Starting a Recruiting Business

You will need to move out of your home office to operate an effective recruiting business.

The key to starting a recruiting business in any city is making connections with employers and workers alike. Many recruiters who have failed in running their own firms can network with one side while neglecting the other side. Your recruiting business may look good on paper but you need to demonstrate competence as a middle man between employers and applicants before making a profit. You can demonstrate your abilities by finding a professional niche, using the latest evaluation tools and by filtering out unqualified applicants.

Difficulty:

Moderate

Instructions

Things You'll Need

• Office space Standard employment application Office furniture

Become a Leading Job Recruiter in Your Community

1. Compile a list of recruiting businesses in your community to find an unfilled niche. If your town does not have an IT recruiter, pick this specialty as you start your business. You will be able to establish yourself as a leading recruiter in the area while getting a lead on general recruiters who dabble in IT.

2. Search for an inexpensive office space with an open floor plan as you start your recruiting business. Install cubicle walls, desks, and meeting tables throughout the office to handle interviews with prospective applicants. Look for an office that is already wired for internet and phone service to save yourself time and money.

3. Reach out to past employers, professional contacts, and colleagues as you develop your vision for a recruiting business. Interview each contact with questions about desired qualifications, education, and experience from employees. Ask your contacts if they have recruiting needs and work hard to fill these positions to generate a buzz for your business.

4. Develop a standard interviewing process complete with employment application. Each applicant should be asked a battery of similar questions to ensure a level playing field. Your basic application should feature spaces for contact information, education, experience, and references.

5. Research evaluation tools available to job recruiters to determine what tests are appropriate for your recruiting niche. For example, an IT recruiting firm may ask applicants to complete math, typing, and programming tests before proceeding to interviews. Look at software like Appraisal Smart to develop ongoing evaluation tools for employees who move from one position to another.

6. Draw in recruiters and administrative assistants with experience in the recruiting industry. Locate one or two experienced recruiters with a list of corporate contacts to give your recruiting startup a boost. Divide your recruiting staff into professional subsections appropriate for your niche. For example, if you are an executive recruiting firm, you may want to divide staff between businesses making over and under $1 million per year.

7. Attend job fairs in your area to prime the pump on your recruiting business. Encourage college students and young professionals to submit an application to develop a file of prospective employees. Bring plenty of applications as well as a list of interested employers to get the attention of qualified workers.

Tips & Warnings

• Discuss the payroll process with your corporate contacts to send out the right checks each pay period. Some companies use complex billing methods requiring the recruiter to charge outside clients for temporary projects. Ask each employer if they have a human resources professional available to handle payroll for outside recruits.

• Create a clear policy about communication between applicants and employers to avoid misunderstandings prior to job assignments. You should encourage new employees to speak with their assigned companies directly to reduce your staff's workload. Act as a mediator during disputes only if the applicant and the employer approach you first. Avoid disappointment by your corporate contacts by assessing available employees honestly. Some recruiters are tempted to hype their applicants in order to claim a higher percentage of assigned workers. Hand over employment applications and resumes to avoid any appearance of dishonesty if employees fail to meet expectations.

Resources

• Appraisal Smart software
• Targeted Job Fairs