How recruiters can help a startup succeed?

Blog post

Recruitment Agency Helping Startup Businesses

Specialists, Expertise, Friendly, Honest, Professional, Transparent are a few of the buzz words that you hear within the Recruitment Sector. The feeling on an external basis can be that the agencies are just out to make a quick buck and do not actually care about the business/clients that they are working with. But here is some values of the industry “As our ‘Recruitment Industry Trends 2018/19’ report revealed, recruiters placed over a million people into permanent positions, generating £5.5 billion in revenues. There were more than 1.1 million temporary workers on assignment on any given day, generating £33.4 billion in revenues”.12 Mar 2020 (Good recruitment, UK style). This shows that the recruitment industry must be doing something right and helping create jobs for the UK.

Some of the best beneficiaries from the recruitment industry can include start-up businesses. This is for many reasons including cashflow, finding the right candidates, reduce time on recruiting and spend more time on the more important activities, managing the clients expectations so all the deadlines are met and no penalty fees are incurred and having someone to turn to forming a partnership. 

Cashflow (payment terms)

When starting a business there is a huge cost implantation to this and as every business owner wants a return on their investment. Below is an outline to the cost of a business: Research from Lloyds Bank has shown that the average cost of starting a small business (excluding home-based businesses) is £12,000.


% total cost

Average cost (£)














The above costs are only for a small business whereas the costs for a large business could triple if not more. “Turnover is vanity, profit is sanity but cash is king [or reality]” (

How can a recruitment agency help with the cashflow – when recruiting on either a temporary or permanent basis there will be a gap in the business that needs filling. Recruitment agencies can offer flexible payment terms likely to be from 7days to 60 days. For a start-up business this means they might recruit a salesperson and have 30-day terms to pay the agencies finder’s fee. This fee would range depending on salary.

Let’s take a Salesperson on a basis of £25,000 plus a commission structure of 10% on their sales income and a recruiter fee of 15%. The cost of this salesperson is recruitment/finder’s fee of £3,750, basis monthly salary of £2,083.33 (monthly salary) & £1500 (commission) meaning the total cost of £7,333.33 (excluding NI, Pensions, Holidays etc). However, during the first 30days that the salesperson has been in the job they might have brought in £12,500 in sales. This means before the fee is due to the agency the start-up business has already made a profit on this individual of £5,166.67. In conclusion with all recruiting there is a cost however with having payment terms it means the cash can be saved to pay bills or used for more pressing matters at the time. So, basically with payments terms it can help forward planning or the funds within the business.

Struggling to find the right candidate

In every business it is vitally important to get the right people, this helps the growth and develop. Finding the right people can be a struggle for a start-up company as the average placement can take a lot of time. According to “Benchmarking Report has found that the average time-to-fill a position is 36 days.”


Save Time with Recruitment

So, for a start-up company with limited employees and resources a 36-day task could get put to the bottom of the pile. This is where a recruiting agency doing this day in and day out can really help out. They can take all the strain off the start-up and come up with the right candidate for the job without the start-up having to waste time speaking to unsuitable candidates for the role which would waste a lot of time. Moreover, with the time saved in the recruiting process it means that there can be focus on winning the business and ensuring all the day to days tasks along with the long-term vision are being maintained and actually taking place.

Skill Gaps

When starting a new company there will be a clear vision on what is wanted to be achieved, however in a small company there might not be the resources to achieve this. Also, it might be hard to go out to the candidate market and just find the right person for the job. This could be a dauting task and difficult to know where to start finding that right person. So, this is where an agency that really help this process. This can be done in many ways including the recruiter having knowledge of the market, have access to many different job boards and have the determination to really help their client get that candidate they need.

Once this candidate has been found the start-up can grow and develop. Also, there are many different ways of recruiting including the temporary to permanent option. This means that you can have a try before you buy so it gives the employer a 12-week period to see if they candidates supplied does work within their business. So, along with the payment terms and the try before you buy the start-up company has time to see if the candidates fits into the culture along with suitable payment terms meaning there is a chance to build up a good cashflow in the business.

Help meet deadlines & avoid penalties

Certain projects if not finished on time can incurred huge penalties charges. In turn this can really affect all levels of companies from large to small. So, if a start-up company has won a large contract and like a lot of projects develops issues on the way. This could really stretch all their resources as a company meaning they need to get the work complete in the same time frame but without the man power. This is when an agency can really help out any company especially a start-up. A lot of people think that agencies are expensive however if you need to impress a client and finish their job on time rather than faces delays, large penalty costs and the possibility of losing their future business an agency can bolster your workforce ensuring the job is completed on time. This will mean a happy client and no penalty costs which should lead to future business.

Meeting Deadlines Recruitment

Forming a partnership

When a company starts up there can be a lot of questions and tasks that need to be completed, so it can be good to form a partnership with a recruitment agency. This is not only to aid in the recruitment process but it can be having someone to turn to for advice on other elements of the work. The key to a successful recruiter and partnership with their client is to form a partnership and this can be seen below:

Taylor Plant has dealt with Nick from Darcy Associates on many occasions now and have been more than happy with the level of service we have received from him.  Whether it be short notice or not, Nick has always managed to source the labour necessary; these lads have always been of a good standard and very reasonably priced.  Nick has always been courteous and I wouldn’t hesitate in using or recommending Darcy Associates for my next labour requirements.

Recruitment like all business is about making money but the important element than can be overlooked a lot of the time is the consultative element. With start-up businesses it is vitally important to really help them as they are turning to a recruitment agency for help and guidance. So, it is important to listen to the clients need an ensure that you can actually help them rather than just becoming a yes man.

There can be a lot of issues with start-up companies including cashflow, lack if time, struggling to find the right people and managing client expectations. All of these factors can be aided and supported by the help of a recruitment agencies. The cashflow can be helped by the payment terms put in place, the lack of time and finding the right candidates can be managed by a recruiter as this is their day-to-day job and if a start-up if struggling to finish a job on time or needs a few extra hands or expertise on a job a recruiter will be able to find this.

All in all, if you are a start-up business looking for any advice remember the name Darcy Associates.


Blog archive

Please send us

your details

Darcy Asssociates  –  Contact: 0117 214 0052 / 01656 527 001
Email: [email protected]