Talking about the literal meaning of Recruitment Agency, it can be interpreted as Recruitment Agency. This recruitment agency is also known by many other names like Job Consultancy, Staffing Services Firm, HR Consultancy etc.
As we all know that India is a huge country in terms of population, so every year lakhs of people get ready for employment after completing their studies, but despite this, the unemployment rate in India is very high.
This is the reason that to get a job here in any company, institute etc., candidates need to work very patiently. On the other hand, there are companies, factories, organizations, institutions that require qualified candidates for different posts, a recruitment agency acts as an intermediary between these two.
As we have already been told that India is the second-largest country in the whole world in terms of population, therefore human capital or human resource is the biggest asset of India. Qualified Indian professionals and workers are available in India to work at competitive rates. This population is ready to work in the country or outside the country at competitive rates.
In such a situation, if an entrepreneur opens his own recruitment agency and targets such a population and sends them to work in countries outside India, then it can be a very profitable business for him. So today we are trying to give detailed information on this topic through this article. But before that let us know what is a Recruitment Agency?
What is Recruitment Agency?
A recruitment agency is a body acting as an intermediary between job seekers and job providers. That is to say, a recruitment agency has to meet the requirements of both by mediating between organizations that are looking for qualified candidates for a position and such qualified candidates who are looking for jobs.
Through the mediation of the recruitment agency, the company gets the eligible candidates and the qualified candidates get the job according to their qualifications. The job of a recruiting agency is to find the most qualified candidate for a position as desired by the hiring company. This is the reason that whenever a business organization needs a quick workforce, they are able to expand their workforce with the help of recruitment agencies.
Requirement and Functions of Recruitment Agency
For the successful running of any business organization, there is a need of workforce i.e. employees. And if the business organizations themselves take up the task of finding suitable candidates, then this process can be very tiring for them. Therefore, business organizations take the help of Recruitment Agency for such work.
Giving this job of finding eligible candidates to the recruitment agencies for professional organizations helps them to keep them free from fatigue and stress. Apart from this, such agencies effectively conduct background checks etc. of all the candidates and also ensure that The most qualified candidate for any position should be found by the professional organization.
Now the question arises that how do recruitment agencies work? So first the recruitment agency has to be associated with a professional organization and when that business organization draws vacancies on various posts, then the recruitment agency has to match the correct candidates from their existing database and send them for an interview in that organization by phone call. Is.
If there is no match from the existing database of the recruiting agency, then the recruiting agency can try to find the eligible candidates through other sources online. And those whose details match with that given vacancies can send them for an interview in that professional organization by phone call.
As far as the earnings of the recruiting agency is concerned, generally on any successful recruitment, the professional organization in which the recruitment agency has recruited gives money to the recruiting agency. But it has been seen many times that the recruitment agencies take money from the candidates after their selection.
How to Start a Recruitment Agency?
Recruitment Agency Business is such a business that can be started easily with very little investment but it is very important to have a suitable location for this. A suitable location refers to a place from where the entrepreneur can easily contact the business organizations and job seekers.
That is because business organizations may require the entrepreneur to meet or hold meetings several times a week or even every day. So let us know how an aspirant can start his own recruitment agency.
1. Rent A Office
As we have already mentioned in the above sentences that the recruitment agency should be started only in an area where there is a lot of business organizations. That is to say, the entrepreneur can start this type of business only in the cities and the entrepreneur does not need to invest a lot of money to start this business.
But the entrepreneur does need an office from where the entrepreneur or his representative can make phone calls to the candidates, create their database and can call the candidates to his office when needed. An entrepreneur can take any ready-made shop on rent and give it the appearance of an office by getting furnishing work done in it.
2. Get the required license and registration
An entrepreneur may need the following licenses and registrations to start a recruitment agency.
- Entrepreneurs can register his business under any one organization form of One Person Company, Proprietorship or Private Limited Company.
- An entrepreneur needs GST registration.
- PAN card in the name of the business and opening of a current account with the bank may be required.
- Regulation Agent (RA) license may be required even when the entrepreneur provides manpower to business organizations outside countries.
3. Contact business organizations
Now that all the work has been completed by the entrepreneur, it is now the ultimate responsibility of the entrepreneur to bring work for the Recruitment Agency. For this, the entrepreneur has to approach various business organizations and tell them about his business and express his desire to find suitable candidates for them. Generally, this type of work is easily given by the commercial organizations to the recruiting agencies, because in this, the business organizations pay the recruiting agency only after the successful candidate is recruited.
Therefore it may be that not one but many recruitment agencies are attached to any one business organization. When the business organizations accept to work with that recruiting agency then whenever they need workforce in their organization they inform the recruiting agency about that recruitment through email or message etc.
4. Find eligible candidates and earn
Now when the recruitment information comes from the professional organization to the recruitment agency, after that the effort of the recruitment agency is to find the eligible candidates. The agency first uses its existing database to find eligible candidates, then it also uses other online sources and referrals.
Talking about online sources, the candidate profile has to be checked through the popular job website, for this currently these popular websites have started membership programs. Which are proving to be very beneficial for the Recruitment Agency and the Human Resource Department of the company. There are websites like Naukri.com etc. which are selling their monthly/yearly subscription to the recruitment agencies and by purchasing this subscription they get access to view the candidate profile etc.