Franchising Starting a recruitment agency
The recruitment and staffing industry is a major service business operating in virtually all job markets and geographical areas. IT is a wonderful, many-faceted and complex profession; there is a lot more to it than newcomers first imagine. Being aware of this is the first step towards enabling our industry's entrepreneurs to implement best practice and operating standards from the start - to the benefit of candidates, clients and, ultimately, the recruitment industry itself.
Do you have what it takes?
Running any business can be demanding in the extreme and you will need to have a high number of specific personal qualities, skills and knowledge within your business to ensure it works to its potential. The following checklist (which is not exhaustive) includes some of these:
- Sales ability
- Finance skills
- Staff management skills
- Relationship-building skills
- Risk awareness
- Realistic outlook
- Effective communications skills
- Effective time management skills
FACTORS TO CONSIDER
The following is a checklist of aspects you should consider when setting up your recruitment consultancy (this list is not exhaustive):
a) Business set up
- Business plan
- Market research
- Sales strategy
- Marketing strategy
- Staff management/leadership processes
- Recruitment (own staff)
- Financial planning and management
- Operational processes and procedures
- Laws and regulations
- Business structure: sole proprietorship, partnership, corporation
- Staff recruitment and management
b) Finance and accounts
- Bank account
- Registration with Internal Revenue
- Payroll and VAT schemes
- Accounting systems (management information, reports, measurement of business
- Management accounts
- Share and profit share schemes
- Purchasing and expenses
d) Government agency's regulations, registrations and licensing
- BIR DTI SEC DFA DOLE OWWA MTC
- PhilHealth Tesda SSS Municipal Permit
- Candidate-related processes
- Client-related processes
- Sales procedure
- Negotiation of rates policy
- Registration form
- Interview techniques
- Qualifications verification
- CV guides
- Terms of Business (TOB)
- Client meetings
- Taking vacancies
- Working through third parties
- Sole agency agreements
- Style of sales and sales methods
- Client meetings
- Tendering for large accounts
- Operational software (front and back office)
- Hardware (PC, laptop and peripherals)
j) Telephone Systems
- Mobile phone
- Fax and data connections/equipment
- Office space
- Office equipments
- Service vehicle
l) Marketing and PR
CHOOSING A NAME
You will need to choose a name for your business and, if you operate as a limited company, you should ensure that the name you choose is not the same or similar to that of a company that is already registered. It is advisable to choose a name that clearly indicates what your business does e.g. XXX Personnel or YYY Employment.
Ensure that your name is not similar to any other agency in your area, as this could lead to an allegation that you are attempting to pass your business off as being connected to the other agency; such activity is actionable as a claim for damages.
LICENSING and REGULATIONS
Only those who possess the following qualifications may be permitted to engage in the business of recruitment and placement of Filipino workers:
- Filipino citizens, partnerships or corporations at least seventy five percent (75%) of the authorized capital stock of which is owned and controlled by Filipino citizens;
- A minimum capitalization of Two Million Pesos (P2,000,000.00) in case of a single proprietorship or partnership and a minimum paid-up capital of Two Million Pesos (P2,000,000.00) in case of a corporation; Provided that those with existing licenses shall, within four years from effectivity hereof, increase their capitalization or paid up capital, as the case may be, to Two Million Pesos (P2,000,000.00) at the rate of Two Hundred Fifty Thousand Pesos (P250,000.00) every year.
- Those not otherwise disqualified by law or other government regulations to engage in the recruitment and placement of workers for overseas employment.
ISSUANCE OF LICENSE
Every applicant for license to operate a private employment agency shall submit a written application together with the following requirements:
- A certified copy of the Articles of Incorporation or of Partnership duly registered with the Securities and Exchange Commission (SEC), in the case of corporation or partnership or Certificate of Registration of the firm or business name with the Department of Trade and Industry (DTI), in the case of a single proprietorship;
- Proof of financial capacity: In the case of a single proprietorship or partnership, verified income tax returns of the proprietors or partners for the past two (2) years and a savings account certificate showing a maintaining balance of not less than P500,000.00, provided that the applicant should submit an authority to examine such bank deposit.
- In the case of a newly organized corporation, savings account certificate showing a maintaining balance of not less than P500,000.00 with authority to examine the same. For an existing corporation, submission of a verified financial statement, corporate tax returns for the past two (2) years and savings account certificate showing a maintaining balance of not less than P500,000.00 with the corresponding authority to examine such deposit.
INSPECTION OF AGENCIES
Section 1. Before issuance of a license, the Administration shall conduct an inspection of the premises and facilities including the pertinent documents of the applicant. Inspection shall likewise be conducted on the new premises in case of transfer of office.
Section 2. Routine/Regular Inspection. All agencies shall be subject to periodic inspection of offices, studios or pre-departure orientation seminar (PDOS) venues by the Administration to determine compliance with existing rules and regulations.
Section 3. Spot Inspection. Inspection may be conducted by the Administration upon receipt of a complaint or report of violation of existing rules and regulation.
For further inquiries contact:
POEA Information and Assistance Center
24-Hour Hotlines: (632) 7221144, (632) 7221155