How to Set Up an Employment Agency Business in the United Kingdom
The basics on how to set up an employment agency business in the UK from the experts at 3E Accounting.
Do you have a knack for pairing the right candidate for the right job? If the answer is a resounding yes, then a recruitment agency may just be the right business idea for you. When looking at how to set up an employment agency business in the UK, there are certain aspects that need consideration. Here’s a quick read of how to go about it and stay compliant.
Talent for Hire
Starting your very own employment agency is an exciting venture that can be quite lucrative when done right. The market segment itself is quite competitive and contributed GBP42 billion to the economy in 2019. The World Employment Federation’s 2020 report pegs the UK as the third-largest recruitment industry globally and the top in Europe. All good news for anyone looking to start an employment agency business.
The best way to get started is to write up a smashing business plan. This is a crucial step as having a scalable and well-researched business plan is the lynchpin to success. Consider if your business modal will be all-encompassing, a niche market or maybe even a franchise. Perhaps you would rather handle part-timers and freelancers only.
Do include a credible financial forecast to make it easier to convince investors and funders. As part of this, you will need to work out a pricing structure that will make your agency attractive. Industry parlance includes knowing about variable pricing options such as retained recruitment, rebate option, contingency basis, etc.
You will also need to be aware of the regulations. This industry is regulated by the Employment Agencies Act 1973 and its professional body, the Recruitment and Employment Confederation (REC). You can contact the REC for more information as well as read its Code of Professional Practice.
Next, you will need to choose your business entity. Popular choices include sole traders, limited companies, and partnerships. Each has its pros and cons, and doing some research will help you decide the best structure for you. Firms such as 3E Accounting offer advice and assistance in writing up well-drafted business plans. They also provide company formation solutions which include registered business address, serviced offices, website design and hosting, etc.
Your agency should also keep abreast with technology and trends. Outsourcing is a great new way to keep costs manageable and get crucial work. Human resource, as well as audit services, amongst others, can be outsourced competently. Having a website for your business that is mobile-friendly is also a must. Facilitating easy online applications, video-call interviews, etc., is the new norm that will make your business more attractive.
If you need to know how to set up an employment agency business in the UK seamlessly, get in touch with 3E Accounting. We provide comprehensive and customisable start-up solutions that span the spectrum. Partnering with us will ensure that your business gets all the assistance it needs, tailored specifically for you. Along with our affiliates and partners, we offer international and regional expertise that is simply best in class. Contact 3E Accounting today to take that first step towards innovative business solutions tailor-made especially for you.