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10 Reasons Why New Recruitment Agencies in Singapore Will be Closed in 18 months

With the onslaught of many new recruitment agencies setting up everywhere and the market opening itself to more dimensions, the loyalty of the recruitment consultants staying in a company for many years is a distant memory.

You see, the business of recruitment agencies can be easily duplicated, and apparently, although in Singapore, it would require the company to get a MOM EA license to started a new recruitment agency in Singapore, it will still not obstruct people who are desiring to be rich. Even with the need to pass the examination of KAH will also not be a hurdle for people who desires to be rich.

When you are one of the top recruitment consultants in a company that had achieved the top sales for months, greed and EGO take over.

It is time to make money for myself!

Why would I want to work so hard and earn for my current boss of the recruitment agency. 

Many people who work in a recruitment agencies in Singapore handle the clients and candidates directly, and when they make over $10,000 – $20,000 per month in sales, they have a tendency to believe that they can earn more IF they were to start on their own.

This is partly truth, but my friend, this is only the surface of the “honey”, you have not really see the problem real yet…..

So even if you do not have enough capital and when you talked to some potential investors, and eventually, one of them who is not in the recruitment industry will be willing to pump in the money and support you to start the recruitment business, they believe it is so easy…. It is not!

Of course, that recruitment consultant will automatically become the Managing Director of the new company.

Wow, how sweet!

Sales will Drop!

When the new recruitment agency is set up, the Managing Director, which will be you, will stop doing sales, okay, not 100% dropped in all your sales but you will be putting less efforts in closing sales and when there are new job orders, they will be pushed to the new consultants.

You will be overwhelmed with other things like accounting, human resources, daily operating problems, etc, etc….

Being trained by the previous manager who kept everything to himself, the skills of YOU will also be limited, and most likely, you may not really had the experience of running a business before. Oops….. nah, how bad can it be? It is bad….

You only know how to talk to clients and candidates! Sales…..

In actual business, it is more than clients and candidates; real business involves the following:

Sourcing for the best place to work (the office).

I have seen people paying over 6 times the amount just to get the office that he desires, resulting in the problem of cash-flow. 

Most people were slaughtered by this because they have no idea what is the best deal in the market.

Nine out of ten of them will be misled by the commercial rental agents, as they are not IN the market.

Creating a brand that has a deep impact.

Many people think this is redundant because they are not into marketing and branding, and of course they do not know it is EXTREMELY important. 

The fact is that the brand says a lot about you, and if you cannot create the difference, you will be like any of them out there.

Recruiting the right staff.

Most of them who are recruitment consultants failed in their selection of the candidates because many of them are not even trained how to do so.

Yes, hear me right, they do not know how to choose the right candidates, many of the just trial and error and basing on number game, there should be some cases will be closed.

But this is totally not effective and waste plenty of resources. 

They just go through many hundreds and thousands of resumes, and they believe they are good interviewers and they will be very successful in the recruitment business.

Here is the critical question – if YOU do not know how to recuit the right person, how are you able to recruit the right recruitment consultant for your company. Recruiting recruitment consultants in Singapore is far more scheming and tougher than any job order out there, mind you, there are many sharks out there…. when I mean the sharks, the recruitment consultants are the sharks! You will be eaten up alive, without even knowing why….

Leadership and retention 

This will kill many. Seriously speaking, these things usually do not exist in the new Managing Director because they are not trained how to do s However, many still believe they are good in these areas!

Understanding the industry

Most new recruitment agencies do not even know anything about the Market Tumours, and when I explained hem to the MT, most just stared blankly at me and were at a loss for words because I had decoded the entire recruitment agency industry and torn it apart to bits and pieces to a point they had not seen before.

Managing the cost of operating 

Most of the new Managing Directors do not have these skills because they are not trained at all.

Generating sales 

Based on the 80/20 rule, eight of your consultants will not be producing and only two will produce.

With that, the salary will be more than the sales, and any logical investor will pull the plug eventually.

Wait.. I lied! It is not 8/10 will not produce, 10/10 will not produce any exciting results.

The Managing Director will need to incorporate new ways to generate new consultants, new clients, and new candidates because they will find that the previous method they used will not yield good returns.


Your recruitment consultants needs training in almost all areas. Most of them do not believe they need to train staff.

Well, if the skill set of the company staff is not up to standard, eventually the sales and clients will go elsewhere!

Anyhow, managing a new recruitment agency in Singapore is not as easy as it seems.It takes more than hard work and sales to make it happen.

You will need to focus, innovate, position, brand, change, and adapt to be able to make it big.

Good luck! You will need it.


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