Every year, there are over 7,000+ new start-up recruitment agencies joining the growing number of companies within the industry.
Whilst most of these companies will be formed as subsidiaries of existing agencies or set up by experienced recruitment consultants looking to start their journey as a director, there are still a minority number of professionals who have no recruitment experience but still decide to set up an agency.
Based on the personal experience of MAYACHI, the largest number of people who decide to start their own recruitment agency with no previous experience in recruitment come from the following industries:
HEALTHCARE – Nurses and Doctors
CONSTRUCTION – Site Managers
COMMERCIAL/ WAREHOUSING – Workers
If you were to ask why they decided to start their own agency some might say:
“I know lots of people in the industry so I can help them find jobs”
“Recruitment agencies are charging too much, and I know I can do it for a much better price”
“I know exactly what the client is looking for compared to a regular recruitment agency”
“I’ve helped the company I work for find staff in the past”
These quotes have been heard countless times over the years, all reflecting a fundamental lack of understanding of how the recruitment industry operates and the processes it follows.
Many of these individuals have little to no sales background, a limited understanding of how temporary/contract rates are calculated, and minimal knowledge of key legislations such as IR35 and AWR. They often assume that making a placement is as simple as making a few phone calls.
Over the past 25 years, MAYACHI has personally encountered only a handful of cases where a non-recruitment professional has successfully established a recruitment agency. In most cases, these attempts fail before the individual has even made their first placement.
Those who do succeed often have pre-existing client relationships and a pool of candidates ready to fulfil assignments. Their new business typically serves as an extension of their work within their original industry.
MAYACHI has supported many aspiring recruitment agency directors in launching their businesses. While MAYACHI provides guidance on business planning, company setup, and formation—ensuring the best possible chance of success—it does not teach the recruitment process itself. Directors must already have a solid understanding of this aspect.
