Setting up an employment agency

RoRo979

Hi, i am wondering if someone could assist me by giving me some information on how realistic this is to do. Unfortunately my knowledge of the legal system is miniscule and i find researching it to be very daunting. Basically I could code a website myself and know many people that are currently seeking employment but cannot find it. Is it too far fetched to assume i could set up a business as a sole trader, contact firms and offer my services to find employees for them, then find employees internally(people i may know/friends of friends) or externally( people that may stumble accross my website or posters etc). A few of my friends are currently employed by an agency and they state that the agency takes aabout €1 of their hourly rate which i think is crazy money for the agency assuming the are at least employing tens of people. Thank you

ComfortKid

There is enough of them out there already, advertising false jobs. Please dont start another.

ComfortKid

When I did work through an agency last year, they got 18 percent of my wage. I think thats fairly standard.

RoRo979

ComfortKid wrote: »

There is enough of them out there already, advertising false jobs. Please dont start another.

would you have an idea of roughly how much there is? I did a bit of research and couldnt find too many. Assuming that the market does not have a high concentration ratio there must be many more businesses out there without an agency and some that would perhaps be willing to start up with one.

ComfortKid

RoRo979 wrote:

would you have an idea of roughly how much there is? I did a bit of research and couldnt find too many. Assuming that the market does not have a high concentration ratio there must be many more businesses out there without an agency and some that would perhaps be willing to start up with one.

I haven't a clue, but I have encountered plenty in while searching for a job in the last 12 months. Definitely over 50 and that is just in the industry I was seeking work.

Graham

OP there was an entire string of people with the same idea as you this time last year:

Here's one http://www.boards.ie/vbulletin/showthread.php?p=91614974

Having a few mates looking for a job really isn't a good foundation for a recruitment business, it's even less of a foundation if you have no knowledge/experience of the industry.

Graham

RoRo979 wrote: »

the agency takes aabout €1 of their hourly rate which i think is crazy money for the agency assuming the are at least employing tens of people. Thank you

How much do you think it costs to run the business, pay for the office, the utilities, the advertising, the wages, front the payroll while you wait for your invoice to be settled?

dbran

There is too many employment agencies in the market that specialise in the same areas.

You would need to have a niche industry to be able to specialise in or be able to tie in certain employers or high value candidates. This would not be an easy thing to do.

Best of luck with it anyway.

dbran

SeanSouth

I think the tide is turning against employment agencies at the moment. More and more businesses are running their own recruitment campaigns. I always struggled to understand what value employment agencies bring to the hiring process. I have heard several people say recently that they wouldn't dream of applying for a position through an agency. It appears that some spurious practices carried out in the industry have accelerated its demise.

Avatar MIA

It's a very lazy company that uses Recruitment agencies.

While a recruitment agency will say they screen applicants and will meet with potential clients it's really not worth 20% or so of the sign on fee.

I've got jobs that were advertised with an agency, but have always hired through direct advertisements and got plenty of applicants.

It takes time, but unless you've more money than sense be proactive.

As for starting up a recruitment agency, with no experience or contacts (with said lazy people in HR) then forget about it.

You likely not be entertained by the HR depts.

jcon1913

RoRo979 wrote: »

Hi, i am wondering if someone could assist me by giving me some information on how realistic this is to do. Unfortunately my knowledge of the legal system is miniscule and i find researching it to be very daunting. Basically I could code a website myself and know many people that are currently seeking employment but cannot find it. Is it too far fetched to assume i could set up a business as a sole trader, contact firms and offer my services to find employees for them, then find employees internally(people i may know/friends of friends) or externally( people that may stumble accross my website or posters etc). A few of my friends are currently employed by an agency and they state that the agency takes aabout €1 of their hourly rate which i think is crazy money for the agency assuming the are at least employing tens of people. Thank you

You need to get some experience working in an agency.

Employment agencies are not about matching people to jobs as such, they are about selling the job to the candidate and selling the candidate to the employer.

It's a pretty sh*tty business, ask anyone that worked in recruitment, it's about exploiting the gap in the market where as mentioned by previous posters, lazy companies sign up employees.

If you are prepared to spend day after day getting knocked back by candidates and employers waiting for the big payday, then start a recruitment agency.

It's a lot tougher than it looks.

pedroeibar1

It must be August.

RoRo979

thanks for the input everyone, i understand now i was too naive to assume it was easy.

Eoin

Avatar MIA wrote: »

It's a very lazy company that uses Recruitment agencies.

While a recruitment agency will say they screen applicants and will meet with potential clients it's really not worth 20% or so of the sign on fee.

Obviously they add enough value, other than facilitating a company's laziness.

Unless companies start headhunting using the likes of LinkedIn, then they won't have access to passive candidates who aren't actively looking for a role, but might be interested if they were contacted. And then you've still the extremely time consuming process of screening candidates and all that. Not to mention that companies with in-house recruiters will still often use an agency as well as trying to hire directly.

A lot of agencies (rightly) have a poor reputation with job seekers, but to say that only very lazy companies use them is silly.

HairMare

if you are serious about setting up a recruitment business you need to be able to sell and you need a niche. and you need to give it 100% the 7 days. the days of bs'ing it and basically it being a walk in the park are gone. you also need a passion for it - its the only thing that will keep you sane with the knockbacks from both sides all the time. but the wins are not like anything else. You can make ten grand from as little as a days work done well.

outside of that - a h&s statement, premises or use of one for interviewing, apply for license(€500 ish ? ) and come through garda vetting smelling of roses and your sorted

pedroeibar1

HairMare wrote: »

if ..... and your sorted

BS. Go Google Jobio.

HairMare

pedroeibar1 wrote: »

BS. Go Google Jobio.

How is it bs ?

pedronomix

HairMare wrote: »

How is it bs ?

You are dispensing advice on a topic which you clearly have little or no industry knowledge, not even the basic rudiments.

dbran

Pedros!

Neither of you have contributed much to this thread other then to troll in fairness.

And if you do not have anything to contribute then do not post and just go elsewhere and stop trying to spoil it.

dbran

Atomico

pedroeibar1 wrote: »

BS. Go Google Jobio.

Hardly going to replace all of the established recruitment agencies or even make a dent in their business. There will always be a place for a recruitment agency, even if companies also do much of their recruitment themselves.

P.S. I think you mean Jobbio.

pedronomix

Apologies, I thought it was the other rubbish thread on the same topic, my bad!

HairMare

pedronomix wrote: »

You are dispensing advice on a topic which you clearly have little or no industry knowledge, not even the basic rudiments.

Righteo, 8 yrs industry experience must nt count...

pedroeibar1

dbran wrote: »

Pedros!

Neither of you have contributed much to this thread other then to troll in fairness.

And if you do not have anything to contribute then do not post and just go elsewhere and stop trying to spoil it.

dbran

dBran, this Pedro is unrepentant because I was not trolling and (b) it is a BS thread, even the OP commented on his naivety

(and have a look at your own post #8

I said it was BS for anyone to start in an industry in which they have no basic knowledge. I stand over that and my response to poster of #15. My comment on Jobbio relates to the amount of funding/backing they have which is considerably in excess of €1 million, which has been raised from AIB Seed Capital Fund, MXC Capital, Enterprise Ireland and private investment.

Almost 1,000 companies have already signed up to Jobbio since its launch in 2013, including Ryanair, Dropbox, AirBnB, Uber and Bank of Ireland. More than 100,000 jobseekers have registered with the firm, with more than 450,000 connections between brands and candidates since its launch.

Who but an idiot would suggest that “your sorted” to a start-up that had no industry knowledge, no cash and in face of that type of competition? (And who but an idiot would take advice from a person who can neither spell nor punctuate, as again illustrated in the post above?)

HairMare

What does punctuation have to do with it ? Really you need to chill, if the op wants to start an agency they can, whether they should is an entirely different matter. But dont be so dismissive of others.. its not big and its not bright. My all sorted comment was partially tongue in cheek and also to set out the basics you need to start... ive 8 years experience from cold calling to branch manager, and across all fields. I don't comment unless I can back it up.

HairMare

If I miss the odd comma or have the odd spelling mistake I do apologise but I'm sure the overall point comes across, but I will not stand for being referred to an as an idiot

Stheno

HairMare wrote: »

If I miss the odd comma or have the odd spelling mistake I do apologise but I'm sure the overall point comes across, but I will not stand for being referred to an as an idiot

FYP

Interesting read, my OH is thinking of getting into recruitment, thanks.

HairMare

Stheno wrote: »

FYP

Interesting read, my OH is thinking of getting into recruitment, thanks.

Many thanks auto correct will be the death of me

pedroeibar1

HairMare wrote: »

What does punctuation have to do with it ? Really you need to chill, if the op wants to start an agency they can, whether they should is an entirely different matter. But dont be so dismissive of others.. its not big and its not bright. My all sorted comment was partially tongue in cheek and also to set out the basics you need to start... ive 8 years experience from cold calling to branch manager, and across all fields. I don't comment unless I can back it up.

I’ve no need to chill, I’m cool.:cool:

Spelling and punctuation do have rather a lot to do with it. (Only if you are professional, others would not understand.) The recruitment business has more than its fair share of charlatans / idiots and bad spelling/grammar is a sure giveaway!

I recruit, sometimes work with agencies for specific needs and in my career have approved the recruitment of hundreds of staff in several markets and sectors (mainly services). If a recruiter approaches me and has no idea of basic grammar and spelling, how the hell can I expect him/her to source a candidate suitable to my needs? So people like you blow it at the first chance and don’t get another. As you have here, so goodbye. OP has the answer already.

HairMare

pedroeibar1 wrote: »

I’ve no need to chill, I’m cool.:cool:

Spelling and punctuation do have rather a lot to do with it. (Only if you are professional, others would not understand.) The recruitment business has more than its fair share of charlatans / idiots and bad spelling/grammar is a sure giveaway!

I recruit, sometimes work with agencies for specific needs and in my career have approved the recruitment of hundreds of staff in several markets and sectors (mainly services). If a recruiter approaches me and has no idea of basic grammar and spelling, how the hell can I expect him/her to source a candidate suitable to my needs? So people like you blow it at the first chance and don’t get another. As you have here, so goodbye. OP has the answer already.

Yes they have a lot to do with professional correspondence, but not on boards with the greatest respect.

SCOOP 64

A employment agency for unskilled workers would make a change.

Stheno

HairMare wrote: »

Many thanks auto correct will be the death of me

No hassles, I texted someone something yesterday which damned autocorred changed to cod!

SCOOP 64 wrote: »

A employment agency for unskilled workers would make a change.

There's a few out there who specialise in providing labourers to factories.

HairMare

SCOOP 64 wrote: »

A employmentrcy for unskilled workers would make a change.

'
Search under general operative roles should bring results, most will be contracts roles though. Some agencies are now insistant on safe pass and manual handling certs for most basic of roles

ZeroThreat

RoRo979 wrote: »

Hi, i am wondering if someone could assist me by giving me some information on how realistic this is to do. Unfortunately my knowledge of the legal system is miniscule and i find researching it to be very daunting. Basically I could code a website myself and know many people that are currently seeking employment but cannot find it. Is it too far fetched to assume i could set up a business as a sole trader, contact firms and offer my services to find employees for them, then find employees internally(people i may know/friends of friends) or externally( people that may stumble accross my website or posters etc). A few of my friends are currently employed by an agency and they state that the agency takes about €1 of their hourly rate which i think is crazy money for the agency assuming the are at least employing tens of people. Thank you

lol €1 of their hourly rate, things must have changed. A much younger me was with an agency 2003-2004, they were charging the clients something like €16-€20 an hour (seen the invoices) while paying about the minimum wage to the temps.

HairMare

ZeroThreat wrote: »

lol €1 of their hourly rate, things must have changed. A much younger me was with an agency 2003-2004, they were charging the clients something like €16-€20 an hour (seen the invoices) while paying about the minimum wage to the temps.

The rate is normally around 1.55 / 1.6 so temp gets ten euro, agency charges 16 + plus vat