A recruiting agency is an organizations specializing in the recruitment of staff to fill vacant positions. Its main goal is to fill temporary job openings, permanent vacancies or even both of them. To be successful in this type of business, you must a have a concrete business plan, you need to understand or rather have the knowledge of laws about licensing hiring and taxes. You also need to understand very well the whole concept of human resource management and outsourcing.
So here are the steps for starting a recruiting agency:-
1. Decide on the recruitment services you wish to provide
Expound more on different types of agencies so that you may understand the benefits and challenges of different types. It’s good to be specific and focus your energies on a particular niche.
2. Study the competition in your chosen niche.
This will enable you to understand or outline if your chosen market is saturated or not. You will be able to understand if the demand is high or low and then make a decision on whether to go on with it or partner with existing agencies.
3. Asses your recruitment skills.
You need to be very effective in this business; you need to understand all the recruitment strategies, be able to guide the applicants, but if you don’t feel experienced enough you can start by working in an recruitment firm so as to gain more knowledge.
4. Deliberate on the cost of starting business:-
You need to calculate the startup cost, how will pay your employees, running cost, there is also rent if you will be operating on a rented premises etc. You will also need to be clear on where your business funding is going to come from, whether from own savings, bank loan etc.
5. Get the required licenses
Depending on your country or state, you need to research on required laws to start a recruitment agency. Get familiar about employee laws in your location. This will ensure that your operations will not be interfere with, and also guarantees that you will not be caught on the wrong side of the law.
You need to look for a place that is easily accessible for both job applicants and clients.
7. Work on a marketing plan
Marketing is always at the center of any business. You need to sit down with your marketing team and deliberate on how you will take our business forward. Think about your potential clients and how to reach them, create marketing materials, create a logo for your business, have a website design designed
Accreditation of Employment Agencies
Employment agencies are registered by the Government under the National Employment Bureau.
Requirements for Accreditation
- Copies of National Identity Cards of the Director(s)
- Work Permit(s) if the director(s) is a non-Kenyan
- Current license by the County Government in the area of operation.
- A lease/Tenancy agreement
- Certificate of Good Conduct from the Criminal Investigations Department (CID) for the Director(s)
- Tax compliance certificate.
Other services provided on foreign employment include the following:
- Pre-departure training
- Rehabilitation of returnees
- Foreign attestation
- Certificate indicating membership in a recognized association of the recruitment agencies.
- Two Passport Size Photos of the Director(s)
Process of Accreditation
- The applicant will be required to make an inquiry with the Director of Employment (DE) – National Employment Authority or the County Employment Officer (CEO) where the requirements are explained.
- The applicant will then submit a written application which shall be accompanied by originals and copies of the documents cited in the requirements.
- Upon receipt of the application, the DE will enter the details in the accreditation application register.
- Within seven days the DE will then send an Employment Officer to visit the premises of the agency to conduct inspection.
- During the inspection of the premises the EO will inspect the following:
- The premises
- Office facilities and Equipment.
- Upon inspection of the premises and within a period of five days, the Employment Officer/County Employment Officer will prepare and submit a report to the DE
- Upon being satisfied that the applicant meets all the laid down requirements, the DE will within a period of 10 days after the receipt of the inspection report grant a certificate of Accreditation to the applicant.
- The DE will inform the applicant of the need to renew the certificate at least one month before the expiry date if they wish to remain in the Register.
- The DE will then communicate to the applicant requiring them to collect the certificate in person or a written authority in the case the certificate is to be collected by the their agent.
- The DE will also issue a forwarding letter and a copy of the Statistical Return Forms to the successful applicant for those engaged in both local and foreign labour market.
- In the event that the DE determines that the applicant does not meet the reequirements, the DE declines to issue the Accreditation Certificate and shall inform the applicant of the decision within a period of 10 days and gives the reasons.
Note: All certificates shall expire on the last day of the year unless cancelled, revoked or suspended for violation of applicable relevant laws, rules or other pertinent issues prior to expiry date.
Renewal of accreditation certificates
- A recruitment agency will send a written application for renewal to the DE/CEO which shall be accompanied by originals and copies of the following documents:
- Previous Accreditation certificate
- Current license by the local authority in the area of operation.
- In deciding whether to consider the application, the DE will take into consideration the following:
- Compliance to the Guidelines on Operating an Employment Agency
- Any complaints lodged against the agency
- Inspection in case of change in office location or Management
- In the event that the DE is not satisfied that the applicant meets the requirements for renewal of the certificate, the DE shall decline to renew the certificate and inform the applicant, giving reasons and indicate on the register.