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If You Are Going To Start A Recruitment Agency Do It Right

recruitI have worked alongside a great many people who were temps or contractors. In fact in my early days I even did some myself. It can be very interesting and rewarding. It can also be very financially unstable.

It Takes Great Skill To Understand People

I used to work for a large corporate assurance company. When I first started there it was a different time, teams were small and there was an intimacy that changed over the years. The company grew larger, projects got bigger and the only way to staff them was by using contract staff. This was my first real experience of working with contractors and it was on a huge scale – at one point we had 80 contractors to our 20 permanent staff. So as you can imagine a lot of the permanent staff’s jobs became ones of overseeing and managing the contractors. This did not go down so well, and management did not do a good job of seeing why. Possibly if I tell you that the Test Project Manager who had been brought in to look after the project was also the owner of the Recruitment Company that employed all of these contractors you may see why.

All of Your Eggs In One Basket

It is hard to imagine that being given a managerial position and then using that to recruit staff from an agency that you already own for the company that you work for is in any way not a conflict of interest. Aside from the financial cost to the company itself, it became clear that all of the staff were in a financially conflicting position. As owner of the recruitment agency he was responsible for the payroll and therefore for paying all of the contractors at the company. It became clear that many of the contractors did not get paid on time on a very regular basis, however as he was also their boss at the company they felt that they could not say anything when it was late. The permanent staff ended up feeling quite badly for the contract staff realising that actually they were at the mercy of the company that employed them and had none of the stability that we had.

It is a Huge Responsibility

Personally speaking I think that setting up a Recruitment Agency and being responsible for all of those staff who rely on you is a big responsibility. Therefore if you are going to do it, please be prepared for times where cash flow might mean that you struggle with paying your staff. There are options out there such as recruitment factoring which give your staff a stable working environment and mean that they are more likely to stay with your company for longer. Unhappy staff will not want to work for you. It is a trust relationship and if you cannot meet your end why should they stick with you.

Needless to say, most of the contractors that I worked with now work for different agencies. Loyalties are earned, and if abused, quickly lost. The owner of the Recruitment Agency? Well, I believe he now runs a pub. I am not sure that those that worked for him are regular customers.

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