Starting a Recruitment Agency

[5aq1b]

Judging by searches, I have a feeling this may be done to death however I have a different approach to this....

I'm already in a job at the moment as an IT contractor however the number of times in previous roles I have passed on CV's which have went on to become successful is ridiculous. I am now in the same position again in my current role where my line manager is looking to fill a position and is looking for CV's. I have a friend who is actively seeking and I know he'd be a perfect match. In the past, the CV's i've handed over have then been told to go through X Y Z agency. They take the commission even though they did nothing to find this candidate. I know I could get finders fees etc but not every agency offers that.

This leads me on to starting a recruitment agency. I have a job at the moment so I wouldn't be chucking my eggs into a startup venture. I wouldn't be on the phone day to day trying to gain customers (maybe this could come in the future if I did end up with a number of candidates through word of mouth). I would just have a Ltd company there, registered as a recruitment agency (with necessary insurances?), which I can use to pass CV's to people who I am already doing work for. Due to the nature of work, I work closely with line managers, service delivery managers etc so they can make decisions on what agency they wish to use etc.

Is this a pipe dream? Is it a huge effort or can I realistically set this up so I can take a % of the candidates salary?

 

[Richie N]

I would suggest finding an agency that offers a referral fee. There's more to a recruitment agency than just passing on a CV.

 

[5aq1b]

the whole reason i'm here is to find what the logistics would be.

 

[Richie N]

If you're an IT contractor, are you a limited company yourself? put them through that....

 

[NickGrogan]

If you were placing the candidates into perm jobs, then this would be a good idea. But it seems like you are talking about contractors. This means that you would be paying the contractor yourself and then charging the client.

This is more complex and also opens up cashflow issues, where the contract is paid for example weekly, but you are invoicing monthly and getting paid up to a month later. This is a lot of cash outstanding. There are companies that will do this for you, but the costs are high, when you only have a few people on contracts.

Its not as easy as it seems.

 

[5aq1b]

If you're an IT contractor, are you a limited company yourself? put them through that....

If you were placing the candidates into perm jobs, then this would be a good idea. But it seems like you are talking about contractors. This means that you would be paying the contractor yourself and then charging the client.

This is more complex and also opens up cashflow issues, where the contract is paid for example weekly, but you are invoicing monthly and getting paid up to a month later. This is a lot of cash outstanding. There are companies that will do this for you, but the costs are high, when you only have a few people on contracts.

Its not as easy as it seems.

Thanks guys, forgot to add that it is actually for permanent roles.

Either way, I am under no impression that it's easy. But would just like a steer.

 

[NickGrogan]

Perm recruitment is easy if you can source the clients and candidates, as you seem to be in a position to do both, it could work well for you.

PM your details and we can talk more openly. I have 5 years recruitment experience and has built companies from zero start.

 

[LowPrices.uk]

Do you want to actually start and run a recruitment agency? Or do you just want to get paid for the fact that you have referred someone you knew to a company you work for?

If the latter, then why can't you just say to your boss or whoever is recruiting, that you know someone suitable, but would only be prepared to put them forward if you are paid an agreed fee if they are taken on. You then just need to draw up a simple contract, and provide it to your boss to sign. Then give the referral, and if the candidate is successful, invoice your boss as agreed.

 

[5aq1b]

Do you want to actually start and run a recruitment agency? Or do you just want to get paid for the fact that you have referred someone you knew to a company you work for?

If the latter, then why can't you just say to your boss or whoever is recruiting, that you know someone suitable, but would only be prepared to put them forward if you are paid an agreed fee if they are taken on. You then just need to draw up a simple contract, and provide it to your boss to sign. Then give the referral, and if the candidate is successful, invoice your boss as agreed.

you make a good point however i would like to have the agency side of the business there if the opportunity arises in the future where I'm asked for a suitable candidate.