLC file articles and your business license.
- Gather the personal information of everyone who is going to use the account.
- Provide proof of your business name, which you should have from your LLC registration.
- Inquire about potential employees to your contacts in the recruitment agency whenever possible.
See also: Express Employment Agency: A Complete Guide on How to Find a Job Quickly
- Register for a small business plan at a credit agency if you haven’t already.
Employment agencies
Utilize an Applicant Tracking System (ATS). Microsoft Office might work for smaller businesses, but it will only get you so far—invest in an ATS to track and optimize the recruitment process. Popular systems include Recruiterflow, RecruitCRM, PCRecruiter, Crelate, Big Biller, JobAdder, and Bullhorn.
- Compare available systems in terms of their costs and features—choose the one that suits your business’ needs best.
- Be sure that you understand the regulations and laws in your region that govern vacation pay, overtime, and statutory holiday pay—you must send this information to the applicable government agencies.
- Consider hiring a payroll administrator—either in-house or outsourced.