View Full Version : Help needed! Wanting to start recruitment agency

05-07-2002, 09:49 AM
Hi everyone,

I would like to start my own recruitment agency, and wonder if anyone can help me.

First of all, how to recruitment agencies find jobs from companies.

Secondly, how do recruitment agencies make their money?

Any help would be great!!



05-07-2002, 06:54 PM
Hi Kathleen,

Recruitment agencies will basically contact companies or use business directories to search for companies to contact to offer to get employees for them for a fee, this can be alot cheaper for companies, because it saves them having to find someone or advertise for jobs etc... which can be time consuming.

Recruitment agencies charge the company when they find a candidate that matches their job description etc... some recruitment agencies will actually charge the candidate a small percentage of their monthly salary (which is a rip off).

There are other ways in which you can make alot more money, email me if you want to discuss this further, as I would be very willing to help you setup the employment agency as I think this is a field I would like to go into.


07-07-2002, 01:58 PM
They also find vacancies by browsing Local and National newspapers. Then offer to fill these positions for a fee to ever the company or candinate.

08-07-2002, 03:05 AM
Recruitment companies generally work in one of two modes: contingent and retained. The main differences are how payment is structured and how much priority and resources the agency will put into the assignment.

Contingent assignments are the more common form of work, particularly under market conditions such today's, and the fee is 'success-based'. That is, an agency will work on a requirement (i.e. present suitable candidates, arrange interviews
with the client, etc.) for free, receiving a commission only following the successful placement of a candidate. The commission itself will usually be a pre-agreed percentage of the candidate's first year's annual salary. The amount of
this percentage varies from market to market and sector to sector, but will likely be around 25% or less.

With retained assignments, the agency charges for the work performed as well as the placement. The amount that the agency will ultimately charge if a placement is made will again be percentage of the candidate's first year's annual salary.
Payment for a retained assignment will typically be structured as follows:

Engagement - 30% of X% of candidates' first year's annual salary
Shortlist - 30% of X% of candidates' first year's annual salary
Placement - Balance of Engagement fee, Shortlist Fee and X% of candidate's first year's annual salary

Because of the cost involved, clients will tend to engage an agency on a retained basis only if they have a very difficult requirement.

Golden rule: Always have the issue of rates/fee structure settleld before you start doing an work.


08-07-2002, 10:41 AM

Have you decided whehter you want to be an industry specialist or a general recruitment agency? There are pro's and cons of being both - Specialists tend to earn higher fees but are restricted to a finite market and therefore it can be much harder to find candidates.

I was also wondering how you were going to set up this agency. If you didn't have the personal finance or were'nt willing to take the risks of setting up your own agency, there are franchise opportunities available. These may not be any cheaper and are often more expensive, but you will have the backing and experience of the franchisor to draw upon whilst being able to retain control of the business.
If you wish to discuss this and other business matters further, please contact me.

Good luck

09-07-2002, 07:16 PM
If you are going to start a company like this, it is best to get some experience. Spend 3 months in a high street agency to get an idea of the work level that you need to imput into it. Recruitment is a very tough and cutthroat game at all levels. I would strongly advise not entering into it without some experience.

14-07-2002, 12:30 AM
I am also wanting to start a recruitment agency specialising in international hospitality industry and cruise ships, The buisiness will be mainly online. I want to try to build up trust in the companys that are using my site at first by offering free advertisement and charging 500 when they fill the position through me. Is this a good idea or too cheap/expensive?

Kat 21, there is an association of recruitment agencies called the REC: (http://www.rec.uk.com/setting-up-an-agency/start-up-course.htm) they do courses, although they are fairly expensive, look very usefull, I would love to do one, but dont have the money yet.

Good Luck


15-07-2002, 08:57 AM
thought i wud try an answer some of ure questions, as i work for lifetime careers, dunno if anyone has heard of that, but its a recruitment agency across the UK.

employers ring us when they are looking for someone to fill a vacany. the majoirty of clients at lifetime careers are school leavers, ages 16 to 18. we have a database of every kid at skool from ages 15+.

as for money, its government run so its not there to make profit, but the best way wud be to collect information about as many people who need jobs, collect information about as many people as you can, and get stats of this, then tell employers about your service, they will then come to you with their vacancies, any questions, feel free to email me.

15-07-2002, 08:18 PM
Like a couple of you people, I'm thinking of starting a medical recruitment agency because of my background and contacts in the health service.

Do you think it is possible to operate a recruitment agency on a part-time basis? For example, wait for a candidate who is looking for work to appraoch you then go out and find 'employers' who have vacancies to fill.

What do you think?

16-07-2002, 01:54 AM
It is possible I suppose, but where are you going to find these people? and also it would take longer doing it that way. I Think that a better way of doing things would be to find the job vacancies first as I would think they would be harder to come by, and then try to find people to fill them, through advertisement, word of mouth, etc.. Although I have come accross the problem also; How to find jobseekers without jobs available, and also how to find employers interested in employing through you if you have no possitions to fill? Its an interesting point......

16-07-2002, 05:36 PM
Well Jennifer, I think the medical/health service works a little different to that of industry. Although the recruitment process etc may be the same, I think the actual recruitment industry within the health/medical circles is a little different. I know for a fact that many hospitals are short on staff and I personally have contacts (health professionals) who know of others seeking to work on a temp or locum basis.

So finding the people to work is not a problem at all. Finding a suitable matching position may be more difficult but one which will entail lots of 'phoning' around.

My main question was, do you think it would be possible to run a recruitment operation part-time, perhaps say 3 days a week using a 'vitual office' type facility?

My aim would not to grow a massive empire but to slowly build a steady business.

17-07-2002, 12:35 AM
Of course it would be possible, and it also sounds like an excellent idea. Good Luck

Tweetie Pie
19-07-2002, 11:02 AM
Hi Kat

I too thought about doing this. However, after speaking to a business advisor at business link I was deterred from the idea due to the fact that it's best to have experience of the job so that you can take some clients with you.

Basically the employment agencies charge the companies who want to advertise their job a set fee of around 10-20% of the salary of the post. They advertise the job and find applicants for the basic fee and if the company are paying more then the agency interview as well. The agents are not allowed to charge the applicants searching for permanent work. They also find work for temporary workers. The agencies usually pay the temp theirselves and take a percentage of the temp's salary.

Good Luck!! You'll need to have experience so that you can take some clients with you otherwise it's going to be a hard slog to get a portfolio of clients. It's easy to find people looking for work (usually the agencies just advertise non-existent jobs (they're not allowed to do this by the way but they do it anyway!) so that people will enquire, then they take the CV, have a chat with the applicant to get a feel of what they want/who they are etc. and some agencies even to tests e.g. typing).

Hope this helps you.

15-01-2003, 04:53 PM

I have a number of clients (doctors) that are looking for placements at hospitals within the UK. This forms the basis of medical recruitment however i need to contacts within the health service to 'complete the circle'.

Is there anyone out there that could help?


19-01-2003, 10:20 PM
Hi All,

I can see that many of you are keen to enter into the recruitment industry, but has anyone thought of how they are going to present candidates to clients?

Candidates need effective, eye-catching CVs, especially considering the vast number of CVs that HR departments have to view!!

My own self-designed, one-page CV got me an interview with an international law firm, and I had no legal expereince!! - and yes, I did get the job.

So if you feel that you may have the need for an expert CV designer, feel free to contact me on Lorna@lhunte.freeserve.co.uk

It's already been said, 'if you don't ask, you don't get!'.


Transition Consultants

16-09-2013, 01:41 PM
Well, book "How to start an HR Consultancy Company?" might be helpful to the people who want to know about the starting a HR Firm. "How to start an HR Consultancy?", is a reference guide for those who want to start their own company. Several topics covered in this book are common for any business and not just HR Recruitment Firm The book describes the need of HR recruitment firm and its benefits for the employers and job seekers. It also provide an insight into the inner working of the consultancy and how to tackle the problems that can be associated with the business. Check out more more at: http://gsjobpoint.com/how-to-start-a-hr-consultancy-company.php

25-09-2013, 04:42 PM
From experience recruitment companies seem to charge 10% of the salary of the vacancy they're filling?

Anushka Rao
26-09-2013, 01:25 PM
First list out the companies list based on their requirement and then you have to deal with the companies about the recruitment..The candidates who are referred by your consultancy should have eligibility for that particular job role..

27-09-2013, 07:01 PM
Hi Kathleen

To start a recruitment agency you need 2 things. Clients who want your help in finding people for them and candidates who want your help in finding new jobs. The trick is matching the two together.

To get candidates with specific needs try advertising on sites like monster or totaljobs. Alternatively if the job requirements are very specialised you might consider headhunting people who you know would be suitable.

To get the clients it's a case of new business. There are lots of agencies all chasing the same jobs so it's very competitive and you may have to try things getting a great candidate and sending out their details to companies to get interest.

Its not easy, but the rewards from recruitment can be very good (I used to own a recruitment business myself). Good luck.


20-07-2014, 06:30 PM
Hi I am trying to set up a similar website as graduate jobs, where they are advertising jobs for graduates, and the graduates could apply on their own, not necessarily through the company. I am not sure if this is a recruitment website, or if it has any other name?
And also, when I have the website done, how shall I start building the first clients to send me their placements , if they are going to have a look at the website, but there are no placements yet.
What would be the best approach?
Do you have any email templates to approach new customers and offer new services?
Are any particular laws I should be aware of?

Thank you

07-02-2017, 12:07 PM
Agencies make money in two main ways. By charging the hiring company a percentage of your salary. Depending upon the difficulty to fill the role the percentage can change but a normal fee is 20%. Most reputable recruitment agencies work with the companies to agree on a salary. The company then pays the recruiter a percentage of that salary as a fee. The recruitment agencies get contact and email address of candidates from online portals or online job registering companies.