I want to start a Placement Consultancy. Need help and suggestions how to be an effective starter.
From India, New Delhi
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From India, New Delhi
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Starting and Running a Placement Agency
There are four major areas you need to focus on in order to start and run a placement agency:
1. **Registration**
2. **Sourcing of Profiles/Talents/CVs (WELL) - How?**
3. **Look Out for Business from the Market - How?**
4. **Define the Process for Providing Services & Getting Charges for the Same**
5. **Match-making - Refining Work - Coordination - Closure**
6. **Payment & Paperwork**
The first thing is to get your firm registered with the local registration office under the Shops and Establishment Act. For this, you need to have a firm name and fill out a simple form with your address and a small fee. Once you have this certificate, you need to get a PAN number for yourself if you are the proprietor. With this, you can then get a bank account opened. Then you need to get the service tax number.
At the actual business front, you need to make up your mind as to which segment of companies you are going to work for, i.e., whether for retail, construction, pharmaceuticals, engineering, petrochemical, etc. Start with the segment which you are aware of or are comfortable with. Check as to where you are going to source the profiles of candidates (your "Well"). It could be the job portals like Naukri, Monster, Jobsahead, etc., or could even be the free sites like LinkedIn. You may even create your website for the same, but then you need to brand it for candidates to see and apply. A registered email ID and a "catchy" name for your firm are a must. Temporarily, you may even use a general email ID. You also need to build up a database of the companies for the segment for which you intend to work as this will help reduce your time when it comes to sourcing specific profiles for your clients.
Secondly, look for companies in the segment you want to start with. Say, it's pharmaceuticals. So, go in for growing or new pharmaceutical companies or those who are into expansion or projects as they may have more vacancies (business) to give to you. A saturated or an existing company would already have its pool of consultants/candidates and hence may not readily respond/give business to you. Once you go, meet & discuss with them, check with them about the positions they intend to fill up and get the business. Before that, discuss the terms & conditions (agreeable to both of you), fix up the placement charges and other payment-related aspects. The same needs to be stamped and signed off by both parties on a contract paper which is called the "Terms & Conditions" agreement. This defines all the aspects related to the way the business is to be done, the process, the timeline for various deliveries, the non-poaching clause, the service charges, additional charges, the replacement clause, the payment timeline & other payment details, etc.
To begin with, try to work on a few positions and for a few companies only. Always remember, a placement consultancy is a service-based business. The quality of the services is what every client is concerned about. Do not give any unnecessary commitments. Promises, if made, should be fulfilled. If at any stage, you feel that there are chances of delay or failure, please keep your client informed (so that they will make alternate arrangements), so that they are aware of your efforts. Always keep in touch with your clients on a regular basis.
Remember one thing. A client company may have many consultants with whom they might have tied up & be working with, but they "bank" on very few of these consultancy firms. Your efforts should be to get into this list so that when it comes to giving business related to filling up critical or senior positions, it comes to you.
Like all business, you also need to keep yourself one step ahead. So, once you are comfortable with a few companies in one particular segment, look onto getting into another segment and do the same. Do not deal with more companies within the same segment as it will limit your data source. (Say, if there are 20 good pharma companies, you should deal with not more than 20% of them. This will give you the leverage to source/headhunt talents from the remaining 80% of the competitor companies. Once you are comfortable with the 20% of the companies in the same segment, you may increase the client ratio from 20-80 to 25-75, but my advice is to not go beyond it). Rather than getting volume business, focus on quality, at least for the initial few years. This will help you get a good "brand name" from your client companies.
The most important thing is the payment-related aspect. Please be very clear and transparent with your client regarding the same. Sending the correct invoice with details related to PAN no, service tax no., etc., and regular follow-up will ensure that you get the payments on time as per the agreement. And of course, do not forget the service tax aspect.
Once you are done with these, you should focus on areas that will help improve the quality of your working. We can discuss that later.
Any more queries, revert to me.
All the best, Raghav.
Cheers
From India, Mumbai
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38There are four major areas you need to focus on in order to start and run a placement agency:
1. **Registration**
2. **Sourcing of Profiles/Talents/CVs (WELL) - How?**
3. **Look Out for Business from the Market - How?**
4. **Define the Process for Providing Services & Getting Charges for the Same**
5. **Match-making - Refining Work - Coordination - Closure**
6. **Payment & Paperwork**
The first thing is to get your firm registered with the local registration office under the Shops and Establishment Act. For this, you need to have a firm name and fill out a simple form with your address and a small fee. Once you have this certificate, you need to get a PAN number for yourself if you are the proprietor. With this, you can then get a bank account opened. Then you need to get the service tax number.
At the actual business front, you need to make up your mind as to which segment of companies you are going to work for, i.e., whether for retail, construction, pharmaceuticals, engineering, petrochemical, etc. Start with the segment which you are aware of or are comfortable with. Check as to where you are going to source the profiles of candidates (your "Well"). It could be the job portals like Naukri, Monster, Jobsahead, etc., or could even be the free sites like LinkedIn. You may even create your website for the same, but then you need to brand it for candidates to see and apply. A registered email ID and a "catchy" name for your firm are a must. Temporarily, you may even use a general email ID. You also need to build up a database of the companies for the segment for which you intend to work as this will help reduce your time when it comes to sourcing specific profiles for your clients.
Secondly, look for companies in the segment you want to start with. Say, it's pharmaceuticals. So, go in for growing or new pharmaceutical companies or those who are into expansion or projects as they may have more vacancies (business) to give to you. A saturated or an existing company would already have its pool of consultants/candidates and hence may not readily respond/give business to you. Once you go, meet & discuss with them, check with them about the positions they intend to fill up and get the business. Before that, discuss the terms & conditions (agreeable to both of you), fix up the placement charges and other payment-related aspects. The same needs to be stamped and signed off by both parties on a contract paper which is called the "Terms & Conditions" agreement. This defines all the aspects related to the way the business is to be done, the process, the timeline for various deliveries, the non-poaching clause, the service charges, additional charges, the replacement clause, the payment timeline & other payment details, etc.
To begin with, try to work on a few positions and for a few companies only. Always remember, a placement consultancy is a service-based business. The quality of the services is what every client is concerned about. Do not give any unnecessary commitments. Promises, if made, should be fulfilled. If at any stage, you feel that there are chances of delay or failure, please keep your client informed (so that they will make alternate arrangements), so that they are aware of your efforts. Always keep in touch with your clients on a regular basis.
Remember one thing. A client company may have many consultants with whom they might have tied up & be working with, but they "bank" on very few of these consultancy firms. Your efforts should be to get into this list so that when it comes to giving business related to filling up critical or senior positions, it comes to you.
Like all business, you also need to keep yourself one step ahead. So, once you are comfortable with a few companies in one particular segment, look onto getting into another segment and do the same. Do not deal with more companies within the same segment as it will limit your data source. (Say, if there are 20 good pharma companies, you should deal with not more than 20% of them. This will give you the leverage to source/headhunt talents from the remaining 80% of the competitor companies. Once you are comfortable with the 20% of the companies in the same segment, you may increase the client ratio from 20-80 to 25-75, but my advice is to not go beyond it). Rather than getting volume business, focus on quality, at least for the initial few years. This will help you get a good "brand name" from your client companies.
The most important thing is the payment-related aspect. Please be very clear and transparent with your client regarding the same. Sending the correct invoice with details related to PAN no, service tax no., etc., and regular follow-up will ensure that you get the payments on time as per the agreement. And of course, do not forget the service tax aspect.
Once you are done with these, you should focus on areas that will help improve the quality of your working. We can discuss that later.
Any more queries, revert to me.
All the best, Raghav.
Cheers
From India, Mumbai
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Sir, your suggestion on a start-up placement service is very enlightening. We are HR consultants based in TN. We have recently started a separate division for placement services. We are already serving reputed automobile dealers and construction companies in this region. We have some good resources on middle and senior-level IT professionals based in Chennai and Bangalore. We are looking for some T-II companies to work with. Can you assist us in this regard?
Thanks,
Baskar Perumal
Cogere Technologies
From India, Madras
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Thanks,
Baskar Perumal
Cogere Technologies
From India, Madras
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Challenges in Managing a Small Placement Agency
That is a great help to professionals planning to start a Placement Consultancy. However, one of my friends is facing the following problem: He is managing a small Placement Agency, but since he cannot source CVs from portals all by himself, over the last year, he recruited two executives. However, these executives left him and started their own consultancy within just three months each. Without staff, you cannot manage a PRA.
Any suggestions?
Regards
From India
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That is a great help to professionals planning to start a Placement Consultancy. However, one of my friends is facing the following problem: He is managing a small Placement Agency, but since he cannot source CVs from portals all by himself, over the last year, he recruited two executives. However, these executives left him and started their own consultancy within just three months each. Without staff, you cannot manage a PRA.
Any suggestions?
Regards
From India
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Raghav I have experience of over 11 years in HR and am keen on starting on my own. My speciality is the financial sector. What is your sector of interest. Maybe we could have a chat.
From India, Nagpur
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From India, Nagpur
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Dear Raghav and all,
I understand that you are going to start a job consultancy, which is fine. However, it is important to be clear about the difference between placement and recruitment.
Placement
- If we provide a job to a particular person, then it's considered placement.
Recruitment
- If we fill a vacant position or fulfill an organization's requirements, it's considered recruitment.
For placement, you need requirements from multiple companies. For recruitment, you need a pool of candidates (both freshers and experienced) as per the organization's needs.
In the case of recruitment, I can assist you with candidates from all over India. For any queries, please feel free to call me.
Regards,
Kapil Rathore
HR Manager
Indore
Mobile: [Phone Number Removed For Privacy Reasons]
From India, Bhopal
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I understand that you are going to start a job consultancy, which is fine. However, it is important to be clear about the difference between placement and recruitment.
Placement
- If we provide a job to a particular person, then it's considered placement.
Recruitment
- If we fill a vacant position or fulfill an organization's requirements, it's considered recruitment.
For placement, you need requirements from multiple companies. For recruitment, you need a pool of candidates (both freshers and experienced) as per the organization's needs.
In the case of recruitment, I can assist you with candidates from all over India. For any queries, please feel free to call me.
Regards,
Kapil Rathore
HR Manager
Indore
Mobile: [Phone Number Removed For Privacy Reasons]
From India, Bhopal
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