Top Tips For Starting A New Recruitment Agency

With many companies seeking assistance from recruitment agencies to fill vacant positions and staffing shortages, now could be an excellent time to start a new recruitment agency. A growing number of people are applying for jobs. Unfortunately, many companies often don’t have the time or skills to spot the best candidate for their vacancies from those that apply, which is where the services of a recruitment agency can be invaluable. 

In particular, when there is expert knowledge of given employment sectors, you could be the resource that helps the company find the best candidates and helps many individuals to recognize their potential and skills to find the best opportunities for their careers. 

Aside from placing suitable candidates in employed positions, many recruitment agencies offer a range of temporary service and support staff, providing a great extra string to a new recruitment agency’s bow.

What to consider as you look to start your recruitment agency:

There are many different factors to consider when beginning a new recruitment agency. At times like this, it can be helpful to have the services of companies such as New Millennia, which offer specialist support services to recruitment agencies. They offer experience gained over many years working with recruitment start-ups and SME agencies to support many of the essential back-office support functions that are integral to running the essential day-to-day services of a successful recruitment agency. 


As a smaller new to the market recruitment agency, it’s better to find a specialism, something you have experience in and know. Leave the mass recruitment market to the big names, and concentrate on sectors and niches where you can use connections you already have, the skills and knowledge you have gained, and develop your brand to appeal to that audience.


Find out your competitors in the same field and recruitment agencies in general, no matter their size, and learn about them. Learn about the clients they represent, the roles they market, and how they do it. Observe how they connect their brand to the industry professionals they work amongst, and whilst you should seek to copy every move, there will undoubtedly be lessons to learn.

Know and observe the rules and regulations 

There are so many responsibilities that you take on as an employment agency, so it’s essential to know the current rules and regulations you must observe as an employer and business owner. Here is a quick rundown:

  • National minimum wage and living wage rates
  • Agency Worker Regulations 2010
  • Employment Agencies Act 1972
  • Conduct of Employment Agencies
  • Employment Business Regulations 2003.

As well to the above, you will need to understand tax and GDPR and the new business rules that you should follow too.

Know your costs

From costs such as website, phone, and premises to the additional costs of fees to register your business with the relevant bodies and the insurance you will need. There are also the costs of job boards that are likely to be subscription-based, and also it could be worth using a CRM to manage your client interactions as a tailor-made or off-the-shelf purchase. 

Know your budget and build a business plan, keeping the costs low when starting. Keep some savings in reserve for the unexpected. For example, you could consider a package of recruitment finance which could help you have what you need and reduce the pressure on yourself and your business.

Your price must be right

Be brave and set fees realistically. This means setting the right price for the services you offer. It’s easy to be tempted to set your price simply to undercut the competition, but this can send the wrong signals to clients and damage confidence. It is better to charge fees and get business based on costs that reflect your time, your investment, and the skills you offer. In this way, you build a sustainable business. If you start low and try raising fees for future placements, this can be a challenge and could cost you clients.

Adam Hansen

Adam is a part time journalist, entrepreneur, investor and father.