How To Open A Recruitment Agency? A Complete Guide.

. 6 min read
How To Open A Recruitment Agency? A Complete Guide.

Recruitment Agency Business Plan and more.

Opening a Recruitment Agency

  1. Recruitment agencies have been around for as long as offices have existed.
  2. Recruiting companies conduct their recruitment drives and exams to shortlist and select candidates for various jobs and responsibilities.
  3. However, there are still companies that don’t conduct these exams; instead, they cede such responsibilities to HR Recruitment Agencies.
  4. They can either decide their criteria for testing and sorting or apply the standards that their client has demanded.
  5. We will go through a detailed analysis of what is required for starting a recruitment agency and ways to expand said business in the present climate.

What Do Recruitment Agencies Do?

  • HR or Recruitment agencies are the companies that act as a channel between job providers and job seekers.
  • They are responsible for shortlisting and analysing candidates for selection in required jobs.
  • They administer various tests and filters to separate the wheat from the chaff.
  • They are also responsible for interviewing the candidates, conducting background checks for any-
  1. Past Digressions
  2. Administering Psychometric Tests
  3. Verify Their Documents like-
  • Educational Qualifications
  • Achievements
  • And henceforth ascertain their eligibility for the required positions that they are judged.
  • These agencies have been surging in popularity in recent years.
  • They have increased by 15% pa since 2014.
  • They are increasingly relevant as a viable business option.
  • As the number of startup businesses in India increases and becomes lucrative, they will require more and more recruits to expand their operations, which, incidentally, needs recruitment agencies.

Tips on Starting a Recruitment Agency

There are several factors to keep in mind while launching a Recruitment Agency. Here are some tips to help you through the process:

How to Select Niches? Or not select niches?

  1. Selecting a niche for your agency to cater to, namely Finance, Accounting, IT, Engineering, Banking, Freelancing, Law, etc., can be beneficial to your company at the outset when you’re starting as a new agency.
  2. Catering to a particular niche and specialising in its idiosyncrasies can kickstart your agency as a viable option for their needs.
  3. As initially, companies tend to use recruitment agencies that are proficient at hiring in a particular niche.
  4. This thing is particularly true of highly specialised industries like Education and Science.
  5. This strategy will work for you quite well.
  6. However, we also advise that you must always be open to options and diversification.
  7. Agreed, that hiring in a particular niche might serve you in the short term, and for some, it may also work in the long term, but it isn’t a guarantee.
  8. Catering to a particular niche would allow you to kickstart your career as a recruiter, but it isn’t and very unlikely to be scalable.
  9. Your agency will not be able to grow beyond a certain point. You will be impeded by the limitations of your own vertical that you serve.
  10. The lack of diversification will curtail your growth as a recruiter and might allow competitors to get much ahead, even displace you from your position of prominence.
  11. Our advice— start with serving a particular niche, increase and scale up your business, and when you feel our growth stagnating, diversify.

Study Your Competitors

  1. You are not the first one to start this business, nor will you be the last.
  2. Recruitment agencies are sprouting up everywhere, and they are not here to play.
  3. It would be best if you always studied your competitors.
  4. When starting an agency, do a quick study of your competitors’ business strategies and the services they provide.
  5. Analyse the reasons behind their success, or their failure, and try to implement solutions to any problems that you see in your business model.
  6. Also, try and be open to acknowledging the shortcomings of your model and eager to resolve them.

Create A Database

  • Creating a database should be one of your priorities when starting a recruitment agency.
  • Whether it be clients or job seekers, you should always have the required data at your fingertips.
  • When clients are concerned, you should always have their various credentials and information along with the kind of skills and qualifications they require of the job seekers.
  • You must also have relevant information on all Job seekers available in earnest for clients.
  • You should also create a database for your skill and psychometric testing.

Take Part In Job & Career Fairs

  1. Getting in touch with organisers of job and career fairs and systematically introducing your business will do wonders for your agency.
  2. You will get exposure to job seekers and clientele and will be able to explain your business model better.
  3. You may also take the initiative in partnering up with colleges and universities to organise recruitment drives and career seminars on their campuses.
  4. Conducting these events on college campuses is even more successful, as college students are more likely to attend an event on their campus.
  5. Also, you might be able to succeed in partnering with the college as their preferred placement and recruitment consultant.

Contact Your Clients

  • Being a new recruitment agency, you are unlikely to be contacted by clients or job seekers directly.
  • You have to invest in advertising and marketing to popularise your agency.
  • You must contact clients directly, present your position, and explain the incentives of the client connecting with your business.
  • To job seekers, your business holds sway when you have actual companies backing your claims of selection.
  • Other than that, you should do basic marketing like printing pamphlets, business cards, and advertisements, distribute them in public places and publish them on social media.
  • Use every opportunity you get to connect with people.
  • Due to the nature of this business, your constant connection with your clientele and consumers is paramount and cannot be underestimated.
  • If you move out of the stream of consciousness with the people you’re concerned with, it would be very hard to rebound and can be hazardous for your business.

Stay Updated & Connected via Social Media

  1. As a business in the 21st century, as well as being one that is highly dependent on public outreach.
  2. You should have a prominent social media presence.
  3. Follow competitors, clients, and executives; reach out to job seekers and the general public.
  4. Tweet and use Instagram, engage people on Facebook; if possible, take the help of influencers and celebrities to expand your outreach.
  5. Be open to new ideas; a little humor will go a long way, as will humility.
  6. If you receive complaints on social media, be patient, and try to resolve the problems in earnest.
  7. Establish a dedicated social media team that will reply to people, engage them in conversations, and create hype about the company.
  8. You must also be open to criticism, but when you run into trolls, don’t hesitate to hit back with a funny retort.

SEO & Website Management

  1. Create a website and be generous in advertising different incentives you offer to different individuals.
  2. Try and integrate Search Engine Optimisation (SEO) on your website to ensure you turn up on top of Google search results.
  3. Create merchandise with your company’s insignia and sell them on your website.
  4. Use social media influencers for marketing the merchandise, and ask your employees also to wear them as often as possible.
  5. Your website should be interactive, intuitive, attractive, and easy to understand and navigate through for people.
  6. Use technological advancements wherever possible and viable.
  • The very first step is getting your company registered.
  • This will allow you to receive legitimate investment and financing for your business.
  • You can register your company as a Partnership, Proprietorship, Limited Liability Partnership, etc.
  • This depends on your requirements and your plans for the future.
  • You must also register under GST and MSME.
  • You also require Recruitment Agency (RA) Licensing to allow you to recruit Indian citizens to overseas jobs under the Protector General of Emigrants (PGE) by the Ministry of Overseas Indian Affairs.

Also Read:

Trending Culture of Work From Home Jobs: Advantages & Disadvantages

Top 10 Reasons Why Youngsters Leave Jobs For Business

What’s your need in 2020: Experience or Talent?

In Conclusion

  1. We hope this article serves as a guide to start and manage a recruitment agency.
  2. Follow our advice, and you’ll be able to create a successful business in this niche market.


Q- Which license is mandatory for recruitment agencies to provide overseas recruitment?

Ans: You must have Recruitment Agency Licensing from the Ministry of Overseas Indian Affairs.

Q- Do you need to deposit money for starting an agency?

Ans: Apart from the necessary investment required to start an agency, you’ll need a demand draft of Rs 25,000 with a bank guarantee of Rs 20 Lakhs when applying for a license at the concerned ministry.