Five reasons to choose recruitment as your next business venture
The pandemic has meant that a lot has changed in the world of work, with technical advancements and evolving working cultures. We saw a lot of COVID-19 casualties in the form of redundancies and demotions as businesses restructured to fit the new normal. Were you one of them?
With the economy terraforming, this is an exciting time to experiment with new ideas to take your career forward. If you’ve been contemplating setting up a business yourself, but aren't sure which sector to invest in, look no further.
Recruitment is a fast growing and diverse industry with 30,890 enterprises operating across the UK (as of 2020) and contributing £42.3 billion to the UK economy in 2019, accounting for 2.1% of UK direct Gross Value Added (GVA).
But that’s not all.
Here are five stats demonstrating the impact of this service sector, and why you can venture into this industry with confidence:
1. The UK has the biggest recruitment sector in Europe by sales revenue.
You wouldn’t be jumping into the great unknown, you’d be joining a well-established industry.
2. The recruitment industry increases UK productivity by £7.7 billion every year.
They do this by improving the quality of job matching, putting the right person into the right job. Specialist recruiters are crucial in helping workers and companies find the right match.
Case study: How to Start a Recruitment Business During the Pandemic featuring Southern Education Recruitment
3. Recruitment supports £86 billion in gross value added across the economy.
You would be moving an industry forward that already accounts for 4.3% of GDP. That is around the same size as management consulting and larger than accounting.
4. Every year, over 300,000 people use the recruitment industry to leave unemployment for a permanent role.
That is over twice as many as those who find a job through the Job Centre. There’s a huge market out there.
5. Somebody finds a permanent role through a recruitment agency every 21 seconds.
Every new recruitment business will add to the good work the industry has already done in getting over 100,000 young people a year their first job. How many could your business help?
Innovative start-ups are more likely to stand out from the crowd
2020 highlighted the importance of prioritising diversity and inclusion. Unfortunately, all too often, recruitment processes do not do enough to reach a diverse pool of candidates, encourage them to apply and make them feel welcome when they arrive at work.
For instance, academic research has repeatedly found that CVs with white-sounding names are more likely to get a response than those from a minority. Only 52% of Britons think that companies in the UK do a good job at recruiting efficiently.
Here lies a great opportunity for new recruitment agencies to make a statement by putting diversity and inclusion at the forefront of what they do, and thus stand out from the crowd. By addressing these issues, recruitment businesses would be contributing to increasing social mobility, decreasing unemployment and ensuring the hiring practices of business are as fair and open as they can be.
Don't forget compliance
REC members are recognised for their professionalism and the value they provide to clients and candidates. Our Code of Professional Practice helps recruiters get it right. It goes further than the legal obligations and makes sure you are always acting ethically. If you are displaying the REC logo, it's a sign of quality. It tells candidates and clients that you have passed our Compliance Test and adhere to our Code.
Need help turning your start-up idea into a reality?
If you’re new to the recruitment industry, and need help turning your business idea into a reality, why not take our online start-up course now and enjoy a 25% discount?
If you are already in the industry and need help setting up your own recruitment agency, sign up as an REC Corporate member and take advantage of the legal support, research reports and member-only discounts from accredited industry suppliers to guide your start-up journey.
Let REC membership support your new business
REC Corporate membership provides you with legal advice, strategic guidance, and market insights to set up and grow your business. Talk to our team today about joining.
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