The Recruitment Industry Doesn’t Need More Bosses. It Needs Better Ones.
You’ve been in recruitment long enough to know what works. You’ve probably also spent years watching perfectly capable consultants lose confidence under the weight of unrealistic targets and constant scrutiny. You've probably thought, more than once, “If this were my business, I’d do things differently.”
For many experienced recruiters, that frustration is what sparks them to find out how to set up a recruitment agency. Not simply to earn more money, although that's certainly part of it, but to build somewhere people actually enjoy working.
Because the world doesn't necessarily need another recruitment consultancy. It does need more people willing to run better businesses.
Why Good Recruiters Get Fed Up with Bad Management
A specialist recruitment agency is demanding. It has targets, difficult clients, and candidates who disappear the morning of an interview. None of that’s new. But there's a difference between a challenging job and an unnecessarily exhausting workplace.
Over half of UK professionals say they feel burnt out at work, combine that with research showing that 39% of recruitment leaders are focused on improving recruiter productivity while reducing headcount and spending, and it's not difficult to see where all that pressure comes from.
Of course, productivity matters. But expecting people to consistently deliver more with less, without considering how they're managed, isn't much of a long-term strategy.
Experienced recruiters don't generally object to being accountable. They object to being treated as though they can't be trusted. And if that’s you, it might be the motivation you need to start your own recruitment consultancy.
KPIs Have Their Place. Fear Doesn't.
Let's not pretend KPIs are inherently bad. You need to understand what's happening in your business, particularly when you're paying the bills. But there's a difference between using numbers to guide decisions and using them to frighten people into performing.
A consultant who knows their market, builds excellent relationships and consistently bills £200k shouldn't need someone hovering over their shoulder checking call times.
Likewise, internal competition produces short-term results, but it also discourages the things that make a team successful. Things like knowledge sharing, helping colleagues and working together to solve client problems.
Build the Specialist Recruitment Agency You'd Want to Work For
One of the biggest attractions of ownership is being able to make decisions based on your values. You decide what success looks like and how your people are managed. But, building a better specialist recruitment agency means giving people responsibility and creating an environment where they're comfortable asking for help. That can be a tough ask.
If you're serious about how to set up a recruitment agency, consider three things:
- Define your non-negotiables. Decide what behaviours you'll encourage and what you won't tolerate, regardless of someone's billing figures.
- Measure what matters. Track performance, but look at client satisfaction, repeat business and collaboration alongside revenue.
- Lead by example. If you want people to trust each other, share information and take responsibility, you'll need to do the same.
Culture isn't something you introduce once you've hired ten people. It starts with how you run the business on day one.
Good Culture Makes Commercial Sense
Poor culture has a cost. When good recruiters leave, you lose billing capacity, client relationships and market knowledge. Replacing them takes time and money.
A healthy culture can help you retain experienced consultants, attract stronger hires and deliver more consistent service to clients.
Just look at Greys Specialist Recruitment. With Hilton Lord’s support, Ross was able to build his business around a team-first approach, where consultants are trusted to do their jobs without fear-driven targets. That approach made a huge difference to morale, retention and performance.
That's what good leadership looks like in practice. Not simply enjoying freedom yourself, but making sure the people working with you benefit from it too.
Focus on Leading Your Business. We'll Handle the Rest.
Of course, having a vision for a better recruitment consultancy and actually getting one off the ground are two different things. There's the financial risk, not to mention the prospect of managing invoicing, payroll, compliance and technology alongside recruiting.
At Hilton Lord, we provide experienced recruiters with the financial and operational structure that allows them to concentrate on building their business. Our recruitment business support covers the back-office essentials, while our wider network of partners provides people to turn to when ownership gets challenging.
If you've been wondering how to set up a recruitment agency without taking on every operational headache yourself, there is another way.
Got a clear idea of the kind of business you want to build?