Many say it is a great time to start to start a business and in light of the long-term demographics a recruiting franchise or staffing franchise is a good bet for success. Recruiting and staffing franchises help employers find workers either as full-time company hired employees, as temporary contractors, or as full-time contact employees.
Because of the uncertainty in the economy, many employers are looking for less permanent types of arrangements with employees. They want to pay someone to implement a project, lead a launch or manage a program but want to “rent” employees rather than “owning” them for the long haul. Demographics point to a long-term shortage of talent due to the aging baby-boomer generation leaving the work place and insufficient talent in the pipeline behind them. This is more real in technology, engineering, healthcare and science than it is for service-type jobs. But regardless, if the economy gets moving again, the demand for talent (aka skilled and talented employees) will be overwhelming. It is projected by many to be a “War for Talent” that will play out both locally and across borders and continents. And according to a report by The Bureau of Labor Statistics, the employment services industry is expected to be the United States’ 9th-largest in terms of job-creating industry over the next 10 years.
When I look a the money MRI, Spherion and others are charging for a recruiting franchise, I wonder why more are not going it on their own with the help of a peer group for support. While the turnkey option offered by the big boys is appealing, it also has its own unique risk. Because owners go into to it with a large debt to service, the success must come faster and the profits must be shared with the franchising operator. The success these major operators have is tough to argue with if you are relatively new to the recruiting business. f you value independence, the recruiting franchise option will be somewhat frustrating as you are really a part of a bigger operation and must do certain things to honor the relationship bought into with the franchisor.
A seasoned recruiter, who knows the tools of recruiting, has a recruitment process, and just wants to strike out independently may value a peer group and some partners to help along the way. Vendors to the industry act as a great support mechanism and can provide ideas and support if a relationship is nurtured with your ATS provider, your accountant, job board partner, etc. Online networks, organized recruiting networks, trade associations and trainers to the industry are all excellent options that, while not fully replacing a recruiting franchise, certainly offer an option to those who want to be more independent.
What kinds of numbers have you heard that a recruiting franchise from a major brand costs in today’s market?
Would you pay the price or start the business independently?
Any resources that are a must for a new independent recruiter?
Recruiting franchise opportunities and the opportunities for starting a staffing business are good. Franchising, while not for everyone, is an option that will prosper in the war for talent.