How to start and grow a recruitment Agency

Start your own Online Business without stepping out of home

CA Gaurav Agarwal

Entrepreneur, Recruitment Exchange  


Welcome to your blog post. The Problem of Jobs is a huge issue across the Globe. If we talk about Indian subcontinent, at 1 side , there are candidates who face the heat of unemployment, on the other side , there are companies, who always struggle to find quality manpower. This is where a Recruitment Consultancy comes into picture as a matchmaker.

The Best part about being a Recruitment Consultant is that It's a Noble way of helping the unemployed get Good quality jobs . If you're able to place 1 candidate daily you are impacting 1 family daily

The internet is awash with so many different tutorial videos that encourage entrepreneurs to start a new business, but here is a lesson from someone who has started his own business from scratch. Even more so, to talk about a unique business idea that can run without you !! 

HR Consulting is a specialized service. It's similar in this sense to the various other services provided by other vendors and other consultants and other professionals and service providers like Accountants, Lawyers, Advertising Agencies, etc. Most companies want to associate with external consultants, to make the work a smooth-flowing process.

So, the main facets in this business are as follows : 

Step#1: Client Company has a job to fill, and agrees to the SLA (Service Level Agreement)

Step#2: The client sends the job order to the HR Outsourcing agency

Step#3: The HR Outsourcing agency uses its processes to make a job placement with a candidate

Step#4: The client pays the invoice, as per the signed SLA

So what's the need for HR Consultants?

Companies need qualified people. You may have heard the old maxim that a company is only as good as its people. And this statement rings very very true for a number of reasons but basically, a company just can't grow or expand and they can't operate without people not only people but good people. By Good people, we mean, the best available talent in the market

So companies need people that are “qualified to do the job” and ”interested in doing the job”. You’d need two hands to clap right?

So why can't they just go out and find these people themselves, why do they need HR Consultants to help them get these people?

Well, the demand for jobs is higher than the supply of the right and qualified candidates. The number of positions available tends to outweigh the number of people that are qualified and willing to do the work in a given geographical location.

Bigger Corporate Houses have actually determined that they save money on their bottom line by outsourcing this function by not handling it internally.

Also, these Corporate Houses require HR Outsourcing partners because their hiring might be seasonal or cyclical, or project-based, and therefore their hiring needs change throughout the year. And so they actually save money and save resources by engaging HR Outsourcing Partners on an as needed.

HR Outsourcing is one of the few services that are easy to start up and operate, with a minuscule capital and since we are a service provider, we don't have to depend on the footfalls of visitors or customers to ensure our deliverables are generated at the right time.

However, here are some of the pitfalls that everyone has to be aware of: Let us begin with an example - An entrepreneur reached out to us, and he was very concerned about “success in the short term”. The problem is that if we don't succeed right now we actually know in our heart of hearts that we can only hold off the distraction forces for so long and sooner or later we know that we'll give into attention span problems. Well, given the lack of focus and we'll give in to various other shiny objects and temptations and pressures to pivot and we'll go on to that next big idea and just kind of end up on the same cycle again.

Here lies the biggest catch - just like a startup accelerator or a startup mentor, SMVA as a franchisor can share with you the decade of business experience we have gathered, and with the mentorship, in the form of a Key Account Manager and the training systems, we can completely bypass this concern.

Another problem that solo-prenuers might get stuck is running an HR outsourcing agency. Well, you can very well start off a business with just a couple of clients, but that's not how a business can sustain itself in the long term. For this, you would need the business intelligence :

What is the right kind of industry that is best for my business?

What are the terms?

How do I approach these companies?

How do I negotiate those fees and just what is the full scope of their role?

Such information would only be available from an experienced business unit. A good franchisor would be able to assist the partners in providing such information, even offering dedicated training sessions on how to go ahead with such activities.

Now let's talk about the biggest elephant in the room - why a majority of HR Outsourcing agencies fail -

Dealing with the “Pink Elephant” Anyone who has had dipped their feet in the HR Outsourcing world would know of a specific kind of problem: A position for which candidates are NOT available. I have personally come across positions that asked for :

Experienced candidates at sub-par market rates

5-6 years experience in a technology/software that has been in use for 1-2 years

And the worst of all

A position that is already filled, but the company wants to build their backup pipeline.

If you’ve gone over our previous posts, you would’ve realized, an HR Outsourcing agency only gets paid upon successful placement. It's very important to identify these Pink Elephant positions and get rid of them as quickly as possible.

There is no replacement to handwork. However, if you have the support of the Right Partners, team and Franchisor, you will definitely be minimum 1000 days ahead of the others.


IF you want to learn from the Experts the Right approach to "Start the Recruitment Business", Drop your interest to "[email protected]" or send a WhatsApp to +91 8978541234

Originally published April 4, 2022

Also published on LINKEDIN

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