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Wednesday, October 27, 2021

What is Recruitment Agency and how to open it? – Complete Guide

A recruitment agency ie job recruitment organization, as the name suggests, is an organization that provides jobs. A recruitment agency acts as an intermediary between a company and an unemployed person and those who want another job. If you want to start the job of the recruitment agency, then you have to understand its basic job as well as general information required in this job, material required, market competition, team and basic requirement as per recruitment agency type etc. Need to know in detail. After all such information, you can estimate for yourself, how much will it cost you to start a recruitment agency and how much profit you will get.

What is Recruitment Agency?

A recruitment agency is a kind of intermediary organization, which acts as a middleman between the company and the unemployed (who want a job, and who want to change their job).

  1. If any company has job requirements, then that company can contact the recruitment agency.
  2. Apart from this, if an unemployed person is looking for a job, then he can also contact this recruitment agency and express his desire for a job according to his qualifications.
  3. Apart from this, the recruitment agency can also contact the HR department of the company on its behalf and get information about the job. By giving this information to the unemployed youth, they can help them in getting them jobs. This is mainly the job of the recruitment agency.

How do recruitment agencies work?

  1. Any recruitment agency chooses the company according to its type and contacts the HR department of that company. If there are any vacancies in that company, then the recruitment agency collects the basic requirements for that post (like minimum qualification, experience, location etc.) and the employee-related requirements of the company.
  2. By preparing a database of this information, the recruitment agency prepares a list of people who can fulfil all the needs of the company and according to this list, the recruitment agency contacts all those people and gives them all the information about the company.
  3. If those people are happy with the company and its post, then they also say yes to the job and thus the recruitment agency gets those people interviewed in the company if the person is selected in the interview and he/she gets a job in that company. If, then the recruitment agency takes a commission from the company instead of filling this vacancy. Apart from this, the recruitment agency also takes some commission from those who get the jobs. In this way, the recruitment agency earns as an intermediary.

Information related to opening a recruitment agency:

If you want to open a recruitment agency then you need to do some important work, with this you will be able to start a successful business.

Type of recruitment agency

There are many types of recruitment agencies, so you must choose your particular type. Through which you will be able to determine, what kind of sector company you want to find people for. And you can choose it through your personal knowledge, what kind of department (field) you are aware of. You can choose your department accordingly.

Generally, the following types of recruitment agencies are found in the market –

  • IT & Technology Department
  • Oil & Gas Department
  • Finance and Marketing Department
  • Engineer
  • Construction field
  • teaching field
  • hardware field

In any such department, in whichever department you have a stronghold, you can open a recruitment agency for that department. Apart from this, it is also important that you choose such a field, which is more needed in the market and in which you can work easily without any hassle and huge competition.

Market Research and analyzes your competitor

Before opening any kind of recruitment agency, definitely collect information on the following topics.

  1. Which type of recruitment agency is in high demand in the market? In what kind of field job vacancies are more and in what kind of field people want to work more, only after observing all these things, you should choose how you should open a recruitment agency.
  2. There will be more recruitment agencies in the market, which will be your competitors, so collect all the information about them and set your measurement penalty accordingly. This will make it easier for you to compete with your opponent and you will be able to make your move.
  3. It is important to keep your fees, location, quality of work and market promotion strategy etc. better against the competitor, through which you can move ahead of your competitor.

Recruitment Agency Work Experience

Before starting any kind of work, you must have complete knowledge of that work, then only you can work without any hassle and give equal competition to your opponent. There are two important points for this –

  1. If you yourself have worked in a consultancy agency, then you can start this work easily, because you will have a good knowledge of all the points and you will be able to deal with all the problems.
  2. If you have never worked in a consultancy agency, then you can make a person your partner in this situation who has experience of working in a consultancy agency.


To open a good consultancy agency, it is necessary to have some important things, through which you can open a company that can compete with your competitor and attract your clients to you.

  1. In today’s time, all the work is done online, so it is important to have a good desktop or laptop. Also, it is necessary to have a good speed internet connection.
  2. Apart from all this, there are some recruitment portals like naukri.com, which are only useful in the recruitment process, all of them should be installed in your system.
  3. Apart from this, there should be at least one contact number through which people can contact you on call. And it is also necessary to have a registered email address of your company.
  4. If the company is started on a slightly higher level, then it is also necessary to have a good staff, which can fulfil the basic requirement of the consultancy company.

How to Choose Office Location for Recruitment Agency (LOCATION):

Although this work is usually done online through email or phone call, still you should have an office in a good location. You can choose the location in such a way that there is an industrial area around, in a well-congested area of ​​the city, a place that can be easily promoted. Also, there should be a place from which basic facilities like internet facility, electricity facility, good parking, water facility etc. should be good. Also, the location should be such, which can be easily reached, that is, the address should be easy.

For office location, initially, you can start work from your home or you can also take office on rent.


To open any company, it is necessary to register it officially, only then the clients can trust your company and legally only then you get recognition.

You do not need to visit the government office to get the recruitment agency registered, such registrations can be completed by sitting at home through online facilities. You should get your firm done as a private limited company and you should appoint a CA in the very beginning, who will give you all the information. Do the following for registration.

  1. Select the name: To choose the name of your company, you have to see that no one has ever given such a name. And such a name should also be chosen, which is remembered and also attracts the client.
  2. Select website domain: To create your company website, you must also choose the correct domain name. For domain name, you can choose any of .com, .co, .in etc.
  3. Bank Account and Insurance: It is also necessary to have a bank account in the name of your company. Along with this, it is also mandatory for you to get insurance, so that you can claim for minor losses.
  4. Employee Insurance: There are also winning employees in your company, you need to get them insured. It is your responsibility to keep them safe.
  5. VAT Registration: To start any kind of business, along with taking a license, a process like VAT registration has to be done, but such registration depends on the turnover of the business. According to the turnover of your business, you have to get such tax-related registration done.
  • Recruitment agency team selection ;

While selecting the team, it is important to keep in mind that you should give opportunities to experienced people, as this will help you to grow your business easily.

  • Recruiter: The person needs to be selected for this position because such a person helps lead the entire team. And because of their experience, it is easy for you to make clients. Along with experience, you also have to test their qualification, their confidence, as these are also very important. Along with this, it is also necessary for the recruiter to have good knowledge of the language.
  • Apart from this, you want to keep the winning people with you, you have to see the same qualities in all of them.

How to get the business/Clients?

  • According to the type of your recruitment business, you should make a list of all small and big companies and go to everyone’s office and contact the HR team and talk with them with confidence, so that they will be attracted towards you.
  • Once you meet the HR team, keep in touch with all of them through email or phone call, as they will be impressed with you and will be the first to contact you when there is a vacancy in the company.
  • You can also use the contacts of your experienced employees to create clients.
  • You can also contact the client through a social media account, especially the Linkedin account is used for this.

Expenses in opening a Recruitment Agency

It does not cost a lot to start this business, it can be seen as a small investment business. We can estimate how much it will cost in the beginning, based on the following points.

  • If you have started the office from your home, then you will not have to pay any kind of rent, but if you have started the business in a rented place, then you will have to pay rent every month. The fare will have to be paid according to your city and the chosen place in the city.
  • To start a business, you will need a system, you will have to bear its cost for the first time and some cost of maintaining it regularly will also be there from time to time.
  • There will also be a need for electrical appliances like systems, lights, ACs and fans, which will have to be billed every month. Apart from this, the cost of telephone and mobile phone bills will also have to be paid every month.
  • Apart from this, the cost of cleaning will also have to be borne, this is also a small expenditure every month.
  • Apart from this, the expenses of business registration, license and website creation etc. will also have to be borne, but this cost will be one time only.
  • Apart from this, if you have kept employees, then you will have to pay their salary every month, but it is not mandatory in the beginning.
  • Apart from this, there are some small expenses, which you can also add to your investment the expenses of job portal subscription and meetings with clients.

If we observe the above points, then the estimated expenditure of 1 lakh to 3 lakh can be considered every month. And it can be very less if you start the business on a very small scale. If you have very good business experience, then you can start this work on a bigger scale as well.

Job Portals Subscriptions

This is a job-related business, so it is also important to keep information about the employee in it. That’s why you must have a subscription to some job portals because through these job portals you can download the list of resumes of your favourite candidates and contact them.

The subscription on the job portal is for one month, 3 months or up to 1 year. You can take a subscription on the job portal according to your need.

How to do Recruitment Agency Marketing?

To run any business well, it is necessary that the marketing of that business should be done well because if no one will know that they have opened a new company, then how will someone contact you. There can be many ways of marketing, such as advertising in newspapers, distribution of pamphlets, through advertisements on social websites, through advertisements in job portals, by making banners, through mobile messages and above all through mouth publicity for any work. Gets recognition quickly. So if you do your work sincerely, then your marketing will be very easy and it will also prove to be the most effective.

Marketing is an important part because there are more companies in the market and how much better you are ahead of them. You can tell this only through marketing.

Benefits of Recruitment Agency

Only after observing the total expenses, we can estimate the profit in the business. In the beginning, we cannot say that you will make profits but, once you become good clients and you have a reliable image in the market, then you will get a lot of benefit from this business.

Risk of loss from a recruitment agency

There is a little risk in all types of business, but if we take care from the beginning, then we can avoid problems. Next, we will see what are the disadvantages of this business?

  1. While making a client, we need to keep in mind that whether we are doing well by trusting a new company or not, because if you put a person in the wrong company for the job and that company is not able to pay the salary, then Not only will that person’s future be bad, but your name will also be bad. Therefore, before trusting any new company, you must know about it.
  2. Along with the company, you also need to have complete information about the person selected for the job. Many times people say yes till the interview, but do not come at the last moment, it spoils your name. Apart from this, even after getting a job, they do not work properly, they also spoil the name. Therefore it is important to know about the job candidate as well. Although you cannot guarantee too much, some degree of caution is necessary.
  3. It is also important for you to have good work experience, otherwise, you may face trouble in bearing the expenses if you invest more.

Recruitment agencies are a very good business. In today’s time job is very important and it is very difficult to get it easily. In such a situation, finding a job through a recruitment agency is a good option, because the scope of fraud is reduced in it and people get jobs easily. At the same time, time is also saved, so the work of recruitment agency can be seen as a successful business in today’s time.

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