Posts Tagged ‘Recruitment Agency’
MARK-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 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 More5 REASONS WHY PERMANENT RECRUITERS SHOULD CONSIDER CONTRACT PLACEMENTS
Most new recruitment agencies will begin their journey by exploring permanent opportunities as they can provide that initial cash-flow injection. There are also agencies who only specialise in placing permanent candidates due to the consultants’ expertise in making those kinds of placements or their clients favouring workers on their books. However, there are many good financial…
Read MoreNEW YEAR IN THE RECRUITMENT INDUSTRY… PLANS YOU SHOULD BE MAKING
January is the time of year when most people look at the year gone by and make resolutions for the new year ahead. These resolutions should also extend to a person’s working life and as such, make important decisions on their next steps in business whether as a new or existing recruitment agency owner. START YOUR…
Read MoreIS YOUR INVOICE FINANCE ARRANGEMENT THE BEST DEAL FOR YOUR AGENCY?
External funding is often required when a recruitment agency makes contracts or temporary placements to bridge the gap between when the client makes payment on 30+ day payment terms and when the candidates will need to be paid within 5-7 days. This funding gap can easily be filled with external funding either from a pay-and-bill…
Read MoreWHY MANAGEMENT ACCOUNTS ARE IMPORTANT TO THE GROWTH OF YOUR RECRUITMENT AGENCY?
The vast majority of recruitment agencies are set up and run by Directors who used to be recruiters in a previous guise. Although they are fantastic at recruiting and making placements, often they do not have the aptitude or interest in accounting unless absolutely necessary. Even if their accountants produce management accounts, they may not…
Read MoreWHAT PREPARATION DO YOU NEED TO DO WHEN CONSIDERING SELLING YOUR RECRUITMENT AGENCY?
Many recruitment directors aspire to one day sell their business for a healthy profit, but unfortunately, the reality is that many will fall short. The main reason for this is the lack of planning that a recruitment agency should undertake in advance of wanting to sell. When recruitment agency directors consider selling their business, they…
Read More6 THINGS TO CONSIDER WHEN BUILDING YOUR RECRUITMENT AGENCY PROJECTIONS
Projections for a recruitment agency can help give a targeted plan for the directors, so they know what they need to achieve over the next 12 months by hitting the sales targets and what they can spend. These projections can help set targets for internal staff members, indicate when new consultants can join the business…
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