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Recruitment agency business plan

1. PROJECT SUMMARY
The purpose of this project is to open a recruitment agency for the implementation of a range of recruiting services in a city with a population of over 1 million people.

The Russian labor market is becoming more mature, and therefore the popularity of recruitment services is increasing. Today, almost all companies that are looking for employees, resort to the services of recruitment agencies. Employment agencies on the labor market act as intermediaries between employers and applicants, ensuring that the first candidate is selected according to the stated requirements, and the second one helps to find a job.

Thus, the opening of a recruitment agency is considered a promising line of business. The advantages include a relatively low amount of initial investment, low costs in the process of operation, the possibility of home-based business, ease of business organization.

To implement the project, a room is leased in a business center. The office area is 12 square meters, and the rental price is 15,000 rubles. The office is equipped with necessary furniture, the use of which is included in the rent.

The target audience of the employment agency are companies that are interested in the selection of qualified employees.

The volume of initial investment is 480,000 rubles. The initial investments are aimed at acquiring office equipment, software, annual subscriptions to the regional database of employers and applicants, as well as to form a working capital fund prior to the release of the project to payback. The main part of the required investment falls on the purchase of equipment, whose share is 48%. To implement the project will use its own funds.

Financial calculations recruitment agencies take into account all the income and expenses of the project, the planning horizon is 3 years. It is assumed that after this period, business expansion will be required. In accordance with the calculations, the initial investment will pay off after 9 months of work. Reaching the planned sales is planned for the 10th month of work. The net profit will be 158,000 rubles / month, and the annual net profit for the first year of operation will be more than 893,000 rubles. Return on sales in the first year of work – 34%.

2. DESCRIPTION OF INDUSTRY AND COMPANY
The development of the Russian economy has led to the formation of a complex labor market system. The search for specialists has become for many companies an important task, which recruitment agencies help them to cope with. Mediating between employers and applicants, recruitment agencies are engaged in professional search for suitable employees for companies and employment. Currently, almost all companies interested in finding personnel use the services of recruitment agencies.

The Russian labor market is becoming more mature: the structure of personnel services, the balance of supply and demand are changing. The popularity of staff recruitment and provision services is growing every year. At the end of 2016, the turnover of the recruitment services market amounted to 6.5 billion rubles. The total number of vacancies transferred to agencies decreased by 18%, but at the same time the average cost of services increased.

Today in Russia there are 1200 recruitment agencies, which employ more than 15 thousand people.

It is worth noting that 2016 was not easy for the recruitment services market: the unstable economic situation had a negative impact on the industry, which provoked a slight decrease in the market volume (by 5.8%). Many companies, in order to optimize costs, have abandoned the services of recruitment agencies, while others have tightened recruitment requirements, which has complicated the work of agencies.

The main trends in the market for recruitment services:
– the increase in the number of “complex vacancies” with high requirements for experience, competence and narrow specialization;
– the impact of globalization on the labor market – increasingly, employees are looking for not only in other cities, but also abroad;
– cooperation with freelancers and employees who can work remotely. In Russia, the remote work market is actively developing. The number of vacancies offering such a job is about 35% of the total share of ads;
– gradual automation of all HR processes. While this trend is not widespread in Russia. According to statistics from the HeadHunter portal, today only 18% of companies invest in the development of this area. However, 50% of companies are ready to allocate a budget for the automation of HR-processes.

Recruitment agency business plan
High competition in the industry forces companies to narrow specialization. At present, the structure of the market are:

– Recruitment agencies. They are engaged in search of employees by request of the enterprises and firms. Specialization can be narrowed to the provision of services to employers from a particular business area;

– specialized agencies. These are narrowly focused organizations that select employees for a specific specialization;

– agencies to search for jobs. This direction provides services to the applicant.

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