The Statesville Recruitment Agency Commerce Essay

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Statesville Recruitment Agency is a recruitment business that will build an enviable reputation within the recruitment industry. We will stand for exceptional customer value with a promise 'to be the best, everywhere, all the time.'

Statesville Recruitment Agency will work on behalf of organizations to help them to fill job vacancies. We will source, vet and introduce potential candidates to their clients, who then directly employ their chosen candidate.

What makes us different is our unique blend of innovative processes, consistently high levels of service and a real passion for our work.

What makes us special is the way we build ongoing relationships with our customers and candidates.

The relationships we build will be based on total honesty, a genuine commitment to quality and a constant desire for continuous improvement.

Statesville Recruitment Agency has a unique philosophy which is integral to all our services. We will build our business on honesty, integrity, respect for others and always doing what we say we are going to do. Our customers will know what they are going to get and, because we keep our promises, they always get it.

A service which is an impeccable blend of people and process.

One that never lets them down.

Statesville Recruitment Agency will provide clients with a short list of pre-interviewed, referenced candidates for vacant positions within the client's business. We will run psychometric tests to assess a candidate's abilities, as well as testing relevant experience such as presentation skills or typing speeds.

We will not specialize and will concentrate on a wide selection of jobs. Statesville Recruitment Agency will work with clients that need temporary or contract placements as well as finding for candidates full-time positions.

The recruitment market is relatively mature, and competition can be intense, particularly during times of economic uncertainty when businesses initiate freezes on recruitment.

Statesville Recruitment Agency is owned and managed by Jane Smith and she will seek to fill

Jane Smith opened Statesville Recruitment Agency as she realized the need in Capital City for a personnel agency that fills the gaps in the local market. Statesville Recruitment Agency will manage the recruitment of permanent workers as well as handling temporary and contract workers. Jane will also offer business consultancy and training.

The long-term vision includes a number of offices throughout Statesville.

The company expects that it will generate enough income to manage the business from its own cash-flow.


The objectives for the first three years of operation include:

To offer clear services, with clear prices, so that clients regard us as part of their team.

To build the business mainly by word-of-mouth referrals.

To increase the number of clients by 25% per year. through superior performance and word-of-mouth referrals.


Statesville Recruitment Agency will:

supply honest, dedicated and reliable workers;

screen all candidates and select top workers;

accustom ourselves to the needs of your business;

find the most cost effective labouring solution for you;

provide hassle free personal service to all our clients and candidates.

Statesville Recruitment Agency listens to individual needs and creates solutions for both our clients and our candidates.

Company Summary

Statesville Recruitment Agency is a recruitment business that will build an enviable reputation within the recruitment industry. We will stand for exceptional customer value with a promise 'to be the best, everywhere, all the time.'

Company Ownership

Statesville Recruitment Agency is a sole proprietorship that will convert to an S Corporation in January, 201*. As a new corporate entity, Statesville Recruitment Agency will be treated as a start-up in this business plan.

Start-up Summary

Premises represent a major cost; although it is possible to keep costs low by working from home, it is not usually an ideal working environment and designated office space will look more professional. It will be necessary to consider the location of the premises in relation to the type of candidates you wish to attract, and you should consider the style of the premises and how it relates to the image you want to project.

It may be necessary to refurbish and refit the premises prior to moving in. You should make the reception area and any meeting rooms comfortable, modern and stylish to reflect a professional operation. It will also be necessary to invest in office furniture, including desks for yourself and additional staff (from $70 each), office seating (from $50 each), storage systems and lockable filing cabinets (from $200 for a set of drawers and cabinets). Meeting rooms will need to be set up with suitable tables and chairs, and you may also choose to furnish a reception area with comfortable chairs and a coffee table for waiting clients.

Generic expenses to bear in mind prior to starting this type of business include a PC and printer (from $400), telephone and answering machine ($50) and the costs associated with advertising and marketing activities. Other ongoing costs include public and professional liability insurance, utility bills, professional membership of trade associations, ongoing training and transport costs.

You may need to employ additional staff to run your office while you are busy with clients and candidates, and you will need to budget for their wages, training and employers' liability insurance.

A recruitment agency should choose an attractive office base to give a professional impression to clients and applicants. Rental costs will vary according to location. A specialist agency will find it easier to operate from a non-central location.

A PC with database software and a printer will be required. A number of customized software packages are available to evaluate specialist staff, e.g. the technical skills of IT consultants. Additional equipment will include a fax, telephone and answering machine and photocopier. The business should also budget for stationery, promotion and insurance costs.

Projected start-up figures are shown in the chart and table below.

Start-up Expenses

Legal $500

Stationery etc. $250

Brochures $750

Insurance $500

Rent $1,000

Expensed equipment $11,000

Total Start-up Expense $14,000

Start-up Assets Needed

Cash Requirements $6,000

Furnishings $5,000

Total Requirements $25,000

Funding Investment

Jane Smith $15,000

Finance $10,000

Total Investment $25,000


Statesville Recruitment Agency is a recruitment business that will build an enviable reputation within the recruitment industry. We will stand for exceptional customer value with a promise 'to be the best, everywhere, all the time.'

What makes us different is our unique blend of innovative processes, consistently high levels of service and a real passion for our work.

What makes us special is the way we build ongoing relationships with our customers and candidates.

These relationships are based on total honesty, a genuine commitment to quality and a constant desire for continuous improvement.

Statesville Recruitment Agency has a unique philosophy which is integral to all our services. We will build our business on honesty, integrity, respect for others and always doing what we say we are going to do. Our customers will know what they are going to get and, because we keep our promises, they always get it.

A service which is an impeccable blend of people and process.

One that never lets them down.

Choosing and Using a Recruitment Agency

A recruitment agency can help you to find the right person for a job in your business, removing much of the admin related to recruiting staff. For example, it will advertise the position, shortlist applications and perhaps even conduct initial interviews. This can be useful if you don't have the time or resources to carry out these tasks yourself.

What services does a recruitment agency offer?

You can often avoid time and trouble by using a recruitment agency to help you find new staff. For example, placing a job advertisement may lose you a week or even a month's lead-time depending on the printing deadlines of the newspapers or publications you choose. Recruitment consultants, on the other hand, can start sourcing candidates the same day you brief them.

Recruitment agencies often specialize in particular types of work (for instance, secretarial, office work, industrial, call centre, IT or customer service) and may already have potential applicants registered on their books. Executive search organisations usually work in higher management or specialist fields, finding suitable candidates working in other businesses by direct approach, or via specialist advertising.

An agency will typically provide:

Advice on the availability of skilled labor in your area/sector.

Guidance in relation to acceptable wage rates, employment regulations and other legal considerations.

Practical assistance in the identification of personnel requirements and the drawing up of job descriptions.

Advertisement of vacancies in the local press and on the Internet.

Advice on Government incentives for the employment and training of unemployed people, if you are looking for candidates in this category.

Most recruitment agencies will also:

Place advertisements for you.

Filter out unsuitable applicants.

Do the initial round of interviews, or conduct a practical skills assessment or aptitude test.

Provide you with a shortlist, complete with CVs, of suitable candidates.

Arrange appointments for your interview sessions with short-listed candidates.

Deal with paperwork - for example, letters acknowledging receipt of applications, and rejection letters.

Usually every person you see will already have been interviewed by the agency before being recommended to you, as well as having had their suitability assessed and their references checked. This provides you with a good selection of candidates whose quality and suitability has already been established.

If you are looking for temporary staff (such as a secretary or receptionist) to provide holiday or sickness cover, an agency will also be able to source experienced staff with good references.

How do you select a recruitment agency?

When making a selection from a list of possible agencies, you should consider the following:

Check that the agency has a Code of Practice and a valid licence to offer recruitment services.

Ask a representative from the agency to visit you at your premises to understand your business requirements and the nature of the advertised position.

Confirm that the agency will interview and thoroughly screen all candidates before sending you any CVs.

Ask the agency whether they carry out reference checks.

Elect only one or a small number of agencies to use. If you advertise the job with lots of different agencies, you may end up with too many CVs to handle.

Check that the agency you use understands the requirements of the job you are advertising, and that it can give you advice on appropriate market rates for salaries.

Check to see if the agency has a policy of developing long-term partnerships with clients. This could be useful if you want to fill another vacancy, as the agency will understand your business culture and requirements.

How do you brief a recruitment agency?

Briefing a recruitment agency thoroughly will save time and confusion later in the recruitment process. The main points to include in your brief to the agency are:

A detailed job description, including the job title and general duties.

A person specification. To produce this, consider each duty listed in the job description and translate this into the core abilities and skills needed to do the work. You should also use the person specification to identify and define qualifications, length of relevant experience, personal and technical skills, aptitudes and knowledge you require in the successful candidate. Each requirement should be listed as either 'essential' or 'desirable', and the criteria used must be objective and justifiable (for example, avoid requirements such as 'a sense of humour'). Separate essential skills and desirable ones into two columns, as this will make it easier for the agency to assess candidates' applications.

Details of the location of the job - for example, will it be based solely at your business premises or split between different locations, and will the candidate be expected to travel?

Approximate salary band and summary of the main benefits (for example, number of days' holiday, whether flexible hours are an option).

Detail the contract terms (permanent, freelance, part-time or job share, for example) and any special circumstances, such as weekend or evening work appropriate to the job.

Give the agency a deadline to find a candidate. If you use more than one agency, make sure they all know when the position has been filled.

Which standards must recruitment agencies meet?

Agencies must ensure that they comply with - and help you to comply with - current employment legislation. An example is the new requirement that gives applicants the right to see a copy of the potential employer's interview notes.

Without your consent, agencies cannot disclose information about you to third parties other than for the purpose of supplying you with staff or finding suitable candidates.

When you engage a recruitment agency, it must:

Provide you with a written statement of its current terms of business; including the scale of fees, any rebates payable or a statement confirming that there is no rebate.

If you require temporary workers, the agency must explain the procedure to be followed if a worker proves unsatisfactory. It must also give you details of any fee payable if the worker supplied takes up permanent employment directly with you. The health and safety aspects of the role must also be clarified. Temporary workers are not currently entitled to the same pay and holiday benefits as permanent employees; however, draft European law means that this may change in the future. There are fears that the Agency Workers Directive will threaten the temping industry, as employers may be deterred from taking on temporary staff. At the time of writing, the Directive had been put on hold, in light of calls for less legislation from Europe. No decision has been taken about how, or if, it can be taken forward.

Recruitment agencies have a responsibility to confirm the identity of workers and ensure that each candidate is permitted to work and has the mandatory experience, training and qualifications required for the job. This is in addition to an ongoing responsibility for agencies to inform clients if they receive information indicating that a candidate may be unsuitable for the job.

This is not an exhaustive list of the restrictions or obligations imposed on recruitment agencies!

How much does a recruitment agency charge?

In return for placing a candidate, a recruitment agency will ask for a commission that will be a percentage of the candidate's annual salary. The percentage rises with the salary, with the reasoning that it is more difficult and costly to find candidates of a higher caliber.

The percentages charged generally range between 10% and 15%. So if you are looking for someone for a $10,000 a year job, you should consider whether it is worthwhile paying a fee of $1,500 or upwards to do so. But if you are looking for someone at senior management level, suitable candidates may have to be headhunted and an agency will have the right contacts to be able to do this for you.

If the position is to command a particularly high salary, an agency may ask you for a retainer fee to cover upfront costs. When you are negotiating commission, remember it is in the agency's interests to have an exclusive deal and not be in competition with anyone else (including direct approaches) to fill the post. If you promise that for a set period of time (for example, two weeks) you will not accept applicants from anywhere else, you should be able to get a reduction in their percentage.

The terms of business will specify a refund (or rerun) that applies if a successful candidate does not meet expectations, and also provides access to free arbitration for any other problem you have with a member agency.

Staffing involves finding the right people, with the right skills, abilities, and fit, who may be hired or already working for the company (organization) or may be working for competing companies.

Staffing deals with a comprehensive term for all operative functions namely recruiting, placing, appraisal, rewarding, assessing, developing performed in HR management.

In knowledge economies, where talent becomes the new capital, this discipline takes on added significance to help organizations achieve a competitive advantage in each of their marketplaces.

"Staffing" can also refer to the industry and/or type of company that provides the functions described in the previous definition for a price. A staffing company may offer a variety of services, including temporary help, permanent placement, temporary-to-permanent placement, long-term and contract help, managed services (often called outsourcing), training, human resources consulting, and PEO arrangements (Professional Employer Organization), in which a staffing firm assumes responsibility for payroll, benefits, and other human resource functions.

Market Analysis Summary

A recruitment agency works on behalf of organizations to help them to fill job vacancies. The agency sources, vets and introduces potential candidates to their clients, who then directly employ their chosen candidate. This is known as permanent recruitment, although many recruitment agencies also provide a temporary worker recruitment service.

Some recruitment agencies specialize in a particular type of permanent recruitment, for example graduate recruitment, or in a particular sector, such as IT or construction. Recruitment agencies are often operated by a sole individual working from home, or they may be run from office premises with staff.

A recruitment agency provides clients with a short list of pre-interviewed, referenced candidates for vacant positions within the client's business. Many agencies will also run psychometric tests to assess a candidate's abilities, as well as testing relevant experience such as presentation skills or typing speeds. The agency may specialize in recruiting for a specific sector, such as IT, media or construction, or it may offer a wide selection of jobs. Agencies may also specialize in temporary or contract placements, or may find candidates full-time positions.

Recruitment refers to the process of attracting, screening, and selecting qualified people for a job at an organization or firm. For some components of the recruitment process, mid- and large-size organizations often retain professional recruiters or outsource some of the process to recruitment agencies.

The recruitment industry has five main types of agencies:

employment agencies,

recruitment websites and job search engines,

"headhunters" for executive and professional recruitment,

niche agencies which specialize in a particular area of staffing and

in-house recruitment.

The stages in recruitment include sourcing candidates by advertising or other methods, and screening and selecting potential candidates using tests or interviews.

The recruitment market is relatively mature, and competition can be intense, particularly during times of economic uncertainty when businesses initiate freezes on recruitment.

Traditionally, a recruitment agency specialized in the recruitment of permanent workers while temping agencies handled temporary and contract workers. However, this distinction has become blurred over the years as many firms now provide a variety of human resource solutions, e.g. contract workers, temporary staffing, outsourcing, staff leasing and in-home carers. Complementary activities could include business consultancy and training.

The permanent recruitment agency sector is comprised of general recruitment agencies and market specific recruitment agencies. General agencies specialize in placing candidates in secretarial and clerical positions, as well as engineering, technical, computer and junior positions. These agencies are likely to advertise vacancies in the press and will be contacted by people looking for work. Market specific employment agencies concentrate on senior positions. They will sometimes use advertisements in the press to fill placements but they will also contact potential candidates by letter and phone. Sub-sectors of the recruitment agency industry cover an extremely broad range: financial services, office, IT, industrial and executive, education, childcare, medical and dental, nurses and carers, media, legal, construction, logistics and catering. There is also a growing interest in agencies specializing in recruitment staff.

The notion of a job for life is fast becoming a dying concept. There has been a reduction in staff loyalty and a sharp rise in the frequency of job moves. Fixed term contracts are also becoming more prevalent, particularly for maternity cover, new positions, and in IT, which lends itself to the management of specific projects over a certain period. The trend towards temporary labor is expected to gain further momentum as companies increasingly adopt flexible work practices to enhance their long-term competitiveness. However, employment agencies dealing with permanent rather than temporary staff are likely to see an improvement in their prospects in the near future.

The recruitment industry can be severely affected by any economic downturn or uncertainty, and has suffered in recent times with turbulent markets across the globe and with many businesses uncertain about further growth. In times of economic crisis, many businesses cut back on staff and freeze recruitment.

The recent industry downturn has led to the market becoming more client-led, with agencies now focusing on the specific needs of client businesses to make the service more personal and bespoke. Clients know they have a range of recruitment choices available, with many agencies vying for their business, so they can be very selective. This promotes the need to uphold and improve industry standards in order to maintain a strong client base.

There has been a recent growth in online agencies, where candidates can register their CVs for prospective clients to view. Although these are proving popular in some sectors, such as IT, they cannot replace the face-to-face service offered by a traditional agency.

Agencies that specialize in a particular sector, rather than a range of general assignments, can find it difficult to prepare for any decline in contracts during economic downturn.

General agencies involved in all types of recruitment can shift their emphasis more effectively and find it easier to manage problem times through the range of assignments they offer. At the same time, specialist agencies can benefit from being sector-specific. For example, public sector appointments are undergoing a prolonged period of growth, and agencies that specialize in these appointments are more likely to attract clients than general agencies, as they are perceived as having greater industry knowledge and offering a better bank of suitable candidates.

Flexible working practices are being seen as an increasingly important part of working life. A large percentage of workers cite flexible working as a greater motivation than higher salaries or opportunities for promotion. It is important to more workers to attain a good work-life balance or to be able to fit employment around family life. This is good news for agencies, who are seen as offering assignments that can be much more flexible than permanent roles.

There are a variety of reasons why businesses may need Statesville Staffing Service's services:

Spikes in work load

Business expands into an area that in-house expertise does not yet match

Special events

Pregnancy leave or sabbatical

Business increases after layoffs

Smaller business does not yet have staff on-hand to complete extra projects.

The recruitment industry encompasses a wide range of services, including recruitment agencies for both temporary and permanent workers, as well as those that cater to specific industry sectors or groups of workers like migrant workers. Other types of recruitment services include online job boards and executive search consultants. Model and entertainment agencies are also classed as recruitment agencies.

The recruitment industry experienced significant growth between 2004 and 2008. Its value rose every year until 2009, when the recession had an impact and the value of the industry fell by nearly 17%.

Market summary at a glance

The key factors affecting the recruitment sector can be summarised as follows:

Industry contracts by nearly 17% between 2008 and 2011

The recruitment industry is inextricably linked to the performance of the economy and this is illustrated by the fact that the sector contracted significantly during the recession.

Permanent placement sector worst affected

The permanent placement sector has been worst affected by the recession. It contracted by 39% between 2008 and 2011, while the temporary placement sector shrank by only 12.6%.

Online recruitment predicted to boom

Advertising experts predict that recruitment advertising will make up more than a third of all online classified advertising by 2012, and will make up more than half by 2020.

Industry showing some signs of recovery at end of 2011

The recruitment freezes that many employers imposed during the recession showed signs of thawing by the end of 2011, in that fewer employers reported that they would be putting their recruitment activity on hold. Also, industry representatives reported a slight improvement in activity, with an increase in the number of both permanent and temporary appointments in early 2012.

Market segmentation and performance

Key market segments and recent developments in the recruitment sector can be summarized as follows:

Recruitment agencies

One of the most significant trends in the recruitment agency sector has been the performance of temporary placement agencies and permanent placement firms. The value of the permanent placement sector dropped by nearly 40% between 2008 and 2011.

Sector-specific recruitment agencies


Businesses in the construction sector use more employment agencies on average than firms in other industries. Research indicates that a third of construction firms use two employment agencies on average to recruit workers, while 13% use six agencies or more. However, the construction industry has been one of the worst affected in terms of recruitment and employment during the recession.

The Monster Employment Index, which is published by online recruitment firm Monster and monitors activity in online recruitment, revealed that in 2012 job opportunities in the construction sector are at a record low, despite the fact that the recruitment industry as a whole had shown signs of improvement.


Childcare covers a wide range of professions; however, recruitment agencies generally deal with the placement of nannies, au pairs and nursery staff. A survey of nanny and childcare agency owners by the Children's Workforce Development Council (CWDC) in 2011 revealed that the majority of nannies, 64%, found their job through an agency.


Staff turnover in the education sector is generally high and there is almost constant demand for supply teachers and teaching assistants. Online recruitment activity in the education sector registered the largest month-on-month increase during 2011.

Financial services

The financial services sector, incorporating banking, accountancy, insurance, financial analysis and trading, has been adversely affected by the recession, with high levels of redundancies, staff cuts and the industry being partially blamed for the recession.

In 2011, it predicted that employment levels in the sector were likely to drop by around 0.7% during 2012.

IT and telecoms

The majority of workers in the IT sector are highly educated and male. A third of those working in the IT and telecoms industry have a degree.

Research indicates that one of the emerging trends for this industry is the increase in demand for technological innovation, which means an increased need for skilled workers. However, e-skills reports that the number of people undertaking education in IT-related subjects is falling and highlights a need to attract people into the industry.

Manufacturing and industrial

The industrial sector attracts the largest number of temporary placements. A third of the temporary placement market is dominated by industrial and blue-collar work. Manufacturing has been particularly badly affected by the economic downturn.

Nursing and care

Recruitment agencies in the care sector generally specialize in a particular type of nursing or personal care, for example domiciliary care agencies or nursing agencies. This is a particularly competitive sector for recruitment agencies.

Online recruitment (job boards)

Although the online recruitment sector was adversely affected by the recession, experts predict a healthy recovery for this part of the recruitment industry. According to a 2011 study by the World Advertising Research Center (WARC), overall advertising expenditure in the UK is set to grow by up to 52% in the decade up to 2020, with the Internet expected to be the driver of this growth. This could mean a larger customer base for job boards and more firms using online recruitment sites.

The study also predicts that the Internet will become the dominant medium for classified advertising. It expects that recruitment advertising will make up 31% of all online classified advertising in 2012 and this figure will reach 58% by 2020.

In early 2012, research showed that activity in the online recruitment industry was starting to recover after its decline during the recession. The Monster Employment Index revealed that in 2012 online recruitment reached its highest level since 2007. The index grew by seven points, month on month, with the largest increases in employment in the education and training, export-driven manufacturing and transportation industries, as well as the hospitality and tourism and sales sectors.

This area of the recruitment industry has grown significantly over the past decade and there are now thousands of online job boards. For example,, the magazine for the online recruitment industry, has a directory of online job boards that contains over 4,500 websites.

Executive search consultants

One of the dominant trends in this sector is for interim management recruitment. Many firms are increasingly looking to hire interim executives to deal with the extra workload generated by a recruitment freeze.

Model and entertainment agencies

The modeling sector has been affected by the recession in that many clients, such as retailers and design houses, have cut their advertising budgets. Model agency owners report that clients are booking established models, rather than taking a chance on 'new faces'. Fashion show organizers are also hiring fewer models, which has led to some agencies having to cut the rate of pay for models.

In order to survive during the downturn, model agencies are taking on a higher number of 'commercial' models, such as those who attract a steady stream of work, while cutting back on 'image' models who take part in catwalk shows and high-fashion magazine shoots.

Recruitment Agencies

Recruitment agencies have historically had a physical location. A candidate visits a local branch for a short interview and an assessment before being taken onto the agency's books. Recruitment consultants then work to match their pool of candidates to their clients' open positions. Suitable candidates are short-listed and put forward for an interview with potential employers on a contract or direct basis.

Compensation to agencies takes several forms, the most popular are:

A contingency fee paid by the company when a recommended candidate accepts a job with the client company (typically 20%-30% based and calculated on the candidates first-year base salary - though fees as low as 12.5% can be found online, which usually has some form of guarantee (30-90 days standard), should the candidate fail to perform and is terminated within a set period of time (refundable fully or prorated)

An advance payment that serves as a retainer, also paid by the company, non-refundable paid in full depending on outcome and success (eg. 40% up front, 30% in 90 days and the remainder once a search is completed). This form of compensation is generally reserved for high level executive search/headhunters

Hourly Compensation for temporary workers and projects. A pre-negotiated hourly fee, in which the agency is paid and pays the applicant as a consultant for services as a third party. Many contracts allow a consultant to transition to a full-time status upon completion of a certain number of hours with or without a conversion fee.

Market Segmentation

Your customers are likely to be divided into two distinct categories: businesses requiring staff and candidates seeking employment. It will be important to concentrate on attracting both groups.


Small business owners may require flexible, temporary staff to cover busy periods, staff holidays, extended sick leave or maternity leave. As these clients may have little time to advertise for and interview potential new recruits, they will welcome a reliable agency that has a wide selection of candidates on its books.

Larger businesses, particularly factories and call centres, tend to have a high turnover of staff. The nature of the work and the long, often unsociable, hours means these industries often experience difficulties in retaining staff. These businesses will appreciate a Recruitment agency that can fill a number of vacancies in a short space of time.

If you intend to work in a specialist area, the type of clientele you will attract and the types of businesses that require your services will be very specific.


Students on holiday from college or university will boost your candidate numbers at certain times of the year, as many seek summer work to improve their finances or pay for travel. The flexibility of agency work and temping is an attractive option to many students seeking work.

Graduates are increasingly seeking temporary work from agencies while they look for a permanent job. Others will register with agencies that specialize in permanent work, particularly in their chosen sector, or in general graduate positions as the graduate jobs market is becoming increasingly competitive.

Many older people take up part time and temporary roles after retirement in order to supplement their pensions. These individuals often have a wealth of experience in the workplace and are keen to take on flexible work on either a temporary or permanent basis.

Professionals looking for a new challenge or a change of industry may approach a Recruitment agency. These individuals may be unhappy in their current position or may wish to use their accumulated skills in a different industry. They will appreciate advice on their interview skills and feedback on industry sectors they could approach.

Parents, particularly mothers with young children to support, may be keen to earn some extra money by working particular hours or days to suit their childcare arrangements.

The recruitment industry is highly fragmented, largely because it is fairly easy to enter as it requires a low capital investment. However, there has been a trend towards mergers and acquisitions in the industry. There are a number of large, well-known firms in the market, many of whom are foreign-owned international companies. Further competition will come from the several hundred online recruitment sites. Many established agencies also have an online presence.

The competitive environment in the recruitment market will make if difficult to secure a pool of qualified applicants, as well as a ready supply of vacancies from employers. It is commonplace for clients to use two or three agencies when recruiting to keep their options open. Naturally the agency with the most candidates on record stands the better chance of securing the position. Applicants will also tend to approach a large number of agencies to increase their chances of securing a position. They will also use other means of job searching, e.g. appointments pages of newspapers, cards in shop windows or writing speculatively to employers.

Who will you be competing against?

Other independent recruitment agencies operating in a similar location to you will represent your immediate competition. You should investigate these businesses thoroughly to identify any areas of specialty and to research their prices. Use local business directories, such as the Yellow Pages and Thomson Directories to find the contact details of recruitment agencies near you.

Large recruitment chains with a number of outlets are likely to be chosen for large company contracts because of the number of candidates on their books and their demonstrated experience, together with their dynamic marketing campaigns and the power of a known brand name. Some of the most prolific agencies all enjoy a wide range of major contracts and a growing client base, even in economically uncertain times.

Online recruitment agencies represent a fast growing area of the market. The increasing numbers of career websites, such as, are also likely to pose a threat, as they advertise on behalf of employers and agencies nationwide, and candidates benefit from the convenience of registering and applying for positions online.

Large businesses usually have internal recruitment systems or human resources departments, and businesses of all sizes often prefer to interview and reference potential candidates themselves. However, as it takes time to advertise and find the right person for the position, it may be more convenient to contract a recruitment specialist to do this for them.

Operating Plan

Statesville Recruitment Agency is completely service minded, customizing personnel packages and offering the most it can to both employers and employees. The company brokers professional workers to Capital City businesses. Because we serve two distinct groups of people, both businesses and employees will be considered equally important to Statesville Recruitment Agency.

The company consists of five divisions, targeting the following types of workers and needs in businesses:

Computer Division

Computer Application Specialists

Computer Hardware Specialists

Computer Programmers

Network Administrators

Web Specialists



PR / Marketing


Event Planners


Large and Small

Graphic Artists




Language Interpreters and Translators

Multiple Languages



Within these categories, we originally set up a system of single sheets on card stock and filed them in binders. Since then, an electronic database has been created by one of our professionals. With the push of a button, Statesville Recruitment Agency can search for a client or an employee needed.

Businesses and employees will be able to communicate with Statesville Recruitment Agency via both new technological and traditional methods. Our Web page provides information about Statesville Recruitment Agency including what professional fields we serve, what clients we are working with, and what services we offer. A second-generation Web page will provide information about employees for businesses through a password-protected area. Statesville Recruitment Agency forwards candidates' resumes and other information through a variety of methods: phone, fax, personal visit, mail, and the Web page.

Managing Business

When a business is contacted and expresses interest in contingent employees that the company can provide, the following procedures will be followed:

Consult with client and create a follow-up plan.

Complete the contact, client, and job sheet in the database.

Print one of each and forward a copy of the job sheet on yellow paper to the employment specialist.

File original sheets in the appropriate binders.

Search for matches in the database and pull each folder that looks like it will work.

Review that folder to assure a match.

Call each potential candidate and discuss the job and pay to its fullest.

Fax, e-mail, or otherwise contact client with information and/or resumes for review.

Schedule interviews or make a decision on appropriate candidates.

Managing Prospective Employees

When an employee seeks to work with the company, the following procedures will be followed:

Complete the professional's form in the database.

While completing this sheet, screen the employee for experience levels, requiring professional experience in each arena they wish to work.

Set up an interview with the employment specialist if the professional is qualified.

Create a file for each employee and place all paperwork, along with a copy of the professional's form.

Keep in touch with the professional quarterly if nothing comes up, more often if at all possible.

When the professional agrees to a position, they will be supplied with an employee policy manual, pieces of letterhead for invoicing, and will complete the IRS I-9 and W-4 forms prior to beginning work.

Business market targets:

Employment agencies dealing with temporary and contract staff are experiencing sustained growth in turnover while the permanent sector lags behind. This is because larger organizations are demanding high volumes of trained staff on a short-term basis to maintain efficiency, increase profitability, raise productivity and enhance competitiveness. This is extremely advantageous to the employer, as core staff is supplemented as necessary with temporary workers to allow the company to respond to changing demands in the marketplace. Transitional work also helps to expand the national labor force and reduce unemployment. However, on the down side, organizations stand accused of taking advantage of employees' skills without providing training, long-term security or job development. As a result, there has been a reduction in staff loyalty and a sharp rise in the frequency of job moves, with staff changing jobs every five years on average. The notion of a job for life is fast becoming a dying concept.

As temporary workers become a permanent feature in the workplace perceptions are starting to change, albeit slowly, and they are now no longer viewed as second rate employees. Temporary staff were once limited to standing in over prolonged sick leave, at peak times and holidays, yet now the assignments regularly cover many months, with some contracts turning into permanent employment. Conversely, an increasing number of permanent employees have switched to fixed term contracts over a significant period, especially in IT. Yet there is a marked difference between temporary and contract placements: contract workers tend to fill specialist or senior positions for six months to a year on a fixed term contract basis, with contracts spanning two to three years possible. This type of contract labor is particularly popular for maternity cover, new positions, and in IT, which lends itself to the management of specific projects over a certain period. While it is becoming more commonplace for temporary workers to be employed at fairly senior levels and in specialist areas, temporary positions are still frequently filled by unskilled women who are primarily employed in clerical and secretarial work or customer services.

Increasing numbers of companies are turning to recruitment consultants as a time saving and cost effective method of finding new staff. This can cut down on time spent sifting through CVs, interviewing and selecting and can minimize advertising expenditure as agencies may already have a database of suitable candidates. Further pitfalls with in-house recruitment include a lack of anonymity with both current employees and competitors, and underdeveloped interviewing skills which may lead to selection of an inappropriate applicant. These factors have contributed to the firm grip that recruitment agencies now have on the search and selection market, a situation compounded by the growing popularity of outsourcing. When companies decide to contract out service functions such as IT, facilities management, catering or accounts, employment agencies can either supply workers directly for the client, or for the contractor involved. However, despite the developing relationship between client and agency, it can be problematic; many clients feel that agencies recommend candidates who have neither the skills nor relevant background to match the brief.

It is commonplace for clients to use two to three agencies when recruiting to keep their options open. Naturally the agency with the most candidates on record stands the better chance of securing the position; for this reason, many agencies are guilty of advertising vacancies which do not actually exist. While this is forbidden in the profession, it is extremely difficult to enforce and as such is a tactic often employed by agencies in an attempt to build up a database of attractive candidates for potential contracts.

The company targets the University of Statesville, Capital City Community College, the nonprofit organizations, the publishing industry, the advertising industry, and other large businesses.

Employee market targets:

Traditional career paths are becoming a thing of the past, as is guaranteed employment. With this in mind, candidates need all the help they can find from employment intermediates. However, the down side of this is that applicants tend to approach a large number of agencies to increase their chances of securing a position. Applicants will also use other means of job searching, e.g. the appointments pages of newspapers, cards in shop windows or writing speculatively to employers. Obviously this varies according to the qualifications and experience of the employee.

Low paid, unskilled or semi-skilled workers tend to utilize the small advertisements in the local press, often specializing in manual labor and part time work.

On the other end of the scale, employment agencies are predominantly used by career driven graduates in their twenties, thirties or forties who wish to further their career. On the surface it is recognized that upmarket professionals are inclined to use specialist agencies while general agencies attract slightly younger, less affluent clientele. However, the emerging importance of the specialist end of the market has affected the popularity of office based and general agencies with their target market.

While men tend to use employment agencies more than women, this is set to change with the increase of women in the workforce. The rise in lone parents, divorces and separations has broken down the traditional family unit and many women are returning to work. This is a positive move for the service and clerical sectors which are heavily dependent on women; a number of agencies have introduced special refresher and training courses to take advantage of this.

Pay and Bill Rates

The pay rate data will be determined by changing market factors including business demand.

Our experience shows that the following is true in regards to pay and bill rates. A "good deal" for most temporary agencies is a 50% of pay rate markup. Thus, if the pay is $10, the bill is $15. However, we have traditionally used a flat markup that seemed appropriate. Pay and bill rates generally are outlined as follows:


Most editors require between $25 and $35 per hour, and our history has shown a $10 per hour markup is acceptable. One exception is in the technical arena, garnering between $45 and $55 per hour pay; again a $10 per hour markup is typical.


The only writing we have done is creative for **, and we paid $15 with a $10 markup.

Event Planners

Event planners often will work for between $12.50 and $25 per hour, depending on the length of the job, requirements, and experience needed. We find a $5 per hour markup on the $12.50-$17.50 is reasonable, and a $10 per hour markup on anything over $17.50 per hour.


Fundraisers can start at $10 per hour (nonprofit) and go up to $20 per hour. This usually depends on client and length of assignment. Bill rate markup for nonprofits is $5 per hour, others between $7.50 and $10 per hour.

Graphic Artists

Entry-level beginning at $12.50 per hour, intermediate at $15 per hour, and a top of the line professional at $25 per hour. The exception may run about $50 per hour. Bill rates are between $7.50 per hour markup ($12.50-$15), and $10 markup.

Language Interpreters

This is a tricky arena. Pricing depends on the language (typical / atypical) and the length of the assignment. Interpreters have been known to work for as little as $15 per hour and for as much as $35 per hour. A $10 per hour markup is acceptable.

Language Translators

This division is difficult as each language and situation varies slightly. Translators tend to work by page or by word. Technical translation can be as much as $.30 per word. Other translation can be $10 per hour (an hour a page). We are unsure of markup at this time, but would suggest 50% of pay rate.

Computer Specialists:

Application-Starting at $12.50 an hour. Markup $5 per hour.

Programmer-Starting at $20 an hour based on experience. Markup $10 per hour at a minimum. Try for $15.

Web Designer-Entry level positions can start at $10 per hour with a markup of $5.

Project work typically starts at $15 an hour, markup at least $10 per hour.

Administration - Pay rates range between $50 and $75 per hour, with a preferred markup of $25 per hour.

When determining the bill rate, additional expense factors to remember above the pay rate are 15% employer taxes, advertising, and staff time to fill the position.


Each and every contact is entered into the database, either in the professionals file if they are a potential candidate, or in the contacts file if they are another type of contact. The client and jobs files utilize the contact and client numbers to automatically fill in the information from the contact or client files. This means no duplicate typing. In addition, the contacts, clients, and professional files all have follow-up sheets attached making daily follow-up easy. Simply pull the file up for that day and all calls that need to be made that day will be marked.

Searching is easy. The check boxes within each professionals file allow us to check for singular or multiple skills and experience with a click and a return.

Employee Information

First form filled out from the moment the candidate calls. Three screens constitute one file:

Personal Information

Job Information


The professional and contact files have a conversation record that will allow easy follow-up with a list daily of those records needing a call.

Interview Form

Directly from the employee forms the Employment Specialist can select the appropriate interview form.

This form consists of three sheets

Basic Questions

Other Information / Recommendations

Reference Checks.

Employee Profile Sheet

From the above information, a profile sheet is generated in hard copy for the inside of each file. This is our second backup system (besides the tape drive) in case of a power outage, etc.

Contact Sheet

This form is used for all other contacts. From here, a contact can be turned into a client by merely typing the contact number in on the client sheet, automatically bringing in all of the information.

In addition, the contacts can be pulled up as a list and can be used to create the client information. The professional and contact files have a conversation record that will allow easy follow-up with a list daily of those records needing a call.

Client Sheet

The client sheet is easily created by filling in the contact number. All pertinent information is automatically entered. The client sheet has its own contact sheet attached generating a daily follow-up list. The client files can also be pulled into a handy contact list.

Future Trends

The workforce is ageing at a steady rate, due to lead to over-representation of the elderly and under-representation of the young. The largest age bracket of users of employment agencies falls in the 25-34 age group, with lowest usage in the over 55s age group. However, the former age group is set to fall while a recent report estimates that by the end of 2012 employees over the age of 55 will make up the largest age group of the working population.

This is indicative of future problems for agencies in terms of having a ready supply of young candidates; already the number of temporary office staff aged over 45 who were recruited in 2011 has risen in comparison to 2008 figures. Similarly, greater female participation will ensure that women will continue to form an increasingly important part of the workforce. Equal job opportunities for men and women will become more widespread.

The future of the recruitment market is uncertain as the skills shortages bite and demographic changes in the workforce become pronounced. Already a number of employment agencies feel they are not attracting candidates of the right caliber, e.g. graduates or qualified professionals, and this is likely to prove a continuing problem as the implementation of tuition fees for students may discourage university applications. Agencies will be forced to reconcile the demand for good quality candidates with a serious shortage of applicants with suitable skills, particularly in new technologies. As the client and agency relationship is already punctuated with disputes over mismatches of candidate and brief, further signs of strain can be expected.

The trend towards temporary labor is expected to gain further momentum as companies increasingly adopt flexible work practices to enhance their long-term competitiveness. With this in mind, a significant rise in temporary and contract staff is predicted over the next five years. Employment agencies specializing in temporary workers will benefit from a higher number of placements while agencies concentrating on the permanent sector are likely to find it increasingly tough.

Rapid growth in the application of technology has infiltrated the recruitment industry in the same way as every other office based sector. Already many employment agencies have set up live websites to enable clients and candidates to browse: if preferred, applicants can register with the company on-line and send CVs by e-mail, just as clients can e-mail briefs for vacancies they wish the agency to handle. This is gradually getting off the ground, and is due to accelerate into the next century with agencies predicting less pedestrian traffic through their offices as candidates and clients switch to e-mail. This is coupled with the escalating popularity of video conferencing, and recruitment consultants are considering the implementation of three-way video conferencing as a means of conducting interviews in the future. As this will directly involve the client it is set to make the selection process quicker and more effective. In a fiercely competitive market, agencies who utilize cutting edge technologies will have the competitive advantage.

Specialist staff tends to respond better to a finely targeted service, and this has prompted a growing number of employment agencies to reinvent themselves as niche marketers. However, while these agencies reap the benefits of placing trained candidates, it is doubtful whether this will continue indefinitely as the market is close to saturation. As new start ups and ambitious agencies expand into the specialist market, this is likely to result in lower profitability all round, regardless of the state of the economy.

A continuing trend in the recruitment industry is the recognition of the global marketplace. With the development of the single market and the global orientation of the Internet, employment agencies must overcome regional, national and even continental boundaries to keep pace with global competition. Internationalism is a trend gaining momentum and is likely to impact upon high profile agencies based in major cities.


The company has an outstanding client list and an incredible number of qualified employees available. Statesville Recruitment Agency has a good reputation for providing qualified people in a timely manner.

Statesville Recruitment Agency just moved its offices and in 201* will add employees. The company will soon have one front office person, one employment specialist, as well as Jane Smith who will concentrate on sales and running the business. We own all necessary equipment and are in the process of acquiring more to make our jobs easier. Most notably, we are in the process of completing our customized database.

Management Plan

The company is uniquely positioned to take advantage of this market opportunity because of the management and field expertise of the proprietor. Jane Smith worked in the temporary employment industry for three years with Capital Personnel Services as Account Manager. Her role was

Building business relationships

Hiring employees

Handling employee issues

Working with clients

Opening an additional office

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Are you suited to this type of business?

Although an appealing self-employment option, particularly if you have previous experience in the sector, it can take time to build a good client and candidate base, so a good flow of income may only result after a lot of initial networking and hard work.

Extensive knowledge of the local job market is essential for anyone wanting to start a Recruitment agency. You will need to keep up to date with developments in employment legislation, as well as changes in market conditions. If you choose to operate in a specific sector it will also be necessary to keep abreast of changes in that industry that may affect the recruitment market.

You should possess good sales skills and a persuasive manner. These will be necessary both for maintaining growth in your client and candidate base and for attracting new business. A positive manner and the ability to handle rejection will also be invaluable, as you may have to undertake a certain amount of cold calling of potential clients prior to gaining your first contract.

Most of your time will be spent either presenting or liaising with clients, or interviewing potential candidates, so communication skills and listening skills are both vital. A good knowledge of interviewing techniques, personality testing and analysis are all necessary skills. You should possess the ability to put candidates at ease, gain their confidence and provide constructive feedback after each interview.

You will need to be extremely well organized and competent at undertaking a range of administrative duties, as you may be trying to fill several vacancies at once, and working with quite a few clients at any one time. To portray an efficient professional image, you must maintain an accurate diary and make sure you always turn up on time for appointments with clients. The ability to work to deadlines is also necessary, as some clients may need to fill a position urgently.


Statesville Recruitment Agency runs its payroll twice a month. Each professional will be given a check schedule when they work with Statesville Recruitment Agency. Each check covers the previous two weeks.


Because we value our employees, we have employee group health insurance available, and contribute a major portion of the monthly premium. According to the Insurance Pool

Governing Board (IPGB) employees must work at least 17.5 hours per week. Employees who work intermittently or who have worked fewer than 90 calendar days are not eligible. IPGB also states that all carriers may decline to offer coverage to the business or to any employee.

Technically, Statesville Recruitment Agency is employer of the professionals we place. This means that we are responsible for covering the worker's compensation insurance, running payroll, and that we are the ones to whom each employee is responsible. We understand that this can be tricky when employee professionals are working with a client, so we want to describe the expectations of this relationship:

If the professional doesn't understand the work or assignment that has been given by the client, then discuss the work with the client.

If there are issues at work, the employee should inform Statesville Recruitment Agency and then speak with the client.

If these issues continue, the employee should talk with Statesville Recruitment Agency immediately.

If the professional feels they are being harassed at work they should let Statesville Recruitment Agency know immediately.

If the employee should be being asked to perform tasks other than the original assignment, the employee should talk with Statesville Recruitment Agency before beginning any tasks other than the original assignment.

If the professional is being asked to work overtime (more than 40 hours per week), they should let us know immediately.

Marketing Strategy

Much of the Recruitment agency business relies on cold calling and proactive selling strategies to build your client base. You will be required actively to seek new business and to follow up prospective clients tenaciously to attract new business.

You should invest in professionally designed stationery and leaflets to advertise your agency, and send these to potential clients along with details of any specialist work you do. Follow up any speculative mailshots with telephone calls to enquire about positions with potential clients.

You should consider advertising in local jobs papers and supplements, as this may attract candidates loo