Setting up employment agency?

Hello, firstly I'm based in the uk and have been pondering over an idea for a while. Any constructive advice, suggestions or comments appreciated. I understand a minority of you will feel the need to post random insults or general nonsense, I understand this and thank you for wasting your own time.

With the employment situation the way it is, flexible staffing in certain areas has become very sought after. With this in mind I have been contemplating setting up a small recruitment agency targeting the driving (lgv/Hgv) area. This is an area I am currently involved in and have a number of drivers available and a couple of companies I could approach immediately to deploy these drivers.

I understand its not as simple as that and have carried out a small amount of research however, there is little doubt that I will have missed many vital aspects.

Having not set up a business I will obviously need guidance, particularly with the legal aspects. Contracts etc. consultations with a solicitor when ready. Any ideas on this.

An accountant would be initially needed to advise with pay and tax issues. Could this be avoided or reduced for minimal cost?

As for insurances I would expect a pretty hefty public and employers liability Policy. Any other insurances?

As the agency will be small I can take on a lot of the administration myself and once shown most of the other work. I'm adaptable and have a certain amount of common sense and education.

I plan to continue working while trying to put this in place if possible. Maybe I will bite off more than I can chew but I'm willing to try.

Basically the main areas I see are:-

Recruiting drivers onto my books

Recruiting businesses into using my agency

Having the correct contracts for both and retaining records correctly

Being able to receive and distribute payments correctly

Having the correct insurances

The first two mentioned have already been discussed and are immediately achievable.

I believe the second is a solicitor issue and third an accountancy.

A solicitor should advise as to the final point and a phone call to insurers.

If anyone reading this has set up a similar business or anyone business minded see any clear and startling faults with my rough plan please reply. I can take any level of constructive criticism and am always ready to listen to experience and learn.

I don't expect to become rich off this but I genuinely believe I can make a go of it with a bit of luck and not making any silly, needless and avoidable mistakes early on.

I sincerely hope that I can attract at least a couple of sensible and genuine replies that can both iron out a few queries I have and set my mind thinking.

In advance I thank anyone who responds positively and realistically.

3 Answers

  • 8 years ago
    Favourite answer

    The thing that would concern me is the fact that you are going to continue working while trying to hire out other drivers. If I was one of your drivers it doesn't give a good impression that your not prepared to commit yourself to the agency but expect others to.

    If this was me I would make sure that I am the first employee and then bring in drivers once you have reached your capacity. Also taking into account the fact that you will be taking calls from clients and potential clients then this becomes a problem with another job. This is hard to do for an accountant never mind a driver who will also have to concentrate of driving.

    It's good that you have a rough plan but you may need to do more research into this before actually starting.

    You may also need to look into the employment status of your drivers, holiday pay etc and this may need to be provided for in any hourly charge out rate.

    Good luck

  • Cala
    Lv 7
    8 years ago

    My main concern for you is that there are so many agencies already out there doing this. What would make your business stand out from other long-established agencies?

    My friends husband is a HGV driver, When he was made redundant last year, he registered with several agencies. These are established agencies that are already known to haulage businesses and contractors. Would companies take their business away from agencies that they know and trust, to give it to an unknown company with no track record? I'm not sure that they would. It isn't simply a matter of undercutting the price - the main issue is quality of service and consistency.

    Source(s): Company Secretary
  • !
    Lv 7
    8 years ago

    You need a licence to act as an employment agency.

    See for lots of useful help and guidance.

Still have questions? Get answers by asking now.