Published July 2021 and kept as a record. The figures and the law have moved on since it was written. For the current position see How to start a recruitment agency in the UK. Note added 21 October 2026.
How to start a recruitment agency for a post-pandemic future
(Author: Sohaa Muhammad, BIOR).
In the corporate world, the changing face of recruitment has played an important role. The work-from-home trend has allowed remote hiring to become a norm, removing unconscious bias and developing a more diverse workforce. A post-pandemic environment means that workplace models are expected to change to accommodate these evolving transitions. It's no surprise that COVID-19 has left an opening for new markets. When vacancies are reported, recruiters can help to fill them with the skills companies need to be competitive in today's global economy. A successful recruitment agency requires a broad skill set, a strong commitment to the business, and a clear approach in order to attract and retain the right talent. Fortunately, we’ve put down the basics on how to start a recruitment agency with tips and pointers to help your business succeed.
- Decide your niche
Your recruitment agency may focus on a specific niche, such as technology or retail. Whatever the sector, it's important that you find out what is the key to success in that niche. Choosing a niche that fits your skills, interests and personality will give you the edge over your competitors. Think about the type of candidates you can help. Are you comfortable connecting with job seekers who have a variety of backgrounds? Do certain demographics like women or minorities need extra help? Are you looking for a specific type of skill set (for example telemarketing, customer service etc.)? Are you located in an area that is experiencing high demand for those specific skills (and therefore hire people with those skills)?
- Research your competition
Once you’ve identified the market you want to break into, it’s time to assess who your competitors are and what they are doing. It will give you a solid starting point to evaluate what you need to do if you want to compete and succeed in that space. Give yourself a better chance of success by avoiding their mistakes. By studying the specific marketing and sales techniques of your competitors, you can discover their secrets and refine your own marketing strategies.
- Set your objectives
Success for any recruitment agency depends greatly on a solid business blueprint with well-defined objectives. As the talent market is dynamic, be sure to experiment with objectives, milestones, and KPIs. Growth is not just about statistics — it's about making goals that are meaningful for employees and that will motivate them to work together to achieve this. Through our run your own agency course, you will learn how to create a realistic business plan with goals that you can achieve with determination.
- Be robust with your marketing strategy
What is happening with the digital world when remote working became the new norm? Our current digital landscape is defined by fragmented content and an unending stream of information. We're more digitally connected than ever before. Utilising these strategies can help you take advantage of the biggest marketing opportunity that the Covid-19 Pandemic has created. For example, LinkedIn is a powerful platform to engage with candidates and develop content to help prospects with their job offers and perks i.e., flexible working, free private healthcare, commission bonuses etc.
- Know your laws and regulations
Recruitment is a highly regulated industry and so it is important to keep on top of the legal obligations.
Here are some areas to consider:
- A business license
- Adherence to GDPR privacy regulations
- Equal Opportunity Employment laws
- Business insurance and tax laws
- Be recognised in the world of recruitment
A BIOR company certification, including a professional membership, will help build your foundations to meet the demands of your clients. Providing you with the fundamentals for compliant recruitment, the certification promises to enhance your professional credibility and increase your earning potential. Learn how to get started, monitor your progress, and successfully earn a BIOR company certification. Additional benefits include access to CPD and receiving industry news and insights.