The HR profession has grown by 42% over the last decade, compared to 10% for the general workforce. At a time where workplace accountability has never been more important, demand for HR professionals is at an all-time high. For this reason, human resources recruitment offers a great opportunity for entrepreneurs in 2024. If you’re looking to seize this and start your own HR recruitment agency, there are a few important things to consider in the initial stages.
As specialists in supporting recruitment start-ups, including those in the HR sector, we’ve gained unique insights into what makes an agency successful. We’ve distilled our years of experience down into a comprehensive list of tips for aspiring HR recruitment agency founders.
What is HR Recruitment?
Before getting into the specifics, let’s clarify what HR recruitment entails. An HR recruitment company specialises in sourcing, screening, and placing human resources professionals across various sectors. From entry-level HR assistants to senior HR directors, you’ll play a crucial role in hiring the individuals essential to every company’s culture, wellbeing and organisational success.
It’s an important job, so getting the hiring right is equally important. How can you get your HR recruitment agency off on the right foot?
1. Know your niche
The first step for any entrepreneur is pulling together a substantial business plan and, alongside financial forecasts, this should define your niche. A successful recruitment agency begins with a clear, unique identity. This isn’t about being everything to everyone, but about becoming the solution for a specific segment of the HR talent market.
Think about your background, your network, and where you have the most insider knowledge. Are you fantastic at placing HR managers in fast-growing tech companies? Do you understand the unique recruitment challenges in healthcare administration? The key is picking a niche where you can become the undisputed expert, and narrowing your focus will allow you to build expertise more efficiently. The good news is that every organisation in every field requires HR, so the options are endless.
Our expert says: “Additionally, when deciding on your agency’s focus, consider developing your offerings to include things that’ll position your agency as a strategic partner. This could include services like HR skills development programmes or retention strategy consulting.”
2. Invest in a solid tech ecosystem
Technological infrastructure will distinguish an exceptional recruitment agency from a merely average one. We’d recommend investing in sophisticated tools that’ll make your workflow as efficient as possible and streamline communication with clients and candidates.
This might include:
- AI-powered applicant tracking systems
- Video interviewing platforms
- Advanced candidate screening tools
- CRM systems designed specifically for recruitment
- Communication tools to help you connect with clients and candidates virtually
3. How to win clients and attract candidates
The bread and butter of a recruitment company is, of course, the clients and talent. Now here comes the hard bit: building up a network when you’re starting from scratch. This is where you need to get proactive and think outside the box. Attend HR conferences, join professional associations like SHRM, and be active on LinkedIn, share insights, engage with content and position yourself as a thought-leader.
Professional networking in HR recruitment is absolutely essential; it’s about cultivating relationships across multiple platforms that are going to create genuine value for your agency.
Our expert says: “Remember, in recruitment, who you know is just as important as what you know. Every conversation is an opportunity to build your client base or discover new talent. Make sure to do your research before reaching out to prospective clients and, when it comes to candidates, be helpful and accommodating to build that positive experience that’ll win you referrals.”
4. Tell your agency’s story using marketing
Your marketing strategy needs to do more than just announce job openings. Aim for a holistic approach that communicates your team’s expertise, builds trust, and demonstrates tangible value. Your content plan could include:
- A blog sharing HR recruitment insights
- Producing short-form videos about industry trends
- Downloadable guides about salary benchmarks or HR strategy
- Sharing success stories on social media platforms of candidates you’ve placed
Our expert says: “As a start-up it’s extra important to develop a clear brand identity, which will make you stand out from the crowd and appeal to the best candidates. Not only will it attract the right people, it’ll improve the culture within your team – making sure your goals are congruous. A key way to work on your employer brand is within your marketing strategy; everything from your online tone of voice, to website design should be consistent and epitomise your agency’s values.”
5. Keep your back office tight
In the early days of getting an agency off the ground, you’ve got a lot on your plate. To prevent getting bogged down in paperwork you could consider outsourcing functions like payroll processing, accounting and compliance documentation. Getting professionals on board also allows you to swot up on legal requirements and industry regulations that you may be new to.
Strategic outsourcing of these back office functions ensures that they are professionally executed, without distracting from your core business activities. By offloading these crucial but time-consuming tasks, you can focus on what you do best – matching candidates with clients.
6. Get strategic about your finances
Cash flow management is integral to the success and health of a recruitment agency. Financial solutions designed specifically for recruitment businesses can provide the necessary flexibility and stability for sustainable growth – not only keeping you afloat, but letting you seize opportunities. We recommend exploring invoice financing options, which can tie you over and bridge the cash flow gap after you bill a client.
How New Millennia can help
New Millennia are more than just another service provider – we’re a strategic partner for new recruitment agencies. Our specialised services are designed to support recruitment start-ups exactly when and how they need it most, whether you’re starting out an HR recruitment venture, or already managing an established firm.
We provide a recruitment finance solution, comprehensive back office services, an accountancy package, and an innovative factoring service – each specially tailored to your individual needs and growth plans. At New Millennia, we understand that your time and energy needs to be focused on new business development and client retention. So that’s where we come in; we take the arduous administrative responsibilities off your hands, providing you with the space and freedom to focus on your business essentials.
Get in touch with us today for a no-obligations chat about what we can do for your business.
