‘Everyday people get fired from their job; employees change their firms/ companies to meet and/ or benefit from new market opportunities; human resource department (HRD) in large enterprises is always looking out for trust worthy and efficient workers. These are all leads to the rise of recruitment agencies in India – though, many agencies open shop every day, only some sustain amidst market forces and a few succeed well!’
In present times, HR agency start ups are challenging, profitable, innovative, time consuming and draw on plenty of emotional strength of the doers. It requires lot of home work, data/ research (read as ‘resources’, not limited to finance alone), capable dedicated followers, inspiring leader who can put his or her experience and skills to work and definitely, it calls for the strength of vision of the owner/ leader.
Among the challenges faced by recruitment agencies’ start-ups – is finding the ‘clients’ who will avail the different human resource services that they offer. It is therefore best to identify how you are going to have ‘many’ employers and companies avail of your recruitment agency services. One way is sending introduction letters to companies and tell them about the services that you offer! However, it is best, if you are able to persuade them in person; to avail your services by highlighting the advantages and benefits your services can provide. Also, you can add a list of clientele you serve!
With expanse of internet benefits, finding new emerging opportunities pro-actively would be easier. A successful agency depends on the ‘reliable’ candidate database it has which can by itself, become an USP (unique selling proposition) to attract new clients. There should be a research team comprising tech-savvy candidate data collectors/ miners and the effort should be to deploy easy-to-use data mining software to meet immediate requirements so as to deliver instant service to the clients. A recruitment agency relies on ‘good service’ as much it does on its business development initiatives! Authentic and impressive presentation folders/ PPT slides/ videos – that can emphasize on service credibility, past ‘enviable’ record (if any), confidentiality and service integrity – are important. In order to achieve this, entrepreneur depends on past record but when this is not available, personal integrity comes into force.
Geographical or locational advantage plays a major role and every city/ branch (if any) need not deserve the same level of personal attention of the entrepreneur. The approach should be to optimize efficiency and create ‘application-specific’ advantage at the earliest. For eg., this could be vertical industry based in order to highlight past achievements or it could be location specific as a result of database available. In effect, there should be a ‘specific’ differentiating factor from others in the fray, so that the service offered is not perceived as a ‘Me too’ product. Niche marketing helps to corner and hold on to market share! Such a marketing approach brings in new clients on its own, at later stages.
Tying up the agency to established ‘well-known’ recruitment services, as a franchisee or as joint venture expedites the business development process. But, in such arrangements, earned profits or a franchise fee has to be shared or paid respectively. But then, one has to weigh the pros and cons of the given situation. In case, the ‘operation systems’ or methodology of a worldwide player outweigh the local advantages enjoyed by the recruitment agency, it is better to tie up. Definitely, such tie-ups bring ‘common’ or already being serviced clients to the kitty. These clients may be big or small – but, it is coming without much efforts of the local recruitment agency.
India – tipped to be a ‘regional’ economic superpower in the near future, is attracting new business enterprises across varied industries – and recruitment agencies are mushrooming in plenty. Those recruitment agencies which place importance on ‘reliable’ candidate database, imaginative (creative) and constructive business development efforts (that can cater to new markets too), capable manpower, inspiring leadership along with sense of urgency to serve the ‘dynamic’ market needs – will grab, create and/ or sustain their market share.
(The Author is Director/ Proprietor, Rambuna Consultants, specializing in recruitment services, corporate training and New business start up assistance.)