The recruitment franchise was a fantastic prospect when Australian Centerlink decided to let private companies handle the recruitment of the unemployed citizens.
It was an initial winner as the work of private contractors was cheaper and more efficient than those from the government departments.
However, the recruitment is a tricky operation.
You may have floods of unemployed people but companies offering jobs are scarce.
At some stage MyCareer was proud to announce that 20000 jobs are advertised every week. However, what they failed to mention is that many of these jobs are re-advertised by multiple recruitment franchises and independent agencies alike. If you decide to purchase a recruitment franchise then make sure you understand the benefits. There are plenty of clients and advertising options, which you can utilise to make your own independent operation.
Strangely enough, your real client is not the person looking for the job but the employer advertising the position.
Big corporations often make use of the larger recruitment franchises.
Smaller franchises generally operate in localised areas.
Currently, the most attractive recruitment franchise is Workforce Extensions. The company requires a small fees and marginal setup costs. The main clients are companies searching for contractual and casual labour force.
For professional exposure you may want to look at ARS Recruitment and Frontline Recruitment. Both have a very good advertising network and central account collection. For corporate style jobs, you should visit the National Recruitment franchise. The franchisor specialises in advertising the professional jobs and also has a large number of corporate clients.
Smaller, localised recruitment franchises sell for as little as $5K-10K. This excludes the setup costs and the working capital. Larger recruitment franchisors can expect $50K or more. However, they may also insist on prestigious locations which will further inflate your running costs.
The recruitment franchise may not necessarily perform better than the independent agency.
However, long-time operating franchisors have a more advertising exposure than the independent players.
If you are short with money then you should try your own agency.
You (same as bigger recruitment franchises) have a right to advertise jobs in CareerOne, JobSeek, etc.
You will have a difficult time to convince employers to choose your service.
However, independent operations have more scope for ingenuity. If you can provide a clean screening system for job applicants then you will win the game (for a fraction of the cost). Otherwise, you must invest into the expensive recruitment franchise to succeed.