With the summer holidays now in full swing, many recruitment consultants will no doubt be lying on a beach considering starting their own agency. And who can blame them? According to the annual figures published by the REC, the industry is booming and experiencing almost double-digit percentage growth year on year. In fact, the total value of the industry to UK plc now exceeds £35 billion and it plays an increasingly vital part in the nation’s economy.
Successful recruitment consultants fully appreciate the commercial value that they bring to their employers as a result of strong relationships with both clients and candidates resulting in impressive fees. Even when one considers generous remuneration packages, a proven consultant can earn far more by establishing their own business whilst, at the same time, enjoying a more relaxed and fulfilling lifestyle.
Those considering going it alone should be encouraged by the following key factors that are fuelling the expansion of the industry:
Talk to any employer and you will hear the same story recounted again and again about the difficulties of finding (and retaining) talented employees. Unless companies have a proactive recruitment and retention strategy in place, they may find themselves dependant on recruiters to source the staff they require to grow their company. This is especially common within specialist arenas such as engineering, health, media, digital and education. Consultants with the knowledge and contacts in these areas are in the perfect position to launch a boutique agency themselves.
Advances in technology continues to transform the way that businesses are functioning and many are struggling to adapt. It is not just web developers and IT engineers whose skills sets command a premium, but also those who are comfortable working in this fast changing environment. The increasing impact of artificial intelligence, virtual reality and chatbots ensure that tech-savvy candidates will always be in demand. Again, recruiting in these sectors offers lucrative rewards.
Changing Labour Patterns
Less than half the working population are now full-time employees paid on a PAYE basis. Flexible working is now the norm so contractors, interims, consultants and freelancers are now essential to the smooth running of most companies. Add to this the meteoric rise of the so-called ‘gig economy’ and one can see the commercial potential of creating your own recruitment desk managing a number of these types of workers.
Having established the reasoning behind the recruitment industry’s continued expansion, it is also worth reflecting on how easy it is to run your own agency these days. A plethora of support companies and dedicated suppliers have emerged over the past decade to help agencies run their businesses efficiently.
Frankly, virtually every back office function can be cost-effectively outsourced including raising capital, invoice finance, credit control, candidate attraction tools, job boards, marketing and all facets of promotion. Utilising the potential of this specialist supply network enables new agencies to focus purely on attracting candidates and building client relationships – basically, working towards increasing your billings.
So, for those dreading going back to work after the summer break, take some time to consider the benefits of working for yourself and how it might transform your lifestyle; more time for you and your family, financial independence and a fulfilling career are just some of the obvious benefits of running a successful recruitment agency.
If you have the necessary experience and are inspired by the potential outlined in this article, please contact us to find out how TBOS can help make your ambitions a reality.