business plan for an recruitment company

How to write a business plan for recruitment in 2024 (template included)

• Published on June 3, 2020
• Updated on February 12, 2024

Writing a business plan in recruitment has always played a crucial part in the interview process for a number of recruitment agencies around the world.

A comprehensive business plan can demonstrate a recruiter’s commitment, knowledge and commercial acumen. During economic uncertainties in 2023, these qualities are more important than ever.

Arriving at an interview armed with a comprehensive business plan before you’re even asked will no doubt set yourself apart from other recruiters.

During economic uncertainties, managers will need to present a business case to leadership for budget approval in order to make a hire. Your business plan will be an important element of this business case. An impressive business plan could be the difference between landing an offer today, or falling into a pipeline of other candidates.

In this article, we share a step-by-step guide outlining how to create a comprehensive business plan. We walk through the key components and include examples.

At the end of the article, you can download a free recruitment business plan template which is tailored towards the key components mentioned in this article.

A business plan should be packed full of relevant information but should be compressed and to the point. Avoid verbiage, stay specific and keep to 4 – 6 pages.

Introduction

Start with a title. Include your name and the company you’re writing the business plan for. A little personalisation will go a long way.

Underneath your title, outline the objective of your business plan and again personalise it towards the agency you’re interviewing with. While you have the hiring manager’s attention, this paragraph is an opportunity for you to demonstrate how comprehensive your business plan is. The aim is to capture the hiring manager’s interest so they continue to read each component:

“The objective of this business plan is to outline the value I can add to employer’s name.

In this business plan, I have highlighted my specialism, hiring activity in my market, my candidate and client strategies, my methodology, how I plan to recruit through economic uncertainties in 2023, my competition and my personal revenue projections over 12 months.”

You can use this paragraph as a way to introduce your business plan verbally if you’ve called up a hiring manager. You can also use this extract in a cold email.

Your specialisation

This is a crucial positioning statement for your value-add. It sets out precisely where your network and experience lies and what you intend to bring to the table in your new role.

Your specialisation can be described clearly by outlining what roles you will specialise in, what industries you will target, what level of seniority you will focus on and what geographies you will cover.

For ease of reading, you can use each component as a title and use bullet points to expand upon your answers.

Taking a Technology recruiter as an example:

What roles I will specialise in:

• Product Management permanent roles
• UX/UI Design permanent roles

What industries I will target:

• Series A – C funded technology startups (high investment, high growth and high volume of roles)

What level of seniority I will focus on:

• Mid to senior (120 – 180k salary range for Product Managers, 140 – 200k salary range for Designers)

What geographies I will cover:

• Based in Singapore, the local market will be my core market
• Secondary markets include Jakarta, Bangkok and Kuala Lumpur due to less competition from recruiters and high volume of roles

Hiring activity trends

The hiring activity trends section provides an opportunity for you to demonstrate and portray your knowledge of the market.

The 3 important components of this section are: hiring activity over the past 3 years, hiring activity for next year and how you predict hiring activity to shift beyond that.

Utilise your own knowledge of the market but back it up with research gained from reputable sources related to your market e.g. Tech in Asia, Tech Crunch, Channel News Asia, The Straits Times or The Financial Times.

You’ll want to cover how hiring activity has increased or decreased, what the drivers of growth are in your industry and what the threats and challenges are within your sector.

Candidate strategies

Moving on from market trends, this section indicates how you will acquire candidates for your desk. It offers an opportunity for you to demonstrate the experience you’ve learnt in candidate management from your previous firm, but also an opportunity for the employer to ensure that your approach aligns with theirs.

3 key components of this section include: how you will generate candidate leads, what challenges you expect to face and how you will overcome these challenges.

Taking a Front Office Banking & Financial Services recruiter as an example:

How do I plan to generate candidate leads:

• Direct headhunting using a LinkedIn Recruiter account, this costs approximately $X amount, the key benefits being access to a high volume of InMails and enhanced search capability. This has been the sourcing tool for 60% of my previous placements

Challenges I expect to face:

• In light of economic uncertainties in 2023, highly sought-after candidates may be risk-averse and may not see this as a good time to move jobs

How I will overcome these challenges:

• I will develop relationships with these candidates for the future but I will adjust my sourcing strategy accordingly by increasing volume of direct approaches

Client strategies

A similar section to candidate strategies but geared towards clients. Arguably more important than candidate strategies during a recession as the market could be job-short – even in the good times, strong business development capabilities in recruiters are harder to find.

This section includes 6 key components including how you plan to onboard new clients, how you plan to sustain relationships with clients for repeat business, what industries your clients are in, the challenges you expect to face and how you will overcome these challenges.

Take these bullet points as a basic example:

How I plan to onboard new clients:

• During a recession, I plan to cultivate relationships by helping and consulting clients on non-recruitment related issues, such as advising clients on the current state of the market
• I plan to generate leads by making 25 cold calls per day during the ramp-up period, to again offer support and advice where needed, and to leverage any open roles
• A soft approach of connecting with hiring managers, HR contact and C-Level candidates on LinkedIn, to establish working relationships and eventually convert into clients

How I plan to sustain relationships with current clients and win repeat roles:

• The most important way to sustain relationships is by offering a service that is superior to competitors. That is by being transparent, sticking to deadlines and delivering results
• Regularly catch up with clients on a monthly basis to see how they’re doing and see if you can generate new roles
• Keep yourself updated on company news and congratulate clients on milestones e.g. if they generate a Series C round of funding

What industries I will target clients in:

• Series A – B funded technology startups
• During a recession there is less of an appetite to use agencies due to an unprecedented volume of great candidates available in the market
• Offer free support to companies currently not using agencies, provide an impressive service and convert into paying client post-recovery

The 6th component is “examples of target clients” and this is where you can really demonstrate tangible market knowledge. Use company names, find the potential contact in each company and add your comments, such as the volume of roles you expect from that client. 5 examples should be enough to peak your hiring manager’s interest.

You can use a table to display this information with ease:

It goes without saying that you should never be tempted to use information that is proprietary to your previous employer. This information can be openly found with some basic LinkedIn research.

My methodology

Are you a recruiter that is focussed on crunching numbers? Are you a recruiter who is focussed on cultivating long-term relationships? In this section, you can include a few quick bullet points to explain how you approach recruitment. This information gives your hiring manager an indication about whether you hold similar values and whether you have similar working styles.

How you can adapt to recruiting during a possible economic downturn

This section is a new one in response to market conditions in 2023 but can demonstrate how you are prepared to deal with current and upcoming challenges.

You can use this section as the title and include bullet points to outline how you will adapt to these market conditions.

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My key competitors

Which recruiters and agencies offer the greatest competition? Demonstrating your knowledge in this area highlights that you are commercially aware outside of your core market.

Include about 5 different competitors who are directly competing in your patch. You can use the table below to display this information:

Personal revenue and target projections

In many business plans, financial projections are of utmost importance and can demonstrate your commercial acumen. If you’ve ever watched Dragon’s Den, you’ll know what happens when you don’t know your numbers!

Project your personal revenue for 4 quarters. You can start your calculations by predicting the average annual salary of a candidate in your patch. You can project your average percentage fee agreed with clients and from there you can calculate your average fee. Once you have this, you can predict the amount of placements you’ll be making per month.

Make sure your revenue projections are realistic and achievable. Avoid the temptation to predict vastly optimistic revenues, especially during a possible recession. You must allow time to ramp-up and there must be a logical relationship between your historical and predicted revenues.

The plan only includes project revenue. Your historical revenue should be on your CV.

Take the below as an example:

My predicted average annual salary of candidates:

My predicted average percentage fee agreed with the client:, my predicted average fee:, my predicted average placements per month, my projected revenue over 12 months.

Underneath, you can also include the KPIs you will set yourself to guide you in achieving these numbers. For example, you can set yourself a guideline for how many CVs you need to send, how many candidate meetings you need to arrange, how many client meetings you need to arrange and so on.

The template

We’ve constructed a free template built around the components mentioned above, so you can create your own for when you reach out to hiring managers.

To download this template, please add your email below and you’ll be redirected to the template.

[INSERT_ELEMENTOR id=”16400″]

This step-by-step guide should give your hiring manager a clear idea of your plan. If executed successfully, you’ve already demonstrated your commitment, knowledge and commercial acumen before even attending an interview.

The way you’ve structured your plan will give your hiring manager a very clear indication of your methodology and whether you’d fit their structure. Keep in mind that if your methodology is focused on high volume recruitment, it’s not going to work well with an executive recruitment agency.

As a next step, learn this plan inside and out. Be prepared to pitch your plan to your hiring manager and answer detailed questions surrounding each component.

Leave your interviewer with no room for concern and secure that role! Lastly, if you enjoyed the article, please consider subscribing or following us on LinkedIn to have new articles for recruiters like this delivered directly to your inbox.

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Recruiting Company Business Plan Template

Written by Dave Lavinsky

Recruiting Company Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their recruiting companies.

If you’re unfamiliar with creating a recruiting company business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a recruiting company business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Recruiting Company Business Plan?

A business plan provides a snapshot of your recruiting company as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Recruiting Agency

If you’re looking to start a recruiting company business or grow your existing recruiting company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your recruiting company to improve your chances of success. Your recruiting company business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Recruiting Companies

With regard to funding, the main sources of funding for a recruiting company are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for recruiting companies.

Finish Your Business Plan Today!

How to write a business plan for a recruiting company.

If you want to start a recruiting company or expand your current recruiting company, you need a business plan. The guide below details the necessary information for how to write each essential component of your recruiting company business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of recruiting company you are running and the status. For example, are you a startup, do you have a recruiting business that you would like to grow, or are you operating a chain of recruiting businesses?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the recruiting industry.
• Discuss the type of recruiting business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of recruiting business you are operating.

For example, you might specialize in one of the following types of recruiting businesses:

• Temporary Recruiting Company: In this type of recruiting company, you will specialize in temporary staffing solutions for short-term needs. For example, this company may focus on temporary staffing on behalf of an employee who has surgery and an extended recuperation.
• Job Candidate Sourcing Company: This type of recruiting company actively searches for potential job candidates via a variety of mediums in order to present candidates to companies actively seeking job candidates. Social media channels, such as professional networks, are often the platforms used as databases.
• New Hire Negotiations Company: This type of recruiting company negotiates on both sides of the table to arrive at a fully equitable hiring contract or agreement that both parties, the job candidate and the company executives, are willing to sign. This company often makes the difference between negotiations that cause a break in hiring and those that seamlessly and successfully hire for multiple positions every year.
• Specialized Industry Recruiting Company: A specialized recruiting company offers   recruitment services for a specific industry sector, such as aerospace contractors. Within the sector, certain positions must be filled to meet exacting needs, therefore, the specialized recruiting company can search for and assist in filling those needs.

In addition to explaining the type of recruiting business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of industry clients served, the amount of revenue received during the past six months, opening a second recruiting company location, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the recruiting company industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the recruiting company industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your recruiting company business plan:

• How big is the recruiting company industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your recruiting business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your recruiting company business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, recruiters representing companies, human resources executives, and government entities.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of recruiting company business you operate. Clearly, individuals would respond to different marketing promotions than government leadership, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regard to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Recruiting Company Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other recruiting businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes introduction-by-acquaintance, conference coordinators, citywide associations or networking groups. You need to mention such competition, as well.

For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of recruiting company are they?
• What is their pricing (premium, low, etc.)?
• What sets their business apart from others?
• What are their weaknesses?

With regard to the last two questions, think about your answers from the customers’ perspective. And, don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide a bonus for temporary workers who complete their assignment?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a recruiting company business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of recruiting company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide part-time employees especially trained to work with senior citizens in physical therapy?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the services you offer and their prices.

Place : Place refers to the site of your recruiting company. Document where your company is situated and mention how the site will impact your success. For example, is your recruiting company located in a busy retail district, a business district, a standalone building, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your recruiting company marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to human resources executives
• Distribute direct mail pieces to your target audience
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) with target keywords on your website

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your recruiting company, including answering calls, planning and scheduling new hire introductions, paying invoices, contacting customers, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to place your 100th candidate, or when you hope to reach $X in revenue. It could also be when you expect to expand your recruiting company to a second or third location.

Management Team

To demonstrate your recruiting company’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing recruiting company businesses. If so, highlight this experience and expertise. But, also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a recruiting business or successfully serving as an human resources manager is a corporation.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 25 candidates and 10 client executives per day, and/or offer special recruiting company sales online? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your recruiting business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit, but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a recruiting company business:

• Cost of office equipment and technology software
• Cost of furnishings or accessories
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computers, office supplies and equipment

Attach your full financial projections in the appendix of your plan, along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a list of friends and associates who are already lined up to contract for recruiting services from your business.

Writing a business plan for your recruiting company is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the recruiting company industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful recruiting company.

Recruiting Company Business Plan FAQs

What is the easiest way to complete my recruiting company business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your subway business plan.

How Do You Start a Recruiting Company Business?

Starting a Recruiting Company business is easy with these 14 steps:

• Choose the Name for Your Recruiting Company Business
• Create Your Recruiting Company Business Plan
• Choose the Legal Structure for Your Recruiting Company Business
• Secure Startup Funding for Your Recruiting Company Business (If Needed)
• Secure a Location for Your Business
• Register Your Recruiting Company Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Reiki for Your Recruiting Company Business
• Buy or Lease the Right Recruiting Company Business Equipment
• Develop Your Recruiting Company Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Recruiting Company Business
• Open for Business

Learn more about how to start your own recruiting agency business . 

Where Can I Download a Free Business Plan Template PDF?

Click here to download the pdf version of our basic business plan template.

Our free business plan template pdf allows you to see the key sections to complete in your plan and the key questions that each must answer. The business plan pdf will definitely get you started in the right direction.

We do offer a premium version of our business plan template. Click here to learn more about it. The premium version includes numerous features allowing you to quickly and easily create a professional business plan. Its most touted feature is its financial projections template which allows you to simply enter your estimated sales and growth rates, and it automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements. Here’s the link to our Ultimate Business Plan Template.

Don’t you wish there was a faster, easier way to finish your Recruiting Company business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.  

Recruitment Agency Business Plan: How to Write One

Launching a recruitment agency demands a solid foundation, and crafting a detailed business plan is the cornerstone. Get started on your recruitment agency business plan with our guide. We will walk you through all the details.

The United States, Japan, and the United Kingdom dominated the recruitment and staffing industry in 2022, generating 55% of its revenue. Global revenue for the staffing industry jumped 4% to $648 billion, according to a report from Staffing Industry Analysts . The current job market, characterized by rapid technological advancements and shifting workforce demographics, is creating a market for flexible staffing solutions.

To cut costs and improve the efficiency of human resources, businesses are turning to staffing and recruitment agencies to secure talent. The rise of the gig economy and the preference for contract or temporary positions among workers seeking greater work-life balance is helping fuel the industry’s growth. Nearly 23% of working Americans also have a side hustle, according to a recent study by Pymnts .

Your Business Plan’s Key Elements

Whether you are a seasoned professional in the staffing world or a newcomer to the field, you need to start with a recruitment agency business plan. Creating a business plan requires gathering a significant amount of information. Start by researching the staffing industry, including market size, growth trends, and regulatory considerations. Network with industry professionals, attend relevant conferences, and utilize online resources to gain knowledge. Financial projections should be based on realistic market assumptions and comparable business models.

Keep in mind you will need a business plan at various stages of your business journey. Initially, it will guide your startup phase, helping you to secure funding and establish your business structure. As your agency grows, revisiting your plan can help you to scale your operations and enter new markets.

A comprehensive startup business plan for a recruitment agency should include:

• Executive summary: Start with a clear and concise overview of your business — your elevator pitch. Highlight your business goals, mission statement, and the services you plan to offer.
• Market analysis: Conduct thorough research on the staffing industry, focusing on your niche. Identify your target market, analyze your competitors, and outline the trends and challenges in the industry to understand your unique selling proposition.
• Services: Detail the types of staffing services you plan to provide. Whether it is temporary staffing, permanent placement, or executive search, be clear about your offerings, the verticals you will serve, and how they meet the needs of your target market.
• Marketing plan: Outline how you will attract clients and candidates with your marketing plan and sales strategy. Identify the channels you can use to build your brand and reach your audience.
• Operations: Describe the day-to-day operations of your agency, including the recruitment process, the technology, the tools you need, and how you plan to maintain quality and compliance.
• Financial plan: Make detailed financial projections, such as startup costs, revenue forecasts, and a break-even analysis to understand the financial viability of your business.
• Management: Highlight your team’s expertise and the organizational structure of your agency. If you start solo, outline your experience and any external support you can leverage.

Partnering With AtWork: A Shorter Path to Your Goal

If you are considering opening a recruitment agency, partnering with AtWork to start a staffing franchise can significantly streamline the startup process. By joining forces with a proven brand, you can cut down on startup costs and bypass many of the hurdles of starting from scratch. AtWork’s recruitment agency business plan also allows you to take advantage of the Work Opportunity Tax Credit (WOTC) to lower your operational costs.

AtWork provides comprehensive knowledge, training, and tools essential for launching your staffing business. As a franchise owner, you get in-depth training on running a successful staffing agency, including sales, operations, and compliance. AtWork has state-of-the-art technology and operational tools to simplify day-to-day management, and marketing campaigns to effectively promote your agency and attract clients and candidates. Its support staff also handles all your payroll, allowing you to concentrate on scaling the business.

Learn More About AtWork

Get started to learn more about partnering with AtWork to launch a business in the staffing industry.

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Sample Recruitment Business Plan

A sample recruitment business plan revolves around basically three words that describe your business philosophy. 3 min read updated on February 01, 2023

Updated November 2, 2020:

Sample Template for Starting a Recruitment Business

Business Niche

Creating a business plan involves making some decisions upfront. This means choosing a niche. By doing so, you'll be deciding the type of recruitment agency to start and the industry to serve.

Observing Competitors

Observe how your competitors' work provides an excellent opportunity and how its recruitment process works.

Gathering Experience

Starting a recruitment agency requires the experience that a recruiter uses to find the perfect match for a company's needs. Examples of what you need to know include:

• Knowledge of recruiting
• Recruitment strategies
• Personal skills

To acquire the type of experience necessary to operate a recruitment agency, it's recommended that you register with a reputable recruitment agency to experience, firsthand, some basic training in how an agency operates.

Building Skills

Keep in mind that part of a recruiter's job is testing the skills of potential candidates for jobs. So, your own skill level must be up to the task. It's equally important that you're able to recognize someone with potential even though they may not possess a lot of experience. You also need the insight to place the right person in the right position.

Evaluating Start-Up Costs

A recruitment agency isn't a cheap business venture to initially get started. You'll need a checklist of all things needed and the cost of each item. Things to include are staff payroll, marketing, insurance, and basic business expenses.

Researching Recruitment Laws

Study and become familiar with the recruitment laws in your state to ensure you aren't in violation. Each has guidelines that may include requirements for specific industries.

Obtain a Business License

Check with your local city and county office as well as the state to find out if or what type of business license is required to operate a recruitment agency. Obtain the license prior to opening for business.

Research Employment Laws

Laws guiding the rules of employment in each state are also in effect and something you must become familiar with. Examples include laws against discrimination and equal opportunity employment .

Business Location

Select a business location that's visible and easily accessible for clients and job applicants.

Register With Recruiters

Register with other companies as a recruiter. This is a way to bring in business should a company need to fill a position and contact you to fill the position.

Create a Marketing Plan

Create a marketing plan that outlines your business and its services. Make a list of businesses to contact and send a letter of introduction letting owners/managers of these businesses know about your company and what it has to offer. Also, follow up on each letter. Take advantage of the internet and newspapers by placing ads to highlight your business.

Create a Business Website

In today's fast-paced world, having a website is the standard operating procedure. A website is a gateway to advertising job vacancies. It's also a way for potential job seekers to provide resumes and conduct online interviews.

Hire Support Staff

A recruitment agency requires lots of paperwork, and you'll need to hire qualified staff to help with the tasks. This means bringing staff on board who have previous recruitment experience.

Contact insurance companies about purchasing liability insurance for your business.

Business Bank Account

Open a business account that's separate from your personal account for accepting payments for services from clients.

Equipment Necessary for a Recruiting Agency

The office space should include a reception area for greeting applicants and receiving applications. There should also be a conference room where you can conduct interviews. Necessary equipment includes:

• At least one computer.
• Testing software (i.e., printer(s), a fax machine, and a photocopier).
• Reliable internet service.
• Business cards.

Potential Recruiter Salary

On average, a recruitment consultant has the potential to earn between $65,000 and $75,000 annually. Charges for placing a candidate can range between 14 and 20 percent. Charges for your services may be based on a percentage of the candidate's first annual salary. The other option is charging a flat fee to the company you're recruiting for.

If you need help with a sample recruitment business plan, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.

Hire the top business lawyers and save up to 60% on legal fees

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How to start a recruitment business

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Today’s recruitment companies are very busy. Post-COVID, the so-called ‘great resignation’ has taken place, with employees up and down the country searching for better jobs made available thanks to the advent of remote working.

Companies are now grappling with a cross-sector labour shortage, while immigration issues caused by Brexit have only aggravated the situation. While this is undeniably a hard environment for recruitment companies to deliver in, the medium to long-term prospects for the industry look very different.

As a recession looms, job seekers are likely to lose confidence in switching roles. Soon, the risk of saying goodbye to a stable salary during a cost of living crisis will outweigh the benefits created by finding a new employer.

Given the mixed bag of opportunities available, any recruitment startup needs to stay on top of the market and ensure they are setting up a business that meets the exacting demands of clients. Below, we’ll get you fully up-to-date on how to set up recruitment firm. We’ll through the type of experience and level of expertise required, to the kind of fees and profits you can look forward to.

There’s a lot of planning that needs to go into launching a successful recruitment agency. Thankfully, one area which needn’t cause undue stress is creating a website to promote your business. Thanks to modern templates like the one below , you can create one of your own in under an hour.

At Startups.co.uk, we test and rate website builder tools, and we’ve identified Wix as one of the best you can choose for creating a business site. Wix even has a selection of  custom website templates designed specifically for recruitment agencies  – you simply drop your own company information, wording and preferred imagery into your chosen template. Better still, it’s completely  free to try  for yourself.

Create a recruitment business plan

Recruitment pricing structure, find your niche, recruitment startup costs, financing your recruitment business, recruitment laws and regulations, final thoughts.

At Startups.co.uk, we’re here to help small UK businesses to get started, grow and succeed. We have helpful resources for helping new businesses get off the ground – you can use the tool below to get started today.

What Does Your Business Need Help With?

As with any business, don’t do anything before you’ve created your recruitment business plan. Our easy-to-use template will take you through each step of the process, but you essentially need to cover the following points:

• About you – Discuss what makes you a good fit to run a recruitment business, and why you want to run one. Discuss your experience, contacts, qualifications, and personal qualities, and make sure to sell yourself
• About your business – There are a wide range of recruitment types, so you’ll need to make clear exactly what your recruitment business aims to do. Which sectors do you want to work in? Do you want to focus on full-time or part-time employees? Is there a particular demographic you feel an affinity with and can target? You’ll also need to explain staffing, and crucially, how you plan to finance your business.
• Market research – Here you can go into more detail on your target market and competitors – how are you going to stand out and attract business? Identify a geographic area that you’ll initially focus on – even if you don’t have an office to start with, you’ll likely need to meet candidates and clients in person, so choose the location for your business carefully.
• Costs and business forecast – Here, you’ll need to outline all the costs your business might incur – everything from website development to office space and business insurance. You’ll also need to give a realistic business forecast that explains how much profit you’ll make in Year 1, Year, 2, Year 3 etc.

While it may not be quite as satisfying as building your own recruitment business from scratch, opening a recruitment franchise has several key advantages. You’ll be able to use an established brand, get expert advice from experienced recruiters, and may also find it easier to get finance than if you were starting a completely new recruitment business.

The total investment varies, but Travail Employment Group , a leading company in this area, suggests a total of £30,000 will be required – including an initial franchise fee of £12,000.

This might be a particularly suitable role for those with little recruiting experience, due to the much greater level of support offered.

Need help staying organised?

Starting a recruitment business will take a number of steps and it’s important to keep everything tracked.

Project management tools are a great way to keep everything moving in the right direction – you can assign tasks, track progress and create projects that everyone can chip into.

Get expert help finding the right project management software for your business .

Expert insight: John Lennon, THRYVE

John Lennon (no, not that one) built innovative tech recruiter THRYVE from scratch to £4mn turnover and told Startups that, when starting out, you should think about all the realities of owning your business rather than just focusing on how you’ll go about getting clients and attracting candidates:

“If I could go back in time, my first hires would be an operations manager and a marketing manager. When you first set up a recruitment business you are a salesperson, a marketer, an accountant, bookkeeper, administrative expert, tax expert, events coordinator and so much more.

“It was only when I started THRYVE that I realised how little I knew about how to run a business. This is why so many recruitment companies fail – most recruitment business owners are great recruiters, but struggle with the transition to becoming a business owner.

“Make sure you educate yourself on basic business principles, understand how to read a profit and loss statement, understand how to forecast, take advice, get mentors and surround yourself with positive people in your space who can help you.

“And, most importantly, be really mindful of cash flow and your outgoings.

“After all, your revenue figures mean nothing if your profit levels aren’t where you need them to be.”

One of the most important decisions you’ll make is how to price your services. This should be a crucial part of your business plan.

The fee you charge will vary depending on whether you are recruiting permanent or temporary staff.

Permanent employees

Rates vary, but research by recruitment training company Social Talent indicates that you can expect to charge a one-off fee of 15-20% of the role’s annual salary for most roles, with this rising to 25% for roles that are particularly difficult to fill. This matches the view of Tim King of IT recruitment specialist Matchking , who charges his clients 20-25% of the employee’s annual salary.

This assumes that you operate on a contingency basis – in other words, that you’re only paid once the job has been filled by a candidate you put forward. In this case, you’ll often be competing with other agencies.

The other option is retained recruitment , where you are exclusively assigned to find candidates for a role. This usually involves a more in-depth process, and is often associated with more senior roles. Consequently, you are able to charge more – 30% is common, while experienced professionals in specialist niches charge up to 50%.

You’ll also be expected to factor a rebate into your fees, where you return part of the fee if the hired candidate leaves the job after a certain period of time. Again, the period and percentage returned varies between agencies.

This variation in fees reflects the fact that recruitment can involve many different processes, from writing job ads to interviewing candidates, and even conducting reference checks. As a recruiter, how many of these tasks you take on will determine the fee you charge.

When starting out, you may also want to be flexible with your fees in order to build long-term commercial relationships.

Temporary employees

Things are a little more complicated when you’re hiring temporary employees.

You’ll need to factor in the following:

• The cost of the worker
• Holiday pay
• National Insurance
• Your desired margin

These costs are initially paid by the agency, before being reclaimed from the client.

The rate may also vary depending on whether the position is fixed-term or paid by the day.

The same Social Talent research found that for a fixed six-month post, agencies would charge 12-15% of the equivalent annual salary ( not the six month period the employee was being hired for).

For a temp position that paid £300 a day, agencies would charge around 15%, so approximately £45 per day in this case.

For both permanent and temporary workers, some agencies are also shifting to a flat fee structure, as this can make them more attractive to clients.

As a newly established recruiting agency, you’re unlikely to survive unless you develop a specialist area. Trying to compete in the general recruitment space is incredibly difficult given the established brands and high visibility of the major players.

Many of the most successful smaller scale recruitment agencies have prospered by sticking to a specialist area they know inside out.

Adam Bolton gave great insight into how he started ABrecruit from scratch on the Undercover Recruiter blog. What really comes across is how he always knew he wanted to focus on .net development, and how he leveraged his experience in this area. He knew the field, knew the people, and knew how to appeal to both companies and candidates – a plan that resulted in a thriving company which has now been going for seven years.

A look at the Startups 100 reveals similar success stories – JHP Recruitment has prospered by focusing on veterinary recruitment, Debut has made waves with its clever platform for graduate recruitment, and The Dots is providing creative professionals with a new way to be seen and hired.

If you can, follow their lead.

Expert insight: James Lloyd-Townshend, Frank Recruitment Group

The chairman and CEO of technology recruitment company Frank Recruitment Group , James Lloyd-Townshend has over 23 years of experience in the recruitment industry. Speaking to Startups, he said that while it may feel like you’re turning down chances to make money, choosing a specialist area and sticking to it is the key to long-term success:

“When starting a recruitment business, you need to understand that not every opportunity is an opportunity.

“This is one of the most common pitfalls, especially in this industry. It’s easy to think that, for instance, that any sector is a potential area to operate within.

“However, that can come at the expense of having the specialist knowledge that can actually be of value to your customers.

“So for us, knowing our niche and focusing just on that, allowed us to provide a level of service that a lot of our competitors have struggled to match and has allowed us to stay out in front.”

Like any other startup, new recruitment businesses can prosper by doing what their larger competitors can’t (or won’t) do.

Being agile is the key. Adam Bolton of ABrecruit made the decision early on to work from 8am to 9pm on weekdays and all day on Saturday – a punishing schedule that enabled him to talk to candidates outside work hours, and have relaxed conversations about what they were really looking for. It’s a great example of the sort of creative thinking you’ll need to employ to make your mark in the early days.

Depending on what sort of candidates you’re targeting, you may also need to consider tech-driven solutions. Already, the job search has largely shifted from laptop to mobile, and the likes of Tempo are trying to reinvent the recruitment process by using AI, video, and rich CVs that include ratings and reviews. All this has the potential to hugely streamline the recruitment process – Tempo boasts that its fastest hire was made in just 27 minutes.

Further along in the process, the traditional supremacy of the interview is also under threat – with alternative and complementary solutions including soft skills assessments, job auditions, and even virtual reality.

As a recruitment startup, keeping on top of these trends is key. While you may not have the established reputations and brand awareness of the big boys, you’re ideally placed to innovate and operate more efficiently.

Expert insight – Malcolm Burenstam Linder, Alva Labs

Groundbreaking recruitment startup Alva Labs is taking aim at one of the central pillars of the common recruitment process – CVs. Instead it wants to use logic and personality tests to remove human bias from the hiring process and quickly find candidates that match the requirements of the role and the culture of the hiring company. This innovative approach has already earned Alva major clients like Arla and Deloitte, and co-founder and CEO Malcolm Burenstam Linder told Startups that the impetus for the company came from seeing traditional recruitment processes fail over and over again in his previous jobs:

“I previously worked for a flourishing private equity company and a rapidly growing ecommerce company, both of which had big problems with staff turnover – hiring managers were in a constant battle with the revolving door and staff weren’t staying because they simply weren’t the right people for the job.

“At both companies, I couldn’t understand how we could be so dependent on data and analytics for almost every decision, but when it came to recruiting new team members, we were relying on gut feeling and personal preference. This is when the extent of the recruitment problem dawned on me.

“By failing to talk and think about talent in an objective manner, we let bias creep into the process and demolish our chances of hiring the best people.

“And by letting our own experiences drive our definition of what ‘great’ looks like in a candidate, we directly stunted company growth.

“Eventually, I found myself waving goodbye to the stability of private equity to kickstart my own recruitment business, Alva Labs, with a vision of improving the quality, efficiency and inclusivity of the job market worldwide.”

There are only two things you definitely need to start a recruitment business – a phone and an internet connection. You can even use your personal mobile at the outset, although a dedicated business handset could cost you as little as £6 a month – check out our guide to the best business mobile phone plans for more info.

However, to really spread your wings and fly, you’ll want to invest in the following:

If you’re a recruitment agency, your website is really, really important – it’s the public face of your business, and it’s how candidates and companies will judge you.

There are a huge range of options available, as detailed in our guide to small business website costs . If you want to take the DIY approach, companies like Wix and Squarespace offer packages for around £10 a month, while a professional web design company should charge you around £1,000.

Make sure your site is set up for mobile – a recent report from recruitment platform Glassdoor found that 58% of Glassdoor users are looking for jobs on their mobiles .

You can find software that promises to help you with practically every aspect of your business, but two areas are really worth looking into for recruitment businesses – CRM software and accounting software.

• CRM software – CRM stands for Customer Relationship Management, but as a recruiter, you should think of it as Candidate Relationship Management. Numerous pieces of bespoke software are available to help you easily keep track of who’s applied for which job, and sort candidates according to skills and experience.
• Accounting software – Not many people (apart from accountants) love the financial side of running a business – running payroll and putting together tax returns can quickly make you question the wisdom of getting set up on your own. However, while you’re unlikely to be able to afford an accountant in the early days, investing in accounting software that lets you track expenses and payments could really pay dividends. You can make sure you stay on top of your finances, and don’t have any sleepless nights when it comes to filling in your tax return.

Office space

You might start off in your bedroom, but sooner or later, you’ll want to find a proper space where you can meet candidates and run your business. A co-working space is a great first step, getting you out of your living room but saving you the responsibility of single-handedly renting a space. You can find out more in our in-depth guide to the costs of co-working , but expect to pay anything between £100 and £600 a month in London depending on location and facilities. Outside the capital, prices fall dramatically – with a co-working space in Sheffield, for example, costing approximately £200 a month.

As a recruitment business, you shouldn’t need much in the way of equipment. The days of fax machines are long gone, and contracts can be electronically signed using services like Docusign . Make sure you have a good phone and internet connection, as well as a selection of private spaces where you can meet candidates.

Location is also important: you’ll want to ensure you’re based somewhere that’s easy for candidates to get to, and also consider whether there’s a part of town which is a particular hub for the industry that you specialise in.

There’s no getting around this one – as soon as you employ your first member of staff, you’ll need employers’ liability insurance that covers you for claims of up to £5m. It’s also a good idea to consider getting public liability insurance, which would cover you if anything happens to a candidate or client on your premises, while any vehicle used by the business must have a motor insurance policy in place.

Recruitment is commonly associated with two things – high salaries and high turnover.

Let’s tackle salaries first. While this is likely to be your biggest ongoing expense, it’s a bit of a myth that recruiters are always on high salaries. Nationally, PayScale data indicates that the average UK salary for a recruiter is £26,443 – notably below the UK average of £31,772 a year (or £611 a week).

Of course, this masks significant regional variation, with LinkedIn Salary data indicating that the average for a recruiter in London is £35,000 – compared to £27,500 in Manchester, £29,500 in Sheffield, and £29,500 in Leeds. And you’ll likely need to also factor in commission, which averaged £5,000 according to PayScale and £10,000 according to LinkedIn.

In terms of staff turnover/staff churn, there’s no doubt that this is an issue for recruitment businesses, with rates commonly cited that are double or even triple the national average of 15%. The common turnover factors still apply – make sure you’re open to flexible working, and that salaries keep pace with the industry at large – but dealing with rejection is often cited as the most difficult part of working in recruitment.

It might therefore be a good idea to ensure that a system is in place for employees that are struggling. For a startup, this could be as simple as an empathetic senior member of staff that can offer the benefit of their experience. As you grow, investing in dedicated mental health support could really pay dividends.

With a recruitment business, awareness is key. You need everyone to know what you do, and how you go about it – which makes marketing really important. Consider targeted digital and social media marketing campaigns, as well posting on online job boards.

While it can be difficult to know how much to spend, make sure you don’t commit to a campaign before you know it will deliver a solid ROI. Start small, and then scale up if you see positive results.

Project management software

With so many things to juggle, using project management software can make a huge difference to your recruitment business. Easily keep track of everything that needs to be done, and instantly see which tasks are overdue. Some programs can even automate processes completely to significantly improve efficiency.

Given the myriad costs discussed above, making sure you can finance your recruitment business should be one of your first priorities. Given the delay between outlay and financial return, cash flow is a common issue for recruitment agencies.

Alongside trying to secure investment or a business loan, make sure you consider invoice factoring. This is common in recruitment, and is a great way to manage a temporary shortfall – find out more in our guide to invoice factoring fees .

Two finance providers that specialise in the recruitment industry are Sonovate and Quba Solutions.

Sonovate specialises in invoice finance, allowing businesses to borrow against their outstanding invoices in order to free up cash and pay their contractors on time. It has already funded over £500m in invoices to date.

Quba Solutions

Quba Solutions is a contract finance provider that offers finance and back office services to recruitment firms. Its packages allow you to easily generate invoices, chase payments, and ensure that your cash flow remains positive.

Expert insight: Gary Ashworth

Recruitment veteran Gary Ashworth has over 40 years experience in the industry, founded his first recruitment company when he was just 21, and is currently chairman of three different recruitment companies. Speaking to Startups, he stressed the importance of having a coherent financial plan in place:

“If you want to take advantage of running contract or temporary staff as well as charging a fee for making them permanent, then you’ll have to have a line of credit in place to cover their wages, since you might not get paid for 30-60 days or longer.

“You’ll also need a more sophisticated back office to process all of the transactions and that will come at a cost.

“It’s absolutely crucial you get the numbers right – you should be turning 20% of your net fee income into profit .

“If you’re not doing that, then you’re either paying your staff too much or your establishment costs are too high. You don’t want to be a busy fool who works hard but barely makes a profit!”

The main piece of legislation that covers the recruitment industry is the Employment Agencies Act 1973 . If you want to set up a recruitment business, you’ll need to make sure you know this legislation inside out. The REC has a helpful guide, and this infographic nicely summarises the main points.

Source: Agency Central

Alongside members and key figures from the world of recruitment, the REC has also created the REC Code of Professional Practice, which aims to promote consistent standards across the industry. This covers the following 10 areas:

• Respect for Laws
• Respect for honesty and transparency
• Respect for work relationships
• Respect for diversity
• Respect for safety
• Respect for professional knowledge
• Respect for certainty of engagement (ensuring that workers are fully informed of the pay and working conditions for the role they are being employed in)
• Respect for prompt and accurate payment
• Respect for ethical international recruitment
• Respect for confidentiality and privacy

As is the case with any business, starting a recruitment agency is not for the faint hearted – but following the steps laid out above should ensure you avoid some common pitfalls.

Starting off with a good business plan is crucial – one that makes it clear what your business strategy is, has detailed cash flow forecasts, and demonstrates your in-depth knowledge of your target market. If you’re starting out with no recruitment experience, then taking on an employment franchise could be a great option – and regardless of whether you’re franchising or going it alone, choosing the right pricing structure is key.

The UK recruitment industry is already a crowded market. Finding your niche is extremely important, as is having an innovative mindset that’s open and ready to implement new recruitment solutions.

With initial costs likely to include a website and marketing, and later steps on the ladder entailing expenses like office space and CRM systems, having the right finance in place should be a cornerstone of your business strategy. Finally, make sure you have an in-depth knowledge of the UK’s employment agency legislation to ensure you’re operating legally.

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How to write a business plan for your recruitment agency.

Starting a recruitment agency is a great idea because it provides a valuable service to employers and job seekers alike.

It is a great way to bridge the gap between the two and facilitate successful career placements.

But, first thing first, you need a business plan.

A business plan is essential for any new project, as it allows you to clearly define your goals, objectives, and strategies for success. It also provides a roadmap for the future, helping to ensure that your project is successful in the long term.

In short, a good business plan will help make sure your recruitment agency is profitable .

What information should you put into the business plan of a recruitment agency? What's the basic outline for the structure? What financial metrics should be included? What steps should I follow to write a business plan efficiently?

Stay with us: we'll tackle all these questions!

One last thing, you don't have to start your business plan from scratch.

Feel free to download our detailed business plan for a recruitment agency and customize it for your business.

Mapping out a business plan for a recruitment agency

Do you need to develop a business plan for your recruitment agency.

Yes, you need to develop a business plan for your recruitment agency.

Crafting a well-structured business plan will help you to:

• get familiar with the recruitment agency market
• be aware of new consumertrends and apply them to your project
• recognize profitability factors for a recruitment agency
• understand the hiring needs, job requirements, and talent preferences of client companies
• come up with a winning value proposition for your staffing services agency
• identify potential competitive threats
• find distinctive competitive edges for your recruitment agency
• find a business model that delivers consistent positive financial outcomes
• formulate an airtight strategy to maximize business growth
• evaluate potential risks specific to a recruitment agency, including client satisfaction, candidate vetting, and legal compliance

Our team has created a business plan for a recruitment agency that is designed to make it easier for you to achieve all the elements listed.

How to organize a business plan for a recruitment agency?

Inside a business plan, you'll find a lot of important information and details. It must be presented in a structured format, to make easy to read and digest.

When we built and designed our business plan for a recruitment agency , we made sure to structure it propertly.

We've categorized it into 5 sections (Opportunity, Project, Market Research, Strategy and Finances).

1. Market Opportunity

The section number one is titled "Market Opportunity."

In this section, you will find valuable data and insights about the recruitment agency, helping you understand the market landscape and assist companies in finding and hiring top talent.

We constantly update all the data there.

2. Project Presentation

The second part is dedicated to the "Project" of your recruitment agency. Here, you can outline the industries you specialize in, recruitment services offered, candidate sourcing strategies, screening and selection processes, client partnerships, and the unique value proposition that connects top talent with the right job opportunities.

Also, provide a self-introduction at the end of this section.

Discuss your expertise in talent acquisition, your range of recruitment services, and how you plan to provide comprehensive and tailored staffing solutions to clients. Highlight your industry knowledge, your network of professionals, and your dedication to matching the right talent with the right opportunities through your recruitment agency.

We drafted some language for you in our business plan. Adjust it to suit your idea perfectly.

3. Market Research

Then, there is the "Market Research" section.

In this section, you will find a detailed market segmentation analysis for your recruitment agency.

It includes a presentation of other recruitment agencies in the area that will be competing with you. Your agency's expertise in talent acquisition and competitive advantages are also highlighted. A customized SWOT analysis is included.

4. Strategy

The "Strategy" section outlines a comprehensive 3-year action plan, detailing the initiatives and steps needed to transform your recruitment agency into a highly profitable endeavor.

Additionally, there's a marketing strategy, a risk management strategy, and a Business Model Canvas available in this section.

5. Finances

In the end, you'll find the "Finances" section, which provides a comprehensive overview of the financials for your project.

How to make an Executive Summary for a recruitment agency?

The Executive Summary serves as an introduction to the business plan for your recruitment agency.

Keep it concise and ensure it fits within 2 pages. Highlight only the necessary details.

When you present your business plan to investors, this is the section they will read first. It needs to grab their attention and make them want to explore the rest of the plan.

In the Executive Summary of your recruitment agency, address the following queries: what services does your recruitment agency offer? who is your target market? are there other recruitment agencies in the industry? what sets you apart from them? what funding do you require?

How to do the market analysis for a recruitment agency?

Analyzing the market for your recruitment agency allows you to gain insights into factors such as client demands for talent acquisition, competition within the recruitment industry, and emerging trends in HR and staffing.

By conducting a thorough market study, a recruitment agency can understand client hiring needs, offer effective recruitment solutions, optimize pricing strategies, and execute targeted marketing campaigns, ultimately leading to a larger client base, increased job placements, and a prominent position in the recruitment industry.

Here is what you can expect to find in the "Market Research" section of our business plan for a recruitment agency :

• market trends and data about recruitment agencies, including job market analysis, talent acquisition strategies, and industry-specific hiring trends
• a list of potential customer segments for a recruitment agency
• the competitive comparison
• the potential competitive advantages for a recruitment agency

The key points of the business plan for a recruitment agency

What's the business model of a recruitment agency, business model of a recruitment agency.

A recruitment agency's business model revolves around connecting employers with qualified candidates for job openings. Revenue is generated through fees or commissions based on successful placements.

The business model focuses on understanding clients' hiring needs, conducting candidate sourcing and screening, effective marketing to attract employers and job seekers, and building strong client and candidate relationships based on trust and expertise in recruitment.

Success depends on building a robust candidate database, delivering suitable talent for job openings, fostering positive client and candidate experiences and recommendations, and continuously adapting to changing recruitment methods and job market dynamics.

Business model ≠ Business plan

Make sure you differentiate between "business plan" and "business model."

A business model describes how a company generates income and operates successfully.

In a business plan, you articulate your business model through a framework known as the Business Model Canvas.

Rest assured, there is a Business Model Canvas (already completed) in our business plan for a recruitment agency .

How do you identify the market segments of a recruitment agency?

Market segmentation for your recording studio involves dividing your potential clients into different groups based on their recording needs, music genres, and preferences.

These categories may include factors such as music artists, voice-over artists, podcasters, or clients seeking specific recording services or equipment (e.g., vocal recording, sound mixing, podcast production).

By segmenting your market, you can offer specialized recording services and facilities that cater to each segment's specific requirements. For example, you might focus on music artists and provide state-of-the-art recording studios equipped with instruments and production tools for music production, offer professional voice-over recording services for clients in need of high-quality voice recordings for commercials, audiobooks, or animations, specialize in podcast production and provide podcasters with dedicated recording spaces and podcast editing services, or focus on specific recording services or equipment such as vocal recording, sound mixing, or audio mastering.

Market segmentation allows you to effectively target your marketing efforts, communicate the capabilities and technical expertise of your recording studio, and provide a creative and professional recording environment that meets the unique needs and preferences of each client segment.

In the business plan for a recruitment agency , you will find a comprehensive market segmentation that will help you better understand your potential customers.

How to conduct a competitor analysis for a recruitment agency?

Without surprise, you won't be the only recruitment agency in your market. There will be other agencies offering staffing and talent acquisition services to organizations.

Understanding your competitors' strengths and weaknesses is critical when developing your business plan.

Identify their weaknesses (such as limited industry connections, inadequate candidate screening, or poor client communication).

Why is it important to address these elements? Because these weaknesses can impact the effectiveness of recruitment agency services.

By focusing on these areas, you can offer a wide network of qualified candidates, provide efficient and thorough recruitment processes, and deliver personalized and attentive client support, positioning your recruitment agency as a trusted and preferred partner for businesses seeking top talent and successful staffing solutions.

It's what we call competitive advantages—develop them to make your business stand out.

Here are some examples of competitive advantages for a staffing agency: extensive network of qualified candidates, personalized recruitment solutions, timely placements.

How to draft a SWOT analysis for a staffing agency?

A SWOT analysis can help identify the strengths, weaknesses, opportunities, and threats of a recruitment agency, enabling informed decision-making and increased success.

As you can guess, there is indeed a completed and editable SWOT matrix in our business plan for a recruitment agency

The strengths for a recruitment agency

When we talk about the "S" in SWOT, we mean Strengths, which are the project's internal capabilities or unique strengths.

For a recruitment agency, possible strengths could include an experienced team, a strong network of contacts, an extensive database of candidates, and a comprehensive understanding of the recruitment market.

The weaknesses for a recruitment agency

W stands for Weaknesses, referring to the project's areas or aspects that have room for improvement.

For a recruitment agency, potential weaknesses include difficulty in finding suitable candidates, lack of access to a large pool of qualified applicants, high cost of advertising to attract talent, and potential clients not trusting the agency.

The opportunities for a recruitment agency

The letter "O" in SWOT signifies Opportunities, highlighting the favorable conditions or chances for the project's progress.

In the case of a recruitment agency, potential opportunities include providing executive search services, offering temporary staffing solutions, providing online job postings, and providing career coaching services.

The threats for a recruitment agency

When we use the "T" in SWOT, we're referring to Threats, which are the external risks or challenges that the project may encounter.

How to develop a marketing plan for a staffing agency?

A marketing strategy is a key factor in acquiring customers and increasing revenue, so include it in your business plan.

A well-crafted marketing strategy will attract companies and job seekers to your recruitment agency, emphasizing your expertise in matching the right talent with the right job.

Companies won't hire your recruitment agency without effective marketing; showcasing your talent pool and personalized approach is crucial.

Are you utilizing marketing tactics to attract clients to your recruitment agency? Consider building strong relationships with local businesses and job seekers, offering specialized recruitment services, and utilizing digital marketing strategies to showcase your expertise in the industry.

Don't let a lack of ideas for your project's marketing strategy discourage you.

How to build a solid financial plan for a staffing agency?

A solid business plan must include financial data to provide an accurate assessment of the business's potential success.

Obviously, you should estimate the projected revenue for your recruitment agency.

It's crucial for this revenue forecast to be clear and straightforward.

Our financial plan for a recruitment agency is easy to use and includes built-in checks to help you identify and correct any assumptions, ensuring you create reliable projections with confidence.

Without a doubt, you'll need to come up with a basic budget for starting your recruitment agency. Make sure to include every expense (by the way, they are all listed in the financial plan we've made).

The break-even analysis is central in the financial plan as it will tell you whether your recruitment agency will generate profits or not.

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How to start a recruitment agency: From idea to reality

March 20, 2024

The global recruitment process outsourcing (RPO) market is expected to reach $20.8 billion by 2027 .

In the ever-evolving world of business, one industry that consistently thrives is recruitment. With companies perpetually on the hunt for top talent and individuals seeking their dream jobs, the demand for efficient, effective recruitment is always high. If you've ever considered turning your knack for connecting people into a profitable venture, then you're in the right place. Welcome to our comprehensive guide on how to start a recruitment agency: from idea to reality.

This blog post is your roadmap to launching a successful recruitment agency. It's a journey that will take you from the seed of an idea, through the thicket of planning, and into the bright daylight of a fully operational business. Whether you're a seasoned entrepreneur looking for your next venture, a HR professional wanting to branch out, or simply someone with a passion for helping others find their perfect role, this guide is for you.

In this next section, we'll go over the exact steps you will need to complete to start your own successful recruitment agency. By understanding the landscape and your place within it, you'll be better equipped to navigate the path ahead and make informed decisions that will shape your agency's future.

Here are the key steps to start your recruitment agency:

Step 1: Developing a business plan for your recruitment agency

Creating a solid business plan is the foundation of any successful recruitment business. This blueprint will guide you through every aspect of your business, from marketing strategies to financial projections. Let's take a look at the key components to include in your recruitment agency business plan.

Executive Summary

Begin your business plan with an executive summary, providing a concise overview of your agency's mission, target market, and competitive advantages. This section should be persuasive and compelling, as it's often the first thing potential investors or partners will read.

Company Description

Delve deeper into your recruitment agency's mission and goals, describing the services you'll offer and the industries you'll serve. Highlight any unique selling points that set your agency apart from competitors, such as niche expertise or innovative recruitment techniques.

Market Analysis

Conduct thorough research on your target market and the overall recruitment industry. Analyze the current market trends, potential opportunities, and threats your agency may face. This section should also include an examination of your competitors and how your agency plans to differentiate itself.

Marketing and Sales Strategies

Outline your approach to attracting clients and candidates, including online and offline marketing tactics, networking events, and referral programs . Detail your sales process, from initial contact to closing deals, and how you'll build lasting relationships with clients.

Operations and Management

Describe your agency's daily operations, including the roles and responsibilities of key team members. Include information on your office location, technology tools, and any necessary licenses or certifications your agency may require.

Financial Projections

Provide realistic financial projections for your recruitment agency, including revenue, expenses, and profit margins. This section should include a break-even analysis, cash flow projections, and balance sheets for the first few years of operation. Be prepared to justify your assumptions and explain how you'll achieve these financial goals.

Remember, a well-crafted business plan serves as a roadmap for your recruitment agency's success. Continually update and refine your plan as your agency grows and evolves. With a strong plan in place, you'll be better equipped to navigate the challenges and opportunities that come your way.

Step 2: Defining your niche and target market

Before diving into the world of recruitment, it's important to determine your niche and target market. This not only sets you apart from the competition, but also ensures your agency is focused and efficient in its efforts.

The top three industries for recruitment are healthcare, technology, and finance.

Identifying your niche means finding the specific industry or skillset you want to specialize in. This could be anything from healthcare professionals to tech experts. Consider your background, expertise, and personal interests to narrow down the options.

Once you've pinpointed your niche, it's time to define your target market . This includes understanding the types of companies and candidates you'll be working with. Will you be targeting small businesses or large corporations? Recent graduates or experienced professionals? Consider the following aspects:

• Geographical location - Determine whether you'll focus on local, regional, national, or international markets.
• Industry trends - Research the current and future trends in your chosen niche to ensure there's a demand for your services.
• Competitors - Analyze the competition to identify potential gaps in the market or unique selling points for your agency.

The global gig economy is expected to reach $455 billion by 2023.

By thoroughly defining your niche and target market, you're setting your recruitment agency up for success from the get-go. This solid foundation will help you make informed decisions, attract the right clients and candidates, and ultimately grow your business.

Step 3: Setting up your company's legal structure and registration

Before diving headfirst into the world of recruitment, you'll need to establish a solid legal foundation for your agency. This step is crucial to ensure compliance with regulations and protect your business from potential liabilities.

First, decide on the legal structure of your agency. The most common options are sole proprietorship, partnership, limited liability company (LLC), or corporation. Each comes with its own tax implications and liability protection, so it's essential to research and consult with a legal professional or accountant to determine which is the best fit for your business.

Once you've chosen a legal structure, it's time to register your recruitment agency with the appropriate government authorities. This typically involves obtaining an Employer Identification Number (EIN) from the IRS, registering your business name, and applying for any necessary licenses or permits. These requirements can vary by state, so be sure to check with your local government to ensure full compliance.

Step 4: Establishing a marketing strategy for your recruitment agency

Creating a buzz around your recruitment agency is essential to attract both clients and top-notch candidates. A solid marketing strategy is the key to success, and it all starts with understanding your target audience.

First and foremost, identify the niche market you want to serve. Are you focusing on a specific industry, skillset, or geographical area? This will help you tailor your marketing efforts to reach the right people.

Here are some effective marketing tactics to consider for your recruitment business:

1. Build a Strong Online Presence

First things first, establish your agency's online presence. Create a user-friendly and visually appealing website that showcases your recruitment expertise, services offered, and client testimonials. Don't forget to optimize your site for search engines to attract more potential clients.

2. Leverage Social Media Platforms

Embrace the power of social media to connect with both clients and job seekers. Share engaging content, industry insights, and job opportunities across platforms like LinkedIn, Facebook, and Twitter. These platforms also offer targeted advertising options to help you reach a wider audience.

3. Networking and Partnerships

Forge relationships with industry leaders, attend networking events, and collaborate with complementary businesses. Establishing partnerships can help you tap into new markets, gain insights, and increase credibility within your niche. Remember, a strong professional network is the backbone of any successful recruitment agency.

Step 5: Building a website and online presence

Creating a strong online presence is crucial for your recruitment agency's success. A professional website will not only help you showcase your services but also attract potential clients and job seekers. Let's explore the essential steps to build a website and boost your online presence.

1. Choose a domain name and hosting provider

Start by selecting a memorable domain name that reflects your brand and a reliable hosting provider to ensure smooth website performance. Don't forget to check domain availability and secure it as soon as possible.

2. Design your website

When it website comes to design, prioritize user experience and functionality. Choose a clean, modern design with easy navigation, and focus on providing clear information about your services, team, and contact details.

3. Optimize for search engines

Ensure your website is search engine friendly by incorporating target keywords, proper meta tags, and quality content. This will help improve your site's visibility on search engine results pages and attract more organic traffic.

4. Create valuable content

Consistently publish informative articles, industry insights, and job opportunities on your website to engage your audience and establish your agency as an industry expert. High-quality content will also improve your search engine rankings.

5. Utilize social media

Expand your online presence by creating and maintaining active profiles on popular social media platforms such as LinkedIn, Facebook, and Twitter. Share your content, engage with your audience, and leverage these platforms to build your brand and attract potential clients.

6. Monitor and analyze

Track your website's performance using tools like Google Analytics to gain valuable insights and make data-driven decisions for continuous improvement. Adjust your strategy as needed to keep your online presence strong and relevant.

In conclusion, building a website and a robust online presence is an essential step in establishing your employment agency . By following these guidelines, you'll be well on your way to creating a successful and thriving business.

Step 6: Attracting and retaining top talent

Attracting and retaining top talent is the lifeblood of a successful recruitment agency. So, how do you make your agency stand out in a sea of competitors vying for the best candidates? Here are some key tips to help you achieve this goal.

Develop a strong employer brand

Your employer brand is the backbone of your recruitment agency. A strong and positive brand will not only attract top talent but also help you retain them. Make sure your brand clearly communicates your values, mission, and unique selling points to create a lasting impression on candidates.

Offer competitive compensation packages

Top talent seeks agencies that offer competitive salaries, benefits, and growth opportunities. Research industry benchmarks and be prepared to offer above-average packages to secure the best candidates. Remember, investing in your employees is an investment in your agency's future.

Build a solid online presence

In today's digital age, your online presence can make or break your recruitment agency. Develop a user-friendly website, engage on social media platforms, and continuously publish valuable content. This will not only attract top talent but also showcase your expertise in the industry.

Provide exceptional candidate experiences

Word-of-mouth is a powerful tool in the recruitment industry. Ensuring that your candidates have positive experiences at every touchpoint with your agency will lead to referrals and help attract more top talent to your business.

Invest in employee development

Providing opportunities for growth and development is crucial for employee retention. Offer trainings, workshops, and mentorship programs to help your employees reach their full potential. This not only helps retain top talent but also fosters a culture of continuous learning within your agency.

By implementing these strategies, your recruitment agency will be well on its way to attracting and retaining the top talent that will drive your success and growth in the industry.

Step 7: Networking and building relationships with clients and candidates

Building a successful recruitment business heavily relies on your ability to create and maintain strong relationships with clients and candidates. Networking plays a pivotal role in achieving this goal, as it helps you expand your reach, find potential clients, and source skilled candidates. Let's dive into some key strategies to help you build a robust professional network and foster lasting relationships.

Establishing a strong online presence

Having an impressive online presence is essential for any modern recruitment agency. Creating a user-friendly website, staying active on social media platforms, and engaging with potential clients and candidates through forums and online communities can all contribute to your agency's visibility and credibility.

Attending industry events and conferences

Industry events and conferences offer excellent opportunities to connect with professionals in your niche, share experiences, and learn from experts. By attending these events, you can not only build relationships but also stay up-to-date with the latest trends and best practices in the recruitment industry.

Utilizing your personal network

Don't underestimate the power of your existing connections. Your friends, family, and former colleagues can introduce you to potential clients and candidates, or at least point you in the right direction. Make sure to let them know about your new venture and how you can help them or their contacts.

Offering value and expertise

Positioning yourself as an expert in your field will make clients and candidates more likely to trust you with their recruitment needs. Share valuable insights, offer advice, and showcase your industry knowledge whenever possible. This will help you build a reputation as a reliable and knowledgeable recruitment professional.

Following up and nurturing relationships

Creating a connection is just the beginning; maintaining it is the real challenge. Regularly check in with your contacts, offer assistance, and show genuine interest in their needs and concerns. By consistently nurturing your relationships , you can establish long-term partnerships that will benefit your recruitment agency.

Step 8: Managing your recruitment agency's finances and taxes

Managing your recruitment agency's finances and taxes may seem daunting, but with the right approach, it's a breeze. Keep reading to learn tips for staying organized and minimizing stress.

1. Set up a separate business bank account

Opening a dedicated business bank account helps you track your income and expenses more effectively and simplifies your bookkeeping process.

2. Invest in accounting software

Investing in user-friendly accounting software will save you time and effort by automating tasks such as invoicing, tracking payments, and generating financial reports.

3. Create a budget and cash flow forecast

Having a clear budget and cash flow forecast will help you plan for your recruitment agency's growth, as well as identify potential financial challenges before they become major issues.

4. Maintain accurate records

Keeping accurate and up-to-date records of your financial transactions is crucial for tax compliance and for monitoring your business's performance.

5. Understand your tax obligations

As a business owner, you're responsible for a range of taxes, including income tax, payroll tax, and sales tax. Familiarize yourself with your tax obligations and deadlines to avoid costly penalties.

6. Hire a professional accountant or bookkeeper

Enlisting the help of an experienced accountant or bookkeeper can ensure your financial records are accurate, help you save on taxes, and provide valuable financial advice.

Managing your recruitment agency's finances and taxes might take some time and effort, but with the right tools and assistance, you'll set your business on a path to success. Stay organized, informed, and proactive to keep your finances in check and your agency thriving.

Step 9: Automating processes with recruitment tools

Automation is a game-changer in the recruitment world, and utilizing the right tools can save you time, money, and effort. Let's dive into some ways to streamline your operations.

Applicant Tracking Systems (ATS)

One of the most essential tools in a recruiter's arsenal is an Applicant Tracking System (ATS). This software manages the entire hiring process , from posting job ads to tracking candidates and managing interviews.

Automated Scheduling

Coordinating interviews can be a logistical nightmare, but automated scheduling tools like Calendly and Doodle make it a breeze. They allow candidates to choose available time slots, reducing back-and-forth emails and missed calls.

Pre-employment tests

Pre-employment tests are a recruiter's secret weapon, ensuring that candidates possess the necessary skills and qualities for a specific role. From personality assessments to technical skill evaluations, these tests can make the difference between hiring a star employee and dealing with the fallout from a bad hire.

For an in-depth list, you can review top tools for recruitment agencies .

Step 10: Navigating legal and regulatory compliance

Starting a recruitment business can be a thrilling adventure, but it's essential to take the time to understand the legal and regulatory landscape you'll be operating in. This way, you'll avoid any potential pitfalls and ensure the smooth sailing of your new business venture.

First things first : research the specific licenses and registrations required for recruitment agencies in your region. These might include registering your business name, obtaining a tax identification number, and securing any necessary permits.

Don't forget about the importance of adhering to employment laws and regulations. As a recruitment agency, you'll be responsible for helping clients find talented candidates while ensuring fair and equal employment practices. Brush up on the relevant laws, such as anti-discrimination, wage and hour, and worker's compensation regulations.

Insurance Matters

Another critical aspect of legal compliance is obtaining the right insurance coverage. This may include general liability insurance, professional indemnity insurance, and workers' compensation insurance. Do your homework to determine the best coverage and pricing options for your agency.

GDPR: Protecting Personal Data

Recruitment agencies handle sensitive personal information daily. Make sure you're in compliance with data protection regulations, such as the General Data Protection Regulation (GDPR) in the European Union. Stay informed about data privacy best practices and carry out regular audits of your processes.

Lastly, never underestimate the power of networking when it comes to navigating legal and regulatory compliance. Connect with other recruitment agency owners and join industry associations to stay informed about any changes in the law. By staying proactive and informed, you'll be well on your way to launching a successful recruitment agency.

Step 11: Evaluating and mitigating potential risks

Starting a recruitment agency comes with its fair share of risks. But don't worry, we've got you covered! In this section, we'll dive into the potential challenges and explore ways to mitigate them.

Constantly changing job market

The job market is dynamic and can change rapidly, with new industries emerging and others declining. Recruitment agencies need to stay up-to-date with these changes and adapt their strategies accordingly. This can require significant investment in research and development, as well as a willingness to take risks and try new approaches.

A major challenge for recruitment agencies is managing cash flow. Recruitment agencies typically operate on a commission-based model, which means that they only receive payment when a candidate is successfully placed.

The average time to fill a job in the US is 36 days .

This can lead to cash flow issues, particularly if there are delays in the recruitment process or if clients are slow to pay. Recruitment agencies need to manage their cash flow carefully and have contingency plans in place to deal with any issues that arise.

Managing cash flow and finances can be challenging for any business. To mitigate financial risks, maintain a detailed budget, track expenses, and regularly review your financial performance. Consider working with an accountant or financial advisor to guide you through this process.

Competition and market saturation

One of the key risks for any new recruitment agency is the fierce competition in the market. To stand out, focus on providing exceptional service and building strong relationships with both clients and candidates. Consider specializing in a niche or industry to differentiate your agency from the rest.

Client and candidate retention

It's crucial to establish long-term relationships with clients and candidates. Keep them engaged by consistently delivering high-quality service, offering valuable resources, and maintaining open communication. Don't forget to ask for feedback and make improvements based on their suggestions!

Legal and regulatory compliance

Recruitment agencies must adhere to various laws and regulations. To avoid potential legal issues, familiarize yourself with employment laws, data protection regulations, and industry-specific requirements. Consult with a legal professional to ensure your agency's policies and procedures are compliant.

Costs involved in starting a recruitment agency

Starting a recruitment agency can be a lucrative business, but it also requires a significant investment.

Licenses and permits

One of the primary costs associated with starting a recruitment agency is obtaining the necessary licenses and permits. This may include a business license, tax registration, and any industry-specific licenses or certifications. The cost of these licenses and permits can vary depending on your location and the type of agency you plan to start.

Office space & equipment

Another significant cost associated with starting a recruitment agency is office space and equipment. You will need a physical location to conduct business, including office space, furniture, and office equipment such as computers, phones, and printers. The cost of office space and equipment can vary depending on your location and the size of your agency.

Marketing and advertising costs

Marketing and advertising costs are also a significant expense when starting a recruitment agency. You will need to develop a marketing strategy to attract clients and candidates, which may include creating a website, developing marketing materials, and advertising in industry publications. The cost of marketing and advertising can vary depending on the scope of your marketing efforts.

Employee salaries and benefits

Employee salaries and benefits are another significant cost associated with starting a recruitment agency. You will need to hire recruiters and administrative staff to help run your agency. The cost of salaries and benefits can vary depending on the size of your agency and the experience level of your staff.

Finally, you will need to invest in technology and software to help manage your agency's operations. This may include applicant tracking systems, customer relationship management software, and other tools to help manage your agency's workflow. The cost of technology and software can vary depending on the size and complexity of your agency's operations.

Top global recruitment agencies

• Adecco: Adecco was founded in Switzerland in 1957 and is now the largest staffing firm in the world. They operate in a wide range of industries, including finance, healthcare, and IT. In 2019, Adecco had a revenue of €23.4 billion and employed over 34,000 internal staff members.
• Robert Half International: Founded in 1948, this global staffing firm has grown to become one of the largest specialized staffing firms in the world, providing placement services for finance, accounting, technology, and more.
• Randstad: Randstad was founded in the Netherlands in 1960 and is now the second-largest staffing firm in the world. They specialize in a variety of industries, including healthcare, engineering, and finance. In 2019, Randstad had a revenue of €23.7 billion and employed over 38,000 internal staff members.
• ManpowerGroup: ManpowerGroup was founded in the United States in 1948 and is now one of the largest staffing firms in the world. They operate in a variety of industries, including IT, healthcare, and finance. In 2019, ManpowerGroup had a revenue of $21.9 billion and employed over 28,000 internal staff members.
• Allegis Group: Allegis Group was founded in the United States in 1983 and is now one of the largest privately held staffing firms in the world. They specialize in a variety of industries, including engineering, healthcare, and IT. In 2019, Allegis Group had a revenue of $13.4 billion and employed over 12,000 internal staff members.
• Hays: Hays was founded in the United Kingdom in 1968 and is now one of the largest staffing firms in the world. They specialize in a variety of industries, including construction, healthcare, and finance. In 2019, Hays had a revenue of £5.8 billion and employed over 10,000 internal staff members.
• Kelly Services: Kelly Services was founded in the United States in 1946 and is now one of the largest staffing firms in the world. They operate in a variety of industries, including engineering, healthcare, and finance. In 2019, Kelly Services had a revenue of $5.4 billion and employed over 7,000 internal staff members.
• Robert Walters: Robert Walters was founded in the United Kingdom in 1985 and is now one of the largest staffing firms in the world. They specialize in a variety of industries, including accounting, finance, and IT. In 2019, Robert Walters had a revenue of £1.3 billion and employed over 4,000 internal staff members.
• PageGroup: PageGroup was founded in the United Kingdom in 1976 and is now one of the largest staffing firms in the world. They specialize in a variety of industries, including marketing, finance, and engineering. In 2019, PageGroup had a revenue of £1.6 billion and employed over 7,000 internal staff members.
• SThree: SThree was founded in the United Kingdom in 1986 and is now one of the largest staffing firms in the world. They specialize in a variety of industries, including IT, engineering, and finance. In 2019, SThree had a revenue of £1.2 billion and employed over 3,000 internal staff members.
• Airswift: Airswift was founded in the United Kingdom in 1979 and is now one of the largest staffing firms in the world specializing in the energy, process, and infrastructure industries. In 2019, Airswift had a revenue of $1.2 billion and employed over 1,000 internal staff members.
• Korn Ferry: With a focus on executive search and leadership consulting, Korn Ferry has been a pioneer in the recruitment industry since its inception in 1969. They have helped numerous organizations find the right leaders and achieve long-term success.
• Aerotek: Established in 1983, Aerotek is a leading provider of technical, professional, and industrial staffing services. With a focus on engineering, IT, and healthcare, they have successfully placed over 300,000 candidates in various industries.

Concluding thoughts

In conclusion, starting a recruitment agency might seem like a daunting journey, but with the right mindset and dedication, you can turn it into a successful venture. Embrace the challenges, celebrate the victories, and remember that you're helping people find their perfect job match.

So go ahead, take the leap, and start making a difference in the world of recruitment!

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How to write a business plan for a recruitment agency

Table of Contents

Why a business plan is important

Provide direction,  minimise risk , reduce spending, market research , budgeting and financial planning, examples of swot analysis for a recruitment agency, opportunities , how countingup can benefit your recruitment agency.

If you’re looking to start a recruitment agency, you’ll need to create a business plan as any other startup would. Remember, though, that you’ll need to also account for the specific situations that might arise while working in the recruitment industry.

This article will serve as a guide to writing a great business plan for your recruitment agency. We’ll look at what your plan should look like, as well as why a plan is important. The topics we’ll cover include:

There are a few different reasons why you need a business plan before starting a business , but one of the most important is that it will guide your business going forward. Without a plan, no matter how simple the plan is, you’ll likely struggle to develop your business and make effective decisions. 

A business plan doesn’t have to be set in stone — you can adapt it to account for any unique events that affect your recruitment agency. That said, it’s essential to have at least a vague idea of the purpose your business will serve, the potential obstacles you might encounter, and how you’re going to deal with those obstacles.

A business plan is also necessary to minimise the risk you’ll face when starting a recruitment agency . One of the key sections of a business plan is the SWOT analysis, where SWOT stands for strengths, weaknesses, opportunities and threats.

In order to minimise risk effectively, it’s vital that you analyse both the weaknesses of your agency as well as the threats it may face. In doing so, you’ll be able to fix your weak points and avoid potential threats more effectively.

Finally, business plans are important because they provide valuable data for minimising your spending. For example, during your SWOT analysis and financial planning , you may find that you’ve budgeted a large amount of spending to support a part of your business that’s actually very strong. 

In a recruitment agency, this might mean you’ve planned to spend a lot of money on marketing, but your business already has a strong brand because you (as the owner) have many good personal contacts in the industry. In this instance, you can safely reduce your marketing budget and save your business money. 

Thorough market research is the best first step when you’re writing a business plan . Market research means examining the industry your business will exist in, and finding out the needs and preferences of that industry’s consumers.

For a recruitment agency, a key research topic for your business plan would be finding out the impact COVID-19 has had on the market. Many new markets emerged during the pandemic, which you can provide your services to. As the UK is currently recovering from the pandemic, it would also be wise to look into which industries are now recruiting heavily after laying off staff in recent years.

Planning out how you’ll spend your money when starting your agency is also a key part of a good business plan. You need to consider your budget for starting the business as well as how you’ll manage your business finances going forward.

It’s smart to prepare a budget for each section of your business. For instance, you might set aside different amounts for recruiting staff, purchasing business premises, and marketing. Your advertising budget is particularly important when you’re a small business , as you may not be able to rely on personal contacts or existing clients for referrals, so you’ll need to attract clients independently.

Conducting a SWOT analysis is a great way of evaluating your business even after starting up, but it’s particularly helpful when you first put together your business plan. SWOT stands for strengths, weaknesses, opportunities and threats, so a SWOT analysis requires you to think of an example of these for your business. In a recruitment agency, these might be:

As mentioned above, it may be that you have a good reputation because you have a wealth of experience and personal connections in the recruitment industry, so you’ll not need to worry as much about marketing.

Recruitment agencies frequently have to use a lot of software to track their clients’ needs and organise candidate applications. If you’re not very good with technology, you may need to hire staff who are to account for this weakness.

The UK is currently rebounding from the struggles of the COVID-19 pandemic, and this presents a wealth of opportunities for a good recruitment agency.

You need to take immense care when you’re handling people’s personal information, which you’ll often do at a recruitment agency. Sending this information to the incorrect person can have a considerable negative impact on your business, as there is a lot of new legislation regarding privacy. 

Your business plan should include a good amount of financial planning, as tracking your cash flow (your incoming and outgoing cash) is hugely important in any business. 

Countingup is the business current account with built-in accounting software that allows you to manage all your financial data in one app. With features like automatic expense categorisation, invoicing on the go, receipt capture tools, tax estimates, and cash flow insights, you can confidently keep on top of your business finances wherever you are. 

You can also share your bookkeeping with your accountant instantly without worrying about duplication errors, data lags or inaccuracies. Seamless, simple, and straightforward! 

Find out more here .

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Recruitment Business Plan Template: From Basics to Advanced

A Recruitment Business Plan serves as a blueprint for establishing a successful agency. It outlines strategies for market analysis, client acquisition, and operational processes.

Crafting a recruitment business plan requires a strategic approach that blends fundamental business principles with industry-specific insights. This framework not only helps to set clear objectives but also equips you with the necessary tools to navigate the competitive landscape of recruitment.

The introduction to creating an effective recruitment business plan should consider the unique challenges and opportunities within the recruitment industry. Entrepreneurs must analyze market trends, define target sectors, and hone their value propositions to stand out. A robust plan also emphasizes on developing solid relationships with both candidates and employers, ensuring a steady flow of placements. Emphasis on technological integration and compliance with legal standards is paramount. By focusing on these elements, recruitment startups can lay a foundation for sustained growth and profitability.

The Recruitment Business Landscape

Exploring the recruitment business landscape offers insights into a rapidly evolving industry. Understanding the landscape prepares businesses to adapt and thrive. Let’s delve into the current trends and competitor strategies shaping the recruitment sector.

Current Trends In Recruitment

• Technology Integration : Automation tools streamline the recruiting process.
• Data-Driven Decisions : Analytics guide recruitment strategies.
• Candidate Experience : Smooth interfaces attract top talent.
• Remote Hiring : Virtual interviews are the new norm.
• Diversity Focus : Inclusive strategies win diverse candidates.

Analyzing Competitor Strategies

Studying rivals reveals unique selling points and areas for improvement. Focus on differentiators that set your firm apart.

Crafting Your Value Proposition

When you dive into the world of recruitment, your value proposition is a beacon that attracts clients. It outlines what sets you apart. In this vibrant sector, standing out is not just a goal, it’s a necessity. Let’s explore how to tailor your value proposition with precision and impact.

Identifying Your Niche

Knowing your niche defines your recruitment business roadmap. It shapes your services and targets. Your niche could be an industry, a job level, or a specific type of candidate. Once pinpointed, it guides your value proposition.

• Research the Market: Start with identifying gaps in the recruitment market.
• Understand Your Expertise: Reflect on areas where you have the most knowledge and connections.
• Pinpoint Your Audience: Decide who your services will benefit the most.

Differentiation In The Recruitment Space

Making your mark in recruitment means being different. What you offer that others don’t is your key to success. This could be your method, your network, or your knowledge. Make sure clients know why you are the go-to recruiter.

Blend your expertise, market needs, and the innovative approach to create a value proposition that shines.

Building The Framework

Crafting a robust business plan serves as the skeleton for all recruitment businesses. Whether a startup launches from a bustling city office or a cozy home desk, the framework remains vital. Laying this groundwork pushes the business closer to success from day one. Let’s delve into the cornerstone elements of the framework: business objectives and financial planning .

Setting Clear Business Objectives

A recruitment firm must know its destination before plotting the course. Clear objectives guide the direction and measure progress. It’s crucial to define what the agency aims to achieve. Goals might include niche market dominance, a set number of placements, or a specific revenue target within a year. Each objective should follow the SMART criteria —Specific, Measurable, Achievable, Relevant, and Time-bound. This clarity propels the business forward with purpose and precision.

• Specify the target sectors or industries.
• Establish milestone metrics to track achievements.
• Create actionable steps with timelines for each goal.

Financial Planning For Recruitment Startups

A solid financial foundation uplifts recruitment startups. Financial planning demands attention to start-up costs, operating expenses, and cash flow management. Budgeting wisely prepares the business for various market conditions.

Adequate financial resources ensure smooth operations. Plan for both expected costs and unforeseen expenses. Regular financial reviews help identify areas needing adjustment.

• Determine initial capital and sources.
• Map out monthly budget and expenditure.
• Ensure a safety net for unplanned scenarios.

Marketing And Branding Essentials

Your recruitment business plan needs a strong foundation in marketing and branding. A memorable brand and strategic marketing can set you apart. Think of branding as your agency’s personality. It tells clients who you are. Marketing is how you communicate that personality to the world. To succeed, you’ll need a fine blend of both. Let’s dive into the essentials that will help your recruitment business shine.

Leveraging Social Media And Online Presence

Today, a strong online presence is non-negotiable. Social media is your gateway to reach millions. Your aim is to create engaging content that resonates with your audience. Use platforms like LinkedIn, Twitter, and Facebook.

Here’s how to make social media work for you:

• Showcase your company culture.
• Share success stories and testimonials.
• Engage with interactive polls and questions.
• Use targeted ads to reach the right people.

Monitor your campaigns. Use analytics to understand what works. Your online voice can attract the perfect clients and candidates.

Networking And Relationship Building

Strong relationships are the backbone of any recruitment business. They lead to referrals and repeat clients. Attend industry events and join associations. Be visible in your community.

Here’s a simple guide for effective networking:

• Create a list of key events in your sector.
• Attend regularly and be approachable.
• Follow up with new contacts promptly.

Relationships take time. Always follow through. Keep in touch with clients and candidates. Offer value in every interaction. The trust you build will become the hallmark of your brand.

Operational Strategies For Success

An efficient recruitment business hinges on operational excellence. Success stems from the right strategies deployed in daily operations. Let’s uncover key operational strategies that can transform the way a recruitment business functions, leading to streamlined processes and better use of technology.

Streamlining The Recruitment Process

Efficient recruitment drives business growth. A streamlined process attracts top talent while saving time and resources. Consider the following strategies:

• Define clear job roles: Detailed descriptions ensure the right fit.
• Robust candidate sourcing: Use multiple channels for a wider reach.
• Effective communication: Keep candidates informed at each step.
• Structured interviews: Consistency in questioning improves fairness.
• Timely feedback: Quick response times show respect for applicants.
• Analytics-driven decisions: Use data to refine hiring practices.

Technology Integration And Automation

Embracing technology is not optional in today’s fast-paced recruitment world. It offers accuracy and speed unlike any other. Key tech strategies include:

• Applicant Tracking Systems (ATS): Automates candidate management.
• Customer Relationship Management (CRM) software: Streamlines client interactions.
• Automation tools: Schedules interviews and sends reminders.
• Social media platforms: Enhances employer branding and reach.
• AI-powered screening: Filters candidates effectively.
• Cloud storage: Securely manages candidate data.

These technologies not only simplify tasks but also create a more engaging experience for both candidates and clients.

Advanced Considerations

As your recruitment business matures, a robust plan needs to account for complex strategies. These advanced considerations ensure longevity and scalability. Below, explore how to effectively scale your business and adhere to key legal and ethical standards. Both aspects are critical for advanced planning and success.

Scaling Your Recruitment Business

To scale your recruitment business , you must strategize for growth. A clear plan outlines steps to expand services and reach. Begin with these points:

• Invest in advanced recruitment software for efficiency.
• Develop a marketing strategy to attract wider clientele.
• Consider niche diversification to meet specific market needs.
• Expand your team with skilled recruiters for larger operations.
• Automate routine tasks to focus on growth activities.

Chart a course for your business to grow. Use data-driven decisions. Keep an eye on industry trends and pivot as necessary.

Legal Compliance And Ethical Practices

A successful recruitment business adheres to legal compliance and ethical practices . This includes:

Engage a legal expert for a thorough review of your practices. Train your team regularly on these matters. Foster a culture of transparency. This builds trust with your clients and candidates.

Frequently Asked Questions

What is a recruitment business plan.

A recruitment business plan is a strategic outline for establishing and growing a recruitment agency. It defines business goals, strategies to achieve them, and the structure for operating the recruitment services effectively. It acts as a roadmap for success in the recruitment industry.

Why Do You Need A Recruitment Plan Template?

Using a recruitment plan template helps streamline the planning process and ensures all critical elements are covered. It saves time, outlines industry best practices, and provides a clear structure that can be customized to specific business needs and targets.

What Are Key Elements Of A Recruitment Business Plan?

Key elements include an executive summary, company description, market analysis, organizational structure, client acquisition strategies, recruitment tactics, financial projections , and an operational plan. These components work together to form a comprehensive guide for launching and running a recruitment agency.

How Do Advanced Strategies Enhance Recruitment Plans?

Advanced strategies in a recruitment plan involve leveraging data analytics, innovative sourcing methods, digital marketing techniques, and strong candidate engagement practices. They enhance efficiency and competitiveness by identifying high-quality prospects and minimizing time-to-hire.

Crafting a solid recruitment business plan paves the way for success. This guide offers a roadmap, from the fundamental elements to sophisticated strategies. Implement these steps, track your progress, and adapt as needed. Secure your agency’s future by laying a strong foundation today.

Let ambition meet preparation and watch your business flourish.

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Recruitment Agency Business Plan

Striking out and setting up your own recruitment agency is an exciting prospect, and there’s never been a better time to do it. With over 31,000 agencies in the UK, the recruitment industry is booming. Despite the profound impact of COVID-19 on the labour market, recruitment is projected to bounce back massively in 2024, so now is the perfect time to seize the opportunity and open your own agency.

Pre-pandemic, the recruitment industry generated over £42.3 billion in the UK alone, and recruitment agencies and firms are predicted to grow substantially in the next 3-5 years.

It’s clear that there is huge revenue potential in the recruitment industry. However, to stand out from the crowd, you’ll need a great recruitment agency business plan. This will give you the strategy and understanding of the industry you need to succeed.

So, where should you start? Our guide will take you through each individual step in making your own business plan. We’ll take you through marketing strategy, pricing structure and management, all of which are crucial to the success of your recruitment agency. As a new business owner, there will be a lot to take in, but with our recruitment agency business plan, you’ll have the ultimate guide to take you forward.

Is opening a recruitment agency for you?

• How much does it cost to open a recruitment agency in the UK?

What's included in our recruitment agency business plan?

• Your free sample recruitment agency business plan template

Summary and recap

As we’ve already mentioned, there is great potential in the UK for recruiters, and the turnover could be really significant. However, with the popularity of the industry comes a lot of high level competition.

Before you do anything else, you should be clear on who your competitors are, who your clients will be and how you will reach them, as well as fees you might have to pay whilst setting up.

You should start with a business plan. You can use it to gather and collate all of your resources, ideas and research.

You should consider things like:

• How many large recruitment agencies operate in the area (Adecco, Impellam, Reed etc.?)
• How many local recruitment agencies operate in the area?
• Is there likely to be any existing brand loyalty in the area?

How much does it cost to start a recruitment agency in the UK?

The average start-up costs to set up a recruitment agency in the UK vary considerably. More expensive start-ups will cover the costs of leasing premises, employing staff, buying equipment and any insurance you might need.

Key costs of starting your recruitment agency include:

• £12 to register your company, and £30 a month for details such as creating a website, designing a unique brand, setting up a LinkedIn company page and advertising jobs.
• You could also pay for added extras such as LinkedIn Premium and a CRM (Customer Relationship Management), a system which manages interactions with customers through data analysis, to win you as much business as possible.

However, there are ways to set up a recruitment agency without having to pay out thousands at first. By starting out as the sole employee, and even working from home, you can reduce costs to a bare minimum. All you really need is your home PC, mobile phone, some basic web tools and an internet connection.

With this in mind, a recruitment agency business plan is the best way to prepare yourself and plan for any financial obligations from the very start. We can also help you to figure out how to raise the capital you need for your business, based on your current financial situation.

We’ll take you through every step you’ll need to take to start your recruitment agency. It’s important to remember that if you plan to secure funds from a bank, it’s essential your business plan is as rigorous as it can be.

Included within our recruitment agency business plan, we offer:

• A fully completed recruitment agency business plan
• Break-even analysis (12-month analysis)
• Complete business plan guide
• Business plan template (.doc and .PDF)
• Financial planning wizard

Along with that, we’ll offer you a further 25 (at least) ways to market your recruitment agency for free. All of this is at your fingertips.

Download now for only £49

In this guide, we’re going to take you through an outline for a recruitment agency business plan, detailing what you should include within each section, and things you should consider when pitching your business to investors.

However, please remember this is only a guide. When writing your business plan for your own recruitment agency, make sure to take your time and work through everything in scrupulous detail.

When it comes to a business plan, the more thorough the better. You can never over-plan when it comes to a business start-up.

Step 1: Executive summary

Imagine you are pitching your business to an investor, what would you say? Remember that banks and investors will have seen thousands of previous pitches, so you really need to stand out to grab their attention. Putting serious thought and effort into your executive summary will be well worth it.

Make sure to think about these three things:

• Keep your language clear, concise and easy to read. Make it short and sweet.
• What makes you stand out from other recruitment agencies?
• Why should they be confident they will get their money back?

Remember, this is your opportunity to convince investors of your business’ credentials. Keep it positive, clear and easy to understand. Don’t get drawn into detailed descriptions or explanations, and avoid technical terms and jargon. Go out and grab their attention.

Step 2: Company overview

The company overview is your chance to properly introduce yourself and your business. You can give your potential investors a more detailed insight into how you plan to make sure your recruitment agency is a success.

Always remember, your focus should be on why investors should choose to put money into your recruitment agency, and why they should believe they’ll make a return on their investment.

You can consider including the following ideas in your company overview:

• What previous experience do you have managing a business
• What made you decide to start a recruitment agency?
• How will you stand out from your competition?
• Exactly who are your target clients? Do you have an ideal customer?
• What is your current financial status?

You need to show that you have a good understanding of the recruitment industry. Let them know the extent of your knowledge of the current market, how you expect it to change, and how your company is suited to thrive in the future.

You should think like a business person and don’t give your investors any reason to doubt your command of the subject.

Some other things to consider include:

• How you plan to expand your recruitment agency in the future.
• Your local market and competition.
• How is your application different to the others your investors have seen?

Basically, the goal of your company overview is to deliver a complete outline of your recruitment agency to your potential investors. Make sure to include facts and figures, and show off all your skills and expertise.

Feel overwhelmed? Not sure where to start? We’ve done all of the hard work for you.

Instant download for £49

Step 3: Management and key personnel

A business is only as good as the people behind it. To really make your recruitment agency a success, you’ll need the support of a great team. In the management and key personal section of your plan you should detail your management, staff, and plans for further growth.

Remember to include:

• Staff members and their roles at the agency
• The previous experience of your staff
• Your staff salaries
• Do you plan to bring new people into the business? If so, when? How many? And what kind of salaries will they be paid?

This section really doesn’t need to be too long or complicated. All investors want to know is that you have a solid management structure and that you’ve made some plans for expansion in the future where necessary. As long as you’ve shown this, you’ll be just fine.

Step 4: External analysis (market research)

It’s crucial to have a strong understanding of your market before launching your start-up. It will help you recognise opportunities for your company to benefit from, and identify threats before they can damage your business.

Make sure you know the competition. What will make you stand out from them?

In this section you’ll also need to look into your target market, and how you’ll attract them over the competition. You should try to make this as detailed as possible, so that investors can see the focus of your agency. Being too vague might lead potential backers to believe you haven’t put much thought into it.

Who’s going to use your recruitment agency? (your target market)

Are you going to focus on recruiting in one particular industry? Or perhaps you’re going to specialise in junior or graduate roles? You need to know who your clients will be so you can tailor your marketing and branding to suit them.

Some things that you should think about include:

• How will you get the attention of clients?
• How much will you charge your clients?
• What will make them choose you over other competitors?
• How can you gain their loyalty?

How many recruitment agencies operate in your area?

In order to attract business you’ll have to stand out from other recruitment agencies that operate in the same region. How do you plan to separate yourself from your competition? Investors might be concerned about market saturation, and you need to prove to them that your agency has more to offer than any other around you.

Some things you can think about:

• How much do you know about your competitors?
• How many large recruitment agencies operate in your area?
• What are the average costs of employing a recruitment agency?
• Do they specialise in any particular industry? How does this compare with your own business?

Put yourself in the shoes of your ideal customer. What is going to make them choose you over another agency?

Step 5: your business objectives

Your business is going to need to have objectives, both for the short term and the long term. These objectives should be an outline to potential investors of what you are expecting to achieve over a time-frame.

Think about where you want your company to be after a month, then six months, a year and even five years. Don’t go crazy though. Ambition is good, but you shouldn’t be suggesting your business is going to become a giant of the industry after the first couple of years, as you will just come across as naive.

You should try to use the S.M.A.R.T criteria to keep track of your objectives.

Your S.M.A.R.T Criteria are:

If you still need some help coming up with objectives, you can consider some of the following:

• How big is the market you’re targeting?
• How do you plan to reach that market?
• How many clients do you expect to have after the first two months?
• How much revenue do you expect after the first six months?

Along with each objective you should provide a plan, as to how you expect them to be achieved.

Step 6: Services, equipment and amenities

By giving a detailed list of all the equipment you need to start your recruitment agency, investors will be able to see what their money is paying for.

This will depend very much on the scale of your planned agency. It would be possible to start by working from home with just your home PC and personal mobile phone. But if you’re thinking bigger, some items and services you should think about would include:

• Office space, along with desks and chairs
• Work Mobiles and mobile contracts

Be realistic in this section. You don’t need twenty PCs if you’re only employing a handful of staff. There’s no point in overspending.

Step 7: Financial forecasting and financial projections

This is the section where we crunch the numbers. Financial forecasting is probably the most important part of your business plan, as you can prove to investors that they will get some return on their investment.

This might be the trickiest and most time consuming part of the whole plan, but it is essential to do it properly.

You’re going to have to show your potential backers how you’ll recuperate the money they’ve invested. How much can you make per client? How many clients will you have?

The fundamentals you’ll need to provide:

• Sales forecast
• Expense budget
• Cash-flow statement

There are a whole lot of things you’ll need to budget for. Some of those might include:

• Purchase estimations
• Hiring costs

If possible, don’t restrict yourself to just one avenue of revenue. Diversifying your income sources will make investors feel much more comfortable with their investment.

We’ve taken all of the hard work out of planning the finances for your recruitment agency. Download your recruitment agency business plan template instantly below.

Instant download

Step 8: Funding

Do you already have existing financial support? Your investors will need to know how much start-up capital you have, and where it’s coming from. You need to let them know whether you’re using money from your own pocket, or whether you have investments from some other backer.

You might have received funding in the form of:

• Personal loans
• Partners or sponsors
• Family and/or friends

Be completely clear about where your money is coming from. Don’t hide anything from your investors.

You also need to be explicit about how much money you need, both now and in the future. You should also detail to investors how you’ll be spending it, whether it’s for equipment, renting premises or paying staff.

At the same time, don’t ask for more than you need, as it’s only likely to put investors off

Your free sample recruitment agency plan

If this is all still seeming a bit overwhelming, you might like to take a look at a small template we provide for a recruitment agency business plan. This can get you started and help you to come up with some of your own ideas.

Included in this template, you’ll get:

• An example of your executive summary
• Products/services on offer
• Staff and management structure

Download .doc here

Launching your own business is a scary prospect. The recruitment industry is already a busy market, but there’s plenty of demand for it and forecasts anticipate its boom to continue. There are over 31,000 recruitment agencies in the UK, with a combined value of over £42.3 billion.

By creating a detailed and clear business plan, you’re giving yourself the best chance of success. You’ll be able to start out knowing you’ve considered every aspect of the business. Investors love an in-depth business plan, so remember: the more detail the better. With our experience, you can kick-start your agency with confidence.

Download the Software

Complete recruitment agency business planning package.

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Home » Blog » Where to start with a recruitment business plan

Where to start with a recruitment business plan

Rhys jones written by rhys jones managing director – davidson gray.

Rhys sold out of his previous recruitment businesses in 2012 to focus solely on helping recruiters set up and build recruitment businesses. Follow Rhys on LinkedIn or contact him direct  here for help with your start-up recruitment business or for coaching to grow an existing one.

You’ll be pleased to hear that in my experience a recruitment agency start up business plan need only contain a few essentials and really isn’t rocket science. You only need a basic plan to start, well thought through definitely, but not War and Peace.

A start up recruitment business plan doesn’t need to be super sophisticated. However what you do need is a well thought through plan so you can build solid foundations for growth, remove as much risk as possible and allow you, once you go live, to concentrate on the exciting bit, BILLING, rather than working things out as you go along. The planning now will make the real fun part of making money so much easier with fewer distractions, and allow you to really enjoy being your own boss and owning your own business. So spend that time now, trust me it’s a fabulous investment and you’ll be grateful for it when you make a flying start in your new recruitment agency. 

If you search on the web, you’ll find various contradictory ideas on what a business plan should contain, which can leave you worse-off than when you started, confused on which way is the best way. I hope in this series of blogs I can take some of that confusion away for you. I’ve been lucky enough to have hands on experience of building my first businesses from the ground up. Added to this, I improved my knowledge with additional learning gained at Cranfield Business School, which I applied to those early businesses and the many more recruitment businesses in different sectors I went on to set up, all of which are continuing successful companies. So with this experience, I’d like to think my ideas on recruitment agency business plans are worth considering (sorry if this sounds like I think I’m the Richard Branson of recruitment, it’s not meant to, but think it helps explaining my experience).

The common school of learning on business plans is to use the SWOT analysis, i.e. what will be the planned business’s:

• Opportunities

I don’t disagree that you could add this to your plan, and it’s handy to have in, but this series of blogs look at what I feel are specific and essential to a recruitment business plan (plus the bits you may not know if you’ve never set a business up before). Where to start.

To see if you do have the basics of a business in you, I advise firstly to look at the sales and cash flow forecast. If your business idea doesn’t pass this test, you need not waste your time any further – your business just won’t fly. So let’s start with the engine of the business, money in.

Your Sales Forecast

To allow you to write your cash flow forecast, you’ll need a well thought through sales forecast.

There’s lot to consider here, a lot more than first appears. You can’t just take what you bill now and assume you can simply replicate that without understanding where your current billings come from. So, below are ways to stress test where your current billings actually come from by looking at where you get both your vacancies and candidates.

Candidate Attraction

Needless to say finding good candidates is critical to your placements, so you need to make sure you have thought about where you will get them from. To help understand where you are currently successful, I suggest you look at your last six months’ billings and write next to each candidate placed where that candidate came from. Was it a headhunt call, a referral from previous candidates / clients, was the candidate off the business database, were they from a job board, social media, LinkedIn, Twitter etc? This is a real life study based on you, and how you are currently successful. It’s invaluable to understand what you will be able to easily reproduce when working for yourself e.g. headhunt calls, LinkedIn etc. and parts you may need to make up for e.g. candidates who came from a database search. So this will help you appreciate how easy or not candidate attraction will be for your sales forecast. It will also help get you thinking what you can do to make up for any tools you have now in the workplace but won’t have when you leave. Plus, if it’s job board centric then this is a cost you need to add to your cash flow plan. I’m not going to go into how to improve your candidate attraction here (that will be another blog) but if you’re currently very dependent on the company database, this should ring alarm bells and you need to think ahead and plan how to recruit successfully without it. And try applying these new techniques now whilst you’re still employed to perfect them so you can add their added sales value to your plan with confidence.

Client / Vacancy Attraction

At this stage it’s pertinent that I bring up the potential handicap that your current employment contract’s restrictive covenants may have on your planned client base. The current widely accepted covenant, i.e. what the courts see as ‘fair and reasonable’, is that you can be restricted from trading with any clients you’ve had ‘material dealings with’ over the last twelve months with your current employer, for the next six months once you leave (any more than this is seen as unreasonable).

Now this isn’t to say if it’s in your contract that means you’re definitely frozen out from this potentially lucrative group of businesses, there could be errors elsewhere in your contract that makes this void. So get it legally checked and from a commercial angle if you can. Law isn’t black and white and getting good commercial legal advice is hugely valuable which is why I use Barrister Greg Walsh of  Greg Walsh Law  for my Davidson Gray partner businesses. I see it as that valuable to get good quality advice. But if your current clients are off limits for the first six months, work this into your plan. Next, go back again over the last six months’ placements and mark where your clients/vacancies came from as you’ve done for your candidates. Do the clients come to you for you, or because of who you work for, are they from a PSL you won’t be on, were there any from a mailshot, new business cold call etc?  This will quickly show you where your current vacancies come from so you can write your sales forecast from a true picture of what you can and can’t replicate easily. Plus, if some methods you use now to gain clients are removed or won’t be as effective once you leave, you have time to plan new business development and marketing initiatives to replace this business. And as with the new candidate attraction strategies, see how they work where you are now, but maybe not too much, you don’t want too many new clients your covenants could restrict!

The sales forecast itself

Once you’ve considered the above, you will be able to see more clearly what tools and advantages you currently benefit from where you work. It should now be easier for you to write a realistic sales forecast. I find it helpful to write two sales forecasts, one you feel is realistically achievable and one that you feel is the absolute minimum you’ll achieve. The bare minimum one is important in your cash flow forecast. You don’t want to get five months in and run out of cash, so if you know the bare minimum you’ll achieve, you can see how much of a cash buffer you’ll need. The realistic forecast is the one you plan for with the activity you expect to hit, the KPIs you set yourself etc. Plus this can be your motivator, as you should be earning a lot more on this forecast than you currently are very, very quickly!

So simply start with month one, and take it through to month twelve. You can’t realistically predict year two in a start-up. You will learn a lot midway through year one and you can use this learning for year two’s forecast.

Once you’ve done your sales forecast, you can use this in your cash flow forecast. I will go into this in my next blog where I’ll explain how you can get a very good idea of  how much it will cost to set up a recruitment business , running costs, and net profit month by month.

I hope you’ve found this second blog in the series helpful, and as always if you have any questions, feel free to contact me. You can find me on LinkedIn under my main business name of Davidson Gray.

Interested in working with Rhys to grow your start up?

Rhys not only provides the start-up infrastructure for your new business and all the support services your business will need, he can actually work with you to grow it. Take advantage of as much mentoring and coaching as you would like, plus Rhys considers himself a working partner and will take responsibility for the areas that you’d like him to, perhaps those you have the least passion for e.g. Finance and Digital Marketing. When working together on the business’s growth strategy, much of the effort to deliver it can be delegated to the Davidson Gray team.

Book a chat with Rhys  here.

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Wherever you get your podcast content

• Setting Up a Recruitment Business
• Growing a Recruitment Business
• Managing a Recruitment Business
• Recruitment Tips
• What you need to know to perfect your headhunt
• A recruitment business partner is for life, choose carefully!
• How to pitch for recruitment business investment
• How to use success ratios to produce recruitment KPI’s that WILL work
• How to deliver quality headhunts that WILL win more business.
• Top 7 Reasons To Set Up A Recruitment Business
• Why Recruitment Owner/Managers Need to KPI Themselves for Real Business Growth
• Is building a recruitment business to sell a good idea?
• So you want to be a Headhunter?
• Why bad managers give recruitment KPI’s a bad reputation

A guide to using LinkedIn Recruiter

In this blog, aimed at recruiters, we examine the potential LinkedIn Recruiter options in more detail and find out what you get for your money and how to make the most of the investment.

How to grow your recruitment business in 2023

What does it take to grow a recruitment business in these uncertain economic times? In this blog, originally published in The Global Recruiter, Rhys looks at what it takes to grow a recruitment business in 2023.

Leadership or management – what’s more important to a growing recruitment business?

Leadership or management – which one’s the more important skill to have when growing your recruitment business? We’ll look at why it’s crucial to have both and when to use them to greatest effect.

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Leadership or management - what's more important to a growing recruitment business, why business owners should never take their staff for granted., what is recruitment factoring and why do we do ours in house, how to choose a crm for your new recruitment agency, useful links.

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How to build a recruitment plan, step-by-step

• Recruitment Strategy

Job reqs are boom or bust, so you’re either scrambling to cover everything or worried about proving your team’s value. Every hiring manager has different expectations on compensation and time to hire, and when they change their mind, you always feel like the last to know.

To break the cycle, what you need is a robust recruitment planning process. A full recruitment plan should include an agreed-upon workforce plan, hiring approach, and marketing strategy. If you don’t have time for the full process, you can also do a quick-and-lite version if needed, though we recommend going through all the steps eventually.

A proactive recruitment plan is the first step to becoming a true strategic partner in the organization. You can get ahead of hiring manager requests, set clear expectations, and demonstrate how critical talent is for achieving the broader goals of the business.

We’ve asked our own recruitment team, as well as experienced recruiters from a range of industries, how they do recruitment planning. Here’s their step-by-step guide, along with the real templates they use every day as part of their recruitment strategy. 

Get your free recruitment planning template

Step 1: assess the situation, collect the headcount plan.

Ask each team to share the roles they plan to open this year, and how each role supports their team’s annual goals. For example, this can help you understand which roles must be hired by a certain date, and which roles are more flexible.

You need to understand what the company is trying to accomplish, how that rolls down to [each] department, and then how they see all these hires contributing to that. Mike Bradshaw, PHR Head of Talent Acquisition, Pinpoint

Review internal and external materials

Start by auditing your core metrics. Check internal reports and your ATS’s reporting for core hiring metrics, including:

• Time to hire
• Time to fill
• Average time in each interview stage

Candidate attraction

• Hires by source
• Candidates by source
• Offer acceptance rates
• Cost per hire
• Actual vs. budget
• Net Promoter Score
• Performance after hire
• Retention rates
• Candidates by demographic groups (race, gender, age, disability, veteran status, etc.)
• Hires by demographic groups
• Conversion rates on specific jobs by demographic groups

Then move on to qualitative materials, such as:

• Feedback from candidates (surveys, Glassdoor reviews, coffees with new hires)
• Feedback from hiring managers and leaders (surveys, performance reviews)
• Internal notes on what has and hasn’t worked before

And take a look at your current candidate experience, including:

• Careers site
• Job descriptions
• Communications sent to candidates

Ask for feedback

Have an open-ended conversation with your stakeholders about how they think hiring is going. Consider requesting feedback from:

• Recent hires
• Hiring managers
• Department leaders
• HR and recruiters 

Where do they see untapped potential? Where do they want to see improvements? What attracted them to the company and what was their candidate experience like?

Identify opportunities

As you review all this information, look for signs of issues and potential opportunities. It’s also helpful to write down your baseline in each area so you can track improvements over time. 

Typically, the opportunities you find will fall across three areas: Talent sourcing, employer brand, or new hire onboarding.

Finding talent: Are there untapped opportunities?

• Channels that work and don’t work, untested networks or tactics
• Channels that are delivering volume but aren’t delivering quality
• Channels that have delivered quality, but aren’t getting the attention they deserve

Branding: Are you selling your company?

• Is your employee value proposition (EVP) strong? How can it be improved?
• Is your messaging and branding cohesive across your careers site , branded emails , and job postings? 
• Is your EVP included in each job post?
• What are candidates saying about you in candidate surveys and review sites like Glassdoor?

Onboarding: What happens after a candidate accepts your offer?

• Are systems in place to give HR what they need to set up new hires for success?
• Is your onboarding process streamlined? 
• What’s the feedback from new hires and hiring managers about the onboarding process?

Step 2: Develop the headcount plan

Now that you have context, data, and feedback on previous hires, you can start planning for the future. The more an organization invests time into these exercises, the easier and more likely it will be to meet recruiting goals on time and within budget. 

Understand team goals and priorities at a high level

Organizational goals are driven by your employees. Meet with senior leadership and department heads to discuss company goals for the year. Is this a year of growth, or efficiency? Are there certain departments or regions we want to develop? Answering these questions will help your team to be aligned with leadership on the hiring mission and messaging. 

Design dream staff plans—then prioritize

Give department heads the opportunity to design their ideal team to reach that year’s goals, budget notwithstanding. This will grant you greater visibility into their vision for the department, and what skills they want on the team. 

Then, help department heads refine each job description and prioritize each role, based on actual needs and realistic expectations. Some roles may be less vital this year, or could be solved without a full-time hire. In these conversations, you can help shape the plan for each department, manage expectations around hiring, and avoid frustration later on. 

Get on the same page about levels

Internal alignment on levels ensures your hiring plan is both competitive and equitable. In a competitive labor market where remote work opens up more opportunities for employees, it is even more important to offer the right rate to hire the right person at the right level. 

At the same time, you want to avoid overpaying or overpromising. Not only will this impact your budget, but it could contribute to internal equity issues, which disproportionately affect women and people of color . 

Outline what is required at each level and define salary bands to mitigate the risk of some employees being unfairly valued. If it becomes harder to hire people at the right level because of pay, then it may be time to reassess trends in the market and adjust compensation levels accordingly.

Tip: Salary transparency attracts quality candidates. On Pinpoint, companies that include salaries in their job descriptions move 15% more applicants to the interview stage

Depending on the size of your organization, there are two ways to approach leveling: 

• Uniform leveling: Everyone across the company follows the same track (associate, manager, director, etc.)
• Functional leveling: Each department has a specialized and unique track. For example, the marketing team may have associates, managers, directors, etc., while the engineering team has engineer Is, engineer IIs, staff engineers, senior staff engineers, etc. 

Determine what makes sense for your organization based on your size and complexity. If developing levels from scratch, the process may take upwards of 9 months, but it will give your whole organization greater clarity.

Plan for backfills and promotions

In addition to new hires, you’ll also need to plan for people who are leaving their roles to minimize the impact of losing skills or capacity on the team. To anticipate backfills, consider past year attrition and industry benchmarks along with current economic factors (growth in the sector, recession, etc.). 

Then, look at your current team to understand who is at risk of leaving their role due to performance, attrition, or promotion. Meet with managers to understand who is on track to be promoted and when so you can plan for their backfill. Be conservative with your budget and resourcing plans so you aren’t surprised when the needs arise. 

Set realistic and fair budgets

With defined level expectations and a conservative hiring plan, it will be easier to set budgets for new hire compensation. To stay on top of industry trends and remain competitive, we recommend these resources:

• Comprehensive.io

Include a budget for the resourcing you will need to reach hiring goals. It can be difficult to anticipate how challenging it will be to hire certain roles, and your talent team may be impacted by attrition as well. It’s possible you will need to increase the capacity of your talent team with new hires or external support from contract recruiters, recruitment agencies, or recruitment process outsourcing provider (RPO).

Any budget proposal will inevitably result in pushback. By working through these steps, your plan should already be aligned with company priorities, but you can make your case even stronger by:

• Demonstrating past recruitment cost per hire and recruiting budgets as a reference, and reiterating how the organization wants to improve this year
• Leveraging leaders who are most invested in making good, fast hires to advocate for the budget
• Using research (benchmarks and models) to illustrate estimated return on investment of those hires for the company 

An iterative approach

A workforce plan will set you up for success, but won’t be set in stone. Shifting priorities, feedback from hiring managers and candidates, and macroeconomic factors will alter your plan over time. Regularly report on data, solicit feedback from stakeholders, and realign on goals to stay on top of these changes. How often you should check in on this plan will depend on your team size and existing processes, but here is an ideal cadence: 

• Weekly: Meet with hiring managers while you have active roles open
• Monthly: Meet with department heads if you are hiring for their teams
• Quarterly: Meet with all department heads to review goals, along with potential backfills and promotions

Step 3: Set realistic timelines

Manage expectations for your team and increase the likelihood of hiring people on schedule by setting estimated timelines. Outline the process for hiring managers and any other stakeholders to ensure they know what is required of them, like submitting requisitions in a timely fashion and allocating time in their schedules for interviews. When recruiters and hiring managers know what actions they need to take and when, your team will be able to respond quickly when strong applications come in. 

To set timelines, refer to historical hiring data along with industry benchmarks . Keep in mind that other economic factors may impact timelines. For example, post COVID-19 and the Great Resignation, more people have reevaluated their priorities and found that they could find better options that fit their values , meaning employers have had to act fast to land top talent. 

For hiring managers, the wait always feels long. Be upfront and provide a detailed timeline so they can see what is involved in the hiring process and feel assured that work is being done.

Example timeline from the Pinpoint Recruiting Team:

• Day 1: Job is posted
• Gather initial results from job posts and adjust accordingly (title, salary, location, etc.)
• Fine tune alignment on required skills and background with real world profiles
• Ramp up sourcing and screening
• Initial screening conversations with 5-10 candidates per week
• Hiring manager interviews with 3-5 qualified candidates per week
• Continue to fine tune alignment on job post and target profile
• Continue to source as needed to meet benchmarks for qualified candidates
• At Pinpoint, most roles can be filled in 60 days or less (time to accepted offer). Executive (Director and above), technical, or highly specialized roles could take up to 90 days to get to an accepted offer.

At Pinpoint, we dedicate a section of our internal communication tool to share documentation on the recruitment strategy and approach so the whole team has visibility. We also share reports from our ATS to keep hiring managers and senior leaders up-to-date on the status of open roles. 

If you still receive pushback, explain the value of having recruiters conduct a thorough, high-quality screen. With more time to vet applications, recruiters can protect hiring managers’ time and only forward the best candidates. If hiring managers become the bottlenecks, here are tips for staying on pace without adding more work to their plates:

• Ask hiring managers to share a sample of CVs or LinkedIn profiles that reflect the ideal candidate and align on what “great” looks like 
• Reserve interview blocks on interviewer calendars in advance 
• Bring in additional interviewers for various parts of the recruitment process
• Utilize automatic scheduling in your ATS to allow for one-click booking
• Align on the priority of roles to expedite those that are most immediately needed

Step 4: Launch the search

Search kickoffs are about identifying what kind of candidate you would like to hire, how you’ll get their attention, and how you’ll keep the search on track. 

Start by getting detailed information about what the hiring manager actually wants and needs via a Requisition form. It’s most helpful if they share this in advance so you can review it before the first conversation with them. You can then verify and expand upon this information when you meet.

While it can be tempting to publish open roles as quickly as possible, it’s worth investing time to customize job postings so they communicate your Employee Value Proposition and attract the right talent . This will allow you to bring in qualified, interested candidates more quickly. 

This also applies to marketing the role—collaborate with the hiring manager to think beyond your typical go-to job boards and identify if there’s anything new or different you can try for this particular search. 

Schedule an initial kickoff meeting with the hiring manager to establish your processes for working together. Identify a day and time to meet each week to check in on the search. Confirm the interview process early on so that everyone knows what to expect and this information can be shared with candidates, ideally in the job posting. 

Step 5: Coordinate the recruitment process

Once the search has started, recruiters will be overseeing a lot, including hiring managers. For them, hiring is essential, but it amounts to just a small percentage of their day. An ATS should make it easier for recruiters to keep the process moving without adding excessive work for hiring managers. Here’s advice from some of our customers on how they’ve been able to increase efficiency up to 70%, in part by collaborating better with hiring managers:

Hiring manager portals

The New York Public Library has about 400 managers who are involved with hiring, in addition to their many other responsibilities. The NYPL team set up a streamlined hiring manager view that made it easy for their team to comment, tag, rate, and share feedback on candidates all within Pinpoint. 

Hiring managers now have greater visibility and a more active role in the process, resulting in greater outcomes for everyone.

It’s really allowed us to coach our hiring managers to be better at creating a great experience for candidates. Craig Senecal Senior Director of Employee Experience, NYPL

Interview scheduling

Franklin Electric hires across a complex and international organization. Balancing people’s schedules and time zones can be a huge challenge. For them, the best solution was to find an ATS with automated interview scheduling . Hiring managers are thrilled to have the access and functionality to fill roles faster, without having to wait on HR.

It’s been a game-changer in terms of the impact and how easy it is. Amanda Hecht Corporate HR Manager, Franklin Electric

Icario is always looking for more data behind their hiring decisions, especially to keep track of their diversity and inclusion goals. After implementing Pinpoint, they began using candidate scorecards to standardize the feedback process and make more informed decisions. If your ATS doesn’t have built-in scorecard functionality, you can use this manual score sheet template .

It’s been really cool to see the type of metrics that we get, or that we can even get metrics in the first place! Rachel Todd Senior Talent Acquisition Specialist, Icario

Step 6: Report on progress

To track team goals, you’ll want to get a quick snapshot every week (or more likely everyday) of whether your search is on or off track. Your ATS should be your go-to source for data, with reports and dashboards that allow you to calculate key metrics. 

In some systems, you may need to create or download a report to get this information. If all else fails, you can also manually track this data outside your ATS (e.g. Google Sheets). 

Top 5 metrics to track during a search:

• # Days Open
• Average Number of Daily Applications
• # Candidates in Each Stage
• # Candidates Who Reached Each Stage (aka Historical Activity)
• Conversion Rates (aka Ratios)

These daily or weekly numbers are most useful when compared against benchmarks. You can establish benchmarks based on your own organization’s historical data or public information about the performance of organizations similar to yours. These benchmarks will vary based on industry, company brand recognition, company size, location, level of specialization, management level, and recruiter experience. 

Example: Benchmarks for Days Open

• By 21 days open, should be hitting goals for weekly candidates sourced, screened, and interviewed
• By 45 days open (for non-technical roles), should have 2-4 strong candidates in final stages
• By 60 days open (for technical roles), should have 2-4 strong candidates in final stages

Example: Benchmarks for Candidates in Each Stage

• 25-50 candidates receiving messages from sourcing outreach per week
• 5-10 candidates interviewing with the recruiter per week
• 3-5 candidates interviewing with the hiring manager per week

If you find yourself struggling to meet benchmarks as the search goes along, continue to revisit and ask questions about your sourcing and marketing plans. 

• Do you need to try new channels or new strategies to reach more candidates with the target profile?
• Has the target profile evolved?
• Are there enough people who fit your target profile to realistically fill the job in a reasonable amount of time? (E.g. if you’re looking for someone with niche technical skills within close proximity to a physical office, there may simply not be enough people in that target profile to find someone without providing relocation.)
• Should you try different messaging in outreach to candidates or in the job posting?
• Are you and the hiring manager both clear and aligned on what good and great candidates look like? 

Step 7: Improve year-over-year

The only constant in recruiting is change. Once you’ve devised your plan, be prepared to return to it repeatedly, iterating and improving on your recruitment strategy as you learn. 

With a hiring tracker and reports showing key metrics, your team will be more aware of what is working and can pivot quickly if needed. When you embed reporting into recruitment, your team will be able to see the forest through the trees and have more control over the process. 

And it’s never too late to start. Even if you are beginning this process mid-year, by the time you are planning for the next fiscal year, you will have more documented information to drive decision-making. 

By working directly with senior leadership, department heads, and hiring managers, you will also have greater visibility of the organization and more advocates on your side. With each subsequent year, you will be able to improve efficiency, collaboration, and the candidate experience. 

A final word of advice

As you’re going through the process, “ask a ton of questions and be selfish with your time,” says our own Head of Talent, Mike Bradshaw. When he took over the role—as the company’s first dedicated talent leader—he used a recruitment plan similar to the one outlined here to understand and prepare for upcoming hiring needs. 

Every one of us that's involved in recruitment—from leadership all the way down to individualized hiring managers—has improved the way that we think about talent as a result. Tom Hacquoil CEO Pinpoint

To get that kind of trust from the leadership team, don’t worry about asking a silly question; just focus on making sure you get all the information you need.

“Some people are sort of timid about asking questions, or asking them again, or asking for more time,” says Mike. It’s natural to want to look confident and autonomous, especially if you’re taking over a new role. 

“But then you end up making a lot of assumptions, and you might start running with something and find it doesn’t work out, and then you have to take a step back,” warns Mike. “Ask all the tough questions. Really try to understand what’s going on, good or bad.”

Further reading

Inbound recruiting vs. outbound recruiting, programmatic recruitment advertising: a recruiter’s guide.

Ready to get started?

Global HR — 7 min

5 steps to an effective recruitment plan template

Recruiting and retaining top talent isn’t easy, especially if you’re hiring for a global workforce.

The good news? You can use a recruitment plan template to streamline the hiring process. This makes it easier to scale your business anywhere in the world.

Read on to learn how to develop a recruitment plan template that works.

What is a recruitment plan template?

How do i create a recruitment plan template, it’s time to implement your recruitment plan template.

Businesses looking to scale can’t afford to waste time and energy developing a new recruitment plan whenever they need to bring on more talent. A recruitment plan template is a business’s structured approach to recruiting, screening, interviewing, and hiring new employees. It includes the detailed steps, strategies, and timelines required to find the best candidates.

A consistent, reusable template makes sure you aren’t recreating the wheel each time you need to recruit and hire new workers. As soon as you’re ready to expand or fill positions, you can start immediately with your template. 

HR personnels can save a lot of time by developing a recruitment plan. A comprehensive plan outlining timelines, budgets, and qualifications for new hires cuts down on the guesswork and streamlines the hiring process.

Recruitment plan templates also help you track efficiency. You can see what you are doing well while identifying any areas that need refinement to consistently find the best candidates.

There are five key steps to creating an effective recruitment plan template. Identify your needs, establish your approach, decide how to locate candidates, start your efforts, and refine your methodology over time.

Let’s dive further into each step.

1. Identify your needs

The first step for developing a recruitment plan template is to take stock of your current needs by answering the following questions:

Who does your business need to hire?

Start by narrowing down which positions you need to fill and what type of person you are looking for. Are you looking for independent contractors to complete short-term projects? Or employees interested in remote positions in another country?

Review your short-term and long-term business needs, especially if you plan to expand. 

How many positions need to be filled?

Once you’ve taken stock of the types of team members you need, narrow down the number of positions you need to fill. Take a look at your current job descriptions, and revise them as needed.

Don't forget to identify any in-house promotion or advancement opportunities for your current employees. You need to keep this information in mind to determine how many recruits you need.

What is your timeline?

Now set your timelines for recruitment, vetting, and hiring. Of course, recruitment timelines vary depending on your business needs. On average, you can expect the entire process to take about 3 to 6 weeks .

Factor in time to onboard employees. New team members need additional time to familiarize themselves with company policies and job responsibilities. Onboarding may also include company or job-specific training for new hires.

Where are you looking to expand?

If your business is looking to expand internationally, there are additional factors to keep in mind. Each country has unique labor, employment, and tax laws that can affect your recruiting and hiring processes.

A Global HR partner like Remote can help you expand your business in a new country. We have legal entities around the world, offering you the expertise and support you need to stay compliant in every country.

Once you know the answers to these questions, you're ready to tackle your recruiting approach.

2. Establish your approach

Start by looking at your previous hiring efforts to see what worked. Keep past successful strategies in your recruitment plan template.

Next, investigate the region you want to expand into, including any expectation that local employees have. Budget salaries, benefits, and other compensation to attract the best possible candidates. 

Plan how to advertise your business to appeal to candidates. Make sure your process is aligned with your company’s values, mission, and goals. Find a talent assessment tool to predict the performance of potential hires. This can increase productivity by 10% and boost employee retention rates.

The average cost per new hire is $4,700 , so keep this in mind to determine your recruitment budget. See how much you want to spend on advertising, job postings, and recruiting events.

It's easy to only consider these hard costs, but you’ll also want to factor in soft costs. For example, managers may need spend valuable time to support HR leaders during recruitment.

3. Determine how to find the best candidates

Businesses have more options than ever to attract top-notch candidates.

Job boards are one way to get the word out that your company is hiring. Most job boards charge a fee for you to advertise, so research your options carefully. Some broadly advertise across industries, while others focus on specific niches.

Job fairs are another option. Some are in-person, while others are held as virtual events. If you go this route, plan who is hosting the event and how those individuals will vet potential candidates.

Social media is a great way to find top candidates. About 57% of people search for a new job through social media, while 73% found their last job using social media. Tap into the social media accounts your company already participates in, whether that’s LinkedIn, Instagram, or something else entirely.

Outsource your recruiting to a reputable staffing agency. Work with a staffing agency to identify your ideal candidate profile. The agency should complete the searching, screening, and interview process for you. If you’re hiring internationally, don’t forget the benefits of partnering with an employer of record (EOR). Remote’s EOR platform helps you hire excellent candidates in your location of interest while keeping your business compliant with local labor, tax, and employment laws. 

Once you’ve decided on the specific methods through which to find candidates, you’re ready to start recruiting.

4. Start your recruitment efforts

As you begin the recruitment process, think about how you want to screen applicants. You'll review job applications and resumes, and maybe also do a skills assessment. Continue with background and reference checks as needed, and complete an initial phone or video conference screening. Once candidates are vetted, you can start the interview process. Decide who will interview and the questions will look like. Some jobs may require a panel or succession of interviews to determine the best person for the job. 

A good recruitment plan template also covers the onboarding process. Employees are 2.6 times more likely to stay with a company that has a smooth onboarding process. Unfortunately, only 12% of employees say their organization did a good job with onboarding.  Don’t be a company that gives a bad onboarding experience for your employees. Check out our tips to create a smooth, satisfying onboarding process for each new hire.

5. Refine your template over time

Once you landed on your ideal recruiting plan, review its efficacy over time. Use a variety of metrics to analyze your recruiting and hiring results, and refine the plan until it’s seamless.

Your metrics could include the time taken to fill new positions. You can also track the acceptance rate of each position listed. 

You can also track how new hires grow into their position over time. Are they successful in their roles? Can you identify candidates with growth and advancement potential? Do you notice a difference in employee turnover rate? Consider your metrics carefully, and use them to drive your future recruitment efforts. Over time, you will have a plan focused on locating and retaining the best possible candidates for your company.

Start building your recruitment plan template by defining your company’s needs. Who is your ideal candidate? Which positions do you need to fill? What is your timeline? 

If you plan to expand internationally, you can join forces with a Global HR partner like Remote. You can easily post open positions in Remote Talent to attract top talent across the world. Learn how you can find the best international candidate through competitive benefits as part of your recruitment plan. Contact Remote to start recruiting and hiring internationally today.

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Recruiting as a Business Strategy

Recruitment has evolved from an HR function to a crucial component of the overall business strategy. Forward-thinking organizations are focusing on more automated processes to increase efficiencies, but also expand their talent pools to find more diverse and highly qualified candidates.

In this environment, a data-driven recruitment strategy is a critical competitive advantage for building a workforce that is more aligned with your company's long-term and short-term strategic objectives, improving organizational workflow and efficacy, and strengthening employer branding by increasing awareness and visibility through recruitment marketing.

Demand for skilled and experienced professional workers remains strong. While hiring trends are promising, recruiting new talent is not cheap. Intentionally calculating your total recruitment ROI allows you to consider all expenditures on recruitment, tools, training, onboarding and even the time spent on your endeavors. Focusing on ROI helps improve the entire hiring process, improves diversity and quality of hire, and allows you to shift to subjective, antiquated hiring practices to a more measurable, data-driven hiring approach.

Here are some key takeaways on how you can measure and maximize your recruitment ROI:

• Define what ROI means for your organization. While ROI can be defined as the net revenue against investment and cost, what results qualify as good returns will remain subjective to your company. Defining what ROI looks like for your organization helps identify the metrics that matter. For instance, if reducing time to hire is critical to your organization, some essential metrics would include measuring hiring velocity – how much time is spent at each recruitment stage or interviews per hire – and the number of candidates interviewed for each position. These metrics help locate bottlenecks and reduce time spent interviewing irrelevant candidates.
• Develop a data-driven work culture and use data from past campaigns to predict ROI for the upcoming ones. Predictive analysis to estimate ROI enables you to compare your plans and determine the ones that best serve your goals.
• Train and support your recruiting teams as they put these changes into practice. Invest in valuable resources like Applicant Tracking System (ATS), Recruitment Marketing systems, Candidate Relationship Management (CRM), or Talent Management tools that track metrics automatically.
• Establish a continuous progress review protocol and solve problems on the go. The constant review helps you integrate recent market changes into your plans, recognize possible issues in advance, and take corrective action.

Maximize Your Recruitment ROI with LHH

If you’re ready to get the most out of your talent acquisition strategy, partner with us today. Visit LHH.com to learn more.

How to write a business plan for recruitment (template included)

• Published on September 23, 2022

Writing a business plan in recruitment has always played a crucial part in the interview process for a number of recruitment agencies around the world.

A comprehensive business plan can demonstrate a recruiter’s commitment, knowledge and commercial acumen. During COVID-19, these qualities are more important than ever and we’re seeing an increase in the number of agencies asking for such a document.

Arriving at an interview armed with a comprehensive business plan before you’re even asked will no doubt set yourself apart from other recruiters.

During these challenging times, managers will need to present a business case to leadership for budget approval in order to make a hire. Your business plan will be an important element of this business case. An impressive business plan could be the difference between landing an offer today, or falling into a pipeline of other candidates or even getting rejected.

In this article, we share a step-by-step guide outlining how to create a comprehensive business plan. We walk through the key components and include examples.

At the end of the article, you can download a free recruitment business plan template which is tailored towards the key components mentioned in this article.

A business plan should be packed full of relevant information but should be compressed and to the point. Avoid verbiage, stay specific and keep to 4 – 6 pages.

Introduction

Start with a title. Include your name and the company you’re writing the business plan for. A little personalisation will go a long way.

Underneath your title, outline the objective of your business plan and again personalise it towards the agency you’re interviewing with. While you have the hiring manager’s attention, this paragraph is an opportunity for you to demonstrate how comprehensive your business plan is. The aim is to capture the hiring manager’s interest so they continue to read each component:

“The objective of this business plan is to outline the value I can add to employer’s name .

In this business plan, I have highlighted my specialism, hiring activity in my market, my candidate and client strategies, my methodology, how I plan to recruit through COVID-19, my competition, my personal revenue projections over 12 months and lastly a suggested solution to reducing my cost during COVID-19.”

You can use this paragraph as a way to introduce your business plan verbally if you’ve called up a hiring manager. You can also use this extract in a cold email.

Your specialisation

This is a crucial positioning statement for your value-add. It sets out precisely where your network and experience lies and what you intend to bring to the table in your new role.

Your specialisation can be described clearly by outlining what roles you will specialise in, what industries you will target, what level of seniority you will focus on and what geographies you will cover.

For ease of reading, you can use each component as a title and use bullet points to expand upon your answers.

Taking a Technology recruiter as an example:

What roles I will specialise in:

• Product Management permanent roles
• UX/UI Design permanent roles

What industries I will target:

• Series A – C funded technology startups (high investment, high growth and high volume of roles)

What level of seniority I will focus on:

• Mid to senior (120 – 180k salary range for Product Managers, 140 – 200k salary range for Designers)

What geographies I will cover:

• Based in Singapore, the local market will be my core market
• Secondary markets include Jakarta, Bangkok and Kuala Lumpur due to less competition from recruiters and high volume of roles

Hiring activity trends

The hiring activity trends section provides an opportunity for you to demonstrate and portray your knowledge of the market.

The 3 important components of this section are: hiring activity over the past 3 years, hiring activity during COVID-19 and how you predict hiring activity to shift post-COVID-19 recovery.

Utilise your own knowledge of the market but back it up with research gained from reputable sources related to your market e.g. Tech in Asia, Tech Crunch, Channel News Asia, The Straits Times or The Financial Times.

You’ll want to cover how hiring activity has increased or decreased, what the drivers of growth are in your industry and what the threats and challenges are within your sector.

Candidate strategies

Moving on from market trends, this section indicates how you will acquire candidates for your desk. It offers an opportunity for you to demonstrate the experience you’ve learnt in candidate management from your previous firm, but also an opportunity for the employer to ensure that your approach aligns with theirs.

3 key components of this section include: how you will generate candidate leads, what challenges you expect to face and how you will overcome these challenges.

Taking a Front Office Banking & Financial Services recruiter as an example:

How do I plan to generate candidate leads:

• Direct headhunting using a LinkedIn Recruiter account, this costs approximately $X amount, the key benefits being access to a high volume of InMails and enhanced search capability. This has been the sourcing tool for 60% of my previous placements

Challenges I expect to face:

• In light of COVID-19, highly sought-after candidates may be risk-averse and may not see this as a good time to move jobs

How I will overcome these challenges:

• I will develop relationships with these candidates for the future but I will adjust my sourcing strategy accordingly by increasing volume of direct approaches. I will also focus on great talent who have been affected by COVID-19

Client strategies

A similar section to candidate strategies but geared towards clients. Arguably more important than candidate strategies during COVID-19 as the market is currently job-short – even in the good times, strong business development capabilities in recruiters are harder to find.

This section includes 6 key components including how you plan to onboard new clients, how you plan to sustain relationships with clients for repeat business, what industries your clients are in, the challenges you expect to face and how you will overcome these challenges.

Take these bullet points as a basic example:

How I plan to onboard new clients:

• During COVID-19, I plan to cultivate relationships by helping and consulting clients on non-recruitment related issues, such as advising clients on the current state of the market
• I plan to generate leads by making 25 cold calls per day during the ramp-up period, to again offer support and advice where needed, and to leverage any open roles
• A soft approach of connecting with hiring managers, HR contact and C-Level candidates on LinkedIn, to establish working relationships and eventually convert into clients

How I plan to sustain relationships with current clients and win repeat roles:

• The most important way to sustain relationships is by offering a service that is superior to competitors. That is by being transparent, sticking to deadlines and delivering results
• Regularly catch up with clients on a monthly basis to see how they’re doing and see if you can generate new roles
• Keep yourself updated on company news and congratulate clients on milestones e.g. if they generate a Series C round of funding

What industries I will target clients in:

• Series A – B funded technology startups
• Durving COVID-19 there is less of an appetite to use agencies due to an unprecedented volume of great candidates available in the market
• Offer free support to companies currently not using agencies, provide an impressive service and convert into paying client post-recovery

The 6th component is “examples of target clients” and this is where you can really demonstrate tangible market knowledge. Use company names, find the potential contact in each company and add your comments, such as the volume of roles you expect from that client. 5 examples should be enough to peak your hiring manager’s interest.

You can use a table to display this information with ease:

It goes without saying that you should never be tempted to use information that is proprietary to your previous employer. This information can be openly found with some basic LinkedIn research.

My methodology

Are you a recruiter that is focussed on crunching numbers? Are you a recruiter who is focussed on cultivating long-term relationships? In this section, you can include a few quick bullet points to explain how you approach recruitment. This information gives your hiring manager an indication about whether you hold similar values and whether you have similar working styles.

How you can adapt to recruiting during COVID-19

This section is a new one in response to current market conditions but can demonstrate how you are prepared to deal with current and upcoming challenges.

You can use this section as the title and include bullet points to outline how you will adapt to these market conditions. You can refer to this article if you want some tips on how to adapt to recruiting during COVID-19.

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My key competitors

Which recruiters and agencies offer the greatest competition? Demonstrating your knowledge in this area highlights that you are commercially aware outside of your core market.

Include about 5 different competitors who are directly competing in your patch. You can use the table below to display this information:

Personal revenue and target projections

In many business plans, financial projections are of utmost importance and can demonstrate your commercial acumen. If you’ve ever watched Dragon’s Den, you’ll know what happens when you don’t know your numbers!

Project your personal revenue for 4 quarters. You can start your calculations by predicting the average annual salary of a candidate in your patch. You can project your average percentage fee agreed with clients and from there you can calculate your average fee. Once you have this, you can predict the amount of placements you’ll be making per month.

Make sure your revenue projections are realistic and achievable. Avoid the temptation to predict vastly optimistic revenues, especially during COVID-19. You must allow time to ramp-up and there must be a logical relationship between your historical and predicted revenues.

The plan only includes project revenue. Your historical revenue should be on your CV.

Take the below as an example:

My predicted average annual salary of candidates:

My predicted average percentage fee agreed with the client:, my predicted average fee:, my predicted average placements per month, my projected revenue over 12 months.

Underneath, you can also include the KPIs you will set yourself to guide you in achieving these numbers. For example, you can set yourself a guideline for how many CVs you need to send, how many candidate meetings you need to arrange, how many client meetings you need to arrange and so on.

My remuneration

This is not a standard component of a business plan but is included in response to COVID-19. As mentioned in my previous article , if you demonstrate your willingness to share the pain of your cost with an employer, it will go a long way.

My last drawn salary:

• SGD $5,000 per month

My expected salary:

• SGD $3,000 per month during COVID-19
• SGD $5,000 per month post-recovery

How I propose we can share the pain during COVID-19:

• Reduce my previous drawn salary by 40%
• Reduce the threshold of my commission scheme of 9x per quarter to 7.5x per quarter
• Agree to return to standard remuneration once I’ve hit personal revenue of $60k per quarter

The template

To help recruiters through these challenging times, we’ve constructed a free template built around the components mentioned above, so you can create your own for when you reach out to hiring managers.

To download this template, please click this link and you’ll be redirected to the template.

This step-by-step guide should give your hiring manager a clear idea of your plan. If executed successfully, you’ve already demonstrated your commitment, knowledge and commercial acumen before even attending an interview.

The way you’ve structured your plan will give your hiring manager a very clear indication of your methodology and whether you’d fit their structure. Keep in mind that if your methodology is focused on high volume recruitment, it’s not going to work well with an executive recruitment agency.

As a next step, learn this plan inside and out. Be prepared to pitch your plan to your hiring manager and answer detailed questions surrounding each component.

Leave your interviewer with no room for concern and secure that job!

Speak to a recruiter

I specialises in senior rec2rec searches in Asia. Get in touch with him to discover opportunities.

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We’re solving the talent crunch in Asia. Find out how we can introduce you to unavailable talent.

If you’d like to enquire about our services, please feel free to get in touch with our team.

How to Create a Recruitment Plan in 6 Easy Steps

Keeping a company brimming with the best talent requires a detailed recruitment plan , one that can be adapted quickly to internal and external changes.

Follow the steps below to create a steady flow of job candidates and help your business kick up a storm in your industry.

TL;DR – Key Takeaways

• What is a recruitment plan exactly? It’s the strategy that the hiring team uses to carry out recruitment. Done well, it can help the team be more effective and impactful business-wide!
• Wondering when you need this plan? Lot’s of occasions could warrant a recruitment plan. Think annual planning or a big change in your industry, for instance.
• The benefits of a successful recruitment plan range from working smarter and reducing hiring costs to freeing up your time for core tasks and more.
• Finally, we share the 6 steps you need to create a kickass recruitment plan that’ll help HR align smoothly with the business and contribute to impactful change.
• P.s. Within every recruitment plan, you’ll find a candidate screening and assessing requirements. For a modern, automated, all-in-one skills testing solution, check out Toggl Hire today.

What is a strategic recruitment plan?

A recruitment plan outlines a company’s approach to recruitment and how it will implement its recruitment processes most effectively. The plan should include all the relevant details required for making strategic future hires, such as hiring goals, procedures to follow, and the hiring budget, for example.

A good recruitment strategy will align with the organization’s goals to ensure the hiring manager is contributing to company growth and helping to manage any organizational changes.

Are Recruitment plan and Recruitment strategy the same thing?

While a company typically develops its recruitment strategy and recruitment plan in parallel, the terms refer to different components of the recruitment process. The easiest way to tell the two apart is to think of the recruitment strategy as the overarching, high-level document that covers the ‘ what ‘ and the ‘ why ‘, while the recruitment plan is more of a step-by-step detailed roadmap that outlines the ‘ how ‘ and ‘ when ‘.

When is the best time to create a recruitment plan?

If you’re wondering whether your company needs a recruitment plan or can wait a while before developing one, consider whether you’re in one of the situations listed below.

Annual planning — is your organization about to undergo its annual planning process? At that stage, hiring managers have an important role to play in aligning hiring strategy with the company goals during this process.

Organizational changes — if your company is growing , starting a new initiative or has seasonal hiring needs, a recruitment strategy will be essential in attracting quality candidates for your talent pipeline .

High turnover rate — if the business is losing it’s talent too fast, recruitment plans can help patch up any gaps in the workforce and ensure the best approach to improve retention .

External changes — a big change in your industry or shifts in the market could mean that your business needs to adapt its recruitment strategy to continue attracting the best candidates.

Why does our team need a recruitment plan?

A recruitment plan is your guiding star when it comes to predicting and meeting the company’s staffing needs. It provides a framework for all stakeholders that keeps everyone aligned and working towards the same deliverables in a structured, effective way.

With a detailed hiring plan, your team can streamline the hiring process and reduce recruitment costs . But the benefits don’t end there.

Recruitment Planning: 5 Key Benefits

The benefits of creating recruitment plans

Next, let’s dive a little deeper into what hr professionals, businesses, and applicants will get out of making planned recruiting efforts.

Smarter decision-making

Hiring teams need to work effectively and make smarter decisions throughout the talent acquisition and onboarding process.

By working with tools such as a recruiting funnel and modern recruitment software and using metrics throughout the process, the team can continually make accurate data-driven decisions to improve their output.

Delivering a streamlined hiring process

A recruitment plan can help recruiters work strategically , resulting in a continually improving hiring process that saves time and enables more focus on high-priority tasks.

Providing an engaging candidate experience

A well-executed recruitment plan improves the overall candidate experience . Treating applicants like professionals will likely enhance your company or department’s reputation and increase the likelihood of attracting top talent.

Meeting specialized hiring goals

The hiring team can include and adapt its recruitment strategies to reach specific hiring targets , such as diversity and inclusion goals , and the right candidates.

Reducing hiring costs

By continually updating and improving the hiring plan, the team can optimize metrics like Cost-per-Hire and more easily stick to the recruitment budget .

Boosts adaptability to internal and external changes

Hiring managers can predict and adapt to any internal changes , like a new office location, or external changes , like an economic crisis, to ensure an optimal workforce at all times.

Ok. Now that we’ve explored the benefits of a recruitment plan, let’s get you started on the right steps for how to develop a recruitment plan successfully.

6 steps for creating a successful recruitment plan

Keeping the hiring team and other stakeholders on the same page with proper planning will ensure everyone’s work complements each other, and enable you to make smarter decisions faster .

Plus, you can provide feedback quickly to queries from those who need to know (and those who are just sticking their nose in. 😉 )

Following these 6 steps will help you prepare for your recruitment planning period.

#1 – Setting recruitment goals

A recruiting plan means nothing without including specific goals . Rather like building a house without an architectural diagram, it could result in things going horribly wrong! That’s why your hiring team needs to set short-term and long-term goals , to ensure that your recruiting plans are set for success.

Note : It’s essential to define and assign a metric for each goal too. Without metrics, you won’t know how well you’re achieving your goals, or whether you’re lagging on some of them.

Why separate long-term and short-term goals?

Short-term and long-term recruitment goals are typically a bit different. While a short-term goal may be to update your career webpage, a long-term goal could be to improve the diversity of your candidate pool.

Over the hiring timeline, it can help a lot to split goals into short-term and long-term targets. Here’s why:

Improved team focus — so your team can more easily prioritize tasks, know how to best manage resources, and keep a focus on immediate needs and future goals.

Ensure a feasible plan — by marking goals as either short-term or long-term, the team can rest assured that not everything must happen immediately. And prevent a feeling of mental overwhelm.

Facilitate continuous improvement — short-term goals are the best opportunity for testing new ideas or recruiting tactics, like trying out a new candidate screening tool. Once you’ve established how effective the initiative was, you can adjust it so it delivers long-term benefits, like improving the candidate experience .

Examples of short-term vs long-term goals

#2 – Identifying hiring needs

Before you start planning your new hires, you need to know what skills and competencies the business will need over the next year. So, how do you evaluate and prioritize these hiring tasks?

High-priority needs could include things like analyzing the company’s annual goals and strategy to align recruitment planning and successfully complement the rest of the business. Or performing skills gap analysis to spot any skill gaps between the current workforce’s capabilities and the skills that you’ll need to have onboard in the long term.

While medium priority tasks could include evaluating your staff turnover rate to ensure sustainability and keeping a close eye on industry and workforce trends .

On the other hand, improving the collaboration between HR and other departments is a good example of a lower-priority hiring need .

Ok, but how do you know which roles to prioritize?

You can make your hiring activity choices based on factors like these below.

#3 – Setting your hiring budget

Think about the costs associated with these components of the hiring process to optimize your hiring budget (and put a smile on your hiring manager’s face 😊).

• Recruitment marketing — what you’re spending (and will spend) on advertising roles and improving your employer brand, including social media advertising, job posting, job boards and career events.

Recruitment technology — the tools your team uses to streamline the hiring process, such as chatbots, applicant tracking systems, and candidate relationship management ( CRM ) software.

Assessments — an online skills testing platform for screening applicants.

Interviewing costs — any costs incurred through in-person or video interviews.

Recruitment team salaries — the total salary cost for your team.

External recruiting — if you need the services of external recruitment agencies, perhaps for a new or niche role.

#4 – Attracting and sourcing the best talent

You need to get the word out through as many channels as possible to keep your recruitment funnel topped up with qualified candidates. Your sourcing methods are essential in attracting potential candidates for your job postings.

For the candidate selection process part of your recruiting plan, you could include components like:

Defining your target candidate profiles — what skills and experience do they need for the role (and include this info in the job description ).

Updating your employer value proposition (EVP) — the EVP is what a company offers its employees in return for their work.

Recruitment events — including job fairs, conferences, and internship recruiting .

Managing candidate engagement — staying in touch with your candidate pool via email, social media or another medium.

Employee referral program — getting your employees to refer the great talent they know personally saves your team time.

Need some inspo on new approaches for hiring new employees?

#5 – Streamlining your recruitment process

It’s possible that not all parts of your hiring strategy are as effective as they could be. There may be some methods or tools the team has used for too long that need updating, for instance.

Here are a few tips to help you refresh your recruitment process :

Revamp your application process . Consider letting candidates apply via skills tests instead of CVs, for instance!

Set clear evaluation criteria , such as clearly defined job requirements .

Craft clear and engaging job descriptions that include all the details a candidate needs to know to see if they’re a good match.

Deliver an effective screening process . Your team can save time by automating screening tasks.

Conduct structured interviews using set interview questions and techniques, and skills tests results to inform your interview prep and guide your interview questions.

Use the right candidate assessment tools and homework assignments to screen whether applicants have the right skills.

#6 – Analyzing your recruiting plan

The best way to assess the efficacy of your recruiting plan, and continually improve it, is by using a recruitment funnel (a framework that helps you organize, manage and enhance every stage of the recruiting process).

With a recruitment funnel, you can use recruitment metrics , such as Time to hire, Quality of New Hire made, and Cost per hire, to determine how well you’re doing at each stage of the funnel.

Along with leveraging the findings from your metrics, you can also receive and implement any feedback from candidates and hiring managers.

Managing the latest recruitment trends and technology

Staying up-to-date with industry trends and best practices will ensure hiring teams operate efficiently and help the organization retain a competitive edge . Luckily, this is where technology comes to the rescue.

For instance, think about the major industry shift towards skills-based hiring practices. Harvard Business Review shared this recently about how skills-based hiring is on the rise:

Many companies are moving away from degree requirements and toward skills-based hiring , especially in middle-skill jobs, which is good for both workers and employers. HBR

And when hiring teams have the right recruitment tools, their tasks become easier, and the technology saves them time. So, don’t waste time rebuilding everything in-house when you can plug and play an all-in-one skills platform at affordable prices .

Juste loves investigating through writing. A copywriter by trade, she spent the last ten years in startups, telling stories and building marketing teams. She works at Toggl Hire and writes about how businesses can recruit really great people.

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Stand Out from the Crowd with These 10 Recruitment Strategies

Written by Salary.com Staff

June 25, 2024

Finding notable talent is tougher than ever for businesses today. With unemployment rates at record lows, the war for talent is fierce. Companies need creative and innovative recruitment strategies to stand out from the crowd. This article shares ten outside-the-box ideas to take your hiring game to the next level.

It covers everything from using employee referral programs to getting creative on social media. These proven tips will help attract top-notch candidates. With the right recruitment plan, a company can gain an edge over the competition. Read on to learn powerful ways to make the employer brand shine and build a pipeline of talented, motivated employees.

1. Craft a Strong Employer Brand

To attract top talent, companies need to build an employer brand that highlights what makes them unique. This means defining their mission and values, then promoting a culture that aligns with them. They must focus on things like flexible work policies, learning opportunities, and work-life balance. In this way, they can position themselves as an attractive place to work.

Once a company defines its brand, they need to broadcast it on the company’s website and social media channels. They deliver on the promises of their brand by treating employees well and giving them opportunities to thrive. Doing so leads to higher retention rates and a steady pipeline of candidates eager to work for such a progressive company.

2. Use Social Media and Digital Platforms

Social media is a powerful recruitment tool that allows companies to spread their message to hundreds of potential candidates. Post job openings on digital platforms, where most professionals and job seekers already spend their time. Engage with followers by posting about company culture and employee spotlights. This makes the brand more appealing and relatable to potential candidates.

A company’s website is also a chance to shine. Feature open positions, notably on the careers page, highlighting must-have qualifications and perks. Include videos of employees describing what they love about their jobs. This conveys true enthusiasm that will resonate with visitors.

Pay-per-click ads, targeted emails, and job sites maximize reach to candidates whose skills and interests align with the company’s needs. Technology now provides endless openings to spread the word about the company and attract top talent. Take advantage of all these options.

3. Think Outside the Box with Creative Sourcing and Screening

Creative recruiting means casting a wide net to find the best candidates. Businesses must use social media, employee referrals, and networking to source candidates from unfamiliar places. Screening curiously, through hobby interviews or casual meetups, allows recruiters to gauge soft skills and culture fit. Thinking outside the traditional recruitment box helps discover hidden talent and build a creative team.

4. Treat Candidates as Customers

To stand out, companies must treat job candidates with the same care and respect as their customers. This means providing a great experience from the first interaction. Things like open communication, organizing a smooth interview process, and giving useful feedback show candidates the company values their time and experience. When candidates feel like a priority, they will be more enthusiastic about the role. This enthusiasm means a great hire who feels invested in the company's success.

5. Have Job Ads That Reflect the Company

Recruitment ads are a company’s chance to display their brand to potential new hires. Generic ads talking about “rewarding work setup” and “competitive pay” do not set businesses apart. Instead, focus on what makes the company unique. Mention the company culture, mission, and values to attract candidates who will be passionate about the work.

Highlight any unique rewards, benefits, or work-life balance plans to draw interest from top talent. Being transparent about the company’s personality in recruitment ads will lead to better job matches and higher retention rates. Candidates will have a clearer sense of fit before even applying.

6. Start an Employee Referral Program

One of the best ways to source great candidates is through your own employees. Launch an employee referral program that rewards employees for recommending qualified candidates. This uses employees’ networks and ensures candidates are a good culture fit. Studies show that employee referrals have a higher retention rate. Offer rewards like gift cards or extra paid time off to motivate employees to refer standout candidates.

7. Get an Applicant Tracking System

A specialized applicant tracking system (ATS) can help simplify the recruitment process. An ATS allows companies to post jobs on their website and on multiple job sites at once. It provides a centralized place to manage job postings and applicant data.

8. Make Interviews Engaging

To make the interview process memorable and impactful, focus on engaging candidates with creative questions and conversations. Instead of the standard “why do you want this job” questioning, ask open-ended questions about their goals, strengths, and work styles. Discuss the challenges the role will face to see how they problem-solve.

Invite candidates to share what motivates and inspires them. Giving them the chance to showcase their personalities will make for a more meaningful discussion. Engaging interviews build connections that give insight into how well a candidate will fit into the company culture. Candidates will also gain a better sense of the team and role, allowing both parties to make the best hiring decision.

9. Reach Out to Past Applicants

One simple method of filling employment openings is to contact previously qualified people. Former candidates have shown an interest in joining the team and are aware of the duties and job. There is no need to create a new job posting or review incoming applicants because their applications and resumes are already on file.

Reach out to past talents to find out whether they will still consider reapplying for the position. Offer to reassess their application or arrange a call to talk about the position and any updates to the business since their last application. Inform them that they are an excellent choice for the post that has opened due to their expertise. Companies can find exceptional talent by taking another peek at what they already have in their recruiting funnel.

10. Use Recruiting Videos

An inventive way to stand out is to include video in your recruiting plan . Through video, prospective hires can get to know the company's culture and learn what it is like to work there.

Making sincere videos with actual employees talking about their experiences fosters trust and provides candidates with a glimpse into the workings of the company. Post videos on social media and career websites, keeping them under two minutes. Job listings come to life with the help of visually appealing videos.

A business can attract and secure top talent in a tough labor market by taking the time to build a solid employer image, use creative methods of sourcing, boost the applicant experience, and more. Any company can gain a competitive edge over its competitors by implementing even a few of these unorthodox hiring methods into practice, regardless of its size or industry. Therefore, do not settle for mediocre outcomes from the same old hiring process. If you embrace these tips, you will witness your employer brand, talent pipeline, and quality of new hires soar to an all-time high.

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Rite Aid bankruptcy plan approved, cutting $2 bln in debt

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Exclusive: US pushes for Boeing to plead guilty in connection with fatal crashes, sources say

The U.S. Justice Department is pushing for Boeing to plead guilty to a criminal charge after finding the planemaker violated a settlement over fatal 737 MAX crashes in 2018 and 2019 that killed 346 people, two people familiar with the matter said on Sunday.

Walgreens plans store closures as CEO says consumers are 'stunned' by prices

Walgreens is planning potentially sweeping store closures as it faces what its CEO called a “challenging” environment for pharmacies and U.S. consumers.

The pharmacy chain announced quarterly earnings Thursday morning that fell short of Wall Street expectations. Walgreens' stock price dropped 22% on the day.

In an interview with CNBC , CEO Tim Wentworth said the company now forecasts weaker consumer spending for the rest of the year.

″We assumed ... in the second half that the consumer would get somewhat stronger,” but “that is not the case," Wentworth said. 

"The consumer is absolutely stunned by the absolute prices of things, and the fact that some of them may not be inflating doesn’t actually change their resistance to the current pricing," he added. "So we’ve had to get really keen, particularly in discretionary things."

Last month, Walgreens, following Target's lead , announced plans to slash prices on 1,300 items to better serve customers it said were increasingly under "financial strain."

Wentworth didn't state an exact number of closures, but it implied it could be as much as 25% of the chain's approximately 8,600 stores.

“Seventy-five percent of our stores drive 100% of our profitability today,” he said. “What that means is the others we take a hard look at, we are going to finalize a number that we will close.”

Walgreens has contended with difficulties for years.

Its share price has declined steadily for about a decade, dropping from a peak of more than $95 a share in 2015 to less than $15 today. It has reported reduced revenues from prescription drugs, and its retail offerings remain under pressure from both big-box chains and Amazon.com. And it already announced a plan to close 150 U.S. stores last summer.

Today, Walgreens is about one-third the size of its chief rival, CVS , which has also been under pressure over the past two years.

Since the Covid 19 pandemic, Walgreens has gone through a period of executive leadership turmoil: Wentworth was named CEO in October after his predecessor, Starbucks and Walmart veteran Rosalind Brewer, unexpectedly announced her departure less than three years into the job.

A bright spot was its health care segment, which topped revenue estimates. Walgreens views on-site medical services and specialty pharmacy offerings as critical to its push to transform from a major drugstore chain into a large health care company. 

Rob Wile is a breaking business news reporter for NBC News Digital.

Annika Kim Constantino covers the biotech and pharmaceutical industry for CNBC Digital.

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Bankruptcy trustee discloses plan to shut down Alex Jones’ Infowars and liquidate assets

Alex Jones speaks to the media after arriving at the federal courthouse for a hearing in front of a bankruptcy judge, June 14, 2024, in Houston. A U.S. bankruptcy court trustee is planning to shut down Jones’ Infowars media platform and liquidate its assets to help pay the $1.5 billion in lawsuit judgments Jones owes for repeatedly calling the 2012 Sandy Hook Elementary School shooting a hoax. (AP Photo/David J. Phillip, file)

FILE - The lawyers representing the families of the victims of the shooting at Sandy Hook Elementary speak to the media in Waterbury, Conn, Oct. 12, 2022. A U.S. bankruptcy court trustee is planning to shut down conspiracy theorist Alex Jones’ Infowars media platform and liquidate its assets to help pay the $1.5 billion in lawsuit judgments Jones owes for repeatedly calling the 2012 Sandy Hook Elementary School shooting a hoax. (AP Photo/Bryan Woolston, File)

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A U.S. bankruptcy court trustee is planning to shut down conspiracy theorist Alex Jones’ Infowars media platform and liquidate its assets to help pay the $1.5 billion in lawsuit judgments Jones owes for repeatedly calling the 2012 Sandy Hook Elementary School shooting a hoax.

In an “emergency” motion filed Sunday in Houston, trustee Christopher Murray indicated publicly for the first time that he intends to “conduct an orderly wind-down” of the operations of Infowars’ parent company and “liquidate its inventory.” Murray, who was appointed by a federal judge to oversee the assets in Jones’ personal bankruptcy case, did not give a timetable for the liquidation.

Jones has been saying on his web and radio shows that he expects Infowars to operate for a few more months before it is shut down because of the bankruptcy. But he has vowed to continue his bombastic broadcasts in some other fashion, possibly on social media. He also had talked about someone else buying the company and allowing him to continue his shows as an employee.

Murray also asked U.S. Bankruptcy Judge Christopher Lopez to put an immediate hold on the Sandy Hook families’ efforts to collect the massive amount Jones owes them. Murray said those efforts would interfere with his plans to close the parent company, Free Speech Systems in Austin, Texas, and sell off its assets — with much of the proceeds going to the families.

On Friday, lawyers for the parents of one of the 20 children killed in the shooting in Newtown, Connecticut, asked a state judge in Texas to order Free Speech Systems, or FSS, to turn over to the families certain assets, including money in bank accounts, and garnish its accounts. Judge Maya Guerra Gamble approved the request, court records show, prompting Murray’s emergency motion.

The parents, Neil Heslin and Scarlett Lewis, whose 6-year-old son, Jesse Lewis, was killed in the shooting, won a $50 million verdict in Texas over Jones’ lies about the shooting being a hoax staged by crisis actors with the goal of increasing gun control. In a separate Connecticut lawsuit, Jones was ordered to pay other Sandy Hook families more than $1.4 billion for defamation and emotional distress.

Referring to the families’ collection efforts, Murray said in the Sunday court filing that “The specter of a pell-mell seizure of FSS’s assets, including its cash, threatens to throw the business into chaos, potentially stopping it in its tracks, to the detriment” of his duties in Jones’ personal bankruptcy case.

“The Trustee seeks this Court’s intervention to prevent a value-destructive money grab and allow an orderly process to take its course,” Murray said.

Murray also asked the judge to clarify his authority over Jones’ bank accounts. As part of Jones’ personal bankruptcy case, his ownership rights of FSS were turned over to Murray. Jones has been continuing his daily broadcasts in the meantime.

It was not immediately clear when the bankruptcy judge would address Murray’s motion.

Bankruptcy lawyers for Jones, Heslin and Lewis did not immediately return messages seeking comment Monday.

Christopher Mattei, a lawyer for the Sandy Hook families in the Connecticut lawsuit, said they supported the trustee’s new motion. He also said the families were disappointed with the motion filed Friday in the Texas court by Heslin and Lewis, which he said would “undercut” an equitable distribution of Jones’ assets to all the families.

“This is precisely the unfortunate situation that the Connecticut (lawsuit) families hoped to avoid,” Mattei said.

The families in both lawsuits, who have not received anything from Jones yet, appear likely to get only a fraction of what Jones owes them.

Jones has about $9 million in personal assets, according to the most recent financial filings in court. Free Speech Systems has about $6 million in cash on hand and about $1.2 million worth of inventory, according to recent court testimony.

On June 14, Lopez, the bankruptcy judge, approved converting Jones’ personal bankruptcy case from a reorganization to a liquidation , which Jones requested. Lopez also dismissed the reorganization bankruptcy case of FSS, after lawyers for Jones and the Sandy Hook families could not agree on a final bankruptcy plan.

The bankruptcy cases had put an automatic hold on the families’ efforts to collect any of the $1.5 billion, under federal law. The dismissal of the FSS bankruptcy meant the families would have to shift those efforts from the bankruptcy court to the state courts in Texas and Connecticut where they won the legal judgments.

Jones and Free Speech Systems filed for bankruptcy protection in 2022, the same year that relatives of many victims of the school shooting that killed 20 first graders and six educators won their lawsuits.

The relatives said they were traumatized by Jones’ hoax conspiracies and his followers’ actions. They testified about being harassed and threatened by Jones’ believers, some of whom confronted the grieving families in person saying the shooting never happened and their children never existed. One parent said someone threatened to dig up his dead son’s grave.

Jones is appealing the judgments in the state courts. He has said that he now believes the shooting did happen, but free speech rights allowed him to say it didn’t.