The unstable economic situation in the country always brings with it certain changes in the labor market. As a rule, at any time, two enormous problems are observed - unemployment and a shortage of high-level specialists. That is why recruitment agencies are in demand. Starting a business in this area is an attractive idea for many job seekers. After all, those who are faced with the search for employers and employees need to meet somewhere. It is a recruiting company that is able to unite both those and others.
Recruitment Agency Business Plan
This is the first where many companies begin their business. When compiling a detailed plan, you need to consider many different points, including calculating potential profitability.
What items should a recruitment agency business plan consist of?
- The direction of activity.
- Objective of the project.
- Description of the industry.
- List of services.
- Advertising.
- An example with calculations.
- Risk assessment.
- Efficiency.
Let's discuss each of these items.
Area of activity
This is an urgent moment, which in no case should be overlooked when preparing a business plan for a recruiting agency. Several directions are possible.
- Agency for job search. His main clients are job seekers who are looking for work. As a rule, a recruitment agency in this case receives a certain fee for providing information about free vacancies. At the same time, no one guarantees successful employment. The staff can only help the candidate in compiling a list of the most suitable options, allowing him not to spend his own time looking at absolutely all the vacancies available on the labor market of the selected region.
- Agency to search for employees. These are, as a rule, more reputable companies whose clients are employers who want to fill a vacancy as soon as possible. Payment is made only when a worthy candidate is found. Some recruitment agencies offer services to attract specialists who work in other companies. The payment in this case is even higher, since it is usually not about the unemployed, but about highly qualified specialists who have a permanent position.
Objective of the project
It consists in implementing a project related to the opening of a recruitment agency. As a business, this idea is always relevant, as the labor market is mobile.
In fact, a recruiting company becomes an intermediary between a potential employer and an employee, representing the interests of one of the parties. That is why it is important to decide in advance which clients the recruitment agency will be oriented to.
According to preliminary calculations, the costs will amount to several hundred thousand rubles. However, this issue will be considered in more detail as part of the business plan.
Industry Description
The Russian economy has led to the formation of a relatively difficult labor market. On the one hand, there is unemployment. On the other hand, on the contrary, there is an increased demand for highly qualified job seekers. That is why the recruitment agency’s business plan must take into account the various risks posed by this industry.
The trend is that some companies prefer to hire remote employees. This allows them to reduce staff costs. Accordingly, the trend is gaining momentum.
In addition, all issues related to interaction with personnel, some companies are trying to automate and in this way reduce the demand for services of recruitment agencies.
There is high competition in the industry, which leads to the fact that recruiting companies choose narrow specializations. Some help applicants, others, on the contrary, to employers. There are also such recruitment agencies that offer the search for employees of a particular specialization.
The peculiarity of the industry is that it is not difficult to open a recruiting company. It is much more difficult to turn the idea of a business with a recruiting agency into a successful and profitable company with a reputation of a reliable partner you can trust.
List of Services
Any company aimed at the provision of services should clearly determine their list. In the future, this directly affects the level of profit and the availability of customer flow.
When compiling a business plan for a recruiting agency, an example of which we are considering, we can include the following services for potential clients, which may include applicants and employers.
- Candidate selection. In this case, the company that needs the employee applies to close the vacancy. As a rule, the employer has a number of specific requirements for a potential employee. A human resources specialist can simply look through dozens of resumes, check them for compliance with the requirement, or finish the job by arranging an interview with potential candidates.
- Assessment and testing of employees. Such a service is relevant for companies that seek to increase the efficiency of their own personnel. To this end, recruitment agencies employ full-time psychologists who use various tests to assess the level of motivation, aptitude and other characteristics.
- Outsourcing A similar service is also provided to employers who, for whatever reason, do not hire full-time employees, but at the same time have the need to perform certain business tasks.
- Drawing up a resume. This service is for applicants who are interested in finding vacancies. Human resources specialists are able not only to suggest how to write a resume correctly, but also in what ways it is better to look for potential employers, which companies to apply to in the first place.
- Selection of vacancies. Each applicant has a certain level of expectations. The task of a personnel specialist is to select among hundreds of proposals those that will suit a potential employee.
Among other things, personnel specialists should be guided in the situation on the labor market. This will make it possible to sensibly assess the adequacy of requests and immediately warn employers that low salaries and a highly qualified specialist are incompatible concepts.
Example with calculations
It is worth saying right away that the business plan for opening a recruitment agency below is designed for a small planning horizon. It is estimated that after about six months or more, the costs will pay off. However, in practice this period may be delayed depending on the real situation on the labor market. Experts argue that there is a chance in the first year to go for profit.
A sample business plan of a recruitment agency with calculations includes only the most necessary expenses.
Rental of premises in the business center - 15 thousand rubles. It is assumed that the office will already be equipped with furniture, so it does not have to be bought separately.
Office equipment - 200 thousand rubles.
Advertising campaign - 20 thousand rubles.
Registration of activity - 10 thousand rubles.
The calculations indicate only the necessary costs to start the activity. They make up 245 thousand rubles.
Monthly costs must also be included in the calculations.
Rent - 15 thousand rubles.
Advertising - 5 thousand rubles.
Payments to employees - from 0 and above. Depending on how many people will be in the state. It is possible that at first the founder of the company will perform administrative functions independently.
It is worth saying that such a list of costs is presented as an example. In fact, the costs depend on the initial investment. For example, some founders are able to afford to buy a customer database and immediately proceed with the execution of orders. Further development of the business recruitment agency, reviews confirm this, also require certain costs.
Advertising
So, potential employers or job seekers can become the target audience of a recruiting company. This is important to consider when building a marketing strategy aimed at promoting the services of a recruitment agency in the market.
It is worth noting that, according to experts, this stage can be called the most difficult in this type of business. In connection with high competition, a considerable role has to be given to image formation. This is why you need to carefully choose your advertising methods.
The basis of income for a recruiting agency is customers. That is why it is important to form a base of regular customers. It takes a lot of time and effort.
Initial costs for an advertising company may be twenty thousand rubles. This will allow you to test the result from the selected advertising methods, and then, if necessary, adjust the strategy.
In addition to passive advertising methods, it is definitely worth using active ones. For example, cold calls to potential customers.
Risk assessment
According to statistics, most of the new companies are closed in the first year of their own activities. That is why it is important to calculate the possible risks.
In the case of a recruitment agency, this is high competition. The advantages are on the side of those companies that have long been on the market and managed to earn a reputation as trusted partners.
Efficiency
Any commercial project is created with the goal of making a profit. This allows you to attract investment even to those who do not have initial capital. For this purpose, it is necessary to evaluate the effectiveness of the project and calculate the payback period. If the calculations are attractive to potential investors, even the lack of own funds will not prevent you from starting your own business.
Total
A recruitment agency is an activity that has its own unique specifics. The main difficulty is not in opening an enterprise, but in promoting its services on the market. The first time will have to constantly prove to customers the reliability.