starting a recruitment company

Hi all,
Just looking for a bit of insight and personal thoughts on this.

I'm a contractor, most of my jobs I receive are done via recruiment companies. Not cause I chose to, but more because the companies I work for feel its easier to pay 1 bill per month rather than individual bills per contractor. Understandable I suppose. The reason I'm trying to get out of this, as the recruitment company receives a cut of my wage. They get this whilst doing absolutely nothing.

To tackle this issue I'm looking to start up my own recruitment company, I'll be employing myself along with 2 others.

Firstly, do you all think this is a good idea? Are there any hidden complications? I've researched the licence, and it seems achievable.

One question they do ask is what percentage will you be charging for employment throughout the year??? I have no idea whatsoever.!!!

Could someone please advise me of the rough percentage recruitment companies get from employers for people they recruit?

Mainly for Full time and part time positions?

Any help or info much appreciated

Jon_08 said:

The reason I'm trying to get out of this, as the recruitment company receives a cut of my wage. They get this whilst doing absolutely nothing.

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So now you want to take a cut of someone elses wages and do nothing for it? Good on you.

Are you looking to set up an umbrella company for a bunch of contractors, or a recruitment company that actively seeks to match employers with potential employees? Permanent, contract or both? What industries?

thanks for the reply.

The business will be created to mainly deal with the wage cut I'm receiving. I want to cut out the middle man and contact employers directly.

I've investigated the questions asked on applying for a license and this is one of them. They require an estimate as to what percentage you will receive for a full-time employee and part-time employee placement.

It won't be an umbrella company, purely recruitment.

The industry will be the IT industry. Project Managers/ Engineers etc.

Thanks again

Average would be 15%. You can check by typing in 'recruitment company ireland terms and conditions' to give you an idea. It will throw up links to recruitment companies terms pages.

You can also be charged a flat fee but this is not as widespread

Jon_08 said:

as the recruitment company receives a cut of my wage. They get this whilst doing absolutely nothing.

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This depends on how you look at it ......

1. The company requiring the work pay an amount, probably over the odds, for the convenience of getting the job done without hiring permanent staff etc.

2.You get paid presumably a fair wage for doing the job (otherwise you wouldnt do it )

3.The recriuitment agency also get paid for providing the skilled people, administration etc. (not true that they do "absolutely nothing", otherwise everyone would be at it !!)