Human Cloud and Gig Economy
It’s worth mentioning another form of employment that has revolutionised the workforce – the gig economy.
The gig economy has become one of the fastest-growing markets in the world. The human cloud refers to the multitude of independent workers performing jobs, projects, and simple tasks on a remote basis.
Over the past year, employers have spent billions of dollars outsourcing work to self-employed individuals all around the world. Employers can advertise anything from web design, data entry, or translation services, without ever having to worry about employer taxes, sick pay, or minimum wages.
Technological innovation, access to the internet, and the increase of remote professionals are all factors that have created a human cloud of on-demand workers and a rapidly growing gig economy.
However, there is no need to limit the “gig economy” to transactions or contracts that are mediated online. Although definitions vary, the Staffing Industry Analysts argue that the gig economy encompasses any contingent work over a fixed duration, including the hire of temporary workers and independent contractors. Under this definition, the term contingent work becomes synonymous with the gig economy.
The start-up process is relatively straightforward and you can set up your own recruitment agency in five easy steps.
You’ll need to come up with a great name before you can get to the more serious stuff. First impressions are everything, so make sure you are happy with how your brand comes across. Don’t pick something that may limit your business in the future, like Construction and Building Recruiters, and make sure the name is legally available.
Once you’ve come up with a name, you’ll need to register your company as a legal entity with Companies House. It only costs £12 and it’s much easier than it seems, all you need is some information about yourself and your shareholders.
The next step involves creating a workable infrastructure for your recruitment agency. For example, you’ll need to open a business bank account, hire an accountant, familiarise yourself with the legal requirements, and insure your business.
Then you’ll need to develop your branding by creating a website and establishing a presence on social media. Depending on your budget you can outsource the work or try creating the website yourself.
Finally, you’ll need to develop a thorough business plan outlining the trajectory of your first year as a recruitment agency. Think about your budget, your objectives and how you will achieve your targets.
Costs of starting a recruitment agency
The real cost of starting your own recruitment agency can vary depending on your budget, but to help you get a clear idea of how it could set you back, let’s take a look at the most basic costs…
Registration costs are inexpensive, you only need to pay a one-time fee of £12 to list your business as a legal entity.
Another expense you will encounter is your monthly phone contract. Recruiters are constantly on the phone chatting to clients and candidates, so try to find the most cost-effective plan. You’ll want to find a contract with unlimited minutes and plenty of data. This will set you back around £15 to £30 a month.
Branding can take up a sizable chunk of your budget, however, if done right, this is another one-time fee. You want your company to stand out, so it’s best to invest in a great logo and brand package. Fees for these types of services can range anywhere from £15 to £200 or even more.
An essential part of any business is its web presence. Without a great website, your business will lack credibility and exposure. You can either make your own using a DIY provider for £10-30 a month or hire a web designer for £25-£75 an hour.
Other central aspects of the business are completely free, such as setting up a business bank account, building a LinkedIn page, and posting job offers.
Overall, the costs of starting your own recruitment agency are very much dependent on your budget and how much you are willing to invest.