Blogs
WHO SHOULD START A RECRUITMENT AGENCY?
We’re is often asked “Who is the ideal person to start their own recruitment agency?” and there are many different answers to this question. Sometimes the best recruiters do not always make the best directors of their own recruitment agency as they cannot manage their responsibilities when it comes to running a company, managing their cashflow…
Read MoreHOW DOES IR35 AFFECT YOUR RECRUITMENT BUSINESS?
Even though the IR35 legislation has been around since April 2000, there has always been confusion about how it works and how it affects a recruitment agency. This was exacerbated in April 2017 in the public sector and in April 2021 in the private sector, when the IR35 rules changed to put the responsibility of the…
Read MoreCASHFLOW TIPS YOUR RECRUITMENT AGENCY NEEDS TO KNOW
Recruitment agencies are always good at generating clients, registering candidates, and making placements, but when it comes to managing the company cashflow, it can be a minefield to the Directors. Understanding when clients will make payments, when to pay suppliers and how much is due to HMRC can make understanding the company cashflow is a complex…
Read MoreTHE TOP 5 HAZARDS OF INTERNATIONAL CONTRACT PLACEMENTS
Expanding into the world of overseas contract placements can be an easy way of increasing an agency’s turnover and profitability if they can identify a client requirement within their market. Many of the recruitment processes are the same when making international placements except the profit margins are often much larger which makes this very appealing for…
Read MoreMARK-UP VS GROSS PROFIT IN RECRUITMENT – WHAT’S THE DIFFERENCE?
Recruitment agency fees, whether they are permanent or contract/temporary placements, are always based on the profit generated. These fees will often fall into two categories, a mark-up percentage or a gross profit percentage. However, many recruiters ask me during our initial consultation call “Stewart, mark-up vs gross profit in recruitment- what’s the difference?”. WHAT DOES MARK-UP MEAN?…
Read More6 REASONS NON-RECRUITERS SHOULD NOT START THEIR OWN RECRUITMENT AGENCY
Over the past 10+ years, I have received an astonishing number of enquiries from non-recruiters who wanted to start their own recruitment agency. These include nurses, doctors, warehouse workers, site managers and IT consultants. Whilst some of these enquiries may have the skills to run their own recruitment agency and be successful, it was often very…
Read MoreMAYACHI’S FIRST REC EXPO – HOW DID IT GO?
Rec Expo kicked off on Tuesday 19th March 2024 for 2 days of celebrating everything relating to the recruitment industry and the amazing recruiters who work within it. The bi-annual event has been running for 12 years, and this year The Recruitment Agency Expo was held at the Excel Centre in London for the second…
Read MoreADVANTAGES OF RUNNING AN INTERNAL PAYE SCHEME FOR YOUR RECRUITMENT AGENCY
Recruitment agencies that provide temporary or contract placements that fall inside of IR35 often use an external provider such as an umbrella company to process the deductions and payments to their candidates. This will often remove the administrative burden on the recruitment agency and ensure the candidate is paid compliantly. However, there are advantages of running an…
Read More“MY RECRUITMENT AGENCY IS TOO SMALL TO NEED A NON-EXEC FINANCE DIRECTOR”
Since launching MAYACHI in January, I have spoken to numerous recruitment directors of various sized recruitment agencies. Whilst most have instantly recognised the need to engage my consultancy services, some Directors have also said, “My recruitment agency is too small to need a non-exec finance director” or “I don’t think I’m big enough to use MAYACHI…
Read MoreHOW DOES INVOICE FINANCE WORK FOR RECRUITMENT AGENCIES?
Invoice finance is required by most recruitment agencies that are making contract or temporary placements and provides the funding to pay the contractors before the client makes payment. One of the questions that recruitment directors often ask us is how the funding arrangement works as it can seem like a very complicated process. At MAYACHI…
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