Despite the fact that recruitment agencies have existed for a long time, many job seekers do not fully understand the specifics of their work. And someone had a bad experience working with one of the agencies, and therefore there was a strong feeling that they were all incompetent and it was not even worth wasting time on them.
Let's first figure out what it is - a recruitment agency.
This is a company that acts as an intermediary between you and the employer. Travel agencies work on the same principle, offering you trips from several travel operators at once. In both cases, you do not pay for the agency’s work. His services are paid for by the company (employer or tour operator).
When does a company turn to a recruitment agency?
When an employer has a need for personnel, he can find a person on his own or contact a recruitment agency. The reasons are completely different. For example, a company needs to find a highly qualified specialist in a rare profession or quickly employ several good specialists. And it also happens that the company itself is small and rarely does anyone leave it, so the HR department simply does not have access to closed databases with potential candidates and it is easier for them to contact a recruitment agency that will help them quickly find a suitable candidate.
What are the differences between recruitment agencies?
First, let's understand the concepts. Employment agencies, staffing agencies, recruiting agencies - is there a difference between them and what does it consist of? Recruitment agencies are the general name of companies that provide certain services related to personnel (whether it is personnel selection or, on the contrary, employment). Recruiting agencies search for employees for various companies and enterprises. That is, their clients are the companies themselves, and not specific people. Employment agencies search for suitable vacancies for people who contact them. Here the clients are specific individuals who are looking for work.
There is also such a specific direction of personnel organizations as headhunting (headhunting). This is a search for true masters of their craft, professionals with extensive experience, highly qualified specialists. Now more and more recruitment agencies are switching to a mixed type of activity, that is, providing services for both job seekers and enterprises. But still, employment services for individuals are not available from all agencies. Working for enterprises is much more profitable for them financially, which is why the main emphasis is placed on this type of service.
How do recruitment agencies work?
To begin with, the employer submits the application to the recruitment agency and negotiates the remuneration for the employed specialist. Typically, this is a percentage of the total annual income of the employee being hired. For example, the salary of a future employee is 50,000 rubles, it is multiplied by 12 months, and from there the percentage is calculated (50,000 * 12) * 10% = 60,000. That is why it is beneficial for the recruitment agency that your salary is higher. After this, the manager responsible for this position begins the search.
I will note several features of searching for candidates through a recruitment agency:
- The CA manager does not mention the name of the company during a telephone interview. The reason is simple: to prevent the applicant from contacting the company directly. Because if the customer finds an employee on his own, then the agency will not receive anything for the work done.
- A CA employee can offer you a number of vacancies from different employers if you fit the profile. You can choose one of them or try several at once.
- The employer sets quite strict requirements for the search for its future employee and is much less likely to make concessions. If your resume is sent to a company, it means that you really meet many criteria. Moreover, the CA specialist himself will especially highlight your advantages so that your resume is considered.
After the resume has been approved by the customer, you are invited to an interview with a potential employer, and you already go through the standard stages of the interview. Sometimes the interview is conducted immediately by the future manager, so as not to waste time talking with a recruiter. And now you have successfully completed all stages of the interview and are hired.
Recruitment agency franchise: business advantages
The reasons for failure in doing business are often sought in low qualifications of personnel, lack of material and technical base, and something else. Few of the management of existing companies think about the quality of the chosen strategy. Founders tend to think that everything has already been invented and even initial knowledge about the field of the chosen business is already an important undertaking.
The strategy that will invariably lead to profit lies solely in expansion, increasing the company's turnover and other things.
The misconceptions lie much deeper. If you compare franchise costs and overhead costs, it turns out that they are basically identical. The real losses are not so much the loss of money, but rather the loss of time and synchronicity of development. Franchising gives aspiring entrepreneurs a powerful perspective:
Franchise agency
- Starting a guaranteed profitable business under an existing brand. An already existing brand is an opportunity to work with an existing customer base. The recruitment agency is ensured in advance to capture part of the market in finding qualified candidates in its region.
- A franchise eliminates the need for experience in running a business. Business processes in the industry have already been streamlined. For the money paid for the proven strategy, new employees are provided with professional advice and mistakes are corrected.
- Working under a franchise is an undoubted authority in the field of the chosen business. An entrepreneur does not need to attract a lot of capital by unsuccessfully searching for investors or hanging around the thresholds of credit institutions.
- The franchise exempts you from the need to carry out special events to obtain quality certificates and special permits.
- Working under an existing brand does not require increased attention or predisposition on the part of local structures. Critical processes that may arise during the formation stage are easily resolved from the company's headquarters.
All that a company applying for a startup franchise will need is to pay an initial fee. A one-time payment is called a lump-sum fee for entering the market as a structural link in the existing network. In addition to the initial contribution, the startup organization will need to find office space, set up office work, and purchase a dedicated telephone line.
The objective advantages that a recruitment agency franchise provides are:
- a proven and profitable business scheme;
- low level of competition in the regions;
- no advertising investments;
- advisory support of the franchisor at any stage of the company’s activities.
Thus, a franchise recruitment agency is a promising option for starting a business. With full support by the franchisor (providing a brand, logo, client base, legal documents, support from personal managers), the payback period for the project is 6-9 months.
What happens next?
When agreeing on conditions, the customer and the AC discuss not only the requirements for candidates, but also the conditions for “replacement”. What it is? Replacement is a guarantee that if an employed employee quits of his own free will or does not complete the probationary period, then KA will select a new specialist free of charge. The guarantee period can vary from 1 to 6 months, depending on the position. Therefore, CAs are extremely interested in your completion of the probationary period and, in order to keep their finger on the pulse, they periodically contact you and ask how you are doing and if everything is in order.
Step-by-step opening plan
Let's look at a step-by-step plan for opening a recruitment agency.
Choosing a niche and target audience
Large companies usually have their own HR department, but they may also use the services of a third-party HR service. But for small firms, it may not be profitable to maintain their own personnel department, and they completely outsource the selection of personnel.
When starting a business, you should immediately decide on the specifics and direction of activity:
- Employment agency. Such agencies provide applicants with contacts of enterprises and firms that require workers. For this, applicants pay a certain amount of money - from several hundred rubles to the monthly salary offered by the employer. Now this format of work is becoming a thing of the past, because the Internet is full of vacancies that can be found for free. To operate as an employment agency, you need to have access to a wide database of vacancies that are not publicly available.
- Recruiting staffing agency. Here the work is based on the orders of employers and a search is made for personnel that meets their requirements. And the agency fee is paid not by the employee, but by the employer. This fee can reach 3 monthly salaries of the employee: however, there are additional conditions (for example, the employee must complete a probationary period and work for at least a certain period). This is how most large staffing agencies work, such as Kelly Services.
- “Headhunting” is the highest qualification in the field of personnel selection. Work is carried out exclusively with professionals. The problem is that they need to not only be found, but lured, since high-class specialists are usually already employed and receive good money. But for completing such a complex task, the recruitment agency receives an impressive reward.
- Narrow specialization, for example, work exclusively on hiring domestic staff - nannies, housekeepers, security guards.
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Opening a recruitment agency from scratch is difficult in terms of HR experience. It will be much easier for a specialist who has experience.
A high level of qualifications will allow you to open new areas of activity, providing additional services:
- labor market research;
- conducting trainings to improve the qualifications of full-time HR specialists of companies;
- consulting services, develop personnel policies.
A recruitment agency can be opened offline or online. The online format allows you to search for applicants all over the world, but there is one caveat. Most clients insist on meeting with the candidate, although the first interview can be done via Skype. Therefore, many people combine work offline and online.
Search for premises
You can organize a recruitment agency without an office. To do this you will need a computer, a phone and the ability to work 24/7. This is an option when opening an agency will cost practically nothing.
If the project involves the presence of a premises - an office, then you need to know the following:
- Area - at least 30m2.
- It is advisable to rent a room in the city center. The weighted average rental cost is 800–1200 rubles per 1m2. If you open an office on the outskirts, the price of 1 m2 is reduced to 500–700 rubles, but large clients are unlikely to come to such an agency.
Equipment
The office must be provided with high-quality Internet connection.
Important! A recruitment agency cannot do without high-quality automated systems. Their cost on average varies from 30,000 to 70,000 rubles.
A set of office equipment: a computer, a printer with a scanner, a telephone will cost 30,000–50,000 rubles.
Professional business plans on the topic:
- Business plan for a recruitment agency (38 sheets) - DOWNLOAD ⬇
- Business plan for a law firm (30 sheets) - DOWNLOAD ⬇
- Real estate agency business plan (43 sheets) - DOWNLOAD ⬇
Business registration
To open a personnel agency, you do not need special permits or licenses. It is enough to register an individual entrepreneur under a simplified taxation system with a deduction of 6% of revenue. Basic OKVED codes:
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OKVED code 74.50.1 - provision of employment services; OKVED code 74.51.2 – provision of personnel selection services.
You can download a business plan for a recruitment agency from our partners. The quality of calculations is guaranteed!
Finding clients and promoting a recruitment agency
The key stage is finding clients. You can:
- advertise on the Internet and on specialized recruitment resources. This could be banner advertising, targeted advertising on social networks or contextual advertising leading to your website,
- send commercial offers to large companies in your city,
- contact applicants who have published their resumes and invite them to work with your agency,
- advertise on radio, TV, and billboards (this is expensive and not always effective).
If you already have experience in recruiting, finding channels for attracting clients will be much easier than for a beginner - it may be enough for an experienced specialist to connect his connections.
Who else does the selection?
The selection service through CA is, of course, very convenient for employers, but at the same time expensive. Therefore, companies sometimes turn to freelance recruiters. These are recruiters who work for themselves. Most often they conduct interviews simply by phone or Skype. They are less likely to provide a warranty period for replacements, and, as a rule, their fee is strictly fixed.
The choice whether to cooperate with private recruiters and recruitment agencies or not is, of course, up to you. But this is an additional job search resource that may not work now, but after some time they may call you and offer you an interesting vacancy.
Features of recruiting agency franchising
Franchising a recruitment agency is beneficial for start-up entrepreneurs and organizations planning to rebrand an existing recruiting company. Thanks to a franchise, you can profitably use the experience of established technologies, quality standards and all components of a profitable business, the success of which has been proven over years of fruitful work.
Sources
- https://www.e-xecutive.ru/wiki/index.php/%D0%9A%D0%B0%D0%B4%D1%80%D0%BE%D0%B2%D1%8B%D0%B5_ %D0%B0%D0%B3%D0%B5%D0%BD%D1%82%D1%81%D1%82%D0%B2%D0%B0
- https://franshiza-master.ru/katalog/uslugi/kadrovoe-agenstvo
- https://ca-em.ru/agencies/employment.html
- https://dengodel.com/management/278-osobennosti-raboty-kadrovogo-agentstva.html
- https://www.im-konsalting.ru/blog/kak-rabotayut-kadrovye-agentstva/
- https://www.shopolog.ru/metodichka/idei-dlya-malogo-biznesa/kak-rabotaet-kadrovoe-agentstvo/
- https://profylady.ru/articles/biznes-idei/kak-otkryt-kadrovoe-agentstvo.html
- https://ardma.ru/biznes/nachinaya-biznes/zapusk-osnov/418-kak-otkryt-kadrovoe-agentstvo-s-nulya-poshagovo
- https://hr-agent.ru/company/nashi-printsipy-raboty/
- https://PravoDeneg.net/biznes/franchising/franshiza-kadrovogo-agentstva.html
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What a job applicant needs to know when working with spacecraft
Like any company, recruitment agencies have different specializations. This is worth paying attention to before you start interacting with them.
- The most common direction is the selection of line and management personnel. From such agencies you can find vacancies for accountants, commercial directors, production technologists, etc.
- Executive search. These recruitment agencies, as a rule, do not post vacancies on the website, since their main task is to recruit very high-level personnel or unique specialists, of which there are only a few in the country. They are often approached by companies that want to find a replacement for an existing employee. Such vacancies are not advertised, and the company name is announced at the very last moment.
- Taking into account the rapid development of the IT sector, agencies have appeared relatively recently that recruit only IT specialists.
- Mass recruitment. Such agencies select warehouse workers, merchandisers, specialists who work on a rotational basis, etc.
- There are also individual CAs that specialize only in the selection of domestic staff, such as maids, married couples, housekeepers, etc.
How to open a recruitment agency from scratch step by step?
Follow this algorithm:
- Business registration. Now there are services where you can make documents. With their help, you can understand which is better: individual entrepreneur or LLC.
- Find a place to work and sign a lease agreement.
- Obtain permission from the Fire Department.
- Rent or buy simple office furniture, connect to the Internet, buy a computer or bring your own.
- First, you can take on the responsibilities of HR, manager, advertising agent and accountant. Or immediately conduct a casting of employees.
- Develop a marketing policy and conduct an advertising campaign.
“Creating a commercial employment agency is simple - step by step,” sums up Igor Malyugin. “However, there are important points in this process. The amount of initial investment depends on how to open an employment agency.”
How job seekers can communicate with KA and how its website is useful
On the website of each agency there is a section “Vacancies” or “Applicants”, where they add current open positions. Of course, there are not as many of them as on hh.ru, and new ones do not appear as often, but it’s worth visiting this section periodically. Well, if you haven’t found a suitable vacancy, you can send your resume to the agency’s email or upload it on the website. Be sure to indicate in your cover letter what you previously did and what you expect now. This is necessary to ensure that your resume reaches the hiring manager who specializes in your segment.
Employment agency: advantages and disadvantages
Recruitment agencies have several advantages. First of all, they are easy to organize. Secondly, personnel selection involves low operating costs. Thirdly, at the formation stage you can cope without employees, and therefore without a salary fund.
However, the disadvantages may outweigh the advantages. In particular, possible difficulties lie in obtaining an agent commission, since clients often refuse to voluntarily pay for services. This is the first! Secondly, large enterprises, as a rule, have their own personnel departments and are reluctant to make contact with small recruiting organizations. Thirdly, there is a high percentage of attrition of selected personnel during an additional interview already at the customer’s enterprise - since applicants overestimate their professional skills.
Fourth, employers may advertise false vacancies to probe the labor market. This means that the emissions here will be zero. So the first year of work will definitely be difficult.
CA and social networks
Another option for communicating with CAs is to find them on social networks such as Facebook and LinkedIn. We usually resort to this method when we cannot get an answer in other ways. Contacting a specialist directly helps to immediately establish a dialogue and communicate in a less dry and formal manner. This method is especially effective when the main task is not to respond to a vacancy, but to build long-term, promising relationships, since a candidate who appears in this way will certainly be remembered.
The article was prepared by the career consultant of the agency for job seekers “IM Consulting” Anastasia Guseva
Tips for the owner of a recruitment agency
- Don't skimp on advertising
. But you shouldn’t spend large sums on the principle “the more you pay, the higher the return” - this is not always the case. If you understand your target audience well, look for better ways to interact with them. - Think about pricing.
There is no point in dumping, because good specialists know their worth. But you shouldn’t inflate prices too much, especially at the beginning of work. - Look for regular customers
. You only need a few large clients to recoup your expenses and turn a profit. - Work to promote the brand
. Develop your logo, come up with a unique name, participate in public events, hand out business cards and small souvenirs with your logo. - Think through all aspects of working with personnel
. For example, one is engaged in recruiting, another specialist is in search of corporate clients.
It will be useful to read:
- How to name your company
- How to conduct a job interview
- How to open a travel agency from scratch
Rating of Moscow recruitment agencies
The best recruitment agencies in Moscow:
- Personnel XXI century. Address: Pyzhevsky lane, building 7, office 10. E-mail Phones, +7.
- Second Mom. Address: Leninsky Prospekt, 15, entrance 2. E-mail Telephones, +7 (495) 991-22-25. What's App. Viber: +7 (903) 101-30-36.
- Your HR partner. Address: Shchelkovskoe highway, 77, building 1. E-mail Telephones, 8.
- Inter-HR. Address: st. Nikoloyamskaya, 6. E-mail: [email protected] Phones, +7 (495) 911-12-04.
- VMKOM LLC. Address: Zubovsky Boulevard, 35. building 3. E-mail Phone.
- Diamond Personnel R&C. Address: Tsvetnoy Boulevard, 11 building 6, 5th floor, office 502. E-mail Telephone.
- ABIS staff. Address: Leningradsky Prospekt, 47. E-mail for employers For candidates Telephone: +7 (495) 727-35-59.
- Favorite. Address: Maly Karetny Lane, 11, floor 2, office 208. E-mail Telephone: +7 (495) 988-55-25.
- RATIONAL GRAIN. Address: st. Marksistskaya, 34, bldg. 8. E-mail Phone: +7 (495) 777-09-07.
- Group . Address: Semenovskaya embankment, 2/1. E-mail for employers For candidates Telephone.
Agency objectives
Before opening an agency, it is important to understand the goals and specifics of its work. The company acts as an intermediary. The recruitment agency selects the right employees for the employer, and helps the applicant find a job. The mediator saves time for all concerned. Its activities are carried out in two directions:
- client-employer. This includes the search and selection of employees within the agreed time frame, the reliability of the personnel provided;
- recruitment agency. Ensuring profitability, making a profit, searching and training our own personnel, promoting the company in the personnel services market.
Of course, there is a simpler and cheaper way for the employer. You can select a separate person who will search and train employees. But this is associated with additional costs, often unjustified due to underemployment. And the applicant can endlessly leaf through newspapers with advertisements or walk around enterprises in search of work.
It is much more effective to turn to professionals. The recruitment agency has an extensive database of applicants and a well-functioning mechanism for selecting candidates.
