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New recruitment agency - what do I need to do?


Hi
I am a new startup business in London looking to provide a quality service helping local people find work.
My initial target group will be matching client companies with part time workers, including parents wanting flexible work.
My question is, will I need to manage the PAYE tax affairs of the workers I introduce to work?
Many thanks
TJ

You won't be a recruitment agency if you want to help people find work - for that you would be charging candidates which is illegal. The only way round it is to offer some sort of candidate training service (i.e. CV advice) for which you can charge, but you might run into difficlties if you don't manage to find them a job.

Recruitment agencies work the opposite way round - you find clients with vacancies and then match candidates up to that, finally charging the client for your services.

This is very difficult to start. You need a lot of personality and the patience to cold call cold call cold call clients. Choose a market (i.e. finance or IT) and learn it inside out - you need to soundlikeyou know what you're talking about when speaking to clients. Pick up a vacancy and fnd candidates.

Finding candidates is the expensive part. Advertising jobs or accessing CV search databases is a very expensive thing unless you buy in bulk (my company currently pays approx 拢2k a month each to Total Jobs, Jobsite etc to search for CV's.

Posting an ad can run into 拢100's per ad, and a single ad usually isn't successful. They only start getting chea (i.e. 拢10 an ad) if you buy 4000+ ads upfront.

It sounds to me like you need a LOT of start up cash, and plenty of cash to pay people to cold call for you (be aware that such people expect high commission levels).

Another realistic option is to work for a recruitment company for a few years and get a grip of what yo are doing and learn whether you can actually sell. Still, most recruitment companies with put a prohibition clause in your contract preventing you from contacting any of your clients or colleagues for at least 6 months after leaving your employment.

Good luck....

Depends on the way you draw up the contract with your clients- some will manage it for the worker others will want you to do it-

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