Remember compliance as entrepreneurial success grows

Thursday 5 February 2015

As the Recruitment and Employment Confederation (REC) reveals the 'seven secrets' to being a successful recruitment entrepreneur, Brookson is reminding people not to let compliance fall by the wayside as they move up in the business world.

The REC's Seven Secrets of a Successful Recruitment Entrepreneur report was unveiled as part of its Scale Up campaign, which aims to support recruitment entrepreneurs that want to take hold of the opportunities that are coming in with economic growth. These seven secrets to being a successful recruitment entrepreneur, as detailed in the report, are: Understand what motivates you, be different, figure out and deploy a strategy, spend money on infrastructure, build a strong team, learn ways to bounce back and be bold.

One important aspect that relates to these points is that of compliance. Those who follow the seven secrets may see their enterprise grow and, with that, the number of responsibilities that they face. Among the things that they need to consider is the effects of potentially hiring more staff, what their liabilities are as a business, as an employer and how to ensure their workers are compliant too.

Commercial director at Brookson Andrew Fahey believes that this should be a concern from as soon as an entrepreneur is starting out.

He said: "Entrepreneurs should view the risks as though they are a multinational. They should be thinking how do I keep myself safe and the business safe? They need to think like a larger business and be commercially savvy from day one.

"Cash flow can get people into trouble. They are usually bound by 60-day terms but will have workers that are expecting payment on a weekly bases.

"It is important that you put in place a compliance framework that is robust. You will need to understand the regulations that are applicable to your business. And that you check what your liabilities are in relation to workers."

He warned that people who do not keep astride of the regulations that they must follow could face crippling costs to their business if it turns out that they were liable but unaware.

On top of that, he says that entrepreneurs should ensure that their staff keep to the standards of compliance that they put in place. They should be driving it through at all levels.

He explains that this can become somewhat of a challenge to maintain as entrepreneurs hire more staff members.

Mr Fahey advises entrepreneurs to try to ensure that their business grows at a pace that is achievable without compromising service standards.

In terms of the business landscape for 2015, the report says that things are set to look up and that markets will see significant levels of growth. There are a number of opportunities that are set to emerge from this for recruiters. Among these are that people are becoming more confident, which means that many will be more likely to change roles.

Over the next few years, REC believes that there will be exciting opportunities for recruiters, directors and business owners to achieve scale.

By Victoria McDonnell

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