sample business plan for recruitment agency

Recruitment Agency Business Plan: How to Write One

sample business plan for recruitment agency

Launching a recruitment agency demands a solid foundation, and crafting a detailed business plan is the cornerstone. Get started on your recruitment agency business plan with our guide. We will walk you through all the details.

The United States, Japan, and the United Kingdom dominated the recruitment and staffing industry in 2022, generating 55% of its revenue. Global revenue for the staffing industry jumped 4% to $648 billion, according to a report from Staffing Industry Analysts . The current job market, characterized by rapid technological advancements and shifting workforce demographics, is creating a market for flexible staffing solutions.

To cut costs and improve the efficiency of human resources, businesses are turning to staffing and recruitment agencies to secure talent. The rise of the gig economy and the preference for contract or temporary positions among workers seeking greater work-life balance is helping fuel the industry’s growth. Nearly 23% of working Americans also have a side hustle, according to a recent study by Pymnts .

Your Business Plan’s Key Elements

Whether you are a seasoned professional in the staffing world or a newcomer to the field, you need to start with a recruitment agency business plan. Creating a business plan requires gathering a significant amount of information. Start by researching the staffing industry, including market size, growth trends, and regulatory considerations. Network with industry professionals, attend relevant conferences, and utilize online resources to gain knowledge. Financial projections should be based on realistic market assumptions and comparable business models.

Keep in mind you will need a business plan at various stages of your business journey. Initially, it will guide your startup phase, helping you to secure funding and establish your business structure. As your agency grows, revisiting your plan can help you to scale your operations and enter new markets.

A comprehensive startup business plan for a recruitment agency should include:

  • Executive summary: Start with a clear and concise overview of your business — your elevator pitch. Highlight your business goals, mission statement, and the services you plan to offer.
  • Market analysis: Conduct thorough research on the staffing industry, focusing on your niche. Identify your target market, analyze your competitors, and outline the trends and challenges in the industry to understand your unique selling proposition.
  • Services: Detail the types of staffing services you plan to provide. Whether it is temporary staffing, permanent placement, or executive search, be clear about your offerings, the verticals you will serve, and how they meet the needs of your target market.
  • Marketing plan: Outline how you will attract clients and candidates with your marketing plan and sales strategy. Identify the channels you can use to build your brand and reach your audience.
  • Operations: Describe the day-to-day operations of your agency, including the recruitment process, the technology, the tools you need, and how you plan to maintain quality and compliance.
  • Financial plan: Make detailed financial projections, such as startup costs, revenue forecasts, and a break-even analysis to understand the financial viability of your business.
  • Management: Highlight your team’s expertise and the organizational structure of your agency. If you start solo, outline your experience and any external support you can leverage.

Partnering With AtWork: A Shorter Path to Your Goal

If you are considering opening a recruitment agency, partnering with AtWork to start a staffing franchise can significantly streamline the startup process. By joining forces with a proven brand, you can cut down on startup costs and bypass many of the hurdles of starting from scratch. AtWork’s recruitment agency business plan also allows you to take advantage of the Work Opportunity Tax Credit (WOTC) to lower your operational costs.

AtWork provides comprehensive knowledge, training, and tools essential for launching your staffing business. As a franchise owner, you get in-depth training on running a successful staffing agency, including sales, operations, and compliance. AtWork has state-of-the-art technology and operational tools to simplify day-to-day management, and marketing campaigns to effectively promote your agency and attract clients and candidates. Its support staff also handles all your payroll, allowing you to concentrate on scaling the business.

Learn More About AtWork

Get started to learn more about partnering with AtWork to launch a business in the staffing industry.

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Employment Agency Business Plan

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All About People

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

All About People (AAP) began out of the desire to contribute to this community, just as communities have fed All About People’s proprietor over the years. Although originally from a larger market, the proprietor realizes the need in the southern Willamette Valley for a personnel agency that fills a void left by other temporary and permanent placement agencies. AAP matches specifically skilled workers with clients, saving businesses time and money, while providing for its employees with honesty and honor. This requires a high level of communication. It means asking open-ended questions and listening, not talking. This means knowing the local market so AAP can really serve each client and employee, not just “sell” them our goods. AAP is quality service.

The long-term vision includes a number of offices throughout the southern Willamette Valley. The proprietor sees the challenge in this vision, not in the growth itself, but in training and encouraging all AAP personnel to treat each client and employee with the same care and with the same level of communication.

Managing our Growth AAP is a sole proprietorship that will convert to an S Corporation. As a new corporate entity, AAP will be treated as a start-up in this business plan. During the past couple of years the proprietor provided all services. In Year 1, the company will add a part-time office staff person and an employment specialist. In response to this growth, AAP will have a procedures manual for in-house staff to assure that the information is clear. In addition, AAP will provide employees with regular training within the divisions to assure they understand the details of the work they are doing daily. Year 2 projections include a receptionist, another employment specialist, and a field representative. In Year 3, AAP will examine the feasibility of opening a branch office in the Salem, Bend, or Medford/Ashland areas.

The Market AAP is structured like other temporary and permanent placement agencies. However, it will serve clients with needs for select, specialized professionals rather than clerical or light industrial workers. Several businesses in Portland, Oregon provide a similar service to specific groups of people, but there are none for the Willamette Valley. AAP has five divisions, targeting the following areas of expertise:

  • Editors/Writers

Event Planners

Graphic Artists

  • Interpreters/Translators.

Services AAP will handle recruiting, including reference checks, skills evaluation, preliminary interviewing,  and screening of all employees for its clients. AAP acts as an extension of the client’s human resource department, assuring that there is open communication between supervisor and employee, and assisting with any troubleshooting or problem solving that may be needed.

Financials The company’s start-up requirements are $55,464, of which $7,600 will be provided for by the owner’s personal investment. The rest will be obtained through loans.

We expect to be able to charge a 50% markup to our business clients. Thus, if an employee is being paid $10 per hour, we are charging the client $15 per hour. The company predicts that it will be able to produce sales of approximately $300,000 by Year 3. The company does not have any direct cost of sales; we track payments to placed individuals as regular payroll.

Sbp, employment agency business plan, executive summary chart image

1.1 Objectives

AAP is structured like other temporary and permanent placement agencies. However, we serve clients with needs for select specialized professionals, rather than clerical or light industrial workers. Several businesses in Portland, Oregon provide a similar service to specific groups of people. AAP followed the model of one placement firm described below.

A contract engineering firm places temporary workers who are hardware and software engineers. Employees earn between $80- $100 per hour and approximately seven employees are placed per month. The firm recruits through its website, advertises in newspapers, magazines, and trade publications. Incentives offered to contingent workers include medical, dental, and disability insurance, 401(K), and a reference finder’s fee for placement referrals. They find their employees are 60 percent male, 40 percent female, and ages spread evenly.

AAP serves the business client by locating a professional worker, interviewing and screening that worker, setting up interviews if necessary, and administering all hiring paperwork. The company runs payroll and bills the client bi-monthly. AAP will also manage the professional, staying in close contact with the client and communicating with the worker regarding any personnel issues that may arise.

The professional worker is served with employment opportunities at no cost; pay rates that are within industry standards; and health insurance may be purchased, if a worker becomes eligible, at a group rate starting at $124/mo. AAP will pay $65/mo for any coverage chosen from the group package.

1.2 Mission

All About People’s mission is to contribute to the community by filling a need for specialized, professional, contingent workers. The company will provide workers with a safe and independent environment. It will also provide businesses with a high-caliber of employee available for project or permanent work. All About People listens to individual needs and customizes personnel solutions for both businesses and workers.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

AAP is a temporary and permanent placement personnel agency working solely with skilled, professional workers and Willamette Valley businesses. AAP differs from other temporary and permanent placement agencies because of our skilled workers. The company believes that the temporary industry pays only cursory attention to providing businesses highly qualified workers for permanent and non-permanent positions. AAP has five divisions, targeting the following areas of expertise:

AAP does not provide general clerical, light industrial, engineers, accountants, nurses, or other medical technicians.

AAP does the following for each client:

  • Recruiting (reference checking)
  • Skills evaluation (preliminary interviewing)

AAP conducts regular evaluations: AAP checks in with the supervisor and the worker during the first week on the assignment. AAP then checks in as agreed with the client. AAP acts as an extension of the client business’ human resource department assuring that there is open communication between supervisor and employee, and assisting with any troubleshooting or problem solving that may be needed.

Prior to opening our doors, research showed support for the development of a personnel agency working solely with professional contingent workers and Willamette Valley businesses (see topic 7.3 Supporting Research).

According to the Oregon Department of Employment, Lane County has 31 temporary agency firms with 3200 individuals employed. Total employment figures for Lane County are 250,000; therefore, we support between two and four percent of the population.

Through connections in a variety of areas, AAP is able to locate qualified workers not only through advertising, but through a channel of networking. This past year has shown that qualified, willing workers are certainly available as we currently have hundreds on staff willing and able to work.

2.1 Company Ownership

AAP is a sole proprietorship that will convert to an S Corporation. As a new corporate entity, AAP will be treated as a start-up in this business plan.

The sole proprietor, Sarah Wayland, can be reached at AAP’s office, [contact information omitted in this sample plan].

2.2 Start-up Summary

Projected start-up figures are shown in the chart and table below.

Sbp, employment agency business plan, company summary chart image

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The company is uniquely positioned to take advantage of this market opportunity because of the management and field expertise of the proprietor. Sarah Wayland worked in the temporary employment industry for three years with ADIA Personnel Services (now ADECCO) as Area Account Manager (in training as a branch manager): building business relationships; hiring employees; handling employee issues; working with clients during the implementation of ADIA; and opening an additional office in Beaverton, Oregon.

For one year the proprietor was a District Sales Manager at Columbia Distributing, showing a 10% increase on $3.5 million in annual sales. Managing a staff of nine in sales and customer service, she had the opportunity to delve further into hiring/firing, reviewing, incentives outside of salary, and personnel issues.

Most recently, she has spent several years as Funds and Contracts Manager at the Oregon University System; managing four grants totaling $1.5 million annually and all personal service and interagency contracts as well.

The proprietor’s most notable success was bringing the second branch of Cellular West located in Portland, Oregon, from running in the red, to breaking even within four months of its opening. She accomplished this by using motivational tools and providing the sales force with extensive training.

3.1 Products and Services Plan

Changing labor market conditions threaten the concept of full-time permanent employment.

AAP provides a complex blend of services to distinct populations. The company serves businesses through connecting them with the professional contingent work force. It also serves the worker by connecting them with businesses, at no charge, and providing benefits not often provided by other employment agencies.

Market Analysis Summary how to do a market analysis for your business plan.">

All About People (AAP) is a local firm that costs less than a consultant or agency, provides for both project and long-term needs, and has an easy, pay and billing rate system that covers employee payroll and worker’s compensation insurance.

There are a variety of reasons why businesses may need AAP’s services:

  • Spikes in work load
  • Business expands into an area that in-house expertise does not yet match
  • Special events
  • Pregnancy leave or sabbatical
  • Business increases after layoffs
  • Smaller business does not yet have staff on-hand to complete extra projects.

According to economic forecasters, employment agencies and financial services are expected to have the largest industry growth over the next 25 years. The trend toward businesses cutting back on employees and their benefits due to high costs creates the demand for AAP’s services.

Just consider the time, energy, and resources an employer may spend trying to employ a person for a 20-hour task.

In addition to the already lucrative temporary industry, several companies in the Portland Metro Area place professional contingent workers, but the southern Willamette Valley is not currently being served.

The company approaches businesses primarily through networking and cold calls. Our intention is to utilize a PR agency for more coverage as soon as possible. AAP is a member of the area Chamber of Commerce and actively participates in as many activities as possible, the proprietor is a member of the Women’s Business Network, the Professional Women’s Organization, and we are in the process of connecting with the Society for Human Resource Management. Prior to start-up, AAP also surveyed several area businesses about their use of contingent workers. The company will use its website and other marketing materials that describe what services we provide and explain how simple it is to work with us.

AAP advertises in local papers and trade magazines when absolutely necessary, but most often uses the Oregon Employment Department, both community college and university campuses, and the networking groups we are members of to search out the right employee. Prior to the sole proprietor start-up, the company started recruiting by administering twenty personnel surveys and advertising locally to create a staff of qualified contingent workers. This staff will be unaffected by AAP’s corporate restructuring.

4.1 Market Segmentation

The market can be broken down into two segments: the business market segment, and the employee market segment. Both of these segments are lucrative.

Business market targets: The company targets the University of Oregon, Lane Community College, the nonprofit organizations, the publishing industry, the advertising industry, and other large businesses.

Employee market targets: Editors/writers, graphic artists, computer specialists, event planners/fundraisers, and language translators/interpreters working in the business target markets listed above, as well as any applicants with unusual skills and talents.

4.2 Service Business Analysis

These charts demonstrate the types of workers employed, the type of qualified professionals on file to work for the company, and the types of businesses who have used AAP’s services. These statistics cover the 15-month sole proprietorship period from July 1, 1998 through September 30, 1999.

Types of workers employed by or signed up with AAP

Types of employers using AAP

Each and every contact is entered into the database-either in the professionals file if they are a potential candidate, or in the contacts file if they are another type of contact. The client and jobs files utilize the contact and client numbers to automatically fill in the information from the contact or client files. This means no duplicate typing. In addition, the contacts, clients, and professional files all have follow-up sheets attached making daily follow-up easy. Simply pull the file up for that day and all calls that need to be made that day will be marked.

Searching is easy. The check boxes within each professionals file allows us to check for singular or multiple skills and experience with a click and a return.

4.2.1 Competition and Buying Patterns

First form filled out from the moment the candidate calls. Three screens constitute one file: Personal Information; Job Information; Skills. The professional and contact files have a conversation record that will allow easy follow-up with a list daily of those records needing a call.

Interview Form

Directly from the employee forms the Employment Specialist can select the appropriate interview form. This form consists of three sheets: Basic Questions; Other Information/Recommendations; and Reference Checks.

Employee Profile Sheet

From the above information, a profile sheet is generated in hard copy for the inside of each file. This is our second backup system (besides the tape drive) in case of a power outage, etc.

4.2.2 Contact Sheet

This form is used for all other contacts. From here, a contact can be turned into a client by merely typing the contact number in on the client sheet, automatically bringing in all of the information.

4.2.3 Client Sheet

The client sheet is easily created by filling in the contact number. All pertinent information is automatically entered. The client sheet has its own contact sheet attached generating a daily follow-up list. The client files can also be pulled into a handy contact list.

Strategy and Implementation Summary

AAP is completely service minded, customizing personnel packages and offering the most it can to both employers and employees. The company brokers professional workers to Willamette Valley businesses. Because we serve two distinct groups of people, both businesses and employees will be considered equally important to AAP.

The company consists of five divisions, targeting the following types of workers and needs in businesses:

Computer Division

  • Computer Application Specialists
  • Computer Hardware Specialists
  • Computer Programmers
  • Network Administrators
  • Web Specialists

Editor/Writers

  • Multi-lingual
  • PR/Marketing
  • Fundraisers
  • Large and Small

Language Interpreters and Translators

  • Multiple Languages
  • Person-to-Person

Within these categories, we originally set up a system of single sheets on card stock and filed them in binders. Since then, an electronic database has been created by one of our professionals. With the push of a button, AAP can search for a client or an employee needed.

Businesses and employees will be able to communicate with AAP via both new technological and traditional methods. Our Web page provides information about AAP including what professional fields we serve, what clients we are working with, and what services we offer. A second-generation Web page will provide information about employees for businesses through a password-protected area. AAP forwards candidates’ resumes and other information through a variety of methods: phone, fax, personal visit, mail, and the Web page.

In August 1999 we moved the offices to the center of town. Accounting is handled electronically by the proprietor through QuickBooks, with the complex needs handled by our CPA. All payroll is generated through the payroll service, Paychex. The office is furnished with all of the technology needed to operate on a daily basis, increase market share, and serve clients.

5.1 Competitive Edge

When a business is contacted and expresses interest in contingent employees that the company can provide, the following procedures will be followed:

  • Consult with client and create a follow-up plan.
  • Complete the contact, client, and job sheet in the database.
  • Print one of each and forward a copy of the job sheet on yellow paper to the employment specialist.
  • File original sheets in the appropriate binders.
  • Search for matches in the database and pull each folder that looks like it will work.
  • Review that folder to assure a match.
  • Call each potential candidate and discuss the job and pay to its fullest.
  • Fax, e-mail, or otherwise contact client with information and/or resumes for review.
  • Schedule interviews or make a decision on appropriate candidates.

5.2 Sales Strategy

When an employee seeks to work with the company, the following procedures will be followed:

  • Complete the professional’s form in the database.
  • While completing this sheet, screen the employee for experience levels, requiring professional experience in each arena they wish to work.
  • Set up an interview with the employment specialist if the professional is qualified.
  • Create a file for each employee and place all paperwork, along with a copy of the professional’s form.
  • Keep in touch with the professional quarterly if nothing comes up, more often if at all possible.
  • When the professional agrees to a position, they will be supplied with an employee policy manual, pieces of letterhead for invoicing, and will complete the IRS I-9 and W-4 forms prior to beginning work.

5.2.1 Sales Forecast

Our sales forecast projections are presented in the chart and table below. Three years annual projections are shown in the table.  The chart shows first year monthly forecast.  First year monthly table is included in the appendix.

Sbp, employment agency business plan, strategy and implementation summary chart image

5.2.2 Target Market Segment Strategy

The pay rate data will be determined by changing market factors including business demand.

Our experience shows that the following is true in regards to pay and bill rates. A “good deal” for most temporary agencies is a 50% of pay rate markup. Thus, if the pay is $10, the bill is $15. However, we have traditionally used a flat markup that seemed appropriate. Pay and bill rates generally are outlined as follows:

Editors Most editors require between $25 and $35 per hour, and our history has shown a $10 per hour markup is acceptable. One exception is in the technical arena, garnering between $45 and $55 per hour pay; again a $10 per hour markup is typical.

Writers The only writing we have done is creative for [client name omitted], and we paid $15 with a $10 markup.

Event Planners Event planners often will work for between $12.50 and $25 per hour, depending on the length of the job, requirements, and experience needed. We find a $5 per hour markup on the $12.50-$17.50 is reasonable, and a $10 per hour markup on anything over $17.50 per hour.

Fundraisers Fundraisers can start at $10 per hour (nonprofit) and go up to $20 per hour. This usually depends on client and length of assignment. Bill rate markup for nonprofits is $5 per hour, others between $7.50 and $10 per hour.

Graphic Artists Entry level beginning at $12.50 per hour, intermediate at $15 per hour, and a top of the line professional at $25 per hour. The exception may run about $50 per hour. Bill rates are between $7.50 per hour markup ($12.50-$15), and $10 markup.

Language Interpreters This is a tricky arena. Pricing depends on the language (typical/atypical) and the length of the assignment. Interpreters have been known to work for as little as $15 per hour and for as much as $35 per hour. A $10 per hour markup is acceptable.

Language Translators This division is difficult as each language and situation varies slightly. Translators tend to work by page or by word. Technical translation can be as much as $.30 per word. Other translation can be $10 per hour (an hour a page). We are unsure of markup at this time, but would suggest 50% of pay rate.

Computer Specialists:

  • Application-Starting at $12.50 an hour based on Xerox experience. Markup $5 per hour.
  • Programmer-Starting at $20 an hour based on AlbertIQ experience. Markup $10 per hour at a minimum. Try for $15.
  • Web Designer-Entry level positions can start at $10 per hour with a markup of $5. Project work typically starts at $15 an hour, markup at least $10 per hour.
  • Administration-Pay rates range between $50 and $75 per hour, with a preferred markup of $25 per hour.

When determining the bill rate, additional expense factors to remember above the pay rate are 15% employer taxes, advertising, and staff time to fill the position.

5.3 Milestones

The company has an outstanding client list and an incredible number of qualified employees available. AAP has a good reputation for providing qualified people in a timely manner.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

In a variety of settings the proprietor of AAP has strong management experience. The proprietor has the skills to not only listen well, drawing out a person’s needs through open-ended questions, but also has the ability to recognize people’s strengths and weaknesses. She will draw upon this extensive successful experience in addition to the knowledge collected over a period of 18 years working professionally. Much of the “people” skills have been developed during the seven years spent in management roles. This experience, along with a varied background, supports AAP’s goals.

AAP’s objectives are threefold:

  • To provide high quality, experienced, professional workers to businesses that are currently relying on the instability of word-of-mouth contacts, and are spending much of their time and resources (and, therefore, money) locating such workers;
  • To provide these workers with a path by which to reach the employer without spending their own time, money, and energy finding the work; and
  • To use this opportunity to make the contingent work force a better place for both the employer and the employee.

The long-term goal of the company is to franchise and/or to become multi-location, and eventually sell this business.

Management is a style, a belief, and a strategy.

In managing our clients, AAP will communicate regularly with them, setting up a schedule that meets their needs. The company will set goals for retention of clientele and strive to reach those goals by building relationships, listening to the client’s needs, and meeting those needs with a smile on our faces. We will take responsibility for our errors and the outcome.

In managing our workers, AAP will communicate regularly with them, providing them with an employee manual to minimize their confusion, and offer them the best pay and benefits possible. AAP will set goals for retention of employees and strive to reach those goals by treating each employee with respect, provide protection when appropriate, and do everything within our power to assure a healthy working environment.

This is a relationship business. AAP will manage all clients and employees through relationship building.

During 1998-99 the proprietor provided all services. In 2000 the company will add a part-time office staffer and an employment specialist. In response to this growth, we will have a procedures manual for in-house staff assuring that the information is clear. In addition, we will provide employees with regular training within the divisions to assure they understand the details of the work they are doing daily. 2001 projections include a receptionist, another employment specialist, and a field representative. In 2002 AAP will examine the feasibility of opening a branch office in the Salem, Bend, or Medford/Ashland areas.

6.1 Payroll

All About People runs its payroll twice a month. Each professional will be given a check schedule when they work with AAP. Each check covers the previous two weeks.

In order to process payroll; AAP must receive a professional’s signed invoice the Wednesday prior to payday. The invoice, must be on AAP letterhead and include: name, social security number, mailing address, dates of work completed, location worked (at home, at the client’s office), one or two sentences describing what tasks were completed, and how much time was spent each day. At the bottom there must be a place for the client to sign and date in acceptance of the work to date. The original will be submitted to AAP, the client will receive one copy, and the professional will keep a copy.

AAP is unable to provide payroll advances. If a check is lost in the mail, we must wait seven days from the date of mailing, and then if the check has not arrived we will stop the check at the bank and have one reissued.

6.2 Benefits

Because we value our employees, we have employee group health insurance available, and contribute a major portion of the monthly premium. According to the Insurance Pool Governing Board (IPGB) employees must work at least 17.5 hours per week. Employees who work intermittently or who have worked fewer than 90 calendar days are not eligible. IPGB also states that all carriers may decline to offer coverage to the business or to any employee.

Technically, All About People is employer of the professionals we place. This means that we are responsible for covering the worker’s compensation insurance, running payroll, and that we are the ones to whom each employee is responsible. We understand that this can be tricky when employee professionals are working with a client, so we want to describe the expectations of this relationship:

  • If the professional doesn’t understand the work or assignment that has been given by the client, then discuss the work with the client.
  • If there are issues at work, the employee should inform AAP and then speak with the client.
  • If these issues continue, the employee should talk with AAP immediately.
  • If the professional feels they are being harassed at work they should let AAP know immediately.
  • If the employee should be being asked to perform tasks other than the original assignment, the employee should talk with AAP before beginning any tasks other than the original assignment.
  • If the professional is being asked to work overtime (more than 40 hours per week), they should let us know immediately.

AAP does not guarantee either work or wages when you join us to become an AAP employee. We will, of course, strive to keep you as busy as possible. AAP is also not able to guarantee an hourly wage prior to the assignment beginning. If you work on a job, and complete the work successfully, you will be paid at the agreed rate.

This employment relationship differs from others because you, AAP, or the client may end your employment with or without notice and with or without reasons. However, if you accept a job with AAP, we do expect you to finish the assignment.

Marketing Strategy

AAP’s target market is both businesses and professional workers. Phase one of the marketing plan will target the University of Oregon, the technology industry, and the top 500 businesses in Eugene through networking and cold calling. Phase two will target small businesses with less than five employees because smaller businesses may not have the in-house capability to locate, evaluate, and hire potential professional contingent workers through a small PR campaign.

7.1 Businesses

We began marketing the businesses through several personnel surveys. The University of Oregon Alumni Association, University of Oregon Foundation, and University of Oregon Human Resources Department, as well as Symantec’s Human Resources director were approached for information regarding their need for professional temporary and permanent workers. These initial interviewees have all (with the exception of U of O HR Dept) become clients within the first year of business. After these personnel surveys were complete, we adjusted our recruitment of professional workers to meet the demand.

Another tactic was joining multiple business groups. AAP became a member of the Eugene Chamber of Commerce and attends the weekly greeters meetings; the Women’s Business Network and attends the monthly meetings; the Professional Women’s Organization and attend the monthly meetings; as well as the City Club, keeping a pulse on what is happening in the community, attending as the proprietor sees fit.

The next approach is face-to-face cold calls. The tools for these calls are simple-a business card and a brochure. The information collected during the cold call is vital: how many employees does the business have; in what areas have they experienced a need for professional contingent employees; and who is the appropriate contact.

7.2 Professional Workers

Our beginning point in marketing to workers was approximately 30 personnel surveys to professional contingent workers, building the foundation of our database.  AAP intends to recruit workers through advertising in the newspaper and appropriate trade magazines, trade shows, the University of Oregon career center, and by referral. We have found that each division within the company requires a different approach for recruitment. We try not to depend on newspaper advertising as we find the results are moderate. Results are far better with the employment department for some areas, with the U of O for others, and also through a series of developed contacts for the other divisions.

7.2.1 Trust

In order to build trust with both businesses and employees AAP will follow through as promised. We will treat each business, employee, and ourselves, with integrity. AAP will communicate clearly, asking businesses to specify the needs for follow-up service during the time that they employ our contingent worker. We will work with employees to assure that they have a clear understanding of what AAP offers and what we expect of them.

7.3 Supporting Research

“A fading model of employment in the United States envisions a business enterprise with full-time employees who can expect to keep their jobs and perhaps advance so long as they perform satisfactorily and the business continues. Changing labor market conditions threaten the concept of full-time permanent employment. As reported by the Conference Board in September 1995, contingent workers account for at least 10 percent of the workforce at 21 percent of the companies surveyed, or almost double the 12 percent of respondents with that number in 1990. Writing in the Monthly Labor Review in March 1989, Belous estimated that contingent workers constitutes 24 to 29 percent of the labor force in the United States. In August 1995, however, the U.S. Bureau of Labor Statistics (BLS) estimated the size of the contingent labor force at 2 to 5 percent of the total workforce. However, BLS did not count long-term part-time employees, who constitute 90 percent of part-time workers.”       — Society for Human Resource Management, The Contingent Worker: A Human Resource Perspective, by W. Gilmore McKie & Laurence Lipset taken from Chapter 1, What Is a Contingent Worker?

AAP is a service company providing businesses with customized personnel solutions by connecting them with the professional contingent work force. Research suggests that 2000 is an opportune time to be in the Eugene market with this service. Even with all of the evidence that contingent work is the wave of the present, and of the future, the niche of placing contingent workers who are paid $12.50 to $40 per hour is untapped in the Eugene area. However, a few companies place high-end contingent workers in the Portland area.

There are many reasons why businesses are turning to contingent workers. The Economic Policy Institute’s article “ Contingent Work ” by Polly Callaghan and Heidi Harmann explains that:

“Growth in involuntary part-time employment is causing total part-time employment to grow faster than total employment. Another indication of the shift toward part-time workers: hours for part-time workers are growing faster than hours for full-time workers. Temporary employment has grown three times faster than overall employment and temporary workers are being used for more hours. Contingent employment is growing faster than overall employment. Part-timers are disproportionately women, younger, or older workers. There has been a shift away from manufacturing toward trade and services. These structural changes help explain the growth in part-time employment.”

Because of the changing nature of jobs themselves, AAP’s services are desirable to employers of all sizes. Unlike five or ten years ago, many positions are so diversified, or specialized, that it is not financially feasible for an employer to hire a person to fill one position, requiring several areas of expertise. This is not financially wise for the business because of the pay range required to recruit and hire such a talented person (especially in areas such as graphics, design, etc.). The cost of payroll, taxes, benefits, and other miscellaneous staff required to run employees add to the burden of a downsized staff. Contacting AAP and using a professional contingent worker for each portion of a position as needed will solve this dilemma. Currently most businesses locate needed “qualified” workers by word of mouth. With one phone call, e-mail, or connection with our Web page, AAP makes the task easy.

In addition, Oregon’s economy is expected to continue growing, and employment, total personal and per capita income, and population growth rates are expected to exceed the national average (according to the 1997-98 Oregon Blue Book). Although Oregon’s economy is among the best there is an obvious group of contingent workers available to build an employee labor pool. The company draws from a labor pool of qualified contingent workers which consists of people who work at home, retirees, others who wish to work part-time. According to the Oregon University System, approximately 33% of bachelor’s degree graduates will be unable to find jobs in Oregon each year. So, recent college graduates are also a part of AAP’s labor pool.

Research shows that a large percentage of workers who tend to work more than one job are well-educated individuals who have a higher degree of education. According to Oregon Employment Department’s Occupational Outlook Quarterly , Spring 1997, 9.4% have Ph.D.’s; 6.5% a Professional degree; 9.1% a Master’s degree; 7.9% a Bachelor’s degree; 7.9% an Associate degree; and the remaining 15.8% lesser education. According to a Personnel Journal article “ Contingent Staffing Requires Serious Strategy ,” April 1995, there are also many retirees that enjoy doing contingent work.

Financial Plan investor-ready personnel plan .">

The following sections contain the financial information for All About People. Tables show annual projections for three years. Charts show first year monthly figures.  First year monthly tables are included in the appendix.

8.1 Important Assumptions

The financials of this plan are predicated on the following table of assumptions.

8.2 Projected Profit and Loss

Profit and Loss figures are projected in this table.

Employment agency business plan, financial plan chart image

8.3 Projected Cash Flow

Our cash flow estimates are shown in the chart and table below. The owner expects to invest further amounts in the business over the next two years to finance continued growth.

Employment agency business plan, financial plan chart image

8.4 Projected Balance Sheet

Three year annual balance sheets estimates appear below.

8.5 Business Ratios

The table below presents important business ratios from the help supply services industry, as determined by the Standard Industry Classification (SIC) Index code 7363, Help Supply Services.

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sample business plan for recruitment agency

sample business plan for recruitment agency

How to write a business plan for recruitment in 2024 (template included)

Roger Smart

  • Published on June 3, 2020
  • Updated on February 12, 2024

sample business plan for recruitment agency

Writing a business plan in recruitment has always played a crucial part in the interview process for a number of recruitment agencies around the world.

A comprehensive business plan can demonstrate a recruiter’s commitment, knowledge and commercial acumen. During economic uncertainties in 2023, these qualities are more important than ever.

Arriving at an interview armed with a comprehensive business plan before you’re even asked will no doubt set yourself apart from other recruiters.

During economic uncertainties, managers will need to present a business case to leadership for budget approval in order to make a hire. Your business plan will be an important element of this business case. An impressive business plan could be the difference between landing an offer today, or falling into a pipeline of other candidates.

In this article, we share a step-by-step guide outlining how to create a comprehensive business plan. We walk through the key components and include examples.

At the end of the article, you can download a free recruitment business plan template which is tailored towards the key components mentioned in this article.

A business plan should be packed full of relevant information but should be compressed and to the point. Avoid verbiage, stay specific and keep to 4 – 6 pages.

Introduction

Start with a title. Include your name and the company you’re writing the business plan for. A little personalisation will go a long way.

Underneath your title, outline the objective of your business plan and again personalise it towards the agency you’re interviewing with. While you have the hiring manager’s attention, this paragraph is an opportunity for you to demonstrate how comprehensive your business plan is. The aim is to capture the hiring manager’s interest so they continue to read each component:

“The objective of this business plan is to outline the value I can add to employer’s name.

In this business plan, I have highlighted my specialism, hiring activity in my market, my candidate and client strategies, my methodology, how I plan to recruit through economic uncertainties in 2023, my competition and my personal revenue projections over 12 months.”

You can use this paragraph as a way to introduce your business plan verbally if you’ve called up a hiring manager. You can also use this extract in a cold email.

Your specialisation

This is a crucial positioning statement for your value-add. It sets out precisely where your network and experience lies and what you intend to bring to the table in your new role.

Your specialisation can be described clearly by outlining what roles you will specialise in, what industries you will target, what level of seniority you will focus on and what geographies you will cover.

For ease of reading, you can use each component as a title and use bullet points to expand upon your answers.

Taking a Technology recruiter as an example:

What roles I will specialise in:

  • Product Management permanent roles
  • UX/UI Design permanent roles

What industries I will target:

  • Series A – C funded technology startups (high investment, high growth and high volume of roles)

What level of seniority I will focus on:

  • Mid to senior (120 – 180k salary range for Product Managers, 140 – 200k salary range for Designers)

What geographies I will cover:

  • Based in Singapore, the local market will be my core market
  • Secondary markets include Jakarta, Bangkok and Kuala Lumpur due to less competition from recruiters and high volume of roles

Hiring activity trends

The hiring activity trends section provides an opportunity for you to demonstrate and portray your knowledge of the market.

The 3 important components of this section are: hiring activity over the past 3 years, hiring activity for next year and how you predict hiring activity to shift beyond that.

Utilise your own knowledge of the market but back it up with research gained from reputable sources related to your market e.g. Tech in Asia, Tech Crunch, Channel News Asia, The Straits Times or The Financial Times.

You’ll want to cover how hiring activity has increased or decreased, what the drivers of growth are in your industry and what the threats and challenges are within your sector.

Candidate strategies

Moving on from market trends, this section indicates how you will acquire candidates for your desk. It offers an opportunity for you to demonstrate the experience you’ve learnt in candidate management from your previous firm, but also an opportunity for the employer to ensure that your approach aligns with theirs.

3 key components of this section include: how you will generate candidate leads, what challenges you expect to face and how you will overcome these challenges.

Taking a Front Office Banking & Financial Services recruiter as an example:

How do I plan to generate candidate leads:

  • Direct headhunting using a LinkedIn Recruiter account, this costs approximately $X amount, the key benefits being access to a high volume of InMails and enhanced search capability. This has been the sourcing tool for 60% of my previous placements

Challenges I expect to face:

  • In light of economic uncertainties in 2023, highly sought-after candidates may be risk-averse and may not see this as a good time to move jobs

How I will overcome these challenges:

  • I will develop relationships with these candidates for the future but I will adjust my sourcing strategy accordingly by increasing volume of direct approaches

Client strategies

A similar section to candidate strategies but geared towards clients. Arguably more important than candidate strategies during a recession as the market could be job-short – even in the good times, strong business development capabilities in recruiters are harder to find.

This section includes 6 key components including how you plan to onboard new clients, how you plan to sustain relationships with clients for repeat business, what industries your clients are in, the challenges you expect to face and how you will overcome these challenges.

Take these bullet points as a basic example:

How I plan to onboard new clients:

  • During a recession, I plan to cultivate relationships by helping and consulting clients on non-recruitment related issues, such as advising clients on the current state of the market
  • I plan to generate leads by making 25 cold calls per day during the ramp-up period, to again offer support and advice where needed, and to leverage any open roles
  • A soft approach of connecting with hiring managers, HR contact and C-Level candidates on LinkedIn, to establish working relationships and eventually convert into clients

How I plan to sustain relationships with current clients and win repeat roles:

  • The most important way to sustain relationships is by offering a service that is superior to competitors. That is by being transparent, sticking to deadlines and delivering results
  • Regularly catch up with clients on a monthly basis to see how they’re doing and see if you can generate new roles
  • Keep yourself updated on company news and congratulate clients on milestones e.g. if they generate a Series C round of funding

What industries I will target clients in:

  • Series A – B funded technology startups
  • During a recession there is less of an appetite to use agencies due to an unprecedented volume of great candidates available in the market
  • Offer free support to companies currently not using agencies, provide an impressive service and convert into paying client post-recovery

The 6th component is “examples of target clients” and this is where you can really demonstrate tangible market knowledge. Use company names, find the potential contact in each company and add your comments, such as the volume of roles you expect from that client. 5 examples should be enough to peak your hiring manager’s interest.

You can use a table to display this information with ease:

It goes without saying that you should never be tempted to use information that is proprietary to your previous employer. This information can be openly found with some basic LinkedIn research.

My methodology

Are you a recruiter that is focussed on crunching numbers? Are you a recruiter who is focussed on cultivating long-term relationships? In this section, you can include a few quick bullet points to explain how you approach recruitment. This information gives your hiring manager an indication about whether you hold similar values and whether you have similar working styles.

How you can adapt to recruiting during a possible economic downturn

This section is a new one in response to market conditions in 2023 but can demonstrate how you are prepared to deal with current and upcoming challenges.

You can use this section as the title and include bullet points to outline how you will adapt to these market conditions.

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My key competitors

Which recruiters and agencies offer the greatest competition? Demonstrating your knowledge in this area highlights that you are commercially aware outside of your core market.

Include about 5 different competitors who are directly competing in your patch. You can use the table below to display this information:

Personal revenue and target projections

In many business plans, financial projections are of utmost importance and can demonstrate your commercial acumen. If you’ve ever watched Dragon’s Den, you’ll know what happens when you don’t know your numbers!

Project your personal revenue for 4 quarters. You can start your calculations by predicting the average annual salary of a candidate in your patch. You can project your average percentage fee agreed with clients and from there you can calculate your average fee. Once you have this, you can predict the amount of placements you’ll be making per month.

Make sure your revenue projections are realistic and achievable. Avoid the temptation to predict vastly optimistic revenues, especially during a possible recession. You must allow time to ramp-up and there must be a logical relationship between your historical and predicted revenues.

The plan only includes project revenue. Your historical revenue should be on your CV.

Take the below as an example:

My predicted average annual salary of candidates:

My predicted average percentage fee agreed with the client:, my predicted average fee:, my predicted average placements per month, my projected revenue over 12 months.

Underneath, you can also include the KPIs you will set yourself to guide you in achieving these numbers. For example, you can set yourself a guideline for how many CVs you need to send, how many candidate meetings you need to arrange, how many client meetings you need to arrange and so on.

The template

We’ve constructed a free template built around the components mentioned above, so you can create your own for when you reach out to hiring managers.

To download this template, please add your email below and you’ll be redirected to the template.

By downloading our busines plan, you agree to our  Privacy Policy and Notification Settings .

This step-by-step guide should give your hiring manager a clear idea of your plan. If executed successfully, you’ve already demonstrated your commitment, knowledge and commercial acumen before even attending an interview.

The way you’ve structured your plan will give your hiring manager a very clear indication of your methodology and whether you’d fit their structure. Keep in mind that if your methodology is focused on high volume recruitment, it’s not going to work well with an executive recruitment agency.

As a next step, learn this plan inside and out. Be prepared to pitch your plan to your hiring manager and answer detailed questions surrounding each component.

Leave your interviewer with no room for concern and secure that role! Lastly, if you enjoyed the article, please consider subscribing or following us on LinkedIn to have new articles for recruiters like this delivered directly to your inbox.

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sample business plan for recruitment agency

As Founder of Charterhouse Partnership, I led the opening of 5 international offices, hiring & training hundreds of recruiters. Please subscribe to our weekly newsletter where I share my insights on the recruitment industry.

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How to write a business plan for a recruitment agency

Table of Contents

Why a business plan is important

Provide direction,  minimise risk , reduce spending, market research , budgeting and financial planning, examples of swot analysis for a recruitment agency, opportunities , how countingup can benefit your recruitment agency.

If you’re looking to start a recruitment agency, you’ll need to create a business plan as any other startup would. Remember, though, that you’ll need to also account for the specific situations that might arise while working in the recruitment industry.

This article will serve as a guide to writing a great business plan for your recruitment agency. We’ll look at what your plan should look like, as well as why a plan is important. The topics we’ll cover include:

There are a few different reasons why you need a business plan before starting a business , but one of the most important is that it will guide your business going forward. Without a plan, no matter how simple the plan is, you’ll likely struggle to develop your business and make effective decisions. 

A business plan doesn’t have to be set in stone — you can adapt it to account for any unique events that affect your recruitment agency. That said, it’s essential to have at least a vague idea of the purpose your business will serve, the potential obstacles you might encounter, and how you’re going to deal with those obstacles.

A business plan is also necessary to minimise the risk you’ll face when starting a recruitment agency . One of the key sections of a business plan is the SWOT analysis, where SWOT stands for strengths, weaknesses, opportunities and threats.

In order to minimise risk effectively, it’s vital that you analyse both the weaknesses of your agency as well as the threats it may face. In doing so, you’ll be able to fix your weak points and avoid potential threats more effectively.

Finally, business plans are important because they provide valuable data for minimising your spending. For example, during your SWOT analysis and financial planning , you may find that you’ve budgeted a large amount of spending to support a part of your business that’s actually very strong. 

In a recruitment agency, this might mean you’ve planned to spend a lot of money on marketing, but your business already has a strong brand because you (as the owner) have many good personal contacts in the industry. In this instance, you can safely reduce your marketing budget and save your business money. 

Thorough market research is the best first step when you’re writing a business plan . Market research means examining the industry your business will exist in, and finding out the needs and preferences of that industry’s consumers.

For a recruitment agency, a key research topic for your business plan would be finding out the impact COVID-19 has had on the market. Many new markets emerged during the pandemic, which you can provide your services to. As the UK is currently recovering from the pandemic, it would also be wise to look into which industries are now recruiting heavily after laying off staff in recent years.

Planning out how you’ll spend your money when starting your agency is also a key part of a good business plan. You need to consider your budget for starting the business as well as how you’ll manage your business finances going forward.

It’s smart to prepare a budget for each section of your business. For instance, you might set aside different amounts for recruiting staff, purchasing business premises, and marketing. Your advertising budget is particularly important when you’re a small business , as you may not be able to rely on personal contacts or existing clients for referrals, so you’ll need to attract clients independently.

Conducting a SWOT analysis is a great way of evaluating your business even after starting up, but it’s particularly helpful when you first put together your business plan. SWOT stands for strengths, weaknesses, opportunities and threats, so a SWOT analysis requires you to think of an example of these for your business. In a recruitment agency, these might be:

As mentioned above, it may be that you have a good reputation because you have a wealth of experience and personal connections in the recruitment industry, so you’ll not need to worry as much about marketing.

Recruitment agencies frequently have to use a lot of software to track their clients’ needs and organise candidate applications. If you’re not very good with technology, you may need to hire staff who are to account for this weakness.

The UK is currently rebounding from the struggles of the COVID-19 pandemic, and this presents a wealth of opportunities for a good recruitment agency.

You need to take immense care when you’re handling people’s personal information, which you’ll often do at a recruitment agency. Sending this information to the incorrect person can have a considerable negative impact on your business, as there is a lot of new legislation regarding privacy. 

Your business plan should include a good amount of financial planning, as tracking your cash flow (your incoming and outgoing cash) is hugely important in any business. 

Countingup is the business current account with built-in accounting software that allows you to manage all your financial data in one app. With features like automatic expense categorisation, invoicing on the go, receipt capture tools, tax estimates, and cash flow insights, you can confidently keep on top of your business finances wherever you are. 

You can also share your bookkeeping with your accountant instantly without worrying about duplication errors, data lags or inaccuracies. Seamless, simple, and straightforward! 

Find out more here .

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Sample Recruitment Business Plan

A sample recruitment business plan revolves around basically three words that describe your business philosophy. 3 min read updated on February 01, 2023

Updated November 2, 2020:

Sample Template for Starting a Recruitment Business

Business Niche

Creating a business plan involves making some decisions upfront. This means choosing a niche. By doing so, you'll be deciding the type of recruitment agency to start and the industry to serve.

Observing Competitors

Observe how your competitors' work provides an excellent opportunity and how its recruitment process works.

Gathering Experience

Starting a recruitment agency requires the experience that a recruiter uses to find the perfect match for a company's needs. Examples of what you need to know include:

  • Knowledge of recruiting
  • Recruitment strategies
  • Personal skills

To acquire the type of experience necessary to operate a recruitment agency, it's recommended that you register with a reputable recruitment agency to experience, firsthand, some basic training in how an agency operates.

Building Skills

Keep in mind that part of a recruiter's job is testing the skills of potential candidates for jobs. So, your own skill level must be up to the task. It's equally important that you're able to recognize someone with potential even though they may not possess a lot of experience. You also need the insight to place the right person in the right position.

Evaluating Start-Up Costs

A recruitment agency isn't a cheap business venture to initially get started. You'll need a checklist of all things needed and the cost of each item. Things to include are staff payroll, marketing, insurance, and basic business expenses.

Researching Recruitment Laws

Study and become familiar with the recruitment laws in your state to ensure you aren't in violation. Each has guidelines that may include requirements for specific industries.

Obtain a Business License

Check with your local city and county office as well as the state to find out if or what type of business license is required to operate a recruitment agency. Obtain the license prior to opening for business.

Research Employment Laws

Laws guiding the rules of employment in each state are also in effect and something you must become familiar with. Examples include laws against discrimination and equal opportunity employment .

Business Location

Select a business location that's visible and easily accessible for clients and job applicants.

Register With Recruiters

Register with other companies as a recruiter. This is a way to bring in business should a company need to fill a position and contact you to fill the position.

Create a Marketing Plan

Create a marketing plan that outlines your business and its services. Make a list of businesses to contact and send a letter of introduction letting owners/managers of these businesses know about your company and what it has to offer. Also, follow up on each letter. Take advantage of the internet and newspapers by placing ads to highlight your business.

Create a Business Website

In today's fast-paced world, having a website is the standard operating procedure. A website is a gateway to advertising job vacancies. It's also a way for potential job seekers to provide resumes and conduct online interviews.

Hire Support Staff

A recruitment agency requires lots of paperwork, and you'll need to hire qualified staff to help with the tasks. This means bringing staff on board who have previous recruitment experience.

Contact insurance companies about purchasing liability insurance for your business.

Business Bank Account

Open a business account that's separate from your personal account for accepting payments for services from clients.

Equipment Necessary for a Recruiting Agency

The office space should include a reception area for greeting applicants and receiving applications. There should also be a conference room where you can conduct interviews. Necessary equipment includes:

  • At least one computer.
  • Testing software (i.e., printer(s), a fax machine, and a photocopier).
  • Reliable internet service.
  • Business cards.

Potential Recruiter Salary

On average, a recruitment consultant has the potential to earn between $65,000 and $75,000 annually. Charges for placing a candidate can range between 14 and 20 percent. Charges for your services may be based on a percentage of the candidate's first annual salary. The other option is charging a flat fee to the company you're recruiting for.

If you need help with a sample recruitment business plan, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.

Hire the top business lawyers and save up to 60% on legal fees

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How to write a business plan for your recruitment agency.

business plan for a recruitment agency

Starting a recruitment agency is a great idea because it provides a valuable service to employers and job seekers alike.

It is a great way to bridge the gap between the two and facilitate successful career placements.

But, first thing first, you need a business plan.

A business plan is essential for any new project, as it allows you to clearly define your goals, objectives, and strategies for success. It also provides a roadmap for the future, helping to ensure that your project is successful in the long term.

In short, a good business plan will help make sure your recruitment agency is profitable .

What information should you put into the business plan of a recruitment agency? What's the basic outline for the structure? What financial metrics should be included? What steps should I follow to write a business plan efficiently?

Stay with us: we'll tackle all these questions!

One last thing, you don't have to start your business plan from scratch.

Feel free to download our detailed business plan for a recruitment agency and customize it for your business.

business plan staffing agency

Mapping out a business plan for a recruitment agency

Do you need to develop a business plan for your recruitment agency.

Yes, you need to develop a business plan for your recruitment agency.

Crafting a well-structured business plan will help you to:

  • get familiar with the recruitment agency market
  • be aware of new consumertrends and apply them to your project
  • recognize profitability factors for a recruitment agency
  • understand the hiring needs, job requirements, and talent preferences of client companies
  • come up with a winning value proposition for your staffing services agency
  • identify potential competitive threats
  • find distinctive competitive edges for your recruitment agency
  • find a business model that delivers consistent positive financial outcomes
  • formulate an airtight strategy to maximize business growth
  • evaluate potential risks specific to a recruitment agency, including client satisfaction, candidate vetting, and legal compliance

Our team has created a business plan for a recruitment agency that is designed to make it easier for you to achieve all the elements listed.

How to organize a business plan for a recruitment agency?

Inside a business plan, you'll find a lot of important information and details. It must be presented in a structured format, to make easy to read and digest.

When we built and designed our business plan for a recruitment agency , we made sure to structure it propertly.

We've categorized it into 5 sections (Opportunity, Project, Market Research, Strategy and Finances).

1. Market Opportunity

The section number one is titled "Market Opportunity."

In this section, you will find valuable data and insights about the recruitment agency, helping you understand the market landscape and assist companies in finding and hiring top talent.

We constantly update all the data there.

2. Project Presentation

The second part is dedicated to the "Project" of your recruitment agency. Here, you can outline the industries you specialize in, recruitment services offered, candidate sourcing strategies, screening and selection processes, client partnerships, and the unique value proposition that connects top talent with the right job opportunities.

Also, provide a self-introduction at the end of this section.

Discuss your expertise in talent acquisition, your range of recruitment services, and how you plan to provide comprehensive and tailored staffing solutions to clients. Highlight your industry knowledge, your network of professionals, and your dedication to matching the right talent with the right opportunities through your recruitment agency.

We drafted some language for you in our business plan. Adjust it to suit your idea perfectly.

3. Market Research

Then, there is the "Market Research" section.

In this section, you will find a detailed market segmentation analysis for your recruitment agency.

It includes a presentation of other recruitment agencies in the area that will be competing with you. Your agency's expertise in talent acquisition and competitive advantages are also highlighted. A customized SWOT analysis is included.

4. Strategy

The "Strategy" section outlines a comprehensive 3-year action plan, detailing the initiatives and steps needed to transform your recruitment agency into a highly profitable endeavor.

Additionally, there's a marketing strategy, a risk management strategy, and a Business Model Canvas available in this section.

5. Finances

In the end, you'll find the "Finances" section, which provides a comprehensive overview of the financials for your project.

business plan recruitment agency

How to make an Executive Summary for a recruitment agency?

The Executive Summary serves as an introduction to the business plan for your recruitment agency.

Keep it concise and ensure it fits within 2 pages. Highlight only the necessary details.

When you present your business plan to investors, this is the section they will read first. It needs to grab their attention and make them want to explore the rest of the plan.

In the Executive Summary of your recruitment agency, address the following queries: what services does your recruitment agency offer? who is your target market? are there other recruitment agencies in the industry? what sets you apart from them? what funding do you require?

How to do the market analysis for a recruitment agency?

Analyzing the market for your recruitment agency allows you to gain insights into factors such as client demands for talent acquisition, competition within the recruitment industry, and emerging trends in HR and staffing.

By conducting a thorough market study, a recruitment agency can understand client hiring needs, offer effective recruitment solutions, optimize pricing strategies, and execute targeted marketing campaigns, ultimately leading to a larger client base, increased job placements, and a prominent position in the recruitment industry.

Here is what you can expect to find in the "Market Research" section of our business plan for a recruitment agency :

  • market trends and data about recruitment agencies, including job market analysis, talent acquisition strategies, and industry-specific hiring trends
  • a list of potential customer segments for a recruitment agency
  • the competitive comparison
  • the potential competitive advantages for a recruitment agency

business plan recruitment agency

The key points of the business plan for a recruitment agency

What's the business model of a recruitment agency, business model of a recruitment agency.

A recruitment agency's business model revolves around connecting employers with qualified candidates for job openings. Revenue is generated through fees or commissions based on successful placements.

The business model focuses on understanding clients' hiring needs, conducting candidate sourcing and screening, effective marketing to attract employers and job seekers, and building strong client and candidate relationships based on trust and expertise in recruitment.

Success depends on building a robust candidate database, delivering suitable talent for job openings, fostering positive client and candidate experiences and recommendations, and continuously adapting to changing recruitment methods and job market dynamics.

Business model ≠ Business plan

Make sure you differentiate between "business plan" and "business model."

A business model describes how a company generates income and operates successfully.

In a business plan, you articulate your business model through a framework known as the Business Model Canvas.

Rest assured, there is a Business Model Canvas (already completed) in our business plan for a recruitment agency .

How do you identify the market segments of a recruitment agency?

Market segmentation for your recording studio involves dividing your potential clients into different groups based on their recording needs, music genres, and preferences.

These categories may include factors such as music artists, voice-over artists, podcasters, or clients seeking specific recording services or equipment (e.g., vocal recording, sound mixing, podcast production).

By segmenting your market, you can offer specialized recording services and facilities that cater to each segment's specific requirements. For example, you might focus on music artists and provide state-of-the-art recording studios equipped with instruments and production tools for music production, offer professional voice-over recording services for clients in need of high-quality voice recordings for commercials, audiobooks, or animations, specialize in podcast production and provide podcasters with dedicated recording spaces and podcast editing services, or focus on specific recording services or equipment such as vocal recording, sound mixing, or audio mastering.

Market segmentation allows you to effectively target your marketing efforts, communicate the capabilities and technical expertise of your recording studio, and provide a creative and professional recording environment that meets the unique needs and preferences of each client segment.

In the business plan for a recruitment agency , you will find a comprehensive market segmentation that will help you better understand your potential customers.

How to conduct a competitor analysis for a recruitment agency?

Without surprise, you won't be the only recruitment agency in your market. There will be other agencies offering staffing and talent acquisition services to organizations.

Understanding your competitors' strengths and weaknesses is critical when developing your business plan.

Identify their weaknesses (such as limited industry connections, inadequate candidate screening, or poor client communication).

Why is it important to address these elements? Because these weaknesses can impact the effectiveness of recruitment agency services.

By focusing on these areas, you can offer a wide network of qualified candidates, provide efficient and thorough recruitment processes, and deliver personalized and attentive client support, positioning your recruitment agency as a trusted and preferred partner for businesses seeking top talent and successful staffing solutions.

It's what we call competitive advantages—develop them to make your business stand out.

Here are some examples of competitive advantages for a staffing agency: extensive network of qualified candidates, personalized recruitment solutions, timely placements.

How to draft a SWOT analysis for a staffing agency?

A SWOT analysis can help identify the strengths, weaknesses, opportunities, and threats of a recruitment agency, enabling informed decision-making and increased success.

As you can guess, there is indeed a completed and editable SWOT matrix in our business plan for a recruitment agency

The strengths for a recruitment agency

When we talk about the "S" in SWOT, we mean Strengths, which are the project's internal capabilities or unique strengths.

For a recruitment agency, possible strengths could include an experienced team, a strong network of contacts, an extensive database of candidates, and a comprehensive understanding of the recruitment market.

The weaknesses for a recruitment agency

W stands for Weaknesses, referring to the project's areas or aspects that have room for improvement.

For a recruitment agency, potential weaknesses include difficulty in finding suitable candidates, lack of access to a large pool of qualified applicants, high cost of advertising to attract talent, and potential clients not trusting the agency.

The opportunities for a recruitment agency

The letter "O" in SWOT signifies Opportunities, highlighting the favorable conditions or chances for the project's progress.

In the case of a recruitment agency, potential opportunities include providing executive search services, offering temporary staffing solutions, providing online job postings, and providing career coaching services.

The threats for a recruitment agency

When we use the "T" in SWOT, we're referring to Threats, which are the external risks or challenges that the project may encounter.

How to develop a marketing plan for a staffing agency?

A marketing strategy is a key factor in acquiring customers and increasing revenue, so include it in your business plan.

A well-crafted marketing strategy will attract companies and job seekers to your recruitment agency, emphasizing your expertise in matching the right talent with the right job.

Companies won't hire your recruitment agency without effective marketing; showcasing your talent pool and personalized approach is crucial.

Are you utilizing marketing tactics to attract clients to your recruitment agency? Consider building strong relationships with local businesses and job seekers, offering specialized recruitment services, and utilizing digital marketing strategies to showcase your expertise in the industry.

Don't let a lack of ideas for your project's marketing strategy discourage you.

How to build a solid financial plan for a staffing agency?

A solid business plan must include financial data to provide an accurate assessment of the business's potential success.

Obviously, you should estimate the projected revenue for your recruitment agency.

It's crucial for this revenue forecast to be clear and straightforward.

Our financial plan for a recruitment agency is easy to use and includes built-in checks to help you identify and correct any assumptions, ensuring you create reliable projections with confidence.

Without a doubt, you'll need to come up with a basic budget for starting your recruitment agency. Make sure to include every expense (by the way, they are all listed in the financial plan we've made).

The break-even analysis is central in the financial plan as it will tell you whether your recruitment agency will generate profits or not.

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Recruitment Business Plan Template & Guidebook

For any business looking to take their recruitment efforts to the next level, having an effective plan of action is a must. The #1 Recruitment Business Plan Template & Guidebook offers an easy-to-follow framework for creating a step-by-step recruitment strategy that will get results. This comprehensive guide includes everything you need to know to develop an actionable plan backed by best practices and insightful tips from industry experts. Let's explore what this powerful tool can do to help you increase your hiring success.

Nick

Get worry-free services and support to launch your business starting at $0 plus state fees.

  • How to Start a Profitable Recruitment Business [11 Steps]
  • 10+ Best & Profitable Recruitment Business Ideas [2023]
  • List of the Best Marketing Ideas For Your Recruitment Service:

How to Write a Recruitment Business Plan in 7 Steps:

1. describe the purpose of your recruitment business..

The first step to writing your business plan is to describe the purpose of your recruitment business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a recruitment business:

Our mission is to provide world-class and innovative recruitment solutions that help organizations find and hire the best talent to increase their competitive advantage. We strongly believe in the power of bringing together the right people and nurture a culture of employee satisfaction, growth and development.

Image of Zenbusiness business formation

2. Products & Services Offered by Your Recruitment Business.

The next step is to outline your products and services for your recruitment business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

  • What is my business?
  • What are the products and/or services that I offer?
  • Why am I offering these particular products and/or services?
  • How do I differentiate myself from competitors with similar offerings?
  • How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

Image of Zenbusiness business formation

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your recruitment business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your recruitment business includes the following elements:

Target market

  • Who is your target market?
  • What do these customers have in common?
  • How many of them are there?
  • How can you best reach them with your message or product?

Customer base 

  • Who are your current customers? 
  • Where did they come from (i.e., referrals)?
  • How can their experience with your recruitment business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

  • How does it work, what features does it have, and what are its benefits?
  • Can anyone use this product or service regardless of age or gender?
  • Can anyone visually see themselves using this product or service?
  • How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

  • Which companies are competing with yours today (and why)? 
  • Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
  • What specific advantages does each competitor offer over yours currently?

Marketing channels

  • Which marketing channel do you intend to leverage to attract new customers?
  • What is your estimated marketing budget needed?
  • What is the projected cost to acquire a new customer?
  • How many of your customers do you instead will return?

Form an LLC in your state!

sample business plan for recruitment agency

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

  • The equipment and facilities needed
  • Who will be involved in the business (employees, contractors)
  • Financial requirements for each step
  • Milestones & KPIs
  • Location of your business
  • Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a recruitment business?

  • Internet access
  • Recruiting software
  • Phone line (landline or mobile)
  • Business license and permits in accordance with local government regulations
  • Advertising resources (e.g. newspapers, job boards, recruitment websites)
  • Office space (if applicable)
  • Business cards, stationery, brochures

5. Management & Organization of Your Recruitment Business.

The second part of your recruitment business plan is to develop a management and organization section.

This section will cover all of the following:

  • How many employees you need in order to run your recruitment business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
  • The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
  • How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Recruitment Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a recruitment business varies based on many different variables, but below are a few different types of startup costs for a recruitment business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your recruitment business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your recruitment business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your recruitment business plan:

  • Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
  • Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
  • Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
  • Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
  • Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
  • Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

sample business plan for recruitment agency

Frequently Asked Questions About Recruitment Business Plans:

Why do you need a business plan for a recruitment business.

A business plan for a recruitment business is important because it serves as a roadmap outlining the objectives, strategies and action plans for the business. It can also help to identify potential risks, as well as ways to manage those risks, and establish financial goals. Furthermore, a business plan can help to attract potential investors or lenders and provide a basis for evaluating the success of the business.

Who should you ask for help with your recruitment business plan?

You should ask for help from an experienced recruitment consultant, business consultant, or a professional business coach. They can provide you with valuable advice and resources to help you create a successful business plan. Additionally, you may want to consult with a lawyer or accountant who have expertise in the recruitment industry.

Can you write a recruitment business plan yourself?

Yes, it is possible to write a recruitment business plan yourself. However, it may be more beneficial to consult a professional business plan writer to ensure the plan meets industry standards and contains all the necessary components. A professional also has experience in writing successful plans, which can greatly increase the chances of success.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

Additional Resources

Understanding the Importance of a Business Plan

A well-structured business plan is the cornerstone of success for recruitment agencies. It   serves as a blueprint outlining  your agency’s vision, mission, goals, strategy, and financial projections. 

Here is why it is crucial for the success of a recruitment agency. 

  • A well-crafted business plan is a strategic tool that enables recruitment agencies to stay focused on their objectives, create a competitive edge, and ultimately achieve long-term success. 
  • Notably, it allows you to identify potential challenges and opportunities, set realistic expectations, and allocate resources efficiently.
  • By providing a clear roadmap for growth, a comprehensive business plan helps you navigate the complexities of the recruitment industry and adapt to the ever-changing market conditions.
  • It helps you make informed decisions and strategies effectively. 

Leveraging the Workbook for Enhanced Planning

Utilize the Business Plan Workbook to:

  • Deepen your understanding of each planning stage with detailed prompts and worksheets.
  • Organize your financial data, market research findings, and strategic objectives effectively.
  • Access valuable tips and best practices for recruitment agency startups.

By integrating this workbook into your planning process, you gain a valuable tool that enhances your business plan’s quality, making it a robust document that guides your agency towards achieving its goals.

The 7 Stages of Writing a Startup Recruitment Agency Business Plan

Writing a business plan from scratch for your recruitment agency can be challenging. We’ve compiled a comprehensive step-by-step guide to explain the process.

Here are the seven stages involved in putting together this critical document:

  • Defining your recruitment agency’s vision and mission
  • Identifying your business model and services
  • Conducting market research and analysis
  • Developing a marketing and sales strategy
  • Building your team and infrastructure
  • Defining financial projections and funding
  • Outlining risk assessment and mitigation strategies

Stage #1: Defining Your Recruitment Agency’s Vision and Mission (3 Steps)

Creating a solid   vision and mission statement  for your start-up recruitment agency business plan is crucial to guiding your business in the right direction.

To do this, follow the below steps:

  • Define your purpose.
  • Establish your goals.
  • Outline your values.

With a trusted partner like Recruiter Startup…

…. costs to start your recruitment desk are minimal compared to starting from scratch

Step #2: Establish your goals.

Set measurable goals to work towards, such as:

  • Place 100 candidates in new jobs within the first year.
  • Generate £250,000 in revenue by the end of year two.
  • Build a network of 500 vetted clients and 1,000 active candidates in the UK.

If you’re putting together a start-up recruitment agency business plan, it’s important to review and revise your goals regularly based on your progress and market conditions. 

Step #1: Define your purpose.

Establish the underlying reason for starting your recruitment agency in the first place. Do you want to help people find meaningful work, support growing businesses, focus on a niche industry, or something else? Whatever the reason, your purpose should align with your values.

For example:

  • To help UK technology startups attract top talent.
  • To provide job opportunities for disadvantaged groups in local communities.
  • To become the go-to agency for healthcare recruitment in the UK.

Step #3: Outline your values.

The values that guide your agency will shape your culture and brand.

Examples include the following:

  • Integrity:  We’re honest and transparent and keep our promises.
  • Excellence:  We strive to exceed expectations and deliver the highest quality service.
  • Diversity:  We believe in providing equal opportunities regardless of gender, ethnicity, or background, in line with the  UK Equality Act 2010 .

Your vision, purpose, goals, and values provide the foundation for your recruitment agency business plan. Refer to them often when making critical decisions to stay on track. 

Stage #2: Identifying Your Business Model and Services

Next, consider which business model suits your needs: focusing on permanent placements, contract staffing, or both.

The services you offer should align with your expertise and target market. For instance, if you have a background in IT, specialising in tech recruitment might be ideal. However, starting with generalist roles could be more suitable if you’re new to the industry.

Lead generation

Developing a comprehensive recruitment agency business plan in the UK (or any other country) can be complex and often impractical for new agency owners. A more efficient alternative is to start your own recruitment desk under Additional Resources’ Recruiter Startup model.

We provide the necessary infrastructure, tools, training, and support to help you launch your agency quickly, enabling you to start matching candidates with jobs and generating revenue immediately. 

Stage #3: Conducting Market Research and Analysis (A 4-Point Checklist)

Performing market research for your recruitment agency is essential for understanding your target market, competitors, and industry trends.

This involves the following activities:

  • Surveying businesses in your area
  • Researching competitors
  • Tracking industry trends
  • Analysing data for opportunities

2. Researching Competitors

Investigate what competitors offer and how they operate — research their fees, services, and client attraction strategies. The UK recruitment industry is highly competitive, comprising  over 27,700 agencies . Hence, understanding your competition will help you differentiate your agency.

1. Surveying Businesses in Your Area

Determine hiring needs and budgets by surveying local businesses. As of 2022, the UK had approximately  5.5 million  private sector businesses, providing ample opportunities to explore various industries and niches. 

4. Analysing Data for Opportunities

After gathering data, analyse it to identify opportunities and establish a competitive advantage. Look for unmet needs or new trends to capitalise on.

3. Tracking Industry Trends

Stay updated on trends like remote work, which increased significantly during the COVID-19 pandemic, with   17.4% of the UK workforce   working from home in 2020. Also, monitor the demand for contract staff, as the gig economy has grown in recent years. Adapting to the ever-changing recruitment landscape is vital for long-term success.

Starting a business from scratch can be hectic. As an alternative, consider joining a recruitment franchise like Recruiter Startup. We have an established brand and in-depth industry knowledge, helping you begin your journey with a solid foundation.

Check out our  associates recruitment model  to learn more about how we operate and how much you can earn working from home.

Stage #4: Developing a Marketing and Sales Strategy (5 Tips)

A solid marketing and sales strategy is crucial for building a successful business, recruitment agencies inclusive.

These five tips can help outline a compelling start-up recruitment agency business plan, which is vital if you’re looking to convince investors to fund your enterprise:

  • Define your target market.
  • Build your online presence.
  • Develop a marketing strategy.
  • Source great candidates.
  • Provide excellent service.

1. Define your target market.

To identify your ideal job-seekers, focus on an initial niche, such as IT professionals, nurses, or teachers. You may go on to specify locations, experience levels, and skills.

For example, you may focus on recruiting in the healthcare niche, a highly viable market — the UK has a high demand for healthcare professionals, with the NHS employing o ver 1.4 million people . Targeting your market makes reaching them more manageable.

2. Build your online presence.

About   61% of job-seekers  in the UK used online job boards to find employment in January 2022 alone.

Take advantage of this viable marketplace by developing a professional website to showcase your agency’s credibility. Optimise for search engines using essential keywords, like “recruitment agency” and your location, e.g., “London.” Create LinkedIn, Facebook, and Twitter profiles for networking with candidates and clients.

Our post on how to start a recruitment agency expounds more on the need to achieve a robust digital profile.

3. Develop a marketing strategy.

An excellent recruitment business plan example outlines how it plans to generate leads.

  • Identify the best ways to promote your agency. 
  • Consider advertising on job sites like Totaljobs, Reed, CV-Library or in industry publications. Offer discounts and promotions to new clients and attend local networking events to form personal connections. 
  • Lastly, regularly email your contact list with job openings and agency updates.

4. Source great candidates.

Post jobs on your website, social media, and platforms frequented by your target candidates. You may also utilise your network to gather referrals but thoroughly screen candidates to ensure the best matches for your clients. 

5. Provide excellent service.

Strive to build lasting relationships with clients and candidates — regularly check in to ensure satisfaction and address any issues promptly. Go above and beyond expectations, such as assisting a new hire’s onboarding process.  Up to 83%   of satisfied clients and candidates will likely refer others and return to your agency, boosting profit margins by 25%.

By following these steps, you’ll be well on your way to developing a successful marketing and sales strategy for your UK recruitment agency. While crafting a comprehensive recruitment agency business plan can be challenging, focusing on the essentials lays a solid foundation for your agency’s growth.

Stage #5: Building Your Team and Infrastructure (A 4-Point Checklist)

Assembling a team of qualified professionals and establishing the necessary infrastructure is crucial when building a recruitment agency, so you must consider it in your recruitment agency business plan . However, this can be challenging and costly, as outlined in our post on recruitment agency startup costs .

Adhering to the following checklist can make your task easier:

  • Hiring recruiters
  • Administrative support
  • Office space
  • Technology infrastructure

2. Administrative Support

Your agency needs administrative staff to manage daily operations, such as answering phones, organising schedules, and updating records. An administrative assistant’s average salary in the UK is  £20,664 annually . Any candidate you’re hiring should have strong organisational and communication skills.

1. Hiring Recruiters

Recruiters are the backbone of your agency. Aim to hire experienced recruiters with proven success in your target industry or job function.

In the UK, the average salary for a recruiter is   £31,489 per year , with bonuses and commission potentially increasing earnings. Recruiters must excel in networking, interpersonal, and sales skills to effectively find candidates and maintain client relationships.

3. Office Space

If not operating virtually, secure office space for your team. Consider a location easily accessible for candidates and clients, with room for private offices or cubicles, a reception area, conference rooms, and storage. In the UK, office rental costs vary by location, with London prices ranging from   £50 to £150  per square foot per year.

4. Technology Infrastructure

Invest in a robust technology infrastructure, including the following:

  •   Applicant Tracking System (ATS):  Essential for managing candidates. Popular options in the UK include   Bullhorn  and  Firefish .
  • Customer Relationship Management (CRM) system:  Vital for tracking clients and placements.  Salesforce  and  HubSpot  are widely used in the UK.
  • Fast internet connectivity:  Important for efficient operations.
  • Enterprise-level security:  Crucial for protecting sensitive data and complying with UK data protection regulations like  GDPR .
  • Virtual communication tools:  Video conferencing platforms like Zoom or Microsoft Teams facilitate remote collaboration.

Setting up a recruitment agency’s team and infrastructure is a significant undertaking, requiring substantial resources. For those considering an easier route, a franchise model like Recruiter Startup provides the essential components and support under Additional Resources , allowing you to focus on growing your business. Check out what others are saying about us .

Stage #6: Defining Financial Projections and Funding

To create a comprehensive recruitment agency business plan, it’s essential to determine funding sources and estimate projected returns on investment.

Financial projections and funding

2. Finding Funding Sources

  • Business loans: Banks, credit unions, and online lenders offer loans, but they require collateral and solid financial projections. The British Business Bank can help you find suitable financing options in the UK.
  • Angel investors: These are wealthy individuals who invest in exchange for equity and high potential returns. The UK Angel Investment Network can help connect you with investors.
  • Crowdfunding: This involves raising small amounts from multiple contributors. Platforms like Seedrs and Crowd cube are popular but require dedicated effort.
  • Franchising: Pay an upfront fee to access a proven model and brand, e.g., Additional Resources’ Recruiter Startup . This option provides more support but less control over your agency.

Note: With Recruiter Startup, your upfront fee is only £750 + VAT per month, a far lower expense than starting your own recruitment agency.

1. Creating Financial Projections

Consider the following factors in doing so:

  • Revenue: Estimate the number of placements you can make annually and the average fee per placement. In the UK, the average fee for permanent placements is around 15–20% of the candidate’s annual salary. Don’t forget to account for seasonal fluctuations in the job market.
  • Expenses: Calculate rent, payroll, marketing, and other business expenses. In London, for example, office rental costs can range from £50 to £150 per square foot per year. 

Note: When you set up as a franchise recruiter under the Recruiter Startup model, your expenses will be slashed as you won’t need to spend on office space or staff.

  • Profit: Determine your projected profits by subtracting expenses from revenue. This demonstrates the potential ROI for investors.

To secure funding, present a well-developed business plan with solid financials and explain how the investment will drive growth and profits.

Stage #7: Outlining Risk Assessment and Mitigation Strategies

Considering potential risks and creating strategies to address them is crucial for the success of your recruitment agency.

Here are some key areas to focus on:

1. Identifying and Addressing Risks

When designing your recruitment agency business plan, anticipate challenges and develop solutions.

Common risks include the following:

  • Economic downturns : A weak economy slashes hiring rates. Maintain cash reserves and diversify your client base to mitigate this risk.
  • New competitors:  Stay competitive by focusing on niche markets and building strong client relationships. There are over 27,700 recruitment agencies in the UK, making it essential to stand out.
  • Key staff departures : Retain top talent by implementing training programs and offering incentives. Take note that ensuring high employee turnover can be costly and disruptive.

2. Meeting Legal Requirements

Compliance with legal regulations is vital for your agency’s reputation and success.

To achieve this, ensure you do the following:

  • Adhere to data protection laws : Obtain consent for storing and using client/candidate information. In the UK, compliance with the GDPR is mandatory.
  • Follow employment regulations:  Verify candidates’ right to work and provide fair pay/contracts. UK agencies must comply with the  Conduct of Employment Agencies and Employment Businesses Regulations 2003.
  • Register as an employment agency:  Requirements vary across countries and states. Registration with the  Employment Agency Standards (EAS)   Inspectorate is necessary for the UK.

Failing to comply with legal obligations can result in fines, reputational damage, or even forced closure. Hence, prioritise compliance from the outset.

Saving Time and Cost With the Franchise Recruitment Model

Starting a recruitment agency from scratch can be time-consuming and expensive, especially when considering investing in a robust recruitment agency business plan. However, a franchise recruitment model can save time and money, allowing your business to become operational more quickly and efficiently.

The key benefits of choosing a franchise recruitment model include the following:

Saving time and cost

  • Accelerated business setup : Franchising allows you to leverage an established brand and proven business model, significantly reducing the time and effort required to start your agency.
  • Existing customer base:  As a franchise recruiter working from home, you can tap into the franchise agency’s existing customer base, reducing the need to invest heavily in marketing and brand awareness campaigns.
  • The lion’s share of all placement fees : When you register as a franchise recruiter with an agency like Recruiter Startup, you get to keep 80%–90% of all your placements.
  • Comprehensive business plan:  Franchise recruitment eliminates spending months perfecting your business plan, as the franchise agency provides a tried-and-true plan to follow.
  • Online presence and marketing materials:  Franchise recruiters can bypass the hassle of building a website and online presence by using the franchise agency’s established website and marketing materials.
  • Cost savings:  The franchise recruitment model often includes software requirements and supplies provided or subsidised by the franchise agency, leading to significant cost savings.
  • Expert guidance and training:  Franchise recruiters can benefit from valuable insights and training from an experienced franchise agency that’ll guide them through setting up and operating their recruitment desk.

Choosing a franchise recruitment model allows aspiring agency owners to start placing candidates and generating revenue much sooner. This approach saves time compared to spending months designing a recruitment agency business plan. The franchise model is an attractive option for those looking to enter the recruitment industry hassle-free.  Contact us  now to get started!

Recruitment Agency Business Plan - Frequently Asked Questions

Yes, starting a recruitment agency can be a good idea if you possess strong industry knowledge, networks, and the ability to match job seekers with suitable employers. The recruitment industry can be lucrative and rewarding. However, it’s essential to be aware of the challenges, such as competition, changing market conditions, and the need for adaptation to new technology. 

Yes, starting a recruitment agency can be a good idea if you possess strong industry knowledge, networks, and the ability to match job seekers with suitable employers. The recruitment industry can be lucrative and rewarding. However, it’s essential to be aware of the challenges, such as competition, changing market conditions, and the need for adaptation to new technology.

Some of the best industries to start a recruitment agency are:

  • Medical and Healthcare
  • Information Technology (IT)
  • Renewable Energy
  • Construction and Engineering

Yes, the recruitment industry can be challenging due to several factors, including the following:

  • High competition: With over 27,700 recruitment agencies in the UK alone, competition is quite steep.
  • Changing technology: Keeping up with new technologies like AI and automation may require adaptation and learning.
  • Building relationships: Developing solid relationships with clients and candidates is crucial but time-consuming.

Based on data from several sources, the UK recruitment industry is experiencing growth but at a slower pace . However, over 50% of recruitment agency experts forecast a 1%–25% Based on data from several sources, the UK recruitment industry is experiencing growth but at a slower pace . However, over 50% of recruitment agency experts forecast a 1%–25%

Wrapping It Up

So, there you have it — a complete guide to a recruitment agency business plan . As you can see, it’s no easy feat and requires a significant time and financial investment to get off the ground. The business plan alone can take months of work.  For those determined to forge ahead alone be sure to utilise our Recruitment Agency Business Plan workbook alongside this guide to help walk you step by step, and organise your thoughts and ensure no critical element is overlooked.

Why go through all that hassle when there’s a more straightforward solution?

Franchise models like Recruiter Startup offer an affordable turnkey solution to get your recruitment agency up and running in no time. We provide the systems, training, and support so you can focus on what matters — finding great candidates and clients.

Start building your dream recruitment agency today with a working business model. The opportunities are right here waiting for you, so take that first step now . You’ll be glad you did!

I'd like to explore the franchise model, what are the next steps?

Let's talk about starting your recruitment desk.

Additional Resources

01277 822668

Park Wood Technical Centre, Park Wood Doddinghurst Road Brentwood, Essex, CM15 0SN

Recruitment Agency Business Plan Workbook

Download the pdf.

Recruitment Agency Business Plan

Striking out and setting up your own recruitment agency is an exciting prospect, and there’s never been a better time to do it. With over 31,000 agencies in the UK, the recruitment industry is booming. Despite the profound impact of COVID-19 on the labour market, recruitment is projected to bounce back massively in 2024, so now is the perfect time to seize the opportunity and open your own agency.

Pre-pandemic, the recruitment industry generated over £42.3 billion in the UK alone, and recruitment agencies and firms are predicted to grow substantially in the next 3-5 years.

It’s clear that there is huge revenue potential in the recruitment industry. However, to stand out from the crowd, you’ll need a great recruitment agency business plan. This will give you the strategy and understanding of the industry you need to succeed.

So, where should you start? Our guide will take you through each individual step in making your own business plan. We’ll take you through marketing strategy, pricing structure and management, all of which are crucial to the success of your recruitment agency. As a new business owner, there will be a lot to take in, but with our recruitment agency business plan, you’ll have the ultimate guide to take you forward.

sample business plan for recruitment agency

Is opening a recruitment agency for you?

  • How much does it cost to open a recruitment agency in the UK?

What's included in our recruitment agency business plan?

  • Your free sample recruitment agency business plan template

Summary and recap

As we’ve already mentioned, there is great potential in the UK for recruiters, and the turnover could be really significant. However, with the popularity of the industry comes a lot of high level competition.

Before you do anything else, you should be clear on who your competitors are, who your clients will be and how you will reach them, as well as fees you might have to pay whilst setting up.

You should start with a business plan. You can use it to gather and collate all of your resources, ideas and research.

You should consider things like:

  • How many large recruitment agencies operate in the area (Adecco, Impellam, Reed etc.?)
  • How many local recruitment agencies operate in the area?
  • Is there likely to be any existing brand loyalty in the area?

How much does it cost to start a recruitment agency in the UK?

The average start-up costs to set up a recruitment agency in the UK vary considerably. More expensive start-ups will cover the costs of leasing premises, employing staff, buying equipment and any insurance you might need.

Key costs of starting your recruitment agency include:

  • £12 to register your company, and £30 a month for details such as creating a website, designing a unique brand, setting up a LinkedIn company page and advertising jobs.
  • You could also pay for added extras such as LinkedIn Premium and a CRM (Customer Relationship Management), a system which manages interactions with customers through data analysis, to win you as much business as possible.

However, there are ways to set up a recruitment agency without having to pay out thousands at first. By starting out as the sole employee, and even working from home, you can reduce costs to a bare minimum. All you really need is your home PC, mobile phone, some basic web tools and an internet connection.

With this in mind, a recruitment agency business plan is the best way to prepare yourself and plan for any financial obligations from the very start. We can also help you to figure out how to raise the capital you need for your business, based on your current financial situation.

We’ll take you through every step you’ll need to take to start your recruitment agency. It’s important to remember that if you plan to secure funds from a bank, it’s essential your business plan is as rigorous as it can be.

Included within our recruitment agency business plan, we offer:

  • A fully completed recruitment agency business plan
  • Break-even analysis (12-month analysis)
  • Complete business plan guide
  • Business plan template (.doc and .PDF)
  • Financial planning wizard

Along with that, we’ll offer you a further 25 (at least) ways to market your recruitment agency for free. All of this is at your fingertips.

Download now for only £49

In this guide, we’re going to take you through an outline for a recruitment agency business plan, detailing what you should include within each section, and things you should consider when pitching your business to investors.

However, please remember this is only a guide. When writing your business plan for your own recruitment agency, make sure to take your time and work through everything in scrupulous detail.

When it comes to a business plan, the more thorough the better. You can never over-plan when it comes to a business start-up.

Step 1: Executive summary

Imagine you are pitching your business to an investor, what would you say? Remember that banks and investors will have seen thousands of previous pitches, so you really need to stand out to grab their attention. Putting serious thought and effort into your executive summary will be well worth it.

Make sure to think about these three things:

  • Keep your language clear, concise and easy to read. Make it short and sweet.
  • What makes you stand out from other recruitment agencies?
  • Why should they be confident they will get their money back?

Remember, this is your opportunity to convince investors of your business’ credentials. Keep it positive, clear and easy to understand. Don’t get drawn into detailed descriptions or explanations, and avoid technical terms and jargon. Go out and grab their attention.

Step 2: Company overview

The company overview is your chance to properly introduce yourself and your business. You can give your potential investors a more detailed insight into how you plan to make sure your recruitment agency is a success.

Always remember, your focus should be on why investors should choose to put money into your recruitment agency, and why they should believe they’ll make a return on their investment.

You can consider including the following ideas in your company overview:

  • What previous experience do you have managing a business
  • What made you decide to start a recruitment agency?
  • How will you stand out from your competition?
  • Exactly who are your target clients? Do you have an ideal customer?
  • What is your current financial status?

You need to show that you have a good understanding of the recruitment industry. Let them know the extent of your knowledge of the current market, how you expect it to change, and how your company is suited to thrive in the future.

You should think like a business person and don’t give your investors any reason to doubt your command of the subject.

Some other things to consider include:

  • How you plan to expand your recruitment agency in the future.
  • Your local market and competition.
  • How is your application different to the others your investors have seen?

Basically, the goal of your company overview is to deliver a complete outline of your recruitment agency to your potential investors. Make sure to include facts and figures, and show off all your skills and expertise.

Feel overwhelmed? Not sure where to start? We’ve done all of the hard work for you.

Instant download for £49

Step 3: Management and key personnel

A business is only as good as the people behind it. To really make your recruitment agency a success, you’ll need the support of a great team. In the management and key personal section of your plan you should detail your management, staff, and plans for further growth.

Remember to include:

  • Staff members and their roles at the agency
  • The previous experience of your staff
  • Your staff salaries
  • Do you plan to bring new people into the business? If so, when? How many? And what kind of salaries will they be paid?

This section really doesn’t need to be too long or complicated. All investors want to know is that you have a solid management structure and that you’ve made some plans for expansion in the future where necessary. As long as you’ve shown this, you’ll be just fine.

Step 4: External analysis (market research)

It’s crucial to have a strong understanding of your market before launching your start-up. It will help you recognise opportunities for your company to benefit from, and identify threats before they can damage your business.

Make sure you know the competition. What will make you stand out from them?

In this section you’ll also need to look into your target market, and how you’ll attract them over the competition. You should try to make this as detailed as possible, so that investors can see the focus of your agency. Being too vague might lead potential backers to believe you haven’t put much thought into it.

Who’s going to use your recruitment agency? (your target market)

Are you going to focus on recruiting in one particular industry? Or perhaps you’re going to specialise in junior or graduate roles? You need to know who your clients will be so you can tailor your marketing and branding to suit them.

Some things that you should think about include:

  • How will you get the attention of clients?
  • How much will you charge your clients?
  • What will make them choose you over other competitors?
  • How can you gain their loyalty?

How many recruitment agencies operate in your area?

In order to attract business you’ll have to stand out from other recruitment agencies that operate in the same region. How do you plan to separate yourself from your competition? Investors might be concerned about market saturation, and you need to prove to them that your agency has more to offer than any other around you.

Some things you can think about:

  • How much do you know about your competitors?
  • How many large recruitment agencies operate in your area?
  • What are the average costs of employing a recruitment agency?
  • Do they specialise in any particular industry? How does this compare with your own business?

Put yourself in the shoes of your ideal customer. What is going to make them choose you over another agency?

Step 5: your business objectives

Your business is going to need to have objectives, both for the short term and the long term. These objectives should be an outline to potential investors of what you are expecting to achieve over a time-frame.

Think about where you want your company to be after a month, then six months, a year and even five years. Don’t go crazy though. Ambition is good, but you shouldn’t be suggesting your business is going to become a giant of the industry after the first couple of years, as you will just come across as naive.

You should try to use the S.M.A.R.T criteria to keep track of your objectives.

Your S.M.A.R.T Criteria are:

If you still need some help coming up with objectives, you can consider some of the following:

  • How big is the market you’re targeting?
  • How do you plan to reach that market?
  • How many clients do you expect to have after the first two months?
  • How much revenue do you expect after the first six months?

Along with each objective you should provide a plan, as to how you expect them to be achieved.

Step 6: Services, equipment and amenities

By giving a detailed list of all the equipment you need to start your recruitment agency, investors will be able to see what their money is paying for.

This will depend very much on the scale of your planned agency. It would be possible to start by working from home with just your home PC and personal mobile phone. But if you’re thinking bigger, some items and services you should think about would include:

  • Office space, along with desks and chairs
  • Work Mobiles and mobile contracts

Be realistic in this section. You don’t need twenty PCs if you’re only employing a handful of staff. There’s no point in overspending.

Step 7: Financial forecasting and financial projections

This is the section where we crunch the numbers. Financial forecasting is probably the most important part of your business plan, as you can prove to investors that they will get some return on their investment.

This might be the trickiest and most time consuming part of the whole plan, but it is essential to do it properly.

You’re going to have to show your potential backers how you’ll recuperate the money they’ve invested. How much can you make per client? How many clients will you have?

The fundamentals you’ll need to provide:

  • Sales forecast
  • Expense budget
  • Cash-flow statement

There are a whole lot of things you’ll need to budget for. Some of those might include:

  • Purchase estimations
  • Hiring costs

If possible, don’t restrict yourself to just one avenue of revenue. Diversifying your income sources will make investors feel much more comfortable with their investment.

We’ve taken all of the hard work out of planning the finances for your recruitment agency. Download your recruitment agency business plan template instantly below.

Instant download

Step 8: Funding

Do you already have existing financial support? Your investors will need to know how much start-up capital you have, and where it’s coming from. You need to let them know whether you’re using money from your own pocket, or whether you have investments from some other backer.

You might have received funding in the form of:

  • Personal loans
  • Partners or sponsors
  • Family and/or friends

Be completely clear about where your money is coming from. Don’t hide anything from your investors.

You also need to be explicit about how much money you need, both now and in the future. You should also detail to investors how you’ll be spending it, whether it’s for equipment, renting premises or paying staff.

At the same time, don’t ask for more than you need, as it’s only likely to put investors off

Your free sample recruitment agency plan

If this is all still seeming a bit overwhelming, you might like to take a look at a small template we provide for a recruitment agency business plan. This can get you started and help you to come up with some of your own ideas.

Included in this template, you’ll get:

  • An example of your executive summary
  • Products/services on offer
  • Staff and management structure

Download .doc here

Launching your own business is a scary prospect. The recruitment industry is already a busy market, but there’s plenty of demand for it and forecasts anticipate its boom to continue. There are over 31,000 recruitment agencies in the UK, with a combined value of over £42.3 billion.

By creating a detailed and clear business plan, you’re giving yourself the best chance of success. You’ll be able to start out knowing you’ve considered every aspect of the business. Investors love an in-depth business plan, so remember: the more detail the better. With our experience, you can kick-start your agency with confidence.

sample business plan for recruitment agency

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Complete recruitment agency business planning package.

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Staffing Agency Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » B2B Sector

Are you about starting a staffing agency ? If YES, here is a complete sample staffing agency business plan template & feasibility study you can use for FREE .

Staffing agencies are responsible for helping organization recruit staff to fill vacant position in their organization and also help applicants / those in between jobs secure employment; offer a wide range of recruitment -related services, largely temporary and contract staffing.

They also recruit employees for permanent placements. Some staffing agencies offer services beyond just recruiting employees for its clients, but also help in training and preparing the employees to fit into the role that they are being recruited for. Usually such staffing agencies charge more than those who just recruit employees for their clients.

When it comes to getting paid, some staffing agencies charge their clients; applicant administrative fees so as to enable them process their application, match them with employers and successfully help in securing jobs. Processing the application of an applicant includes helping them restructure their CVs and cover letters so as to fit into the expectation of the recruiter (the organization they want to work for).

In essence, it is the practice for staffing agency to earn their money by charging their clients (employers of labor) for the amount of work the employee undertakes. In most cases, the staffing agency receives the same amount as the employee. Staffing agencies make more money when they help organizations recruit highly skilled staff on a permanent basis.

Although some recruitment agencies still enter into personal contract agreement with applicants -such that they will collect a percentage of their salary for a period of 3 months or more if they help the applicant secure a job; most states in the U.S. have outlawed this type of arrangement.

A Sample Staffing Agency Business Plan Template

1. industry overview.

It is on record that the staffing, recruiting, and workforce solutions industry makes a huge contribution to the economy of the United States of America, and they provide jobs and career opportunities for about 14 million employees annually. Despite the fact that staffing industry growth has outpaced the overall economic and employment growth in the U.S., it employs only about 2% of the U.S. non – farm workforce.

Statistics has it that in the united states of America, there are about 17,000 staffing and recruiting agencies and they operate around 35,000 offices scattered all around the U.S. Statistics also has it that the top 122 staffing agencies generates a combined sum of $69.4 billion in U.S. representing 55.9% of the market..

Records has it that 17 staffing agencies generated more than $1 billion in staffing revenue in 2014 and these staffing agencies represented over a third (36.4%) of the market. Each staffing agency on the list generated more than $100 million in U.S. staffing revenue in 2014.

No doubt, the $69 billion in staffing revenue generated by these staffing agencies give emphasis to the health of the staffing industry.

The staffing agency industry will continue to blossom because more and more organizations are beginning to realize that somehow they need the services of employment consulting firms to help them take aware the stress of recruiting workforce for their business which sometimes goes beyond recruiting to proving trainings and other Human Resources related services.

From all available statistics, it is safer to say the recruitment consulting industry is growing steadily despite the competitive nature of the industry. One thing is certain if you are well positioned, and have the required business skills, network.

Plus a robust CV bank, you may likely not have to struggle to compete favorable in the staffing industry. Another reason why people prefer to start a staffing consulting business is that, consultants have the monopoly to charge a fee as it suits them -especially if they are have been able to pay their dues in the industry over the years.

Other factors that encourage entrepreneurs to start their own staffing agencies or consulting firms could be that the business is easy to set up and the start – capital is indeed affordable; you can actually start your own staffing consulting business from the comfort of your house.

All you need to do is to create an office somewhere in your house. People usually pay you for the staff you can help them recruit and train.

2. Executive Summary

Brick House Staffing and Training Company, LCC is a Human Resource firm cum staffing agency that will be located in New York City, New York. The company will operate as a standard human resources consulting firm with bias in recruitment and trainings.

Our services will cover areas such as; Recruitment and Training Consulting, Highly Skilled Staffing Consulting, Unskilled Staffing (Maid supply, Nannies, Gardeners, Security Guards and Drivers et al), Permanent Staffing Consulting, Temporary / Contract Staffing and any other related human resources services.

We are aware that businesses these days require diverse and sophisticated approaches. This is why we will position our staffing agency to offer a wide range of related consulting services as requested by our clients. Brick House Staffing and Training Company, LLC is a client-focused and result driven staffing agency that provides broad-based experience at an affordable fee that won’t in any way put a hole in the pocket of our clients.

We will offer a complete range of human resources consulting services to our local, state, national, and multi-national clients and we will ensure that we work hard to provide the required consulting services and staffing solutions needed by our clients to accomplish their business goals and objectives.

At Brick House Staffing and Training Company, LLC, our client’s best interest come first, and everything we do is guided by our values and professional ethics. We will ensure that we hire consultants cum recruiters who are well experienced in a wide variety of human resources consulting and trainings et al.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Brick House Staffing and Training Company, LCC will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

Brick House Staffing and Training Company, LLC is founded by Dr. John Powel and his son Blaise Powel. The organization will be managed by Dr. John Powel; he graduated from University of California – Berkley (First Degree in Personnel Management), Brock School of Business at Stamford University (MBA), and University of Harvard (PhD.).

Dr. Powel is a Certified Recruiting Specialist (CRS), a Certified Personnel Consultant (CPC) amongst other certifications in Human Resources.

Aside from his core area of strength i.e. recruiting and trainings, Dr. Powel has extensive experience in a diverse range of business consulting, and his consulting practice is concentrated in the areas of helping both big corporations and start – ups position their business for growth, sustainability and expansion.

3. Our Products and Services

Brick House Staffing and Training Company, LCC is going to offer varieties of related staffing and training services within the scope of the consulting industry in the United States of America. Our intention of starting our staffing agency is to make profits from the industry and we will do all that is permitted by the law in the US to achieve our aim and ambition.

Our business offering are listed below;

  • Recruitment and Training Consulting
  • Staffing for the IT industry
  • Staffing for the Oil and Gas Industry
  • Staffing for the Health Sector (Nurses, Doctors et al)
  • Staffing for the Banking, Insurance and the Financial Sector
  • Recruitment, Human Resource and Capital Development Consulting
  • Highly Skilled Staffing Consulting
  • Unskilled Staffing (Maid supply, Nannies, Gardeners, Security Guards and Drivers et al)
  • Permanent Staffing Consulting
  • Temporary / Contract Staffing

4. Our Mission and Vision Statement

  • Our vision is to provide our clients with skilled staffing consulting and training solutions in a timely and efficient manner.
  • We strive to handle each client with accountability and responsiveness, as if we were recruiting and training staff for our own business.
  • We focus our attention on the providing workable business solutions as it relates to staffing for our clients so that our clients can focus their attention on the success of their business.
  • Our vision reflects our values: integrity, service, excellence and teamwork.
  • Our mission is to provide professional and trusted staffing and training consulting services that assist businesses and non-profit organizations in operating sustainably.
  • We provide workable staffing and training solutions in combination with our own business backgrounds, and deliver valuable services in a timely and cost-effective way.

Our Business Structure

Ordinarily we would have settled for two or three staff members, but as part of our plans to build a standard staffing agency business in New York City – New York, we have perfected plans to get it right from the beginning which is why we are going the extra mile to ensure that we have competent, qualified, honest and hardworking employees to occupy all the available positions in our firm.

The picture of the kind of staffing agency business we intend building and the business goals we want to achieve is what informed the amount we are ready to pay for the best hands available in and around New York City – New York as long as they are willing and ready to work with us to achieve our business goals and objectives.

Below is the business structure that we will build Brick House Staffing and Training Company, LCC;

  • Chief Executive Officer / Lead Consultant

Recruitment Specialist

  • Training and Development Executive

Legal Secretary

Admin and HR Manager

  • Business Developer (Marketing and Sales Executive
  • Customer Service Executive

Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Office / Lead Consultant:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
  • Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization
  • Responsible for drawing up contracts and other legal documents for the company
  • Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
  • Produces information by transcribing, formatting, inputting, editing, retrieving, copying, and transmitting text, data, and graphics; coordinating case preparation.
  • Provides historical reference by developing and utilizing filing and retrieval systems; recording meeting discussions; maintaining transcripts; documenting and maintaining evidence.
  • Responsible for handling staffing contracts for the IT industry
  • Responsible for handling staffing contracts for the Oil and Gas Industry
  • Responsible for handling staffing contracts for the Health Sector (Nurses, Doctors et al)
  • Responsible for handling staffing contracts for the Banking, Insurance and the Financial Sector
  • Handles Recruitment, Human Resource and Capital Development Contract for our clients
  • Handles Highly Skilled Staffing Contracts
  • Supervise unskilled staffing contracts (Maid supply, Nannies, Gardeners, Security Guards and Drivers et al)
  • Handles Permanent Staffing contracts for our clients
  • Supervise temporary / contract staffing contracts
  • Work with the Training and Development Consultant to develop training solutions for clients
  • Track hours and bill to clients.
  • Handle any other responsibility as assigned by the Lead Consultant

Training and Development Consultant

  • Coordinates training programs facilitated by Brick House Staffing and Training Company, LCC
  • Writes winning proposal documents, negotiate fees and rates in line with company policy
  • Identifies training and development needs for staff through job analysis, appraisals and consultation
  • Collects briefs from clients in respect of Recruitment exercise, Learning and Development and Advisory services
  • Designs job descriptions with KPI to drive performance management for clients
  • Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
  • Facilitates and coordinates strategic sessions.
  • Works directly with clients in a non-advising capacity, such as answering questions, scheduling appointments and making sure all training concerns are properly taken care off
  • Responsible for handling all trainings both internal and external trainings
  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Design job descriptions with KPI to drive performance management for clients
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
  • Defines job positions for recruitment and managing interviewing process
  • Carries out staff induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
  • Oversees the smooth running of the daily office activities.

Business Developer (Marketing and Sales Executive)

  • Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
  • Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Develops, executes and evaluates new plans for expanding increase sales
  • Documents all customer contact and information
  • Represents the company in strategic meetings
  • Helps increase sales and growth for the company
  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting for one or more properties.
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for the company
  • Serves as internal auditor for the company

Client Service Executive

  • Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Manages administrative duties assigned by the manager in an effective and timely manner
  • Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
  • Receives Visitors / clients on behalf of the organization
  • Receives parcels / documents for the company
  • Handles enquiries via e-mail and phone calls for the organization
  • Distribute mails in the organization
  • Handles any other duties as assigned my the line manager

6. SWOT Analysis

Brick House Staffing and Training Company, LLC engaged the services of a core professional in the area of business consulting and structuring to assist the firm in building a solid consulting firm that can favorably compete in the highly competitive consulting industry.

Part of what the team of business consultant did was to work with the management of the firm in conducting a SWOT analysis for Brick House Staffing and Training Company, LLC. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Brick House Staffing and Training Company, LLC;

Our core strength lies in the power of our team; our workforce. We have a team that are considered experts in the industry, a team with excellent qualifications and experience in recruiting and training.

Aside from the synergy that exist in our carefully selected workforce and our strong online presence, Brick House Staffing and Training Company, LLC is well positioned in a business district with the right demography and we know we will attract loads of corporate clients from the first day we open our doors for business.

As a new business consulting firm, it might take some time for our organization to break into the market; that is perhaps our major weakness.

  • Opportunities:

No doubt, the opportunities in the consulting industry of which recruiting and training is a part of is indeed massive and we are ready to take advantage of any opportunity that comes our way.

Every business faces a threat or challenge at any part of the life cycle of the business. These threats can be external or internal. This shows the importance of a business plan, because most threats or challenges are to be anticipated and plans put in place to cushion what effect they might bring to the business.

Some of the threats that we are likely going to face as a staffing operating in the United States are unfavorable government policies, the arrival of a competitor within our location of operations and global economic downturn which usually affects spending / purchasing power.

There is hardly anything we could do as regards these threats other than to be optimistic that things will continue to work for our good.

7. MARKET ANALYSIS

  • Market Trends

Quite a number of distinct trends have emerged in recent time in the consulting industry which is why staffing agencies and consulting firms alike are positioning their organizations to survive the peaks and troughs of an ailing economy.

As a matter of fact, most of these trends aid staffing agencies cum consulting firms and organizations to become more creative, competitive, efficient, and productive in a global market. Some other trends in the consulting industry could be attributed to changing demographics, attitudes and work styles.

No doubt, as the cost of consulting services continues to increase and as corporate spending falls, new consulting delivery methods will continue to emerge and gain momentum going forward. In addition, the market for consulting services has shifted from a sellers’ market to a buyers’ market. A market where consultants provide software solutions that will make it easier for their clients to run their businesses.

Lastly, it is now becoming trendy in the consulting industry for smaller staffing agencies or consulting firms to merge with bigger consulting firms and for bigger consulting firms to acquire smaller consulting firms / staffing agencies; mergers and acquisitions. Many consulting firms all over the United States are coming to the conclusion that the bigger the better for them.

8. Our Target Market

We do not want to leave any stone unturned in seeing that we attract all those who may be in need of our business. Although Brick House Staffing and Training Company, LLC will initially serve small to medium sized business, from new ventures to well established businesses.

But that does not in any way stop us from growing to be able to compete with the leading consulting firms cum staffing agencies in the United States. We hope to someday merge or acquire other smaller consulting firms and expand our staffing agency cum consulting services beyond the shores of the United States of America.

As a full service and standard staffing agency cum consulting firm, Brick House Staffing and Training Company, LLC have a variety of practice areas to help startups grow especially as it relates to staffing and training.

While we works with a variety of organizations and industries, Brick House Staffing and Training Company, LLC will also specialize in working with startups, real estate investors, and contractors, manufacturers and distributors, banks, lending and financial institutions.

Our target market cuts across people of different class and people from all walks of life, local and international organizations as well. We are coming into the industry with a business concept that will enable us work with the highly placed people and companies in the country and at the same with the lowly placed people and smaller businesses.

In other words, our target market is the whole of the United States of America and subsequently other parts of the world. Below is a list of the people and organizations that we have specifically design our products and services for;

  • Banks, Insurance Companies and other related Financial Institutions
  • Businesses and Entrepreneurs
  • Blue Chips Companies
  • Corporate Organizations
  • Manufacturers and Distributors
  • Real Estate Owners, Developers, and Contractors
  • Research and Development Companies
  • The Government (Public Sector)
  • Households and families
  • Schools (High Schools, Colleges and Universities)
  • Sport Organizations
  • Entrepreneurs and Start – Ups

Our Competitive Advantage

One of the things that make one sit up in business is competition. The level of competitions in the staffing consulting industry depends largely on the location of the business and of course the niche of your staffing consulting business. If you can successfully create a unique niche for your staffing consulting agency, you are likely going to experience little or no competition.

For instance; if you are the only staffing agency that recruits nurses for organizations and homes in your location, you are sure of monopolizing that aspect of staffing. Brick House Staffing and Training Company, LLC might be a new entrant into the staffing and training consulting industry in the United States of America, but the management staffs and board members are considered gurus.

They are people who are core professionals and licensed and highly qualified consultants in the United States. These are part of what will count as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups staffing agencies) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

We are very aware of the role that money plays in every business and that is why we are doing all we can to see that we source for income in the right places.

Brick House Staffing and Training Company, LCC is established with the aim of maximizing profits in the consulting industry and we are going to go all the way to ensure that we do all it takes to attract clients on a regular basis and sign ‘ retainer – ship’ contract with most of our clients.

Brick House Staffing and Training Company, LCC will generate income by offering the following staffing and training consulting services for individuals and for organizations;

10. Sales Forecast

As long as there are people living in the United States of America and business starting and growing in the U.S., the services of staffing agencies will always be needed.

We are well positioned to take on the available market in the U.S. and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base beyond New York City, New York to other states in the U.S. and even the global market.

We have been able to critically examine the staffing agency market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in New York.

Below is the sales projection for Brick House Staffing and Training Company, LCC, it is based on the location of our business and the wide range of recruiting cum consulting services that we will be offering;

  • First Year-: $100,000
  • Second Year-: $500,000
  • Third Year-: $1,000,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same additional services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

  • Marketing Strategy and Sales Strategy

We are mindful of the fact that there is stiffer competition amongst staffing agencies in the United States of America; hence we have been able to hire some of the best business developer to handle our sales and marketing. Our sales and marketing team will be recruited base on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization.

We will also ensure that our excellent job deliveries speaks for us in the marketplace; we want to build a standard staffing agency cum consulting business that will leverage on word of mouth advertisement from satisfied clients (both individuals and organizations).

Our goal is to grow our staffing agency to become one of the top 20 staffing agencies in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in the U.S but in the world stage as well.

Brick House Staffing and Training Company, LLC is set to make use of the following marketing and sales strategies to attract clients;

  • Introduce our business by sending introductory letters alongside our brochure to organizations and key stake holders in New York and other parts of the U.S.
  • Promptness in bidding for staffing and training consulting contracts from the government and other cooperate organizations
  • Advertise our business in relevant business magazines, newspapers, TV stations, and radio station.
  • List our business on yellow pages ads (local directories)
  • Attend relevant international and local expos, seminars, and business fairs et al
  • Create different packages for different category of clients in order to work with their budgets and still deliver quality staffing and training consulting services to them
  • Leverage on the internet to promote our business
  • Engage in direct marketing approach
  • Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

We have been able to work with our in house consultants and other brand and publicity specialist to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to take the consulting industry by storm which is why we have made provisions for effective publicity and advertisement of our consulting firm.

Below are the platforms we intend to leverage on to promote and advertise our staffing agency business;

  • Place adverts on both print (community based newspapers and magazines) and electronic media platforms
  • Sponsor relevant community programs
  • Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
  • Install our Bill Boards on strategic locations all around New York and major cities in the United States of America
  • Engage in road show from time to time in targeted communities
  • Distribute our fliers and handbills in target areas
  • Position our Flexi Banners at strategic positions in the location where we intend getting clients to start patronizing our services.
  • Ensure that all our staff members wear our customized clothes, and all our official cars are customized and well branded.

12. Our Pricing Strategy

Hourly billing for consulting services is a long – time tradition in the industry. However, for some types of consultancy services especially staffing and training services, flat fees or per head billings make more sense because they allow clients to better predict consultancy costs.

As a result of this, Brick House Staffing and Training Company, LLC will charge our clients a flat fee or per head for many basic services such as staffing and trainings et al.

At Brick House Staffing and Training Company, LLC we will keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to start – ups, nonprofits, cooperatives, and small social enterprises.

We are aware that there are some clients that would need regular access to consultancy and advisory services as it relates to staffing and performance management, we will offer flat rate (commission / percentage) for such services that will be tailored to take care of such clients’ needs.

  • Payment Options

Brick House Staffing and Training Company, LLC, our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

  • Payment by via bank transfer
  • Payment via online bank transfer
  • Payment via check
  • Payment via bank draft
  • Payment with cash

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches.

13. Startup Expenditure (Budget)

Starting a staffing agency cum consulting firm can be cost effective; this is so because on the average, you are not expected to acquire expensive machines and equipment.

Basically what you should be concerned about is the amount needed to secure a standard office facility in a good and busy business district, the amount needed to furniture and equip the office, the amount needed to pay bills, promote the business and obtain the appropriate business license and certifications.

Basically, these are the area we are looking towards spending our start – up capital on;

  • The Total Fee for incorporating the Business in New York – $750.
  • The budget for Liability insurance, permits and license – $2,500
  • The Amount needed to acquire a suitable Office facility in a business district 6 months (Re – Construction of the facility inclusive) – $40,000.
  • The Cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $2,000
  • The Cost of launching our official Website – $600
  • Budget for paying at least two employees for 3 months and utility bills – $30,000
  • Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
  • Miscellaneous – $1,000

Going by the report from the research and feasibility studies, we will need about $150,000 to set up a small scale but standard staffing agency business in the United States of America.

Generating Funding / Startup Capital for Brick House Staffing and Training Company, LLC

Brick House Staffing and Training Company, LLC is going to start as a private business that will be solely owned by Dr. John Powel and family. The family will be the sole financial of the firm, but may likely welcome partners later which is why they have decided to restrict the sourcing of his start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

  • Generate part of the start – up capital from personal savings
  • Source for soft loans from family members and friends
  • Apply for loan from my Bank

N.B: We have been able to generate about $50,000 (Personal savings $40,000 and soft loan from family members $10,000) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Brick House Staffing and Training Company, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer nothing short of excellent services.

Brick House Staffing and Training Company, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of ten years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

  • Business Name Availability Check:>Completed
  • Business Incorporation: Completed
  • Opening of Corporate Bank Accounts various banks in the United States: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of All form of Insurance for the Business: Completed
  • Conducting Feasibility Studies: Completed
  • Generating part of the start – up capital from the founder: Completed
  • Applications for Loan from our Bankers: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
  • Recruitment of employees: In Progress
  • Purchase of the Needed furniture, office equipment, electronic appliances and facility facelift: In progress
  • Creating Official Website for the Company: In progress
  • Creating Awareness for the business (Business PR): In progress
  • Health and Safety and Fire Safety Arrangement: In progress
  • Establishing business relationship with key players in the industry: In progress

Frequently Asked Questions

What are the responsibilities of a staffing agency.

The responsibilities of a staffing agency are as follows;

  • A staffing agency can provide end-to-end staffing solutions to a business
  • Understanding the workload needs of the company
  • Determining the workforce required to meet the same
  • Conducting interviews and shortlisting candidates
  • Vetting potential candidates through background checks and employment history
  • Drawing contracts and looking at legal issues
  • Imparting training in case of gaps
  • Follow-ups on the performance of the temp workers to see if the requirements are met
  • So also, if the worker is not the right fit, then it’s the responsibility of the staffing agency to terminate the hire and compensate, as needed.

What Is A Staffing Agency And What Does It Do?

A staffing agency is an agency that is responsible for helping organization recruit staff to fill vacant position in their organization and also help applicants/those in between jobs secure employment. They also offer a wide range of recruitment-related services, largely temporary and contract staffing.

Some staffing agencies offer services beyond just recruiting employees for its clients, but also help in training and preparing the employees to fit into the role that they are being recruited for. Usually, such staffing agencies charge more than those who just recruit employees for their clients.

How Does A Staffing Agency Get Paid?

When it comes to getting paid, some staffing agencies charge their clients administrative fees so as to enable them process their application, match them with employers and successfully help in securing jobs.

In essence, staffing agencies make more money when they help organizations recruit highly skilled staff on a permanent basis.

What Are The Benefits Of A Staffing Agency?

Here are some of the benefits of a staffing agency;

  • Staffing agencies have specialists to identify the right talent.
  • Staffing agencies maintain a talent pool.
  • Staffing agencies can hire faster and more accurately.
  • Staffing agencies offer tailor-made solutions.
  • Staffing agencies let you focus solely on your growth.

When Should You Opt For A Staffing Agency?

  • You should opt for a staffing agency when you want to quickly fill a position in your organization
  • You should opt for a staffing agency when you need tailor made solutions to your recruitment process in your organization.
  • You should opt for a staffing agency when you are finding it difficult to access pool of talents to fit into your organization.

What Can A Staffing Company Do For You?

A staffing agency is an organization that matches companies and job candidates. By registering with a staffing agency, you have the potential to make connections with multiple hiring managers looking to find the right people for their job openings.

What Is It Like To Work For A Staffing Agency?

Working for a staffing agency can be exciting, challenging and of course rewarding.

What Are The Different Types Of Staffing Agencies?

These agencies are divided into three categories namely (I) Line Agencies (II) Staff Agencies, and (III) Auxiliary Agencies, depending on the nature of work performed by them.

What Are The Benefits Of Working With A Staffing Agency?

The benefits of working for a staffing agency are enormous and some of them are;

  • You will be in a position of influence
  • You will earn an above-average salary
  • You will have the chance to change lives
  • You will have the opportunity to meet with different people
  • You can help develop the people around you.
  • You will feel gratification from solving problems.

What’s The Difference Between A Staffing Agency And A Temp Agency?

Even though temp agencies and staffing agencies offer temporary workers to their clients, but temp agencies only offer temporary work, staffing agencies focus on the long term needs of their clients as well as placing candidates in what can turn out to be full time employment with major corporations.

How Much Does A Staffing Agency Charge?

Staffing agencies typically charge 25 percent to 100 percent of the hired employee’s wages. So, for example, if you and the staffing agency have agreed on a markup of 50 percent, and the new employee earns an hourly wage of $10, you will pay the agency $15 per hour for their work.

What Kind Of Roles Do Staffing Or Placement Agencies Offer?

Staffing agencies help fill temporary positions, temp-to-hire positions and direct-hire positions.

How Can A PEO Assist With Employee Training?

A PEO can assist you with employee training in a variety of ways. This might include giving your employees access to internet-based learning sites, offering custom training with an outside expert, or even creating new seminars just for your employees.

What Is Contract Staffing And Permanent Staffing?

Contractual staffing refers to the recruitment of employees for short-term employment contracts as opposed to full-time permanent workers, while permanent staffing is the process of providing required candidates for long-term employment based on specified candidate factors.

Should I Use A Temp Agency To Find A Job?

Working with a staffing agency to find your next career will only help you expand your options. Employers are using staffing agencies and you should be too.

What Are PEO Companies And What Do You Do?

PEO stands for professional employer organization. This is how PEO works; once a client company contracts with a PEO, the PEO will then co-employ the client’s worksite employees. The PEO typically remits wages and withholdings of the worksite employees and reports, collects and deposits employment taxes with local, state and federal authorities.

How Do Employees Benefit From A PEO Arrangement?

Through a PEO, the employees of small businesses gain access to big-business employee benefits such as: 401(k) plans; health, dental, life, and other insurance; dependent care; and other benefits they might not typically receive as employees of a small company.

What Are The Benefits Of Using A Temp Agency?

  • Reduced overhead costs.
  • Reduced overtime pay.
  • Save on training, time, and reduce hiring risks.
  • Saves time and increases ROI.
  • Access to talent networks.
  • The ability to hire quickly
  • Industry market knowledge
  • The ability to try out an employee before extending a full-time offer

How Long Can You Hire A Temporary Employee For?

A period of temporary employment should last no longer than one year and have a clearly specified end date. Federal law also dictates that you cannot hire the same temp employee for more than two consecutive years.

Do You Have To Offer A Temporary Employee Benefits?

You don’t have to offer a temporary employee benefit. Please note that while it may not be a requirement to provide health insurance to your temporary and seasonal workers, you are still obligated to provide a safe and healthy work environment. You can offer them voluntary benefits which they can pay for at low group rates.

What Is The Difference Between PEO And ASO?

PEO – stands for Professional Employer Organization. ASO – stands for Administrative Services Organization and the most important difference between an ASO and a PEO is that the service provided through an ASO does not establish a co-employer relationship.

What Is The Difference Between A PEO And A Staffing Company?

Both staffing agencies and PEOs are focused on workforce HR tasks, but with a staffing agency you are outsourcing your hiring process and the associated tasks. With a PEO, you are doing the hiring on your own and only outsourcing the administrative tasks, payroll, and compliance associated with your workforce.

How Much Do Agencies Take Off Your Wage?

Standard recruitment costs tend to range between 15 percent and 20 percent of a candidate’s first annual salary, but this can go as high as 30 percent for hard to fill positions.

Can You Just Leave A Temp Job?

Some contracts stipulate a mandatory notice period you may have to work through before leaving your job. The temp agency representative may want to inform your current employer of your intention to leave, since you are still technically an employee of the agency.

Is It Bad To Get A Job Through A Staffing Agency?

Staffing firms play a critical role in helping companies find talent. Unlike corporate recruiters, recruiters at staffing agencies have access to jobs at multiple companies covering a wide spectrum of industries and positions. If companies and your competition are using them, you should be too.

What Are The Differences Between A PEO And A Broker?

Generally speaking, a health insurance broker is an expert at insurance, whereas a PEO can provide expertise and assistance in a number of HR and compliance issues, in addition to providing access to health coverage

Should You Outsource HR Or Keep It Inside Your Business?

In my opinion, I will advise that you outsource HR as against keeping it inside, especially if you are just starting out. As a matter of fact, even the smallest companies can benefit from small business HR outsourcing. In reality, the smaller your business is, the more beneficial it is to outsource human resources.

What Are Common Misconceptions About Staffing Agencies?

Here are the top five common misconceptions of staffing agencies.

  • Temporary Work Only (With No Stability)
  • Take a Cut From Your Pay
  • Don’t Pay Well
  • Low-Level Jobs
  • Only Offer Jobs at Small Companies

How Can You Get Out Of Temp Agency Contract?

If you found your current job through a temp agency, the first step you should take is to contact your agency representative and inform them of your decision to leave, especially if it is prior to the agreed date.

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Home » Blog » Where to start with a recruitment business plan

Where to start with a recruitment business plan

Rhys jones written by rhys jones managing director – davidson gray.

Rhys sold out of his previous recruitment businesses in 2012 to focus solely on helping recruiters set up and build recruitment businesses. Follow Rhys on LinkedIn or contact him direct  here for help with your start-up recruitment business or for coaching to grow an existing one.

You’ll be pleased to hear that in my experience a recruitment agency start up business plan need only contain a few essentials and really isn’t rocket science. You only need a basic plan to start, well thought through definitely, but not War and Peace.

A start up recruitment business plan doesn’t need to be super sophisticated. However what you do need is a well thought through plan so you can build solid foundations for growth, remove as much risk as possible and allow you, once you go live, to concentrate on the exciting bit, BILLING, rather than working things out as you go along. The planning now will make the real fun part of making money so much easier with fewer distractions, and allow you to really enjoy being your own boss and owning your own business. So spend that time now, trust me it’s a fabulous investment and you’ll be grateful for it when you make a flying start in your new recruitment agency. 

If you search on the web, you’ll find various contradictory ideas on what a business plan should contain, which can leave you worse-off than when you started, confused on which way is the best way. I hope in this series of blogs I can take some of that confusion away for you. I’ve been lucky enough to have hands on experience of building my first businesses from the ground up. Added to this, I improved my knowledge with additional learning gained at Cranfield Business School, which I applied to those early businesses and the many more recruitment businesses in different sectors I went on to set up, all of which are continuing successful companies. So with this experience, I’d like to think my ideas on recruitment agency business plans are worth considering (sorry if this sounds like I think I’m the Richard Branson of recruitment, it’s not meant to, but think it helps explaining my experience).

The common school of learning on business plans is to use the SWOT analysis, i.e. what will be the planned business’s:

  • Opportunities

I don’t disagree that you could add this to your plan, and it’s handy to have in, but this series of blogs look at what I feel are specific and essential to a recruitment business plan (plus the bits you may not know if you’ve never set a business up before). Where to start.

To see if you do have the basics of a business in you, I advise firstly to look at the sales and cash flow forecast. If your business idea doesn’t pass this test, you need not waste your time any further – your business just won’t fly. So let’s start with the engine of the business, money in.

Your Sales Forecast

To allow you to write your cash flow forecast, you’ll need a well thought through sales forecast.

There’s lot to consider here, a lot more than first appears. You can’t just take what you bill now and assume you can simply replicate that without understanding where your current billings come from. So, below are ways to stress test where your current billings actually come from by looking at where you get both your vacancies and candidates.

Candidate Attraction

Needless to say finding good candidates is critical to your placements, so you need to make sure you have thought about where you will get them from. To help understand where you are currently successful, I suggest you look at your last six months’ billings and write next to each candidate placed where that candidate came from. Was it a headhunt call, a referral from previous candidates / clients, was the candidate off the business database, were they from a job board, social media, LinkedIn, Twitter etc? This is a real life study based on you, and how you are currently successful. It’s invaluable to understand what you will be able to easily reproduce when working for yourself e.g. headhunt calls, LinkedIn etc. and parts you may need to make up for e.g. candidates who came from a database search. So this will help you appreciate how easy or not candidate attraction will be for your sales forecast. It will also help get you thinking what you can do to make up for any tools you have now in the workplace but won’t have when you leave. Plus, if it’s job board centric then this is a cost you need to add to your cash flow plan. I’m not going to go into how to improve your candidate attraction here (that will be another blog) but if you’re currently very dependent on the company database, this should ring alarm bells and you need to think ahead and plan how to recruit successfully without it. And try applying these new techniques now whilst you’re still employed to perfect them so you can add their added sales value to your plan with confidence.

Client / Vacancy Attraction

At this stage it’s pertinent that I bring up the potential handicap that your current employment contract’s restrictive covenants may have on your planned client base. The current widely accepted covenant, i.e. what the courts see as ‘fair and reasonable’, is that you can be restricted from trading with any clients you’ve had ‘material dealings with’ over the last twelve months with your current employer, for the next six months once you leave (any more than this is seen as unreasonable).

Now this isn’t to say if it’s in your contract that means you’re definitely frozen out from this potentially lucrative group of businesses, there could be errors elsewhere in your contract that makes this void. So get it legally checked and from a commercial angle if you can. Law isn’t black and white and getting good commercial legal advice is hugely valuable which is why I use Barrister Greg Walsh of  Greg Walsh Law  for my Davidson Gray partner businesses. I see it as that valuable to get good quality advice. But if your current clients are off limits for the first six months, work this into your plan. Next, go back again over the last six months’ placements and mark where your clients/vacancies came from as you’ve done for your candidates. Do the clients come to you for you, or because of who you work for, are they from a PSL you won’t be on, were there any from a mailshot, new business cold call etc?  This will quickly show you where your current vacancies come from so you can write your sales forecast from a true picture of what you can and can’t replicate easily. Plus, if some methods you use now to gain clients are removed or won’t be as effective once you leave, you have time to plan new business development and marketing initiatives to replace this business. And as with the new candidate attraction strategies, see how they work where you are now, but maybe not too much, you don’t want too many new clients your covenants could restrict!

The sales forecast itself

Once you’ve considered the above, you will be able to see more clearly what tools and advantages you currently benefit from where you work. It should now be easier for you to write a realistic sales forecast. I find it helpful to write two sales forecasts, one you feel is realistically achievable and one that you feel is the absolute minimum you’ll achieve. The bare minimum one is important in your cash flow forecast. You don’t want to get five months in and run out of cash, so if you know the bare minimum you’ll achieve, you can see how much of a cash buffer you’ll need. The realistic forecast is the one you plan for with the activity you expect to hit, the KPIs you set yourself etc. Plus this can be your motivator, as you should be earning a lot more on this forecast than you currently are very, very quickly!

So simply start with month one, and take it through to month twelve. You can’t realistically predict year two in a start-up. You will learn a lot midway through year one and you can use this learning for year two’s forecast.

Once you’ve done your sales forecast, you can use this in your cash flow forecast. I will go into this in my next blog where I’ll explain how you can get a very good idea of  how much it will cost to set up a recruitment business , running costs, and net profit month by month.

I hope you’ve found this second blog in the series helpful, and as always if you have any questions, feel free to contact me. You can find me on LinkedIn under my main business name of Davidson Gray.

Interested in working with Rhys to grow your start up?

Rhys not only provides the start-up infrastructure for your new business and all the support services your business will need, he can actually work with you to grow it. Take advantage of as much mentoring and coaching as you would like, plus Rhys considers himself a working partner and will take responsibility for the areas that you’d like him to, perhaps those you have the least passion for e.g. Finance and Digital Marketing. When working together on the business’s growth strategy, much of the effort to deliver it can be delegated to the Davidson Gray team.

Book a chat with Rhys  here.

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sample business plan for recruitment agency

  • Setting Up a Recruitment Business
  • Growing a Recruitment Business
  • Managing a Recruitment Business
  • Recruitment Tips
  • What you need to know to perfect your headhunt
  • A recruitment business partner is for life, choose carefully!
  • How to pitch for recruitment business investment
  • How to use success ratios to produce recruitment KPI’s that WILL work
  • How to deliver quality headhunts that WILL win more business.
  • Top 7 Reasons To Set Up A Recruitment Business
  • Why Recruitment Owner/Managers Need to KPI Themselves for Real Business Growth
  • Is building a recruitment business to sell a good idea?
  • So you want to be a Headhunter?
  • Why bad managers give recruitment KPI’s a bad reputation

sample business plan for recruitment agency

A guide to using LinkedIn Recruiter

In this blog, aimed at recruiters, we examine the potential LinkedIn Recruiter options in more detail and find out what you get for your money and how to make the most of the investment.

how to grow a recruitment business in 2023

How to grow your recruitment business in 2023

What does it take to grow a recruitment business in these uncertain economic times? In this blog, originally published in The Global Recruiter, Rhys looks at what it takes to grow a recruitment business in 2023.

sample business plan for recruitment agency

Leadership or management – what’s more important to a growing recruitment business?

Leadership or management – which one’s the more important skill to have when growing your recruitment business? We’ll look at why it’s crucial to have both and when to use them to greatest effect.

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sample business plan for recruitment agency

PlanBuildr Logo

Staffing Agency Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

  • Staffing Agency Business Plan Home
  • 1. Executive Summary
  • 2. Company Overview
  • 3. Industry Analysis
  • 4. Customer Analysis
  • 5. Competitive Analysis
  • 6. Marketing Plan
  • 7. Operations Plan
  • 8. Management Team
  • 9. Financial Plan

Start Your Staffing Agency Plan Here

Staffing Agency Operations Plan

The following will be the operations plan for Leading Talent Staffing Agency.

Operation Functions:

  • Dan and Karen will wholly own and manage the staffing agency. They will be in charge of the high level functions of the business, such as prospecting and networking, staffing the agency, maintaining client relationships, and all major decisions of the business.
  • Chief Financial Officer to handle all financial aspects of the business to include but not limited to accounts payable and receivables, billing, tax obligations, licensing and permitting, budgeting, payroll, and cash forecasting. As the staffing agency grows and profits are stabilized, more accountants will be added to support the CFO.
  • Two staffing managers will be hired to handle client intake and be the point persons to prep the job seeker from resume assistance all the way to being hired permanently.
  • Administrative Assistant will be employed to manage all administrative assistant tasks of the staffing agency on an everyday basis. This will include being the personal assistant for Dan and Karen.

Milestones:

Leading Talent Staffing Agency will have the following milestones completed in the next six months.

8/1/202X – Finalize contract to lease office space.

8/15/202X – Begin build-out and design of staffing agency office.

9/1/202X – Begin reaching out to their list of contacts in the industry to inform them of the new Leading Talent Staffing Agency.

9/15/202X – Begin social media and website advertising campaign.

9/30/202X – Attend large industry networking event.

10/5/202X – Hire CFO, managers, and Assistant.

11/1/202X – Grand Opening of Leading Talent Staffing Agency.

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Build a Successful Recruitment Plan with Our Proven Template [FREE]

September 21, 2023

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Is your organization prepared to tackle the recruitment challenges in the upcoming year, or have you been winging it whenever a new position opens up? 

If you’ve been going with the flow, it’s the perfect moment to establish a solid recruitment plan.

No more scrambling to fill unexpected job openings or realizing you’re engaging candidates without leadership support. We’ve got your back with a straightforward and free recruitment plan template that enhances efficiency and ensures you’re never compromising.

Forget about the headache of last-minute hiring. Now, it’s time for a proactive, well-prepared approach. Ready to shape the ultimate recruitment plan? Stick around as we walk you through the process!

Why Does Every Company, Irrespective of Its Size, Need a Recruitment Plan?

Have you pondered the importance of a meticulously designed recruiting plan? Surprisingly, every company, no matter its size, stands to gain from implementing a recruitment strategy. This strategy equips your HR personnel and hiring managers with a systematic set of actions to follow when a job becomes available, fostering uniformity across the organization. Did you know that 60% of applicants abandon a job application halfway due to its overwhelming length and intricacy?

Recruitment plans serve as invaluable tools in assessing candidates consistently and can be promptly adjusted in response to shifts in company policies or the introduction of novel hiring strategies. Beyond this, utilizing a recruitment plan that’s transparent can amplify your ability to attract high-quality candidates, as it portrays your company as well-organized and committed to a fair selection process.

By having a recruitment plan, you’re essentially fortifying your hiring process, ensuring that no matter the company’s size, there’s a structured approach in place. This not only streamlines the process but also instills confidence in both your internal team and prospective hires. In the dynamic landscape of recruitment, a well-crafted plan serves as a dependable compass guiding your company toward effective and successful hiring endeavors.

A recruiter easily monitoring his recruitment through his plan

Your Guide to a Strong Recruitment Blueprint

Crafting a recruitment plan might seem complex, but it’s incredibly valuable for companies of all sizes. Ever wondered how to create a killer recruitment plan? You’re in for a treat. Whether you’re going solo or collaborating with HR experts, this plan is your guide to hitting those hiring goals. Let’s dive into the simple steps:

  • Define Clear Recruitment Goals: Set specific, measurable, achievable, realistic, and time-bound (SMART) recruitment goals. Whether it’s hiring a certain number of employees within a period or addressing skills gaps, well-defined goals provide direction.
  • Anticipate Future Hiring Needs: Project the company’s hiring needs for the upcoming year, considering retirements, promotions, and potential vacancies due to leave. This aids in proactive planning and budgeting.
  • Outline Ideal Employee Qualities: Identify qualities aligning with your company’s culture and success. This list helps during candidate evaluation, ensuring a suitable fit.
  • Strategize Sourcing Methods: Develop a multifaceted sourcing strategy – job boards, recruiters, fairs, and more. Casting a wide net increases the chances of finding the right candidates.
  • Refine the Hiring Process: Streamline your hiring process to identify, interview, and select candidates effectively. Diversify interview panels and use technology for fairer assessments.
  • Allocate a Reasonable Budget: Allocate a budget for recruiting, from finding candidates to their onboarding . Review and adjust spending as needed.
  • Monitor and Adapt: Continuously monitor the plan’s effectiveness. Seek feedback from stakeholders, including new hires, and make adjustments based on trends and tech advancements.

Creating a successful recruitment plan demands a proactive approach and ongoing evaluation. By implementing a well-structured strategy, your organization can attract top talent and improve the recruitment process, leading to long-term success and growth.

Your Ultimate Recruitment Plan Template for Building a Stellar Team

[Business Name or Department]

Prepared by [Name], [Job Title]

Recruitment Goals

This recruitment plan aims to achieve the following goals for the business:

  • [Provide a bulleted list of the business’ SMART recruitment goals.]

Positions to Fill

  • [Provide a bulleted list of the positions you plan on filling using the recruitment plan. You may also list the reasons for the recruitment need and other known details such as the weekly working hours and approximate salary.]

Target Candidates

Based on the business goals and culture, we plan to recruit candidates with the following qualities:

  • [Provide a bulleted list of the qualities sought for vacant positions.]

Talent Sourcing Methods

We plan to connect with candidates using the following methods:

  • [Provide a bulleted list of the talent-sourcing methods you plan to use.]

Applicant Evaluation Methods

We plan to assess potential candidates using the following methods:

  • [Provide a bulleted list of the methods for assessing candidates for vacant positions.]

Estimated Annual Recruiting Budget

We estimate spending $[Total] on recruiting in the next financial year, based on our estimate of hiring [Number of new recruits] new employees. We expect any additional hires to cost the business around [estimate per employee] each. The recruitment budget breaks down as follows:

  • [Provide a bulleted list or table of recruitment expenses and their estimated value.]

Feel free to adapt this template to your specific needs and use it as a foundation for creating a robust recruitment plan tailored to your organization’s objectives and goals.

A recruiter found the perfect fit after she planned her recruitment carefully

A real-life example of a recruitment plan

Recruitment Plan for ABC Tech Solutions

Date: August 27, 2023,

Prepared by: Jane Doe, HR Manager

This recruitment plan aims to achieve the following goals for ABC Tech Solutions:

  • Hire three skilled software engineers within the next three months to support ongoing product development.
  • Fill one vacant project manager position within six weeks to oversee upcoming client projects.
  • Software Engineer (x3): These roles are required to strengthen our development team to meet project deadlines. Weekly working hours are 40, with an approximate salary range of $70,000 – $90,000.
  • Project Manager (x1): This position is essential for maintaining client satisfaction and ensuring smooth project execution. Weekly working hours are 40, with an approximate salary range of $90,000 – $110,000.

Based on ABC Tech Solutions’ goals and culture, we plan to recruit candidates with the following qualities:

  • Software Engineers: Strong problem-solving skills, proficiency in Java and Python, and ability to work collaboratively in a fast-paced environment.
  • Project Manager: Excellent communication skills, proven leadership in managing software projects, adept at managing client relationships.
  • Online job boards: Posting job listings on platforms such as LinkedIn and Indeed.
  • Recruitment agencies: Collaborating with specialized IT recruitment agencies to access a wider talent pool.
  • Employee referrals: Encouraging current employees to refer potential candidates from their networks.
  • Technical assessment: Conduct coding tests and technical interviews to evaluate software engineers’ skills.
  • Behavioral interviews: Engaging project manager candidates in situational and behavioral interviews to gauge their leadership abilities.

We estimate spending $60,000 on recruiting in the next financial year, based on our estimate of hiring four new employees. We expect any additional hires to cost the business around $15,000 each. The recruitment budget breaks down as follows:

  • Online job board listings: $10,000
  • Recruitment agency fees: $20,000
  • Interviewing and assessment costs: $15,000
  • Employee referral incentives: $5,000
  • Miscellaneous expenses: $10,000

This recruitment plan is designed to help ABC Tech Solutions attract and select the best candidates for our software engineering and project management positions. It ensures a systematic approach to hiring while aligning with our company’s growth goals and objectives.

A recruiter conducting an interview

Empower Your Plan with Cutting-edge Software

Optimizing your recruitment plan with the right software boosts efficiency. This tool seamlessly integrates with leading technology providers, enabling you to post jobs on numerous global job boards with a single click.

By automating applicant tracking, the software saves you time and ensures a structured approach. It uses advanced AI to rank candidates based on qualifications, helping you identify the best fit quickly.

Plus, collaboration becomes seamless as the software centralizes team communication and evaluations. Whether you’re centralizing or decentralizing HR core functions, the software streamlines all recruiting processes for your entire organization.

Are you ready for the best part? Customization shines here. Automated hiring workflows, personalized templates, and designated recruiters for each category simplify the process while promoting fairness.

Moreover, you can involve recruiting agencies, benefit from verified background checks, and enjoy unlimited hiring processes. This software is your ally in simplifying tasks, improving collaboration, and refining your hiring strategy. It empowers your recruitment plan with technology, making it efficient, informed, and aligned with your goals.

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sample business plan for recruitment agency

11 min read

The success of any organization relies on its ability to attract, retain and develop top talent.  Talent acquisition  refers to the ongoing strategy and process an organization and its HR department uses to source, attract, evaluate, hire and retain the highly qualified new employees it needs to grow.

A well-crafted talent acquisition strategy has become a critical component for organizations seeking to secure a competitive edge. Beyond simply filling open roles, a comprehensive talent acquisition strategy encompasses a holistic approach to  talent management , from identifying organizational needs to nurturing relationships with potential candidates.

By recognizing the importance of a strategic and proactive talent acquisition approach, companies can position themselves as employers of choice. This approach can foster a culture that not only attracts the right candidates but also cultivates long-term success and sustainability.  

A talent acquisition strategy is a comprehensive plan that an organization develops to optimize its talent acquisition—the identification, attraction and retention of the right talent. It includes a series of interconnected processes and initiatives designed to align the organization’s talent needs with its business objectives. The strategy outlines the methods and processes for sourcing, screening and selecting candidates, while also focusing on employee retention and long-term development.

Talent acquisition strategy involves the use of various recruitment methods, technologies and practices. It enables HR professionals and the organization to build a strong employer brand, create a positive candidate experience and foster an effective, diverse and inclusive workforce. An effective talent acquisition strategy continually adapts to changes in industry trends and candidate preferences. It ensures that the organization’s talent acquisition efforts remain competitive and resilient.

An effective talent acquisition strategy includes elements designed to effectively attract, asses, identify and retain the best talent for the organization’s current and future hiring needs. The creation of a successful strategy should include these steps:

A compelling employer brand can set an organization apart, making it an attractive destination for skilled professionals. Many steps can be taken to build and enhance an employer brand, including:

  • Define the employer value proposition (EVP):  Clearly articulate what sets the company apart as an employer—what it stands for and the kind of working environment it offers. Highlight the unique benefits, opportunities and culture.
  • Create a compelling careers page:  Build an organized and informative careers page on the company website. Describe the application process. Use engaging content, images and videos to showcase the work environment.
  • Collect and share employee success stories: Let employees describe their experiences working at the company, including career growth, work-life balance and company culture.
  • Use social media:  Promote the employer brand on social media by sharing company news, employee stories and industry insights. Engage with potential candidates and encourage a sense of community.
  • Offer competitive compensation and benefits:  Meet or exceed industry standards for pay and benefits packages and clearly communicate these offerings to potential candidates.
  • Foster employee engagement and growth:  Create a supportive work environment that encourages employee engagement, professional development and career advancement.
  • Initiate employee advocacy:  Encourage employees to become brand advocates. Provide them with tools to share positive experiences on their personal social media accounts and professional networks.
  • Promote diversity and inclusion:  Widen the pool of top candidates by highlighting initiatives that demonstrate the organization’s commitment to creating a diverse and inclusive workplace.
  • Provide a positive candidate experience:  Streamline the recruitment process to ensure a seamless and positive experience for all candidates. Communicate with transparency.
  • Highlight work-life balance:  Showcase any flexible work arrangements, wellness programs or other initiatives that prioritize the health and happiness of employees.
  • Attend industry events:  Participate in conferences, webinars, speaking engagements, award competitions and other events to establish a presence and engage with potential candidates.
  • Monitor online reviews:  Respond to reviews, whether positive or negative, to demonstrate a commitment to improving and addressing concerns.
  • Measure impact:  Use analytics and metrics to assess the effectiveness of branding efforts. Monitor website traffic, application rates and employee referrals to gauge their success.
  • Seek feedback and continuously improve:  A positive candidate experience can contribute to a favorable employer brand. Gather feedback from candidates who go through the hiring process.

Conduct a thorough assessment of current and future talent that the organization requires to achieve its business objectives.

  • Conduct an organizational analysis:  Identify key areas where new talent is needed to support the company’s current and projected business goals and growth plans.
  • Determine short- and long-term talent needs:  Distinguish between immediate hiring needs and future requirements. Prioritize roles that require immediate attention.
  • Develop candidate profiles:  Create personas for ideal candidates and write detailed job descriptions for each role based on the skills and qualifications necessary for success.
  • Evaluate internal talent:  Encourage employee retention by identifying suitable internal candidates for open positions and evaluate existing employees to determine if they can be upskilled or reassigned to fulfill upcoming roles.

A diverse range of sourcing channels can effectively connect with a wider pool of potential candidates. Key sourcing channels include:

  • Company website:  Maintain an updated careers page on the company website that provides comprehensive information about the organization, job openings and the application process.
  • Job boards:  Post openings on popular job boards and career websites such as Indeed, LinkedIn, Glassdoor and Monster to reach active job seekers.
  • Recruitment agencies:  Collaborate with reputable recruitment agencies and staffing firms that specialize in the same industry to gain access to their talent pool and sourcing expertise.
  • Social media platforms:  Use LinkedIn, Facebook, Twitter, Instagram and TikTok to promote job openings, share company culture and engage with potential candidates.
  • Employee referrals:  Encourage current employees to refer potential candidates from their professional networks. Implement an employee referral program to incentivize employees to recommend qualified candidates.
  • Networking events:  Attend industry-specific networking events and job fairs to establish connections with potential candidates and build relationships within the industry.
  • Professional associations:  Engage with relevant professional associations and groups to reach candidates who are actively involved in the same field.
  • Employee alumni networks:  Reconnect with former employees who may be interested in returning or referring other qualified candidates.
  • Online forums and communities:  Participate in online communities and industry-specific groups where professionals discuss relevant topics and raise awareness about job opportunities.
  • Talent marketplaces:  Explore online talent marketplaces and freelance platforms to connect with freelancers and independent contractors for short-term vacancies or special project roles.
  • Direct outreach:  Reach out to potential candidates through emails, messages on professional networking platforms or phone calls to introduce the company and discuss relevant opportunities. 

Implementing a structured and comprehensive screening process can help assess candidates’ skill sets, qualifications and cultural fit. To develop an effective screening process:

  • Review resumes and cover letters:  Assess their qualifications, relevant experience and alignment with the job requirements. Look for key achievements, skills and career progression that match the position.
  • Conduct phone screenings: Assess candidates’ communication skills, professional demeanor and overall fit for the role.
  • Administer skills assessments: Administer tests or assignments to evaluate candidates’ technical skills, problem-solving abilities and job-related competencies.
  • Conduct multiple or panel interviews:  Gather diverse perspectives on each candidate’s fit for the role by arranging separate or panel interviews with key stakeholders.
  • Include behavioral interviews:  Use behavioral interviews to understand candidates past behavior and assess how they might respond to specific situations in the workplace.
  • Assess cultural fit : During the interview process, evaluate candidates’ alignment with the company’s culture and values. Ask questions that assess their work style and preferred work environment.
  • Check references:  Reach out to the provided references to verify the accuracy of candidates’ work history, skills and achievements.
  • Conduct background checks:  Include employment verification, education verification and criminal record checks. This validation of candidates’ qualifications ensures they meet the necessary requirements.
  • Assess soft skills:  Evaluate candidates’ soft skills, such as communication, teamwork, adaptability and leadership potential, during the interview process.

Here are some effective ways to improve the candidate experience:

  • Provide clear communication:  Ensure that candidates are informed about the next steps and the expected timeline throughout the hiring process.
  • Streamline the application process:  Minimize the number of steps required and optimize the application platform for user-friendliness.
  • Create transparent job descriptions:  Include the role’s responsibilities, qualifications and expectations and provide insights into the company culture and values.
  • Conduct engaging and respectful interviews:  Ensure that interviews are well-organized, respectful and engaging, with interviewers who are well-prepared, ask relevant questions.
  • Personalize candidate engagement:  Tailor candidate interactions to create a personalized and meaningful experience.
  • Offer constructive feedback:  Provide specific insights into their strengths and areas for development to help them understand how they can improve and grow professionally.
  • Ensure consistent employer branding:  Ensure that the candidate experience aligns with the employer brand. Maintain consistency in messaging, communication style and overall candidate engagement.
  • Provide responsive and accessible support:  Make it easy for candidates to contact the hiring team or recruitment professionals for guidance and support.
  • Follow up:  Express appreciation and provide closure on their application status, whether they are selected or not. Encourage them to stay connected with the company for future opportunities.
  • Gather feedback:  Implement satisfaction surveys to gather feedback on the overall hiring process. Use this feedback to identify areas for improvement in the candidate experience.

By leveraging data-driven insights, organizations can make informed decisions, optimize the recruitment processes and improve the overall quality of hires. Here are several ways in which data and analytics can be used in a talent acquisition strategy:

  • Forecast talent demand:  Analyze historical data and job market trends to forecast future talent demands. This helps anticipate hiring needs and proactively source and attract the best candidates in advance.
  • Sourcing channel performance analysis:  Track and study the performance of different sourcing channels such as job boards, social media and recruitment agencies.
  • Candidate journey assessment:  Identify potential bottlenecks or areas for improvement at each stage of the recruitment process. This helps create a smoother and more efficient experience.
  • Application and hiring metrics:  Use metrics such as application completion rates, time-to-hire, cost-per-hire and quality of hire to measure the effectiveness of the recruitment strategy.
  • Candidate assessment and selection:  Implement data-driven assessment tools and techniques to objectively evaluate candidates based on skills, competencies and cultural fit.
  • Employer brand perception analysis:  Monitor and analyze online reviews, social media mentions and candidate feedback to gauge the perception of the employer brand.
  • Diversity and inclusion:  Analyze data on candidate demographics, hiring outcomes and employee retention to identify opportunities for fostering a more inclusive environment.
  • Return on investment (ROI) analysis:  Evaluate the ROI of different recruitment initiatives and strategies to assess their effectiveness in attracting and retaining top talent. Analyze the cost and benefits associated with each.
  • Predictive analytics for talent management:  Use predictive analytics to identify potential high-performing candidates, forecast employee retention rates and  develop talent management strategies .

Technology can play a pivotal role in enhancing various aspects of a talent acquisition strategy. It can enable organizations to streamline recruitment processes, improve candidate experience and make data-driven hiring decisions. Here are several ways technology can be leveraged as part of a comprehensive talent acquisition strategy:

  • Applicant tracking systems (ATS):  Implementing an ATS can help automate and streamline the recruitment process, from job postings to managing candidate applications. ATS platforms enable recruiters to track candidate progress, schedule interviews and communicate with applicants efficiently, creating a more organized and efficient hiring process.
  • AI-powered sourcing and screening:  AI can help analyze resumes, assess candidate fit and even conduct initial screenings, allowing recruiters to identify top talent more effectively.
  • Video interviews:  Save time and resources and get a more comprehensive understanding of candidates’ communication skills and demeanor by using video interviewing platforms.
  • Employee referral software:  Enable employees to refer potential candidates and track the status of their referrals. This technology can streamline the employee referral process.
  • Virtual events and career fairs:  Host virtual career fairs and events using online platforms to connect with a broader pool of candidates and showcase the employer brand.
  • Data analytics and reporting tools:  Data-driven insights can help recruiters make informed decisions, identify bottlenecks in the recruitment process and optimize hiring strategies.
  • Mobile recruitment applications:  Develop mobile-friendly recruitment applications and platforms that allow candidates to conveniently apply for jobs, submit resumes and engage with recruiters.
  • Candidate relationship management (CRM) systems:  CRM systems help recruiters maintain a database of potential candidates, nurture relationships over time and provide a personalized and engaging experience for each candidate.

Incorporating diversity and inclusion initiatives into recruitment can yield numerous benefits: improved innovation, enhanced employee morale and a positive employer brand. Here are more reasons why diversity and inclusion are essential to a talent acquisition strategy:

  • Enhanced innovation and creativity:  A diverse workforce brings together individuals with unique perspectives, experiences and backgrounds. This diversity fosters innovation, creativity and new ideas.
  • Improved employee performance:  Inclusive workplaces that value diversity often experience improved employee morale, engagement and overall job satisfaction.
  • Broader talent pool:  A commitment to diversity and inclusion in the talent acquisition process expands the candidate pool, allowing organizations to attract and retain an array of top talent.
  • Better understanding of customer needs:  Employees from different backgrounds can enable organizations to develop products and services that better meet the demands of a diverse market.
  • Positive employer branding:  Companies that prioritize diversity and inclusion are often viewed as progressive, inclusive and socially responsible, making them more attractive to job seekers.
  • Legal and ethical compliance:  Emphasizing diversity and inclusion ensures that organizations comply with antidiscrimination laws and promote fairness and equity in the workplace.
  • Adaptability to changing demographics:  Diverse and inclusive work environments are better equipped to navigate cultural differences, adapt to changing demographics and effectively engage with a diverse customer base.

Integrating diversity and inclusion into the talent acquisition strategy requires a comprehensive approach. It involves creating inclusive job descriptions, implementing bias-free recruitment practices, providing diversity training and fostering an inclusive workplace culture. By prioritizing diversity and inclusion, organizations build a more dynamic, innovative and resilient workforce reflective of the diverse society in which they operate.

Building a talent pipeline involves proactively identifying and nurturing relationships with potential candidates even if there are no immediate job openings. Here’s why building a talent pipeline is an important part of a talent acquisition strategy:

  • Proactive recruitment:  By cultivating relationships with potential candidates in advance, companies can reduce the time and resources required to fill future job openings when they arise.
  • Shortened time-to-hire:  With a prequalified pool of candidates readily available, organizations can quickly engage and evaluate, leading to faster decision-making and onboarding processes.
  • Strategic succession planning:  A well-developed talent pipeline enables organizations to identify and groom internal talent for future leadership roles and key positions.
  • Reduced recruitment costs:  By continuously engaging with potential candidates over time, organizations can reduce their reliance on external recruiters, job boards and other sourcing channels.
  • Enhanced candidate quality:  Nurturing relationships with candidates over time allows organizations to gain a deeper understanding of their skills, experiences and cultural fit.
  • Improved employer branding:  Maintaining a talent pipeline demonstrates an organization’s commitment to  talent development  and recruitment, enhancing the employer brand.
  • Increased agility and flexibility:  Having access to a pool of qualified candidates enables organizations to adapt swiftly to emerging opportunities and challenges.
  • Long-term relationship building:  Regular engagement with these candidates creates a positive candidate experience, even if they are not immediately selected for a role.

Regular evaluation allows organizations to identify areas for improvement, make necessary adjustments and align the talent acquisition strategy with the changing needs of the business. Here are several ways that an organization can assess its talent acquisition strategy:

  • Key performance indicators (KPIs):  Establish and monitor specific KPIs related to the talent acquisition process such as time-to-fill, cost-per-hire, quality of hire and candidate satisfaction. Regularly tracking these metrics provides insights into the efficiency and effectiveness of the recruitment process and helps identify areas for improvement.
  • Candidate feedback and surveys:  Gather feedback from candidates who have gone through the recruitment process to understand their experience, perception of the brand and overall satisfaction, as well as to identify opportunities for enhancing the candidate experience.
  • Data analysis and reporting: Assess the performance of different sourcing channels, the quality of candidates sourced and the success rates of various recruitment initiatives.
  • Continuous process improvement:  Solicit feedback from recruiters, hiring managers and other stakeholders involved in the talent acquisition process to identify bottlenecks, streamline workflows and implement best practices.
  • Talent market analysis:  Conduct regular analyses of the talent market to understand emerging skill requirements, industry trends, shifts in the labor market and adjust the talent acquisition strategy accordingly.
  • Internal stakeholder engagement:  Engage with internal stakeholders, including senior leadership, human resource management and hiring managers, to gather insights into the effectiveness of the talent acquisition strategy.

While attracting top talent is essential, retaining and developing existing employees is equally crucial for the long-term success and sustainability of an organization. Investing in employee development and creating growth opportunities within the organization can increase employee satisfaction and reduce turnover rates. This saves the organization time and resources associated with recruiting and training new hires.

Enhanced employee engagement, employee experience, succession planning and the cultivation of a learning culture provides several benefits, including: clear career paths for employees help avoid leadership gaps, and contribute to the organization’s overall growth and competitiveness. All of this attracts job seekers drawn to companies that prioritize employee growth, learning and career advancement.

Still, the cornerstone of organizational success remains a forward-thinking talent acquisition strategy—driving growth, fostering resilience and positioning companies for sustained excellence in the years to come.

As a leading talent acquisition and skills development consultancy, IBM Consulting® works closely with clients to tailor solutions specific to their recruiting and skilling needs. Whether you are looking to address high turnover, enhance the recruiting technology stack, improve work force productivity, address skills shortages, or create an effective learning experience for a diverse workforce, IBM can provide customized strategies and tools across consulting, technology and managed services.

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Office of the Revisor of Statutes

  • 93rd Legislature
  • 2024, Regular Session

Chapter 110

Minnesota session laws - 2024, regular session.

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Key: (1) language to be deleted (2) new language

CHAPTER 110--S.F.No. 3852

relating to labor; making policy and technical changes to programs and provisions relating to labor; modifying construction codes and licensing, labor standards, occupational safety and health regulations, apprenticeship regulations, minimum wage rates, and miscellaneous labor policy; modifying provisions related to the Bureau of Mediation Services;

amending Minnesota Statutes 2022, sections 13.79, subdivision 1; 13.7905, by adding a subdivision; 177.23, by adding subdivisions; 177.24, subdivision 1, by adding a subdivision; 177.30; 178.011, subdivision 9; 178.012, subdivision 1; 178.035, subdivisions 2, 4, 6, 7; 178.036, subdivisions 3, 4, 5, 6, 7; 178.044, subdivision 3; 178.07, subdivisions 1, 3; 178.09, subdivision 2; 178.091, subdivisions 2, 4, by adding subdivisions; 178.10; 179.01, subdivisions 1, 9, 16; 179.06; 179.08; 179.11; 179.12; 179.254, subdivision 1; 179.256; 179.26; 179.27; 179.35, subdivision 1; 179.40; 179.43; 179A.02; 179A.03, subdivision 17; 179A.06, subdivisions 1, 2, 3; 179A.08, subdivision 2; 179A.10, subdivision 1; 179A.104, subdivision 1; 179A.12, subdivision 1; 179A.15; 179A.16, subdivisions 1, 7; 179A.18, subdivisions 2, 3; 179A.19, subdivision 6; 179A.20, subdivision 4; 179A.23; 181.941, subdivision 4; 181.943; 181.950, by adding a subdivision; 181.951, subdivision 1; 181A.08; 181A.12, subdivision 1, by adding subdivisions; 182.664, subdivisions 3, 5; 182.665; 182.666, subdivision 6; 182.667, by adding a subdivision; 326.02, subdivision 5; 326B.0981, subdivisions 3, 4, 8; 326B.33, subdivisions 7, 21; 326B.36, subdivision 2; 326B.46, subdivision 6; 626.892, subdivision 12; Minnesota Statutes 2023 Supplement, sections 177.27, subdivisions 2, 4, 7; 177.42, subdivision 2; 178.01; 181.212, subdivision 7; 181.213, subdivision 1; 181.531, subdivision 3; 181.939, subdivision 2; 181.953, subdivisions 1, 3, by adding a subdivision; 182.6526, subdivision 1; 182.677, subdivisions 1, 2; 204B.19, subdivision 6; 326B.36, subdivision 7; proposing coding for new law in Minnesota Statutes, chapters 178; 181; 182; repealing Minnesota Statutes 2022, section 178.036, subdivision 10; Minnesota Rules, parts 5200.0080, subpart 7; 5200.0400; 5510.0310, subpart 13.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

CONSTRUCTION CODES AND LICENSING

Minnesota statutes 2022, section 326.02, subdivision 5, is amended to read:, limitation..

The provisions of sections 326.02 to 326.15 shall not apply to the preparation of plans and specifications for the erection, enlargement, or alteration of any building or other structure by any person, for that person's exclusive occupancy or use, unless such occupancy or use involves the public health or safety or the health or safety of the employees of said person, or of the buildings listed in section 326.03, subdivision 2 , nor to any detailed or shop plans required to be furnished by a contractor to a registered engineer, landscape architect, architect, or certified interior designer, nor to any standardized manufactured product, nor to any construction superintendent supervising the execution of work designed by an architect, landscape architect, engineer, or certified interior designer licensed or certified in accordance with section 326.03 , nor to the planning for and supervision of the construction and installation of work by an electrical or elevator contractor or master plumber as defined in and licensed pursuant to chapter 326B, new text begin nor to the planning for and supervision of the construction and installation of work by a licensed well contractor as defined and licensed pursuant to chapter 103I, new text end where such work is within the scope of such licensed activity and not within the practice of professional engineering, or architecture, or where the person does not claim to be a certified interior designer as defined in subdivision 2, 3, or 4b.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Minnesota Statutes 2022, section 326B.0981, subdivision 3, is amended to read:

(a) Continuing education consists of approved courses that impart appropriate and related knowledge in the regulated industries pursuant to this chapter and other applicable federal and state laws, rules, and regulations. Courses may include relevant materials that are included in licensing exams subject to the limitations imposed in subdivision 11. The burden of demonstrating that courses impart appropriate and related knowledge is upon the person seeking approval or credit.

(b) Except as required for Internet continuing education, course examinations will not be required for continuing education courses.

(c) If textbooks are not used as part of the course, the sponsor must provide students with a syllabus containing the course title; the times and dates of the course offering; the name, address, and telephone number of the course sponsor; the name and affiliation of the instructor; and a detailed outline of the subject materials to be covered. Any written or printed material given to students must be of readable quality and contain accurate and current information.

(d) Upon completion of an approved course, licensees shall earn one hour of continuing education credit for each classroom hour approved by the commissioner. Each continuing education course must be attended in its entirety in order to receive credit for the number of approved hours. Courses may be approved for full or partial credit, and for more than one regulated industry.

(e) Continuing education credit in an approved course shall be awarded to presenting instructors on the basis of one credit for each hour of the initial presentation. Continuing education credits for completion of an approved course may only be used once for renewal of a specific license.

(f) Courses will be approved using the following guidelines:

(1) course content must demonstrate significant intellectual or practical content and deal with matters directly related to the practice in the regulated industry, workforce safety, or the business of running a company in the regulated industry. Courses may also address the professional responsibility or ethical obligations of a licensee related to work in the regulated industry;

(2) the following courses may be approved if they are specifically designed for the regulated industry and are in compliance with paragraph (g):

(i) courses approved by the Minnesota Board of Continuing Legal Education; or

(ii) courses approved by the International Code Council, National Association of Home Building, or other nationally recognized professional organization of the regulated industry; and

(3) courses must be presented and attended in a suitable classroom or construction setting, except for Internet education courses which must meet the requirements of subdivision deleted text begin 5a deleted text end new text begin 4 new text end . Courses presented via video recording, simultaneous broadcast, or teleconference may be approved provided the sponsor is available at all times during the presentation, except for Internet education courses which must meet the requirements of subdivision deleted text begin 5a deleted text end new text begin 4 new text end .

(g) The following courses will not be approved for credit:

(1) courses designed solely to prepare students for a license examination;

(2) courses in mechanical office skills, including typing, speed reading, or other machines or equipment. Computer courses are allowed, if appropriate and related to the regulated industry;

(3) courses in sales promotion, including meetings held in conjunction with the general business of the licensee;

(4) courses in motivation, salesmanship, psychology, or personal time management;

(5) courses that are primarily intended to impart knowledge of specific products of specific companies, if the use of the product or products relates to the sales promotion or marketing of one or more of the products discussed; or

(6) courses where any of the educational content of the course is the State Building Code that include code provisions that have not been adopted into the State Building Code unless the course materials clarify that the code provisions have been officially adopted into a future version of the State Building Code and the effective date of enforcement.

(h) Nothing in this subdivision shall limit an authority expressly granted to the Board of Electricity, Board of High Pressure Piping Systems, or Plumbing Board.

Minnesota Statutes 2022, section 326B.0981, subdivision 4, is amended to read:

Internet continuing education..

(a) The design and delivery of an Internet continuing education course must be approved by the International Distance Education Certification Center (IDECC) or the International Association for Continuing Education and Training (IACET) before the course is submitted for the commissioner's approval. The approval must accompany the course submitted.

(b) Paragraphs (a) and deleted text begin (c) deleted text end new text begin (d) new text end do not apply to approval of an Internet continuing education course for manufactured home installers. An Internet continuing education course for manufactured home installers must be approved by the United States Department of Housing and Urban Development or by the commissioner of labor and industry. The approval must accompany the course completion certificate issued to each student by the course sponsor.

new text begin (c) Paragraph (a) does not apply to approval of an Internet continuing education course for elevator constructors. An Internet continuing education course for elevator constructors must be approved by the commissioner of labor and industry. The approval must accompany the course completion certificate issued to each student by the course sponsor. new text end

deleted text begin (c) deleted text end new text begin (d) new text end An Internet continuing education course must:

(1) specify the minimum computer system requirements;

(2) provide encryption that ensures that all personal information, including the student's name, address, and credit card number, cannot be read as it passes across the Internet;

(3) include technology to guarantee seat time;

(4) include a high level of interactivity;

(5) include graphics that reinforce the content;

(6) include the ability for the student to contact an instructor or course sponsor within a reasonable amount of time;

(7) include the ability for the student to get technical support within a reasonable amount of time;

(8) include a statement that the student's information will not be sold or distributed to any third party without prior written consent of the student. Taking the course does not constitute consent;

(9) be available 24 hours a day, seven days a week, excluding minimal downtime for updating and administration, except that this provision does not apply to live courses taught by an actual instructor and delivered over the Internet;

(10) provide viewing access to the online course at all times to the commissioner, excluding minimal downtime for updating and administration;

(11) include a process to authenticate the student's identity;

(12) inform the student and the commissioner how long after its purchase a course will be accessible;

(13) inform the student that license education credit will not be awarded for taking the course after it loses its status as an approved course;

(14) provide clear instructions on how to navigate through the course;

(15) provide automatic bookmarking at any point in the course;

(16) provide questions after each unit or chapter that must be answered before the student can proceed to the next unit or chapter;

(17) include a reinforcement response when a quiz question is answered correctly;

(18) include a response when a quiz question is answered incorrectly;

(19) include a final examination in which the student must correctly answer 70 percent of the questions;

(20) allow the student to go back and review any unit at any time, except during the final examination;

(21) provide a course evaluation at the end of the course. At a minimum, the evaluation must ask the student to report any difficulties caused by the online education delivery method;

(22) provide a completion certificate when the course and exam have been completed and the provider has verified the completion. Electronic certificates are sufficient and shall include the name of the provider, date and location of the course, educational program identification that was provided by the department, hours of instruction or continuing education hours, and licensee's or attendee's name and license, certification, or registration number or the last four digits of the licensee's or attendee's Social Security number; and

(23) allow the commissioner the ability to electronically review the class to determine if credit can be approved.

deleted text begin (d) deleted text end new text begin (e) new text end The final examination must be either an encrypted online examination or a paper examination that is monitored by a proctor who certifies that the student took the examination.

Minnesota Statutes 2022, section 326B.0981, subdivision 8, is amended to read:

Facilities..

Except for Internet education offered pursuant to subdivision deleted text begin 5a deleted text end new text begin 4 new text end , each course of study must be conducted in a classroom or other facility that is adequate to comfortably accommodate the instructors and the number of students enrolled. The sponsor may limit the number of students enrolled in a course.

Minnesota Statutes 2022, section 326B.33, subdivision 7, is amended to read:

Power limited technician..

(a) Except as otherwise provided by law, no individual shall install, alter, repair, plan, lay out, or supervise the installing, altering, repairing, planning, or laying out of electrical wiring, apparatus, or equipment for technology circuits or systems unless:

(1) the individual is licensed by the commissioner as a power limited technician; and

(2) the electrical work is:

(i) for a licensed contractor and the individual is an employee, partner, or officer of, or is the licensed contractor; or

(ii) performed under the direct supervision of a master electrician or power limited technician also employed by the individual's employer on technology circuits, systems, apparatus, equipment, or facilities that are owned or leased by the employer and that are located within the limits of property operated, maintained, and either owned or leased by the employer.

(b) An applicant for a power limited technician's license shall (1) be a graduate of a four-year electrical course offered by an accredited college or university; or (2) have had at least 36 months' experience, acceptable to the commissioner, in planning for, laying out, supervising, installing, altering, and repairing wiring, apparatus, or equipment for power limited systems, provided however, that up to 12 months (2,000 hours) of experience credit for successful completion of a two-year post high school electrical course or other technical training approved by the commissioner may be allowed.

(c) Licensees must attain 16 hours of continuing education acceptable to the board every renewal period.

deleted text begin (d) A company holding an alarm and communication license as of June 30, 2003, may designate one individual who may obtain a power limited technician license without passing an examination administered by the commissioner by submitting an application and license fee of $30. deleted text end

deleted text begin (e) A person who has submitted an application by December 30, 2007, to take the power limited technician examination administered by the department is not required to meet the qualifications set forth in paragraph (b). deleted text end

Minnesota Statutes 2022, section 326B.33, subdivision 21, is amended to read:

Exemptions from licensing..

(a) An individual who is a maintenance electrician is not required to hold or obtain a license under sections 326B.31 to 326B.399 if:

(1) the individual is engaged in the maintenance and repair of electrical equipment, apparatus, and facilities that are owned or leased by the individual's employer and that are located within the limits of property operated, maintained, and either owned or leased by the individual's employer;

(2) the individual is supervised by:

(i) the responsible master electrician for a contractor who has contracted with the individual's employer to provide services for which a contractor's license is required; or

(ii) a licensed master electrician, a licensed maintenance electrician, an electrical engineer, or, if the maintenance and repair work is limited to technology circuits or systems work, a licensed power limited technician; and

(3) the individual's employer has on file with the commissioner a current certificate of responsible person, signed by the responsible master electrician of the contractor, the licensed master electrician, the licensed maintenance electrician, the electrical engineer, or the licensed power limited technician, and stating that the person signing the certificate is responsible for ensuring that the maintenance and repair work performed by the employer's employees complies with the Minnesota Electrical Act and the rules adopted under that act. The employer must pay a filing fee to file a certificate of responsible person with the commissioner. The certificate shall expire two years from the date of filing. In order to maintain a current certificate of responsible person, the employer must resubmit a certificate of responsible person, with a filing fee, no later than two years from the date of the previous submittal.

(b) Employees of a licensed electrical or technology systems contractor or other employer where provided with supervision by a master electrician in accordance with subdivision 1, or power limited technician in accordance with subdivision 7, paragraph (a), clause (1), are not required to hold a license under sections 326B.31 to 326B.399 for the planning, laying out, installing, altering, and repairing of technology circuits or systems except planning, laying out, or installing:

(1) in other than residential dwellings, class 2 or class 3 remote control circuits that control circuits or systems other than class 2 or class 3, except circuits that interconnect these systems through communication, alarm, and security systems are exempted from this paragraph;

(2) class 2 or class 3 circuits in electrical cabinets, enclosures, or devices containing physically unprotected circuits other than class 2 or class 3; or

(3) technology circuits or systems in hazardous classified locations as covered by deleted text begin chapter 5 of deleted text end the National Electrical Code.

(c) Companies and their employees that plan, lay out, install, alter, or repair class 2 and class 3 remote control wiring associated with plug or cord and plug connected appliances other than security or fire alarm systems installed in a residential dwelling are not required to hold a license under sections 326B.31 to 326B.399 .

(d) Heating, ventilating, air conditioning, and refrigeration contractors and their employees are not required to hold or obtain a license under sections 326B.31 to 326B.399 when performing heating, ventilating, air conditioning, or refrigeration work as described in section 326B.38 .

(e) Employees of any electrical, communications, or railway utility, cable communications company as defined in section 238.02 , or a telephone company as defined under section 237.01 or its employees, or of any independent contractor performing work on behalf of any such utility, cable communications company, or telephone company, shall not be required to hold a license under sections 326B.31 to 326B.399 :

(1) while performing work on installations, materials, or equipment which are owned or leased, and operated and maintained by such utility, cable communications company, or telephone company in the exercise of its utility, antenna, or telephone function, and which:

(i) are used exclusively for the generation, transformation, distribution, transmission, or metering of electric current, or the operation of railway signals, or the transmission of intelligence and do not have as a principal function the consumption or use of electric current or provided service by or for the benefit of any person other than such utility, cable communications company, or telephone company; and

(ii) are generally accessible only to employees of such utility, cable communications company, or telephone company or persons acting under its control or direction; and

(iii) are not on the load side of the service point or point of entrance for communication systems;

(2) while performing work on installations, materials, or equipment which are a part of the street lighting operations of such utility; or

(3) while installing or performing work on outdoor area lights which are directly connected to a utility's distribution system and located upon the utility's distribution poles, and which are generally accessible only to employees of such utility or persons acting under its control or direction.

(f) An deleted text begin owner shall not be deleted text end new text begin individual who physically performs electrical work on a residential dwelling that is located on a property the individual owns and actually occupies as a residence or owns and will occupy as a residence upon completion of its construction is not new text end required to hold or obtain a license under sections 326B.31 to 326B.399 new text begin if the residential dwelling has a separate electrical utility service not shared with any other residential dwelling new text end .

(g) Companies and their employees licensed under section 326B.164 shall not be required to hold or obtain a license under sections 326B.31 to 326B.399 while performing elevator work.

Minnesota Statutes 2022, section 326B.36, subdivision 2, is amended to read:

Technology systems..

(a) The installation of the technology circuits or systems described in paragraph (b), except:

(1) minor work performed by a contractor;

(2) work performed by a heating, ventilating, or air conditioning contractor as described in section 326B.38 ; and

(3) work performed by cable company employees when installing cable communications systems or telephone company employees when installing telephone systems,

must be inspected as provided in this section for compliance with the applicable provisions of the National Electrical Code and the applicable provisions of the National Electrical Safety Code, as those codes were approved by the American National Standards Institute.

(b) The inspection requirements in paragraph (a) apply to:

(1) class 2 or class 3 remote control circuits that control circuits or systems other than class 2 or class 3, except circuits that interconnect these systems exempted by section 326B.33, subdivision 21 , paragraph (b), other than fire alarm; class 2 or class 3 circuits in electrical cabinets, enclosures, or devices containing physically unprotected circuits other than class 2 or class 3; or technology circuits and systems in hazardous classified locations as covered by deleted text begin chapter 5 of deleted text end the National Electrical Code;

(2) fire alarm systems, other than in one- or two-family dwellings, as defined in deleted text begin articles 100 and 760 of deleted text end the National Electrical Code;

(3) technology circuits and systems contained within critical care areas of health care facilities as defined by the safety standards identified in section 326B.35 , including, but not limited to, anesthesia and resuscitative alarm and alerting systems, medical monitoring, and nurse call systems; new text begin and new text end

(4) physical security systems within detention facilities deleted text begin ; and deleted text end new text begin . new text end

deleted text begin (5) circuitry and equipment for indoor lighting systems as defined in article 411 of the National Electrical Code. deleted text end

(c) For the purposes of this subdivision "minor work" means the adjustment or repair and replacement of worn or defective parts of a technology circuit or system. Minor work may be inspected under this section at the request of the owner of the property or the person doing the work.

(d) Notwithstanding this subdivision, if an electrical inspector observes that a contractor, employer, or owner has not complied with accepted standards when the work was performed, as provided in the most recent editions of the National Electrical Code and the National Electrical Safety Code as approved by the American National Standards Institute, the inspector may order the contractor, employer, or owner who has performed the work to file deleted text begin a request for electrical inspection deleted text end new text begin an electrical permit new text end , pay an inspection fee, and make any necessary repairs to comply with applicable standards and require that the work be inspected.

Minnesota Statutes 2023 Supplement, section 326B.36, subdivision 7, is amended to read:

Exemptions from inspections..

Installations, materials, or equipment shall not be subject to inspection under sections 326B.31 to 326B.399 :

(1) when owned or leased, operated and maintained by any employer whose maintenance electricians are exempt from licensing under sections 326B.31 to 326B.399 , while performing electrical maintenance work only as defined by rule;

(2) when owned or leased, and operated and maintained by any electrical, communications, or railway utility, cable communications company as defined in section 238.02 , or telephone company as defined under section 237.01 , in the exercise of its utility, antenna, or telephone function; and

(i) are used exclusively for the generations, transformation, distribution, transmission, load control, or metering of electric current, or the operation of railway signals, or the transmission of intelligence, and do not have as a principal function the consumption or use of electric current by or for the benefit of any person other than such utility, cable communications company, or telephone company; and

(3) when used in the street lighting operations of an electrical utility;

(4) when used as outdoor area lights which are owned and operated by an electrical utility and which are connected directly to its distribution system and located upon the utility's distribution poles, and which are generally accessible only to employees of such utility or persons acting under its control or direction;

(5) when the installation, material, and equipment are in facilities subject to the jurisdiction of the federal Mine Safety and Health Act; or

(6) when the installation, material, and equipment is part of an elevator installation for which the elevator contractor, licensed under section 326B.164 , is required to obtain a permit from the authority having jurisdiction as provided by section 326B.184 , and the inspection has been or will be performed by an elevator inspector certified and licensed by the department. This exemption shall apply only to installations, material, and equipment permitted or required to be connected on the load side of the disconnecting means required for elevator equipment under new text begin the new text end National Electrical Code deleted text begin Article 620 deleted text end , and elevator communications and alarm systems within the machine room, car, hoistway, or elevator lobby.

Minnesota Statutes 2022, section 326B.46, subdivision 6, is amended to read:

Well contractor exempt from licensing and bond; conditions..

No license, registration, or bond under sections 326B.42 to 326B.49 is required of a well contractor or a limited well/boring contractor who is licensed and bonded under section 103I.525 or 103I.531 and is engaged in the work or business of new text begin designing and new text end installing:

(1) water service pipe from a well to a pressure tank;

(2) a frost-free water hydrant with an antisiphon device on a well water service pipe located entirely outside of a building requiring potable water;

(3) a control valve, located outside the building, on a well water service pipe; or

(4) a main control valve located within two feet of the pressure tank on the distribution supply line.

LABOR STANDARDS

Minnesota statutes 2022, section 13.79, subdivision 1, is amended to read:, subdivision 1., identity of deleted text begin employees making complaints deleted text end new text begin complainants new text end ..

Data that identify deleted text begin complaining employees and that appear on complaint forms received by deleted text end new text begin individuals who have complained to new text end the Department of Labor and Industry concerning alleged violations of deleted text begin the Fair Labor Standards Act, section 181.75 or 181.9641 , deleted text end new text begin chapter 177; chapter 181; sections 179.86 to 179.877; chapter 181A; or rules adopted pursuant to these statutes, new text end are classified as private data. new text begin The commissioner may disclose this data to other government entities with written consent from the complainant if the commissioner determines that the disclosure furthers an enforcement action of the Department of Labor and Industry or another government entity. new text end

Minnesota Statutes 2023 Supplement, section 177.27, subdivision 2, is amended to read:

Submission of records; penalty..

new text begin (a) new text end The commissioner may require the employer of employees working in the state to submit to the commissioner photocopies, certified copies, or, if necessary, the originals of employment records which the commissioner deems necessary or appropriate. The records which may be required include full and correct statements in writing, including sworn statements by the employer, containing information relating to wages, hours, names, addresses, and any other information pertaining to the employer's employees and the conditions of their employment as the commissioner deems necessary or appropriate.

new text begin (b) Employers and persons requested by the commissioner to produce records shall respond within the time and in the manner specified by the commissioner. new text end

new text begin (c) new text end The commissioner may require the records to be submitted by certified mail delivery or, if necessary, by personal delivery by the employer or a representative of the employer, as authorized by the employer in writing.

new text begin (d) new text end The commissioner may fine the employer up to $10,000 for each failure to submit or deliver records as required by this section. This penalty is in addition to any penalties provided under section 177.32, subdivision 1 . In determining the amount of a civil penalty under this subdivision, the appropriateness of such penalty to the size of the employer's business and the gravity of the violation shall be considered.

Minnesota Statutes 2023 Supplement, section 177.27, subdivision 4, is amended to read:

Compliance orders..

The commissioner may issue an order requiring an employer to comply with sections 177.21 to 177.435 , 179.86 , 181.02 , 181.03 , 181.031 , 181.032 , new text begin 181.10, new text end 181.101 , 181.11 , 181.13 , 181.14 , 181.145 , 181.15, 181.165, 181.172, paragraph (a) or (d), 181.214 to 181.217, 181.275, subdivision 2a , 181.635 , new text begin 181.64, new text end 181.722 , 181.79, 181.85 to 181.89 , 181.939 to 181.943, 181.9445 to 181.9448, 181.987 , 181.991, 268B.09, subdivisions 1 to 6, and 268B.14, subdivision 3, with any rule promulgated under section 177.28 , 181.213 , or 181.215 . The commissioner shall issue an order requiring an employer to comply with sections 177.41 to 177.435 , 181.165, or 181.987 if the violation is repeated. For purposes of this subdivision only, a violation is repeated if at any time during the two years that preceded the date of violation, the commissioner issued an order to the employer for violation of sections 177.41 to 177.435 , 181.165, or 181.987 and the order is final or the commissioner and the employer have entered into a settlement agreement that required the employer to pay back wages that were required by sections 177.41 to 177.435 . The department shall serve the order upon the employer or the employer's authorized representative in person or by certified mail at the employer's place of business. An employer who wishes to contest the order must file written notice of objection to the order with the commissioner within 15 calendar days after being served with the order. A contested case proceeding must then be held in accordance with sections 14.57 to 14.69 or 181.165. If, within 15 calendar days after being served with the order, the employer fails to file a written notice of objection with the commissioner, the order becomes a final order of the commissioner. For the purposes of this subdivision, an employer includes a contractor that has assumed a subcontractor's liability within the meaning of section 181.165.

Minnesota Statutes 2023 Supplement, section 177.27, subdivision 7, is amended to read:

Employer liability..

If an employer is found by the commissioner to have violated a section identified in subdivision 4, or any rule adopted under section 177.28 , 181.213 , or 181.215 , and the commissioner issues an order to comply, the commissioner shall order the employer to cease and desist from engaging in the violative practice and to take such affirmative steps that in the judgment of the commissioner will effectuate the purposes of the section or rule violated. The commissioner shall order the employer to pay to the aggrieved parties back pay, gratuities, and compensatory damages, less any amount actually paid to the employee by the employer, and for an additional equal amount as liquidated damages. new text begin The commissioner may also order reinstatement and any other appropriate relief to the aggrieved parties. new text end Any employer who is found by the commissioner to have repeatedly or willfully violated a section or sections identified in subdivision 4 shall be subject to a civil penalty of up to $10,000 for each violation for each employee. In determining the amount of a civil penalty under this subdivision, the appropriateness of such penalty to the size of the employer's business and the gravity of the violation shall be considered. In addition, the commissioner may order the employer to reimburse the department and the attorney general for all appropriate litigation and hearing costs expended in preparation for and in conducting the contested case proceeding, unless payment of costs would impose extreme financial hardship on the employer. If the employer is able to establish extreme financial hardship, then the commissioner may order the employer to pay a percentage of the total costs that will not cause extreme financial hardship. Costs include but are not limited to the costs of services rendered by the attorney general, private attorneys if engaged by the department, administrative law judges, court reporters, and expert witnesses as well as the cost of transcripts. Interest shall accrue on, and be added to, the unpaid balance of a commissioner's order from the date the order is signed by the commissioner until it is paid, at an annual rate provided in section 549.09, subdivision 1 , paragraph (c). The commissioner may establish escrow accounts for purposes of distributing damages.

Minnesota Statutes 2022, section 177.30, is amended to read:

177.30 keeping records; penalty..

(a) Every employer subject to sections 177.21 to 177.44 must make and keep a record of:

(1) the name, address, and occupation of each employee;

(2) the rate of pay, and the amount paid each pay period to each employee;

(3) the hours worked each day and each workweek by the employee, including for all employees paid at piece rate, the number of pieces completed at each piece rate;

(4) a list of the personnel policies provided to the employee, including the date the policies were given to the employee and a brief description of the policies;

(5) a copy of the notice provided to each employee as required by section 181.032 , paragraph (d), including any written changes to the notice under section 181.032 , paragraph (f);

(6) for each employer subject to sections 177.41 to 177.44 , and while performing work on public works projects funded in whole or in part with state funds, the employer shall furnish under oath signed by an owner or officer of an employer to the contracting authority and the project owner every two weeks, a certified payroll report with respect to the wages and benefits paid each employee during the preceding weeks specifying for each employee: name; identifying number; prevailing wage master job classification; hours worked each day; total hours; rate of pay; gross amount earned; each deduction for taxes; total deductions; net pay for week; dollars contributed per hour for each benefit, including name and address of administrator; benefit account number; and telephone number for health and welfare, vacation or holiday, apprenticeship training, pension, and other benefit programs; deleted text begin and deleted text end

(7) new text begin earnings statements for each employee for each pay period as required by section 181.032, paragraphs (a) and (b); and new text end

new text begin (8) new text end other information the commissioner finds necessary and appropriate to enforce sections 177.21 to 177.435 . The records must be kept for three years in the premises where an employee works except each employer subject to sections 177.41 to 177.44 , and while performing work on public works projects funded in whole or in part with state funds, the records must be kept for three years after the contracting authority has made final payment on the public works project.

(b) All records required to be kept under paragraph (a) must be readily available for inspection by the commissioner upon demand. The records must be either kept at the place where employees are working or kept in a manner that allows the employer to comply with this paragraph within 72 hours.

(c) The commissioner may fine an employer up to $1,000 for each failure to maintain records as required by this section, and up to $5,000 for each repeated failure. This penalty is in addition to any penalties provided under section 177.32, subdivision 1 . In determining the amount of a civil penalty under this subdivision, the appropriateness of such penalty to the size of the employer's business and the gravity of the violation shall be considered.

(d) If the records maintained by the employer do not provide sufficient information to determine the exact amount of back wages due an employee, the commissioner may make a determination of wages due based on available evidence.

Minnesota Statutes 2023 Supplement, section 177.42, subdivision 2, is amended to read:

"Project" means demolition, erection, construction, new text begin alteration, improvement, restoration, new text end remodeling, or repairing of a public building, new text begin structure, new text end facility, new text begin land, new text end or other public work new text begin , which includes any work suitable for and intended for use by the public, or for the public benefit, new text end financed in whole or part by state funds. Project also includes demolition, erection, construction, new text begin alteration, improvement, restoration, new text end remodeling, or repairing of a building, new text begin structure, new text end facility, new text begin land, new text end or public work when the acquisition of property, predesign, design, or demolition is financed in whole or part by state funds.

Minnesota Statutes 2023 Supplement, section 181.212, subdivision 7, is amended to read:

The affirmative vote of five board members is required for the board to take any action, including actions necessary to establish minimum nursing home employment standards under section 181.213 . new text begin At least two of the five affirmative votes must be cast by the commissioner members or the commissioner's appointees. new text end

Minnesota Statutes 2023 Supplement, section 181.213, subdivision 1, is amended to read:

Authority to establish minimum nursing home employment standards..

(a) The board must adopt rules establishing minimum nursing home employment standards that are reasonably necessary and appropriate to protect the health and welfare of nursing home workers, to ensure that nursing home workers are properly trained about and fully informed of their rights under sections 181.211 to 181.217 , and to otherwise satisfy the purposes of sections 181.211 to 181.217 . Standards established by the board must include standards on compensation for nursing home workers, and may include recommendations under paragraph (c). The board may not adopt standards that are less protective of or beneficial to nursing home workers as any other applicable statute or rule or any standard previously established by the board unless there is a determination by the board under subdivision 2 that existing standards exceed the operating payment rate and external fixed costs payment rates included in the most recent budget and economic forecast completed under section 16A.103 . In establishing standards under this section, the board must establish statewide standards, and may adopt standards that apply to specific nursing home occupations.

(b) The board must adopt rules establishing initial standards for wages for nursing home workers no later than deleted text begin August deleted text end new text begin November new text end 1, 2024. The board may use the authority in section 14.389 to adopt rules under this paragraph. The board shall consult with the department in the development of these standards prior to beginning the rule adoption process.

(c) To the extent that any minimum standards that the board finds are reasonably necessary and appropriate to protect the health and welfare of nursing home workers fall within the jurisdiction of chapter 182, the board shall not adopt rules establishing the standards but shall instead recommend the occupational health and safety standards to the commissioner. The commissioner shall adopt nursing home health and safety standards under section 182.655 as recommended by the board, unless the commissioner determines that the recommended standard is outside the statutory authority of the commissioner, presents enforceability challenges, is infeasible to implement, or is otherwise unlawful and issues a written explanation of this determination.

Minnesota Statutes 2023 Supplement, section 181.939, subdivision 2, is amended to read:

Pregnancy accommodations..

(a) An employer must provide reasonable accommodations to an employee for health conditions related to pregnancy or childbirth upon request, with the advice of a licensed health care provider or certified doula, unless the employer demonstrates that the accommodation would impose an undue hardship on the operation of the employer's business. A pregnant employee shall not be required to obtain the advice of a licensed health care provider or certified doula, nor may an employer claim undue hardship for the following accommodations: (1) more frequent or longer restroom, food, and water breaks; (2) seating; and (3) limits on lifting over 20 pounds. The employee and employer shall engage in an interactive process with respect to an employee's request for a reasonable accommodation. Reasonable accommodation may include but is not limited to temporary transfer to a less strenuous or hazardous position, temporary leave of absence, modification in work schedule or job assignments, seating, more frequent or longer break periods, and limits to heavy lifting. Notwithstanding any other provision of this subdivision, an employer shall not be required to create a new or additional position in order to accommodate an employee pursuant to this subdivision and shall not be required to discharge an employee, transfer another employee with greater seniority, or promote an employee.

(b) Nothing in this subdivision shall be construed to affect any other provision of law relating to sex discrimination or pregnancy or in any way diminish the coverage of pregnancy, childbirth, or health conditions related to pregnancy or childbirth under any other provisions of any other law.

(c) An employer shall not require an employee to take a leave or accept an accommodation.

(d) An employer shall not discharge, discipline, penalize, interfere with, threaten, restrain, coerce, or otherwise retaliate or discriminate against an employee for asserting rights or remedies under this subdivision.

(e) For the purposes of this subdivision, "employer" means a person or entity that employs one or more employees and includes the state and its political subdivisions.

new text begin (f) During any leave for which an employee is entitled to benefits or leave under this subdivision, the employer must maintain coverage under any group insurance policy, group subscriber contract, or health care plan for the employee and any dependents as if the employee was not on leave, provided, however, that the employee must continue to pay any employee share of the cost of the benefits. new text end

Minnesota Statutes 2022, section 181.941, subdivision 4, is amended to read:

Continued insurance..

deleted text begin The employer must continue to make coverage available to the employee while on leave of absence under any group insurance policy, group subscriber contract, or health care plan for the employee and any dependents. Nothing in this section requires the employer to pay the costs of the insurance or health care while the employee is on leave of absence. deleted text end new text begin During any leave for which an employee is entitled to benefits or leave under this section, the employer must maintain coverage under any group insurance policy, group subscriber contract, or health care plan for the employee and any dependents as if the employee was not on leave, provided, however, that the employee must continue to pay any employee share of the cost of the benefits. new text end

Minnesota Statutes 2022, section 181.943, is amended to read:

181.943 relationship to other leave..

(a) The length of leave provided under section 181.941 may be reduced by any period of:

(1) paid parental, disability, personal, medical, or sick leave, or accrued vacation provided by the employer so that the total leave does not exceed 12 weeks, unless agreed to by the employer; or

(2) leave taken for the same purpose by the employee under United States Code, title 29, chapter 28.

(b) Nothing in sections 181.940 to 181.943 prevents any employer from providing leave benefits in addition to those provided in sections 181.940 to 181.944 or otherwise affects an employee's rights with respect to any other employment benefit.

new text begin (c) Notwithstanding paragraphs (a) and (b), the length of leave provided under section 181.941 must not be reduced by any period of paid or unpaid leave taken for prenatal care medical appointments. new text end

new text begin [181.9881] RESTRICTIVE EMPLOYMENT COVENANTS; VOID IN SERVICE CONTRACTS. new text end

New text begin subdivision 1. new text end, new text begin definitions. new text end.

new text begin (a) "Customer" means an individual, partnership, association, corporation, business, trust, or group of persons hiring a service provider for services. new text end

new text begin (b) "Employee," as used in this section, means any individual who performs services for a service provider, including independent contractors. "Independent contractor" has the meaning given in section 181.988, subdivision 1, paragraph (d). new text end

new text begin (c) "Service provider" means any partnership, association, corporation, business, trust, or group of persons acting directly or indirectly as an employer or manager for work contracted or requested by a customer. new text end

new text begin Subd. 2. new text end

New text begin restrictive employment covenants; void and unenforceable. new text end.

new text begin (a) No service provider may restrict, restrain, or prohibit in any way a customer from directly or indirectly soliciting or hiring an employee of a service provider. new text end

new text begin (b) Any provision of an existing contract that violates paragraph (a) is void and unenforceable. new text end

new text begin (c) When a provision in an existing contract violates this section, the service provider must provide notice to their employees of this section and the restrictive covenant in the existing contract that violates this section. new text end

new text begin Subd. 3. new text end

New text begin exemptions. new text end.

new text begin This section does not apply to workers providing professional business consulting for computer software development and related services who are seeking employment through a service provider with the knowledge and intention of being considered for a permanent position of employment with the customer as their employer at a later date. new text end

new text begin This section is effective July 1, 2024, and applies to contracts and agreements entered into on or after that date. new text end

Minnesota Statutes 2022, section 181A.08, is amended to read:

181a.08 powers and duties of the department., inspections..

The commissioner, an authorized representative, or any truant officer may enter and inspect the place of business or employment and may interview any employees, of any employer of employees in any occupation in the state, all for the purpose of ascertaining whether any minors are employed contrary to the provisions of sections 181A.01 to 181A.12 . Such authorized persons may require that employment certificates, age certificates, and lists of minors employed shall be produced for their inspection.

The commissioner or an authorized representative may issue an order requiring an employer to comply with the provisions of sections 181A.01 to 181A.12 or with any rules promulgated under the provisions of section 181A.09 . Any such order shall be served by the department upon the employer or an authorized representative in person or by certified mail at the employers place of business. If an employer wishes to contest the order for any reason, the employer shall file written notice of objection with the commissioner within deleted text begin ten deleted text end new text begin 15 calendar new text end days after service of said order upon said employer. Thereafter, a public hearing shall be held in accordance with the provisions of sections 14.57 to 14.69 , and such rules consistent therewith as the commissioner shall make. new text begin If, within 15 calendar days after being served with the order, the employer fails to file a written notice of objection with the commissioner, the order becomes a final order of the commissioner. new text end

new text begin Subd. 2a. new text end

New text begin employer liability. new text end.

new text begin If an employer is found by the commissioner to have violated any provision of sections 181A.01 to 181A.12, or any rules promulgated under section 181A.09, and the commissioner issues an order to comply under subdivision 2, the commissioner shall order the employer to cease and desist from engaging in the violative practice and to take affirmative steps that in the judgment of the commissioner will effectuate the purposes of the section or rule violated. The commissioner may order the employer to reimburse the department and the attorney general for appropriate litigation and hearing costs expended in preparation for and in conducting the contested case proceeding, unless payment of costs would impose extreme financial hardship on the employer. If the employer is able to establish extreme financial hardship, then the commissioner may order the employer to pay a percentage of the total costs that will not cause extreme financial hardship. Costs include but are not limited to the costs of services rendered by the attorney general, private attorneys if engaged by the department, administrative law judges, court reporters, and expert witnesses as well as the cost of transcripts. Interest shall accrue on, and be added to, the unpaid balance of a commissioner's order from the date the order is signed by the commissioner until it is paid, at an annual rate provided in section 549.09, subdivision 1, paragraph (c). new text end

Restraining orders.

The commissioner or an authorized representative may apply to any court of competent jurisdiction for an order restraining the violation of an order issued by the commissioner pursuant to subdivision 2, or for an order enjoining and restraining violations of this chapter or rules adopted pursuant to section 181A.09 .

Minnesota Statutes 2022, section 181A.12, subdivision 1, is amended to read:

Fines; penalty..

(a) Any employer who hinders or delays the department or its authorized representative in the performance of its duties under sections 181A.01 to 181A.12 or refuses to admit the commissioner or an authorized representative to any place of employment or refuses to make certificates or lists available as required by sections 181A.01 to 181A.12 , or otherwise violates any provisions of sections 181A.01 to 181A.12 or any rules issued pursuant thereto shall be assessed a fine to be paid to the commissioner for deposit in the general fund. The fine may be recovered in a civil action in the name of the department brought in the district court of the county where the violation is alleged to have occurred or the district court where the commissioner has an office. Fines are deleted text begin in deleted text end new text begin up to new text end the amounts as follows new text begin for each violation new text end :

(b) An employer who refuses to make certificates or lists available as required by sections 181A.01 to 181A.12 shall be assessed a $500 fine.

new text begin (c) Notwithstanding the factors in section 14.045, subdivision 3, the commissioner need only consider the size of the business of the employer, the gravity of the violation, and the history of previous violations when determining the total amount of fines to issue under this subdivision. new text end

Minnesota Statutes 2022, section 181A.12, is amended by adding a subdivision to read:

New text begin subd. 4. new text end, new text begin liquidated damages. new text end.

new text begin An employer who employs a minor in violation of section 181A.04, subdivision 5, may be liable to the minor for an amount equal to the minor's regular rate of pay for all hours worked in violation of section 181A.04, subdivision 5, as liquidated damages, in addition to the wages earned by the minor. new text end

new text begin Subd. 5. new text end

New text begin retaliation. new text end.

new text begin An employer shall not discharge, discipline, penalize, interfere with, threaten, restrain, coerce, or otherwise retaliate or discriminate against an employee for asserting rights or remedies under sections 181A.01 to 181A.12 or any rules promulgated under section 181A.09, including but not limited to filing a complaint with the department, informing the employer of the employee's intention to file a complaint, or participating in an investigation by the department. In addition to any other remedies provided by law, the commissioner may order an employer in violation of this subdivision to provide back pay, compensatory damages, reinstatement, and any other appropriate relief to the aggrieved employee. new text end

OCCUPATIONAL SAFETY AND HEALTH

Minnesota statutes 2023 supplement, section 182.6526, subdivision 1, is amended to read:, definitions..

(a) The terms defined in this subdivision have the meanings given.

(b) "Aggregated employee work speed data" means a compilation of employee work speed data for multiple employees, in summary form, assembled in full or in another form such that the data cannot be identified with any individual.

(c) "Commissioner" means the commissioner of labor and industry.

(d)(1) Except as provided in clause (2), "employee" means deleted text begin an employee deleted text end new text begin a person who meets the definition in section 182.651, subdivision 9, and new text end who works at a warehouse distribution center.

(2) For the purposes of subdivisions 2, 3, and 4 only, "employee" means a deleted text begin nonexempt employee performing deleted text end new text begin person who: (i) meets the definition in section 182.651, subdivision 9; (ii) does not meet any of the exceptions under section 177.23, subdivision 7, clauses (1) to (19); and (iii) performs new text end warehouse work occurring on the property of a warehouse distribution center deleted text begin and deleted text end new text begin . Employee new text end does not include deleted text begin a nonexempt employee deleted text end new text begin any person new text end performing solely manufacturing, administrative, sales, accounting, human resources, or driving work at new text begin , new text end or to and from new text begin , new text end a warehouse distribution center.

(e) "Employee work speed data" means information an employer collects, stores, analyzes, or interprets relating to an individual employee's performance of a quota, including but not limited to quantities of tasks performed, quantities of items or materials handled or produced, rates or speeds of tasks performed, measurements or metrics of employee performance in relation to a quota, and time categorized as performing tasks or not performing tasks. Employee work speed data does not include itemized earnings statements pursuant to chapter 181, except for any content of those records that includes employee work speed data as defined in this paragraph.

(f) "Employer" means a person who new text begin meets the definition in section 182.651, subdivision 7, and who new text end directly or indirectly, or through an agent or any other person, including through the services of a third-party employer, temporary service, or staffing agency or similar entity, employs or exercises control over the wages, hours, or working conditions of 250 or more employees at a single warehouse distribution center or 1,000 or more employees at one or more warehouse distribution centers in the state. For purposes of this paragraph, all employees of an employer's unitary business, as defined in section 290.17, subdivision 4 , shall be counted in determining the number of employees employed at a single warehouse distribution center or at one or more warehouse distribution centers in the state.

(g) "Warehouse distribution center" means an establishment as defined by any of the following North American Industry Classification System (NAICS) codes:

(1) 493110 for General Warehousing and Storage;

(2) 423 for Merchant Wholesalers, Durable Goods;

(3) 424 for Merchant Wholesalers, Nondurable Goods;

(4) 454110 for Electronic Shopping and Mail-Order Houses; and

(5) 492110 for Couriers and Express Delivery Services.

(h) "Quota" means a work standard under which:

(1) an employee or group of employees is assigned or required to perform at a specified productivity speed, or perform a quantified number of tasks, or handle or produce a quantified amount of material, or perform without a certain number of errors or defects, as measured at the individual or group level within a defined time period; or

(2) an employee's actions are categorized and measured between time performing tasks and not performing tasks, and the employee's failure to complete a task performance standard may have an adverse impact on the employee's continued employment.

Minnesota Statutes 2022, section 182.664, subdivision 3, is amended to read:

Powers and duties of board..

The review board shall review and decide appeals from final decisions and orders of the commissioner, including decisions issued by administrative law judges, petitions to vacate final orders of the commissioner, and with the agreement of the parties, may review and decide petitions for decisions based on stipulated facts. The powers of the board in the conduct of hearings, including the power to sign decisions and orders, may be delegated to a member, members, or the board chair. The board may schedule a hearing for purposes of taking oral argument. A notice stating the time and place of the hearing must be given ten days in advance of such a hearing to the parties and copies of the notice of such hearing shall be served by the employer as rules of the board shall require. The hearings shall be open to the public and the board's decisions and orders shall be maintained and available for examination. new text begin Chapter 13D does not apply to meetings or hearings of the board when the board is deliberating to reach its decision on an appeal or petition under its jurisdiction. new text end

Minnesota Statutes 2022, section 182.664, subdivision 5, is amended to read:

Authority of board; deleted text begin standard deleted text end new text begin scope new text end of review..

new text begin (a) new text end For the purpose of carrying out its functions under this chapter, two members of the board shall constitute a quorum and official action can be taken only on the affirmative vote of at least two members. The decisions and orders of an administrative law judge, or final orders of the commissioner, may be appealed to the review board by the employer, employee, or their authorized representatives or any party, within 30 days following service by mail of the administrative law judge's decision and order, or final order of the commissioner.

new text begin (b) new text end The review board shall have authority to revise, deleted text begin confirm deleted text end new text begin affirm, remand new text end , or reverse the decision and order of administrative law judges deleted text begin , or deleted text end new text begin . new text end

new text begin (c) The review board shall also have authority new text end to new text begin affirm, or new text end vacate and remand new text begin , new text end final orders of the commissioner new text begin when a petition to vacate a final order is filed new text end . The board shall only vacate new text begin and remand new text end a final order of the commissioner new text begin relating to a petition to vacate new text end upon a showing of good cause. For purposes of this section, good cause is limited to fraud, mistake of fact deleted text begin or deleted text end new text begin by the commissioner, mistake of new text end law new text begin by the commissioner new text end , or newly discovered evidence.

Minnesota Statutes 2022, section 182.665, is amended to read:

182.665 judicial review..

Any person aggrieved by a final order of the board in a contested case, new text begin by a final order of the board on a petition to vacate a final order of the commissioner, new text end or by any standard, rule, or order promulgated by the commissioner, is entitled to judicial review thereof in accordance with the applicable provisions of chapter 14.

Minnesota Statutes 2022, section 182.666, subdivision 6, is amended to read:

Authority to assess fines; considerations..

Only the commissioner shall have authority to assess all proposed fines provided in this section deleted text begin , giving deleted text end new text begin . Notwithstanding the factors in section 14.045, subdivision 3, the commissioner must give new text end due consideration new text begin only new text end to the new text begin following factors: new text end

new text begin (1) new text end appropriateness of the fine with respect to the size of the business of the employer deleted text begin , deleted text end new text begin ; new text end

new text begin (2) new text end the gravity of the violation deleted text begin , deleted text end new text begin ; new text end

new text begin (3) new text end the good faith of the employer deleted text begin , deleted text end new text begin ; new text end and

new text begin (4) new text end the history of previous violations.

Minnesota Statutes 2022, section 182.667, is amended by adding a subdivision to read:

New text begin investigative data. new text end.

new text begin The commissioner may share active and inactive civil investigative data pursuant to section 13.39 with a city or county attorney for purposes of enforcing this section. The commissioner may share complete data and need not withhold any data under the requirements of chapter 13 or 182 or any other state privacy law. new text end

Minnesota Statutes 2023 Supplement, section 182.677, subdivision 1, is amended to read:

(a) For purposes of this section, the definitions in this subdivision apply unless otherwise specified.

(b) "Health care facility" means a hospital with a North American Industrial Classification system code of 622110, 622210, or 622310; an outpatient surgical center with a North American Industrial Classification system code of 621493; and a nursing home with a North American Industrial Classification system code of 623110.

(c) "Warehouse distribution center" means deleted text begin an employer deleted text end new text begin a site in Minnesota new text end with 100 or more employees deleted text begin in Minnesota deleted text end and a North American Industrial Classification system code of 493110, 423110 to 423990, 424110 to 424990, 454110, or 492110.

(d) "Meatpacking site" means a deleted text begin meatpacking or poultry processing deleted text end site new text begin in Minnesota new text end with 100 or more employees deleted text begin in Minnesota deleted text end and a North American Industrial Classification system code of 311611 to 311615, except 311613.

(e) "Musculoskeletal disorder" or "MSD" means a disorder of the muscles, nerves, tendons, ligaments, joints, cartilage, blood vessels, or spinal discs.

Minnesota Statutes 2023 Supplement, section 182.677, subdivision 2, is amended to read:

Ergonomics program required..

(a) Every new text begin employer with employees at a new text end licensed health care facility, warehouse distribution center, or meatpacking site in the state shall create and implement an effective written ergonomics program establishing the employer's plan to minimize the risk of its employees developing or aggravating musculoskeletal disorders. The ergonomics program shall focus on eliminating the risk. To the extent risk exists, the ergonomics program must include feasible administrative or engineering controls to reduce the risk.

(b) The program shall include:

(1) an assessment to identify and reduce musculoskeletal disorder risk factors in the facility;

(2) an initial and ongoing training of employees on ergonomics and its benefits, including the importance of reporting early symptoms of musculoskeletal disorders;

(3) a procedure to ensure early reporting of musculoskeletal disorders to prevent or reduce the progression of symptoms, the development of serious injuries, and lost-time claims;

(4) a process for employees to provide possible solutions that may be implemented to reduce, control, or eliminate workplace musculoskeletal disorders;

(5) procedures to ensure that physical plant modifications and major construction projects are consistent with program goals; and

(6) annual evaluations of the ergonomics program and whenever a change to the work process occurs.

APPRENTICESHIP POLICY

Minnesota statutes 2022, section 13.7905, is amended by adding a subdivision to read:, new text begin subd. 10. new text end, new text begin apprentice data. new text end.

new text begin Apprentice data reported to, maintained by, or collected by the department is governed by section 178.071. new text end

Minnesota Statutes 2023 Supplement, section 178.01, is amended to read:

178.01 purposes..

The purposes of this chapter are: to open to all people regardless of race, new text begin color, creed, religion, national origin, new text end sex, deleted text begin creed, color or national origin, deleted text end new text begin gender identity, sexual orientation, marital status, familial status, disability, status with regard to public assistance, or age new text end the opportunity to obtain training and on-the-job learning that will equip them for profitable employment and citizenship; to establish as a means to this end, a program of voluntary apprenticeship under approved apprenticeship agreements providing facilities for their training and guidance in the arts, skills, and crafts of industry and trade or occupation, with concurrent, supplementary instruction in related subjects; to promote apprenticeship opportunities under conditions providing adequate training and on-the-job learning and reasonable earnings; to relate the supply of skilled workers to employment demands; to establish standards for apprentice training; to establish an Apprenticeship new text begin Advisory new text end Board deleted text begin and apprenticeship committees deleted text end to assist in effectuating the purposes of this chapter; to provide for a Division of Apprenticeship within the Department of Labor and Industry; deleted text begin to provide for reports to the legislature regarding the status of apprentice training in the state; deleted text end to establish a procedure for the determination of apprenticeship agreement controversies; and to accomplish related ends.

Minnesota Statutes 2022, section 178.011, subdivision 9, is amended to read:

Journeyworker..

"Journeyworker" means a person who has attained a level of skill, abilities, and competencies recognized within an industry as having mastered the skills and competencies required for the trade or occupation. new text begin Use of the term may also refer to a mentor, technician, specialist, or other skilled worker who has documented sufficient skills and knowledge of an occupation, either through formal apprenticeship or through practical on-the-job experience and formal training. new text end

Minnesota Statutes 2022, section 178.012, subdivision 1, is amended to read:

Apprenticeship rules..

Federal regulations governing apprenticeship deleted text begin in effect on January 18, 2017 deleted text end , as provided by Code of Federal Regulations, title 29, parts 29, sections 29.1 to 29.6 and 29.11, and 30, are the apprenticeship rules in this state, subject to amendment by this chapter or by rule under section 178.041 .

Minnesota Statutes 2022, section 178.035, subdivision 2, is amended to read:

Provisional approval..

The division shall grant a provisional approval period of one year to an applicant demonstrating that the standards submitted meet the requirements of this chapter. The division may review each program granted provisional approval for quality and for conformity with the requirements of this section and section 178.036 at any time, but not less than biannually, during the provisional approval period. After review:

(1) a program that conforms with the requirements of this chapter:

(i) may be deleted text begin approved deleted text end new text begin made permanent new text end ; or

(ii) may continue to be provisionally approved through the first full training cycle; and

(2) a program not in operation or not conforming with the requirements of this chapter during the provisional approval period shall be deregistered.

The division shall inform the applicant of the results of its review in writing at least 30 days prior to the expiration of the provisional approval period.

Minnesota Statutes 2022, section 178.035, subdivision 4, is amended to read:

Program modification..

To apply for modification of or change to a registered program, a sponsor shall submit a written request for modification to the division. The division shall approve or disapprove a modification request within 90 days from the date of receipt. If approved, the modification or change must be recorded and acknowledged within 90 days of its approval as an amendment to the registered program. If not approved, the division shall notify the sponsor in writing of the disapproval and the reasons for the disapproval. The division may provide technical assistance to a sponsor seeking to modify or change a registered program. new text begin The division may require program modification to ensure standards of apprenticeship that comply with the requirements of Code of Federal Regulations, title 29, part 29, section 29.5, and this chapter. new text end

Minnesota Statutes 2022, section 178.035, subdivision 6, is amended to read:

Certificate..

Upon deleted text begin registration deleted text end new text begin provisional approval new text end of a program, the commissioner shall issue a certificate of registration to the sponsor. Within deleted text begin 30 deleted text end new text begin 45 new text end days after the certificate is mailed or otherwise delivered to the sponsor, the sponsor must submit to the commissioner a copy of at least one executed apprenticeship agreement.

Minnesota Statutes 2022, section 178.035, subdivision 7, is amended to read:

Policy requirement..

It must be the policy of the employer and sponsor that the recruitment, selection, employment, and training of apprentices during their apprenticeship must be without discrimination due to race, color, creed, religion, national origin, sex, new text begin gender identity, new text end sexual orientation, marital status, deleted text begin physical or mental deleted text end new text begin familial status, new text end disability, deleted text begin receipt of deleted text end new text begin status with regard to new text end public assistance, or age. The employer and sponsor must take affirmative action to provide equal opportunity in apprenticeship and must operate the apprenticeship program as required under Code of Federal Regulations, title 29, part 30, and under the Minnesota plan for equal opportunity in apprenticeship.

Minnesota Statutes 2022, section 178.036, subdivision 3, is amended to read:

Related instruction..

A minimum of 144 hours of related instruction is required deleted text begin in deleted text end each training cycle. At least 50 hours of related safety instruction is required during the term of apprenticeship. Time spent in related instruction cannot be considered as hours of work as required by the deleted text begin job deleted text end new text begin work new text end process schedule. new text begin Related instruction must be designated in hours for each individual trade or occupation included in the standards. new text end Every apprenticeship instructor must meet the Department of Education's requirements for a deleted text begin vocational-technical deleted text end new text begin career and technical education new text end instructor or be a subject matter expert, which is an individual such as a journeyworker who is recognized within an industry as having expertise in a specific trade or occupation.

Minnesota Statutes 2022, section 178.036, subdivision 4, is amended to read:

Deleted text begin job deleted text end new text begin work new text end process schedule..

Each deleted text begin time-based deleted text end apprenticeship program must include not less than 2,000 hours of reasonably continuous employment.

Minnesota Statutes 2022, section 178.036, subdivision 5, is amended to read:

If the apprentice is covered by a collective bargaining agreement, the employer must follow the provisions of the collective bargaining agreement regarding the maximum number of apprentices to be employed at the work site for each journeyworker employed at the same work site. In the absence of a collective bargaining agreement, for the purposes of direct supervision and the safety and instruction of the apprentice, the ratio shall be:

(1) one apprentice for deleted text begin the first deleted text end new text begin each new text end journeyworker employed at the work site deleted text begin plus one apprentice for each additional three journeyworkers employed at the work site; deleted text end new text begin , except that for occupations in the building and construction trades or any hazardous occupation as defined by section 181A.04, subdivision 5, one apprentice for the first journeyworker employed at the work site plus one apprentice for each additional three journeyworkers employed at the work site; new text end

(2) the work site ratio utilized by the majority of registered apprenticeship agreements in the same trade or occupation; or

(3) a program-specific ratio that has been approved by the Apprenticeship Advisory Board.

Minnesota Statutes 2022, section 178.036, subdivision 6, is amended to read:

Graduated schedule of wages..

The graduated schedule of wages for an apprenticeship program shall be calculated as a percentage of the journeyworker rate in the majority of registered apprenticeship agreements in the same trade or occupation in the state. If there are no registered apprenticeship agreements in the same trade or occupation, the graduated schedule of wages may be determined by the sponsor new text begin with the approval of the division new text end .

Minnesota Statutes 2022, section 178.036, subdivision 7, is amended to read:

Probationary period..

The standards must provide a period of probation of not more than deleted text begin 500 hours of employment and instruction extending over not more than four months deleted text end new text begin one year or 25 percent of the length of the program, whichever is shorter new text end , during which time the apprenticeship agreement shall be terminated by the director upon written request of either party, and providing that after such probationary period the apprenticeship agreement may be terminated by the director by mutual agreement of all parties thereto, or terminated by the director for good and sufficient reason.

Minnesota Statutes 2022, section 178.044, subdivision 3, is amended to read:

Journeyworker wage rate..

If the apprentice is not covered by a collective bargaining agreement, the journeyworker wage rate upon which the apprenticeship agreement graduated schedule of wages is calculated shall be:

(1) the most current Minnesota state prevailing wage rate determination for the same trade or occupation in the county in which the apprentice's employer is located. If an apprenticeship agreement deleted text begin entered into after January 1, 2015, deleted text end does not specify fringe benefits, the journeyworker wage rate upon which the apprentice wage rate is calculated must be the total rate listed in the wage determination; or

(2) if there is no Minnesota prevailing wage rate determination for the same trade or occupation in the county in which the apprentice's employer is located, the journeyworker wage may be determined by the sponsor with the approval of the division.

Minnesota Statutes 2022, section 178.07, subdivision 1, is amended to read:

Approval required..

(a) The division shall approve, if it determines that it is in the best interest of the apprentice, an apprenticeship agreement new text begin prepared by the sponsor on a form provided by the commissioner new text end that meets the standards established in this section.

(b) deleted text begin All terminations, cancellations, and transfers of apprenticeship agreements shall be approved by the division in writing. deleted text end The division must be notified in writing by the sponsor within 45 days of all terminations, cancellations, or transfer of apprenticeship agreements.

Minnesota Statutes 2022, section 178.07, subdivision 3, is amended to read:

Every apprenticeship agreement entered into under this chapter shall contain:

(1) the names of the contracting parties, and the signatures required by subdivision 2;

(2) the date of birth, and information as to the race new text begin , ethnicity, new text end and sex of the apprentice, and, on a voluntary basis, the apprentice's Social Security number new text begin , disability status, and veteran status new text end ;

(3) contact information of the sponsor and the division;

(4) a statement of the trade or occupation which the apprentice is to be taught, the date on which the apprenticeship will begin, and the number of hours to be spent by the apprentice in work and the number of hours to be spent in concurrent, related instruction;

(5) a statement of the wages to be paid the apprentice under sections 178.036 , subdivision 6, and 178.044 , as applicable;

(6) a statement listing any fringe benefits to be provided to the apprentice;

(7) a statement incorporating as part of the agreement the registered standards of the apprenticeship program on the date of the agreement and as they may be amended during the period of the agreement;

(8) a statement that the apprentice will be accorded equal opportunity in all phases of apprenticeship employment and training, without discrimination due to race, color, creed, religion, national origin, sex, new text begin gender identity, new text end sexual orientation, marital status, deleted text begin physical or mental deleted text end new text begin familial status, new text end disability, deleted text begin receipt of deleted text end new text begin status with regard to new text end public assistance, or age; and

(9) such additional terms and conditions as may be prescribed or approved by the commissioner not inconsistent with the provisions of this chapter.

new text begin [178.071] APPRENTICE DATA. new text end

New text begin definition. new text end.

new text begin "Apprentice data" means data on individuals collected, maintained, used, or disseminated because an individual has applied for or has been submitted for registration as an apprentice with the Division of Apprenticeship, or is currently or has been registered as an apprentice with the Division of Apprenticeship. new text end

new text begin Classification. new text end

new text begin Apprentice data are private data on individuals. new text end

new text begin Data sharing. new text end

new text begin Apprentice data may be shared with a state agency for the purpose of determining compliance with section 116J.871 or 177.41 to 177.44. The division may provide apprentice data to the United States Department of Labor. new text end

Minnesota Statutes 2022, section 178.09, subdivision 2, is amended to read:

Determination; appeal..

Within 90 days after the receipt of a complaint, the division must issue a determination. The determination of the division shall be filed with the commissioner and written notice shall be served on all parties affected by it. Any person aggrieved by any determination or action of the director may appeal to the commissioner. If no appeal is filed with the commissioner within deleted text begin ten deleted text end new text begin 15 new text end days of the date of service, the division's determination shall become the final order of the commissioner. If an appeal is filed, the commissioner shall appoint and convene a hearing board to be composed of three members of the Apprenticeship Advisory Board appointed under section 178.02 , one member being a representative of an employer organization, one representative being a member of an employee organization, and one member representing the general public. The board shall hold a hearing on the appeal after due notice to the interested parties and shall submit to the commissioner findings of fact and a recommended decision accompanied by a memorandum of the reasons for it. Within 30 days after submission, the commissioner may adopt the recommended decision of the board, or disregard the recommended decision of the board and prepare a decision based on the findings of fact and accompanied by a memorandum of reasons for that decision. Written notice of the commissioner's determination and order shall be served on all parties affected by it. Any person aggrieved by the commissioner's determination and order under this section is entitled to judicial review under sections 14.63 to 14.68 in the same manner that a person aggrieved by a final decision in a contested case is entitled to judicial review. The commissioner's determination and order under this section shall be a final decision and order of the department for purposes of sections 14.63 to 14.68 .

Minnesota Statutes 2022, section 178.091, subdivision 2, is amended to read:

(a) The commissioner may deregister a registered apprenticeship program or deny an application for registration if:

(1) the program does not comply with any requirement of Code of Federal Regulations, title 29, part 29 or deleted text begin 32 deleted text end new text begin 30 new text end , this chapter, or any rule adopted pursuant to section 178.041 ;

(2) the program does not have at least one registered apprentice in each trade or occupation, except for the following specified periods of time:

(i) within the first deleted text begin 30 deleted text end new text begin 45 new text end days after the date a program is registered; or

(ii) within one year of the date that a program graduates an apprentice in a trade or occupation and the date of registration for the next apprentice in that trade or occupation; or

(3) the program is not conducted, operated, or administered in accordance with the program's registered standards or with the requirements of this chapter, including but not limited to:

(i) failure to provide on-the-job learning;

(ii) failure to provide related instruction;

(iii) failure of an employer to pay the apprentice a progressively increasing schedule of wages consistent with the apprentice's skills acquired; or

(iv) persistent and significant failure to perform successfully.

(b) The commissioner may deregister an apprenticeship program at the written request of the sponsor in a manner consistent with the provisions of Code of Federal Regulations, title 29, part 29, section 29.8(a).

Minnesota Statutes 2022, section 178.091, subdivision 4, is amended to read:

Deleted text begin orders; hearings related to orders deleted text end new text begin corrective action new text end ..

deleted text begin (a) deleted text end If the commissioner determines that a registered apprenticeship program should be deregistered or that an application for registration should be denied, the commissioner shall issue to and serve on the sponsor deleted text begin an order deregistering the program's registration or denying the application for registration. deleted text end new text begin a notice to correct containing the following: new text end

deleted text begin (b) An order issued under this subdivision must specify: deleted text end

(1) the deficiency and the required remedy or corrective action;

(2) the time period to effectuate the required remedy or corrective action, which shall be new text begin no less than 30 days and new text end no more than deleted text begin 90 deleted text end new text begin 60 new text end days; and

(3) any other requirement consistent with Code of Federal Regulations, title 29, part 29, section 29.8(b).

deleted text begin (c) The sponsor to whom the commissioner issues an order under this subdivision may appeal to a hearing board appointed consistent with section 178.09, subdivision 2 . deleted text end

Minnesota Statutes 2022, section 178.091, is amended by adding a subdivision to read:

New text begin denial of application. new text end.

new text begin If an applicant for registration does not take the required corrective action within the allotted time, the commissioner may deny the application for registration. new text end

new text begin Subd. 6. new text end

New text begin order of deregistration. new text end.

new text begin If the registered apprenticeship program does not take the required corrective action within the allotted time, the commissioner may issue an order of deregistration containing the following: new text end

new text begin (1) that certain deficiencies were identified in the notice to correct and the registered apprenticeship program did not take the required corrective action; new text end

new text begin (2) based on the deficiencies stated in the notice to correct and the failure of the registered apprentice program to remedy those deficiencies, a determination has been made that there is reasonable cause to deregister the program; new text end

new text begin (3) that the registered apprenticeship program may appeal this determination within 15 days to the commissioner consistent with subdivision 7; and new text end

new text begin (4) that, if the registered apprenticeship program does not appeal the determination, the order becomes final. new text end

new text begin Subd. 7. new text end

New text begin appeal. new text end.

new text begin Any person aggrieved by an order of deregistration may appeal to the commissioner. If no appeal is filed with the commissioner within 15 days of the date of service, the order of deregistration shall become the final order of the commissioner. If an appeal is filed, the commissioner shall appoint and convene a hearing board to be composed of three members of the Apprenticeship Advisory Board appointed under section 178.02, one member being a representative of an employer organization, one representative being a member of an employee organization, and one member representing the general public. The board shall hold a hearing on the appeal after due notice to the interested parties and shall submit to the commissioner findings of fact and a recommended decision accompanied by a memorandum of the reasons for the recommended decision. Within 30 days after submission, the commissioner may adopt the recommended decision of the board or disregard the recommended decision of the board and prepare a decision based on the findings of fact and accompanied by a memorandum of reasons for that decision. Written notice of the commissioner's determination and order shall be served on all parties affected by the commissioner's determination. Any person aggrieved by the commissioner's determination and order under this section is entitled to judicial review under sections 14.63 to 14.68 in the same manner that a person aggrieved by a final decision in a contested case is entitled to judicial review. The commissioner's determination and order under this section shall be a final decision and order of the department for purposes of sections 14.63 to 14.68. new text end

Minnesota Statutes 2022, section 178.10, is amended to read:

178.10 limitation..

(a) The provisions of this chapter shall have no application to those individuals who are apprenticed by the commissioner of corrections pursuant to sections 242.43 and 242.44 .

(b) Nothing in this chapter or any apprenticeship agreement operates to invalidate:

(1) any apprenticeship provision in any collective bargaining agreement between employers and employees establishing higher apprenticeship standards; or

(2) any special provision for veterans, deleted text begin minority persons deleted text end new text begin people of color, individuals with a disability new text end , or women, in the standards, apprentice qualifications, or operation of the program or in the apprenticeship agreement which is not otherwise prohibited by law.

new text begin REPEALER. new text end

new text begin (a) new text end new text begin Minnesota Rules, part 5200.0400, new text end new text begin is repealed. new text end

new text begin (b) new text end new text begin Minnesota Statutes 2022, section 178.036, subdivision 10, new text end new text begin is repealed. new text end

BUREAU OF MEDIATION SERVICES

Minnesota statutes 2022, section 179.01, subdivision 1, is amended to read:, deleted text begin words, terms, and phrases deleted text end new text begin scope new text end ..

Unless the language or context clearly indicates that a different meaning is intended, the deleted text begin following words, deleted text end terms deleted text begin , and phrases, for the purposes of sections 179.01 to 179.17 , shall be given the meanings subjoined to them deleted text end new text begin defined in this section have the meanings given them for purposes of sections 179.01 to 179.17 new text end .

Minnesota Statutes 2022, section 179.01, subdivision 9, is amended to read:

"Lockout" deleted text begin is deleted text end new text begin means new text end the refusal of the employer to furnish work to employees as a result of a labor dispute.

Minnesota Statutes 2022, section 179.01, subdivision 16, is amended to read:

Professional strikebreaker..

new text begin (a) new text end "Professional strikebreaker" means any person who:

deleted text begin (a) deleted text end new text begin (1) new text end makes an offer to an employer at whose place of business a labor dispute is presently in progress to work as a replacement for an employee or employees involved in such labor dispute; and

deleted text begin (b) deleted text end new text begin (2) new text end during a period of five years immediately preceding such offer, has, on more than one occasion, made an offer to employers to work as a temporary employee to personally replace employees involved in labor disputes.

new text begin (b) new text end For the purposes of this subdivision deleted text begin , deleted text end new text begin : new text end

new text begin (1) new text end "work" deleted text begin shall mean deleted text end new text begin means new text end the rendering of services for wages or other consideration deleted text begin . For the purposes of this subdivision, deleted text end new text begin ; and new text end

new text begin (2) new text end "offer" deleted text begin shall include deleted text end new text begin includes new text end arrangements made for or on behalf of employers by any person.

Minnesota Statutes 2022, section 179.06, is amended to read:

179.06 collective bargaining agreements..

new text begin (a) new text end When any employee, employees, or representative of employees, or labor organization shall desire to negotiate a collective bargaining agreement, or make any change in any existing agreement, or shall desire any changes in the rates of pay, rules or working conditions in any place of employment, it shall give written notice to the employer of its demand, which notice shall follow the employer if the place of employment is changed, and it shall thereupon be the duty of the employer and the representative of employee or labor organization to endeavor in good faith to reach an agreement respecting such demand. An employer shall give a like notice to employees, representative, or labor organizations of any intended change in any existing agreement. If no agreement is reached at the expiration of ten days after service of such notice, any employees, representative, labor organization, or employer may at any time thereafter petition the commissioner of mediation services to take jurisdiction of the dispute and it shall be unlawful for any labor organization or representative to institute or aid in the conduct of a strike or for an employer to institute a lockout, unless such petition has been served by the party taking such action upon the commissioner and the other parties to the labor dispute at least ten days before the strike or lockout becomes effective. Unless the strike or lockout is commenced within 90 days from the date of service of the petition upon the commissioner, it shall be unlawful for any of the parties to institute or aid in the conduct of a strike or lockout without serving a new petition in the manner prescribed for the service of the original petition, provided that the 90-day period may be extended by written agreement of the parties filed with the commissioner.

new text begin (b) new text end A petition by the employer shall be signed by the employer or a duly authorized officer or agent; and a petition by the employees shall be signed by their representative or its officers, or by the committee selected to negotiate with the employer. In either case the petition shall be served by delivering it to the commissioner in person or by sending it by certified mail addressed to the commissioner at the commissioner's office. The petition shall state briefly the nature of the dispute and the demands of the party who serves it. Upon receipt of a petition, the commissioner shall fix a time and place for a conference with the parties to the labor dispute upon the issues involved in the dispute, and shall then take whatever steps the commissioner deems most expedient to bring about a settlement of the dispute, including assisting in negotiating and drafting a settlement agreement. It shall be the duty of all parties to a labor dispute to respond to the summons of the commissioner for joint or several conferences with the commissioner and to continue in such conference until excused by the commissioner, not beyond the ten-day period heretofore prescribed except by mutual consent of the parties.

Commissioner deleted text begin , deleted text end powers and duties.

The commissioner may at the request of either party to a labor dispute render assistance in settling the dispute without the necessity of filing the formal petition deleted text begin referred to in deleted text end new text begin under new text end subdivision 1. If the commissioner takes jurisdiction of the dispute as a result of such a request, the commissioner deleted text begin shall deleted text end new text begin must new text end then proceed deleted text begin as provided in deleted text end new text begin according to new text end subdivision 1.

Minnesota Statutes 2022, section 179.08, is amended to read:

179.08 powers of commission appointed by commissioner..

(a) The commission appointed by the commissioner pursuant to the provisions of section 179.07 shall have the power to issue subpoenas requiring the attendance and testimony of witnesses and the production of evidence which relates to any matter involved in any such hearing, and may by its chair administer oaths and affirmations, and may examine witnesses. Such attendance of witnesses and the production of such evidence may be required from any place in the state at any designated place of hearing, but whenever practical hearings shall be held in a county where the labor dispute has arisen or exists.

(b) In case of contumacy or refusal to obey a subpoena issued under paragraph (a), the district court of the state for the county where the proceeding is pending or in which the person guilty of such contumacy or refusal to obey is found, or resides, or transacts business, or application by the commission shall have jurisdiction to issue to such person an order requiring such person to appear before the commission, there to produce evidence as so ordered, or there to give testimony touching the matter under investigation or in question, and any failure to obey such order of the court may be punished by the court as a contempt thereof.

(c) Any party to or party affected by the dispute may appear before the commission in person or by attorney or by their representative, and shall have the right to offer competent evidence and to be heard on the issues before the report of the commission is made.

new text begin (d) new text end Any deleted text begin commissioners so appointed shall deleted text end new text begin commission members appointed under section 179.07 must new text end be paid a per diem allowance not to exceed that established for arbitrators in section 179A.16, subdivision 8 , and their necessary expenses while serving.

Minnesota Statutes 2022, section 179.11, is amended to read:

179.11 employee unfair labor practices..

new text begin (a) new text end It deleted text begin shall be deleted text end new text begin is new text end an unfair labor practice:

(1) for any employee or labor organization to institute a strike if such strike is a violation of any valid collective agreement between any employer and its employees or labor organization and the employer is, at the time, in good faith complying with the provisions of the agreement, or to violate the terms and conditions of such bargaining agreement;

(2) for any employee or labor organization to institute a strike if the calling of such strike is in violation of sections 179.06 or 179.07 ;

(3) for any person to seize or occupy property unlawfully during the existence of a labor dispute;

(4) for any person to picket or cause to be picketed a place of employment of which place the person is not an employee while a strike is in progress affecting the place of employment, unless the majority of persons engaged in picketing the place of employment at these times are employees of the place of employment;

(5) for more than one person to picket or cause to be picketed a single entrance to any place of employment where no strike is in progress at the time;

(6) for any person to interfere in any manner with the operation of a vehicle or the operator thereof when neither the owner nor operator of the vehicle is at the time a party to a strike;

(7) for any employee, labor organization, or officer, agent, or member thereof, to compel or attempt to compel any person to join or to refrain from joining any labor organization or any strike against the person's will by any threatened or actual unlawful interference with the person, or immediate family member, or physical property, or to assault or unlawfully threaten any such person while in pursuit of lawful employment;

(8) unless the strike has been approved by a majority vote of the voting employees in a collective bargaining unit of the employees of an employer or association of employers against whom such strike is primarily directed, for any person or labor organization to cooperate in engaging in, promoting new text begin , new text end or inducing a strike. Such vote shall be taken by secret ballot at an election called by the collective bargaining agent for the unit, and reasonable notice shall be given to all employees in the collective bargaining unit of the time and place of election; or

(9) for any person or labor organization to hinder or prevent by intimidation, force, coercion or sabotage, or by threats thereof, the production, transportation, processing or marketing by a producer, processor or marketing organization, of agricultural products, or to combine or conspire to cause or threaten to cause injury to any processor, producer or marketing organization, whether by withholding labor or other beneficial intercourse, refusing to handle, use or work on particular agricultural products, or by other unlawful means, in order to bring such processor or marketing organization against its will into a concerted plan to coerce or inflict damage upon any producer; provided that nothing in this subsection shall prevent a strike which is called by the employees of such producer, processor or marketing organization for the bona fide purpose of improving their own working conditions or promoting or protecting their own rights of organization, selection of bargaining representative or collective bargaining.

deleted text begin The violation of clauses (2), (3), (4), (5), (6), (7), (8) and (9) are hereby declared to be unlawful acts. deleted text end

new text begin (b) It is an unlawful act to violate paragraph (a), clause (2), (3), (4), (5), (6), (7), (8), or (9). new text end

Minnesota Statutes 2022, section 179.12, is amended to read:

179.12 deleted text begin employers' deleted text end new text begin employer new text end unfair labor practices..

new text begin (a) new text end It is an unfair labor practice for an employer:

(1) to institute a lockout of its employees in violation of a valid collective bargaining agreement between the employer and its employees or labor organization if the employees at the time are in good faith complying with the provisions of the agreement, or to violate the terms and conditions of the bargaining agreement;

(2) to institute a lockout of its employees in violation of section 179.06 or 179.07 ;

(3) to encourage or discourage membership in a labor organization by discrimination in regard to hire or tenure of employment or any terms or conditions of employment; provided, that this clause does not apply to the provisions of collective bargaining agreements entered into voluntarily by an employer and its employees or a labor organization representing the employees as a bargaining agent, as provided by section 179.16 ;

(4) to discharge or otherwise to discriminate against an employee because the employee has signed or filed an affidavit, petition, or complaint or given information or testimony under this chapter;

(5) to spy directly or through agents or any other persons upon activities of employees or their representatives in the exercise of their legal rights;

(6) to distribute or circulate a blacklist of individuals exercising a legal right or of members of a labor organization for the purpose of preventing individuals who are blacklisted from obtaining or retaining employment;

(7) to engage or contract for the services of a person who is an employee of another if the employee is paid a wage that is less than the wage to be paid by the engaging or contracting employer under an existing union contract for work of the same grade or classification;

(8) willfully and knowingly to utilize a professional strikebreaker to replace an employee or employees involved in a strike or lockout at a place of business located within this state; or

(9) to grant or offer to grant the status of permanent replacement employee to a person for performing bargaining unit work for an employer during a lockout of employees in a labor organization or during a strike of employees in a labor organization authorized by a representative of employees.

deleted text begin The violation of deleted text end new text begin (b) It is an unlawful act to violate paragraph (a), new text end clause (2), (4), (5), (6), (7), (8), or (9) deleted text begin is an unlawful act deleted text end .

Minnesota Statutes 2022, section 179.254, subdivision 1, is amended to read:

For the purposes of sections 179.254 to deleted text begin 179.256 deleted text end new text begin 179.257 new text end , the deleted text begin following deleted text end terms deleted text begin shall deleted text end new text begin defined in this section new text end have the meanings deleted text begin subscribed to deleted text end new text begin given new text end them.

Minnesota Statutes 2022, section 179.256, is amended to read:

179.256 deleted text begin notification deleted text end new text begin notifying construction worker of reimbursement new text end ..

Whenever a construction worker may qualify for the reimbursement of benefit payments to a deleted text begin home deleted text end benefit fund deleted text begin as described in deleted text end new text begin under new text end section 179.255 , the trustees of the benefit fund of which the worker is a member, or their agent, shall so notify the trustees of the benefit fund to which payments will be made during the temporary period of work. Such notification shall be made promptly in writing and shall include the name, address, and Social Security number of the construction worker and the starting date of the temporary period of work.

Minnesota Statutes 2022, section 179.26, is amended to read:

179.26 definitions deleted text begin ; certain representation disputes deleted text end ..

When used in sections 179.26 to 179.29 , unless the context clearly indicates otherwise, deleted text begin each of the following words: deleted text end new text begin " new text end employee, new text begin " new text end new text begin " new text end labor organization, new text begin " new text end new text begin " new text end strike, new text begin " new text end and new text begin " new text end lockout deleted text begin shall deleted text end new text begin " new text end have the deleted text begin meaning ascribed to it deleted text end new text begin meanings given them new text end in section 179.01 .

Minnesota Statutes 2022, section 179.27, is amended to read:

179.27 strikes or boycotts prohibited..

When certification of a representative of employees for collective bargaining purposes has been made by proper federal or state authority, it is unlawful during the effective period of such certification for any employee, representative of employees new text begin , new text end or labor organization to conduct a strike or boycott against the employer of such employees or to picket any place of business of the employer in order, by such strike, boycott new text begin , new text end or picketing deleted text begin , deleted text end new text begin to: new text end

(1) deleted text begin to deleted text end deny the right of the representative so certified to act as such representative deleted text begin or deleted text end new text begin ; new text end

(2) deleted text begin to deleted text end prevent such representative from acting as authorized by such certification deleted text begin , deleted text end new text begin ; new text end or

(3) deleted text begin to deleted text end interfere with the business of the employer in an effort to do either act deleted text begin specified in clauses deleted text end new text begin under clause new text end (1) deleted text begin and deleted text end new text begin or new text end (2) deleted text begin hereof deleted text end .

Minnesota Statutes 2022, section 179.35, subdivision 1, is amended to read:

Unless the language or context clearly indicates that a different meaning is intended, the deleted text begin following words, deleted text end terms deleted text begin and phrases, for the purposes of sections 179.35 to 179.39 , shall be given deleted text end new text begin defined in this section have new text end the meanings deleted text begin subjoined to deleted text end new text begin given new text end them new text begin for purposes of sections 179.35 to 179.39 new text end .

Minnesota Statutes 2022, section 179.40, is amended to read:

179.40 secondary boycott; deleted text begin declaration of deleted text end new text begin public new text end policy..

new text begin (a) new text end As a guide to the interpretation and application of sections 179.40 to 179.47 , the public policy of this state is declared to be:

new text begin (1) new text end to protect and promote the interests of the public, employees new text begin , new text end and employers alike, with due regard to the situation and to the rights of the others;

new text begin (2) new text end to promote industrial peace, regular and adequate income for employees, and uninterrupted production of goods and services; and

new text begin (3) new text end to reduce the serious menace to the health, morals new text begin , new text end and welfare of the people of this state arising from economic insecurity due to stoppages and interruptions of business and employment.

new text begin (b) new text end It is recognized that whatever may be the rights of disputants with respect to each other in any controversy, they should not be permitted, in their controversy, to intrude directly into the primary rights of third parties to earn a livelihood, transact business, and engage in the ordinary affairs of life by lawful means and free from molestation, interference, restraint new text begin , new text end or coercion. The legislature, therefore, declares that, in its considered judgment, the public good and the general welfare of the citizens of this state will be promoted by prohibiting secondary boycotts and other coercive practices in this state.

Minnesota Statutes 2022, section 179.43, is amended to read:

179.43 illegal combination; deleted text begin violation of deleted text end new text begin violating new text end public policy..

A secondary boycott as deleted text begin hereinbefore deleted text end defined new text begin under section 179.41 new text end is deleted text begin hereby declared to be deleted text end an illegal combination in restraint of trade and in violation of the public policy of this state.

Minnesota Statutes 2022, section 179A.02, is amended to read:

179a.02 citation..

Sections 179A.01 to 179A.25 deleted text begin shall be known deleted text end new text begin may be cited new text end as the "Public Employment Labor Relations Act."

Minnesota Statutes 2022, section 179A.03, subdivision 17, is amended to read:

Supervisory employee..

new text begin (a) new text end "Supervisory employee" means a person who has the authority to undertake a majority of the following supervisory functions in the interests of the employer: hiring, transfer, suspension, promotion, discharge, assignment, reward, or discipline of other employees, direction of the work of other employees, or adjustment of other employees' grievances on behalf of the employer. To be included as a supervisory function which the person has authority to undertake, the exercise of the authority by the person may not be merely routine or clerical in nature but must require the use of independent judgment. An employee, other than an essential employee, who has authority to effectively recommend a supervisory function, is deemed to have authority to undertake that supervisory function for the purposes of this subdivision. The administrative head of a municipality, municipal utility, or police or fire department, and the administrative head's assistant, are always considered supervisory employees.

new text begin (b) new text end The removal of employees by the employer from a nonsupervisory appropriate unit for the purpose of designating the employees as "supervisory employees" shall require either the prior written agreement of the exclusive representative and the written approval of the commissioner or a separate determination by the commissioner before the redesignation is effective.

Minnesota Statutes 2022, section 179A.06, subdivision 1, is amended to read:

Deleted text begin expression of deleted text end new text begin expressing new text end views..

new text begin (a) new text end Sections 179A.01 to 179A.25 do not affect the right of any public employee or the employee's representative to express or communicate a view, grievance, complaint, or opinion on any matter related to the conditions or compensation of public employment or their betterment, so long as this is not designed to and does not interfere with the full faithful and proper performance of the duties of employment or circumvent the rights of the exclusive representative. Sections 179A.01 to 179A.25 do not require any public employee to perform labor or services against the employee's will.

new text begin (b) new text end If no exclusive representative has been certified, any public employee individually, or group of employees through their representative, has the right to express or communicate a view, grievance, complaint, or opinion on any matter related to the conditions or compensation of public employment or their betterment, by meeting with their public employer or the employer's representative, so long as this is not designed to and does not interfere with the full, faithful, and proper performance of the duties of employment.

Minnesota Statutes 2022, section 179A.06, subdivision 2, is amended to read:

Right to organize..

new text begin (a) new text end Public employees have the right to form and join labor or employee organizations, and have the right not to form and join such organizations. Public employees in an appropriate unit have the right by secret ballot to designate an exclusive representative to negotiate grievance procedures and the terms and conditions of employment with their employer. Confidential employees of the state, confidential court employees, and confidential University of Minnesota employees are excluded from bargaining. Supervisory and managerial court employees are excluded from bargaining. Supervisory, managerial, and confidential employees of Hennepin Healthcare System, Inc., are excluded from bargaining. Other confidential employees, supervisory employees, principals, and assistant principals may form their own organizations. An employer shall extend exclusive recognition to a representative of or an organization of supervisory or confidential employees, or principals and assistant principals, for the purpose of negotiating terms or conditions of employment, in accordance with sections 179A.01 to 179A.25 , applicable to essential employees.

new text begin (b) new text end Supervisory or confidential employee organizations shall not participate in any capacity in any negotiations which involve units of employees other than supervisory or confidential employees. Except for organizations which represent supervisors who are: (1) firefighters, emergency medical service employees certified under section 144E.28 , 911 system public safety dispatchers, peace officers subject to licensure under sections 626.84 to 626.863 , guards at correctional facilities, or employees at hospitals other than state hospitals; and (2) not state or University of Minnesota employees, a supervisory or confidential employee organization which is affiliated with another employee organization which is the exclusive representative of nonsupervisory or nonconfidential employees of the same public employer shall not be certified, or act as, an exclusive representative for the supervisory or confidential employees. For the purpose of this subdivision, affiliation means either direct or indirect and includes affiliation through a federation or joint body of employee organizations.

Minnesota Statutes 2022, section 179A.06, subdivision 3, is amended to read:

Fair share fee..

new text begin (a) new text end An exclusive representative may require employees who are not members of the exclusive representative to contribute a fair share fee for services rendered by the exclusive representative. The fair share fee must be equal to the regular membership dues of the exclusive representative, less the cost of benefits financed through the dues and available only to members of the exclusive representative. In no event may the fair share fee exceed 85 percent of the regular membership dues. The exclusive representative shall provide advance written notice of the amount of the fair share fee to the employer and to unit employees who will be assessed the fee. The employer shall provide the exclusive representative with a list of all unit employees.

new text begin (b) new text end A challenge by an employee or by a person aggrieved by the fee must be filed in writing with the commissioner, the public employer, and the exclusive representative within 30 days after receipt of the written notice. All challenges must specify those portions of the fee challenged and the reasons for the challenge. The burden of proof relating to the amount of the fair share fee is on the exclusive representative. The commissioner shall hear and decide all issues in these challenges.

new text begin (c) new text end The employer shall deduct the fee from the earnings of the employee and transmit the fee to the exclusive representative 30 days after the written notice was provided. If a challenge is filed, the deductions for a fair share fee must be held in escrow by the employer pending a decision by the commissioner.

Minnesota Statutes 2022, section 179A.08, subdivision 2, is amended to read:

Meet and confer..

The professional employees shall select a representative to meet and confer with a representative or committee of the public employer on matters not specified under section 179A.03, subdivision 19 , relating to the services being provided to the public. The public employer shall provide the facilities and set the time for these deleted text begin conferences deleted text end new text begin meetings new text end to take place. The parties shall meet at least once every four months.

Minnesota Statutes 2022, section 179A.10, subdivision 1, is amended to read:

Exclusions..

new text begin (a) new text end The commissioner of management and budget shall meet and negotiate with the exclusive representative of each of the units specified in this section, except as provided in section 43A.06, subdivision 1 , paragraph (c). The units provided in this section are the only appropriate units for executive branch state employees. The following employees shall be excluded from any appropriate unit:

(1) the positions and classes of positions in the classified and unclassified services defined as managerial by the commissioner of management and budget in accordance with section 43A.18, subdivision 3 , and so designated in the official state compensation schedules;

(2) unclassified positions in the Minnesota State Colleges and Universities defined as managerial by the Board of Trustees;

(3) positions of all unclassified employees appointed by a constitutional officer;

(4) positions in the Bureau of Mediation Services and the Public Employment Relations Board;

(5) positions of employees whose classification is pilot or chief pilot;

(6) administrative law judge and compensation judge positions in the Office of Administrative Hearings;

(7) positions of all confidential employees; and

(8) positions of employees of the State Board of Investment who are employed under the terms and conditions of the compensation plan approved under section 43A.18 , subdivision 3b.

new text begin (b) new text end The governor may upon the unanimous written request of exclusive representatives of units and the commissioner direct that negotiations be conducted for one or more units in a common proceeding or that supplemental negotiations be conducted for portions of a unit or units defined on the basis of appointing authority or geography.

Minnesota Statutes 2022, section 179A.104, subdivision 1, is amended to read:

Employee units..

new text begin (a) new text end The state Board of Public Defense shall meet and negotiate with the exclusive representative of each of the statewide units specified in this section. The units provided in this section are the only appropriate statewide units for state employees of the board. Employees of the state Board of Public Defense, unless otherwise excluded, are included within the units which include the classifications to which they are assigned for purposes of compensation. The following are the appropriate statewide units of state employees of the board:

(1) Assistant District and Assistant State Public Defender Unit; and

(2) Clerical and Support Staff Unit.

new text begin (b) new text end Each unit consists of the classifications or positions assigned to it in the schedule of job classifications and positions maintained by the state Board of Public Defense.

Minnesota Statutes 2022, section 179A.12, subdivision 1, is amended to read:

Certification continued..

new text begin (a) new text end Any employee organization holding formal recognition by order of the commissioner or by employer voluntary recognition on the effective date of Extra Session Laws 1971, chapter 33, under any law that is repealed by Extra Session Laws 1971, chapter 33, is certified as the exclusive representative until it is decertified or another representative is certified in its place.

new text begin (b) new text end Any teacher organization as defined by Minnesota Statutes 1969, section 125.20, subdivision 3 , which on the effective date of Extra Session Laws 1971, chapter 33, has a majority of its members on a teacher's council in a school district as provided in Minnesota Statutes 1969, section 125.22 is certified as the exclusive representative of all teachers of that school district until the organization is decertified or another organization is certified in its place.

Minnesota Statutes 2022, section 179A.15, is amended to read:

179a.15 mediation., new text begin petitioning commissioner. new text end.

Once notice has been given under section 179A.14 , the employer or the exclusive representative may petition the commissioner for mediation services.

new text begin Petition requirements; scheduling mediation. new text end

new text begin (a) new text end A petition by an employer shall be signed by the employer or an authorized officer or agent. A petition by an exclusive representative shall be signed by its authorized officer. All petitions shall be served on the commissioner in writing. The petition shall state briefly the nature of the disagreement of the parties.

new text begin (b) new text end Upon receipt of a petition and upon concluding that mediation would be useful, the commissioner shall fix a time and place for a deleted text begin conference deleted text end new text begin meeting new text end with the parties to negotiate the issues not agreed upon, and shall then take the most expedient steps to bring about a settlement, including assisting in negotiating and drafting an agreement.

new text begin Commissioner-initiated mediation. new text end

If the commissioner determines that mediation would be useful in resolving a dispute, the commissioner may mediate the dispute even if neither party has filed a petition for mediation. In these cases, the commissioner shall proceed as if a petition had been filed.

new text begin Mediation restricted. new text end

The commissioner shall not furnish mediation services to any employee or employee representative who is not certified as an exclusive representative.

new text begin Mediation meetings. new text end

All parties shall respond to the summons of the commissioner for deleted text begin conferences deleted text end new text begin meetings new text end and shall continue deleted text begin in conference deleted text end new text begin meeting new text end until excused by the commissioner.

Minnesota Statutes 2022, section 179A.16, subdivision 1, is amended to read:

New text begin petitioning for arbitration; new text end nonessential employees..

new text begin (a) new text end An exclusive representative or an employer of a unit of employees other than essential employees may request interest arbitration by providing written notice of the request to the other party and the commissioner. The written request for arbitration must specify the items to be submitted to arbitration and whether conventional, final-offer total-package, or final-offer item-by-item arbitration is contemplated by the request.

new text begin (b) new text end The items to be submitted to arbitration and the form of arbitration to be used are subject to mutual agreement. If an agreement to arbitrate is reached, it must be reduced to writing and a copy of the agreement filed with the commissioner. A failure to respond, or to reach agreement on the items or form of arbitration, within 15 days of receipt of the request to arbitrate constitutes a rejection of the request.

Minnesota Statutes 2022, section 179A.16, subdivision 7, is amended to read:

Deleted text begin decision by deleted text end arbitrator or new text begin arbitrator new text end panel new text begin ; issuing decision new text end ..

new text begin (a) new text end The decision must be issued by the arbitrator or a majority vote of the panel. The decision must resolve the issues in dispute between the parties as submitted by the commissioner. For principals and assistant principals, the arbitrator or panel is restricted to selecting between the final offers of the parties on each impasse item. For other employees, if the parties agree in writing, the arbitrator or panel is restricted to selecting between the final offers of the parties on each impasse item, or the final offer of one or the other parties in its entirety. In considering a dispute and issuing its decision, the arbitrator or panel shall consider the statutory rights and obligations of public employers to efficiently manage and conduct their operations within the legal limitations surrounding the financing of these operations. The decision is final and binding on all parties.

new text begin (b) new text end The arbitrator or panel shall render its decision within 30 days from the date that all arbitration proceedings have concluded. The arbitrator or panel may not request that the parties waive their right to have the decision rendered within 30 days, unless the commissioner grants an extension of the deadline. The commissioner shall remove from the roster for six months the name of any arbitrator who does not render the decision within 30 days or within the extension granted by the commissioner. The commissioner shall adopt rules establishing criteria to be followed in determining whether an extension should be granted. The decision must be for the period stated in the decision, except that decisions determining contracts for teacher units are effective to the end of the contract period determined by section 179A.20 .

new text begin (c) new text end The arbitrator or panel shall send its decision to the commissioner, the appropriate representative of the public employer, and the employees. If any issues submitted to arbitration are settled voluntarily before the arbitrator or panel issues a decision, the arbitrator or panel shall report the settlement to the commissioner.

new text begin (d) new text end The parties may, at any time before or after issuance of a decision of the arbitrator or panel, agree upon terms and conditions of employment regardless of the terms and conditions of employment determined by the decision. The parties shall, if so agreeing, execute a written contract or memorandum of contract.

Minnesota Statutes 2022, section 179A.18, subdivision 2, is amended to read:

School district requirements..

Except as otherwise provided by section 179A.17, subdivision 1 , teachers employed by a local school district, other than principals and assistant principals, may strike only under the following circumstances:

(1)(i) the collective bargaining agreement between their exclusive representative and their employer has expired or, if there is no agreement, impasse under section 179A.17, subdivision 1 , has occurred; and

(ii) the exclusive representative and the employer have participated in mediation over a period of at least 30 days. For the purposes of this item the mediation period commences on the day that a mediator designated by the commissioner first attends a deleted text begin conference deleted text end new text begin meeting new text end with the parties to negotiate the issues not agreed upon; and

(iii) neither party has requested interest arbitration or a request for binding interest arbitration has been rejected; or

(2) the employer violates section 179A.13, subdivision 2 , clause (9).

Minnesota Statutes 2022, section 179A.18, subdivision 3, is amended to read:

New text begin strike new text end notice..

new text begin (a) new text end In addition to the other requirements of this section, no employee may strike unless written notification of intent to strike is served on the employer and the commissioner by the exclusive representative at least ten days prior to the commencement of the strike. For all employees other than teachers, if more than 30 days have expired after service of a notification of intent to strike, no strike may commence until ten days after service of a new written notification. For teachers, no strike may commence more than 25 days after service of notification of intent to strike unless, before the end of the 25-day period, the exclusive representative and the employer agree that the period during which a strike may commence shall be extended for an additional period not to exceed five days. Teachers are limited to one notice of intent to strike for each contract negotiation period, provided, however, that a strike notice may be renewed for an additional ten days, the first five of which shall be a notice period during which no strike may occur, if the following conditions have been satisfied:

(1) an original notice was provided pursuant to this section; deleted text begin and deleted text end

(2) a tentative agreement to resolve the dispute was reached during the original strike notice period; and

(3) such tentative agreement was rejected by either party during or after the original strike notice period.

new text begin (b) new text end The first day of the renewed strike notice period shall commence on the day following the expiration of the previous strike notice period or the day following the rejection of the tentative agreement, whichever is later. Notification of intent to strike under subdivisions 1, clause (1); and 2, clause (1), may not be served until the collective bargaining agreement has expired, or if there is no agreement, on or after the date impasse under section 179A.17 has occurred.

Minnesota Statutes 2022, section 179A.19, subdivision 6, is amended to read:

new text begin (a) new text end Any public employee is entitled to request the opportunity to establish that the employee did not violate this section. The request shall be filed in writing with the officer or body having the power to remove the employee, within ten days after notice of termination is served upon the employee. The employing officer or body shall within ten days commence a proceeding at which the employee shall be entitled to be heard for the purpose of determining whether the provisions of this section have been violated by the public employee. If there are contractual grievance procedures, laws or rules establishing proceedings to remove the public employee, the hearing shall be conducted in accordance with whichever procedure the employee elects. The election shall be binding and shall terminate any right to the alternative procedures. The same proceeding may include more than one employee's employment status if the employees' defenses are identical, analogous, or reasonably similar. The proceedings shall be undertaken without unnecessary delay.

new text begin (b) new text end Any person whose termination is sustained in the administrative or grievance proceeding may appeal in accordance with chapter 14.

Minnesota Statutes 2022, section 179A.20, subdivision 4, is amended to read:

Grievance procedure..

(a) All contracts must include a grievance procedure providing for compulsory binding arbitration of grievances including all written disciplinary actions. If the parties cannot agree on the grievance procedure, they are subject to the grievance procedure deleted text begin promulgated deleted text end new text begin adopted new text end by the commissioner under section 179A.04, subdivision 3 , new text begin paragraph (a), new text end clause deleted text begin (h) deleted text end new text begin (8) new text end .

(b) Notwithstanding any home rule charter to the contrary, after the probationary period of employment, any disciplinary action is subject to the grievance procedure and compulsory binding arbitration.

(c) Employees covered by civil service systems created under chapter 43A, 44, 375, 387, 419, or 420, by a home rule charter under chapter 410, or by Laws 1941, chapter 423, may pursue a grievance through the procedure established under this section. When the grievance is also within the jurisdiction of appeals boards or appeals procedures created by chapter 43A, 44, 375, 387, 419, or 420, by a home rule charter under chapter 410, or by Laws 1941, chapter 423, the employee may proceed through the grievance procedure or the civil service appeals procedure, but once a written grievance or appeal has been properly filed or submitted by the employee or on the employee's behalf with the employee's consent the employee may not proceed in the alternative manner.

(d) A teacher who elects a hearing before an arbitrator under section 122A.40, subdivision 15 , or 122A.41, subdivision 13 , or who elects or acquiesces to a hearing before the school board may not later proceed in the alternative manner nor challenge the termination or discharge through a grievance procedure required by this subdivision.

(e) This section does not require employers or employee organizations to negotiate on matters other than terms and conditions of employment.

Minnesota Statutes 2022, section 179A.23, is amended to read:

179a.23 limitation on contracting-out of services provided by members of a state of minnesota or university of minnesota bargaining unit..

new text begin (a) new text end Any contract entered into after March 23, 1982, by the state of Minnesota or the University of Minnesota involving services, any part of which, in the absence of the contract, would be performed by members of a unit provided in sections 179A.10 and 179A.11 , shall be subject to section 16C.06 and shall provide for the preferential employment by a party of members of that unit whose employment with the state of Minnesota or the University of Minnesota is terminated as a result of that contract.

new text begin (b) new text end Contracts entered into by the state of Minnesota for the purpose of providing court reporter services or transcription of the record of a hearing which was recorded by means of an audio magnetic recording device shall be subject to section 16C.08 and the preferential employment provisions enumerated in this section. Any court reporter seeking a contract pursuant to the preferential employment provisions of this section shall be given preference when the services are needed only if that court reporter's charges for the services requested are no greater than the average of the charges made for the identical services by other court reporters in the same locality who are also under contract with the state for those services.

Minnesota Statutes 2022, section 626.892, subdivision 12, is amended to read:

Interaction with other laws..

(a) Sections 179A.21, subdivision 2 , and 572B.11 , paragraph (a), and rules for arbitrator selection promulgated pursuant to section 179A.04 shall not apply to discipline-related grievance arbitrations involving peace officers governed under this section.

(b) Notwithstanding any contrary provision of law, home rule charter, ordinance, or resolution, peace officers, through their certified exclusive representatives, shall not have the right to negotiate for or agree to a collective bargaining agreement or a grievance arbitration selection procedure with their employers that is inconsistent with this section.

(c) The arbitrator selection procedure for peace officer grievance arbitrations established under this section supersedes any inconsistent provisions in chapter 179A or 572B or in Minnesota Rules, chapters 5500 to 5530 and deleted text begin 7315 to deleted text end 7325. Other arbitration requirements in those chapters remain in full force and effect for peace officer grievance arbitrations, except as provided in this section or to the extent inconsistent with this section.

new text begin REVISOR INSTRUCTION. new text end

new text begin The revisor of statutes shall renumber Minnesota Statutes, section 179.35, subdivision 5, as Minnesota Statutes, section 179.35, subdivision 7. new text end

new text begin Minnesota Rules, part 5510.0310, subpart 13, new text end new text begin is repealed. new text end

MINIMUM WAGE

Minnesota statutes 2022, section 177.23, is amended by adding a subdivision to read:, new text begin subd. 12. new text end, new text begin large employer. new text end.

new text begin "Large employer" means an enterprise whose annual gross volume of sales made or business done is not less than $500,000, exclusive of excise taxes at the retail level that are separately stated, and covered by the Minnesota Fair Labor Standards Act, sections 177.21 to 177.35. new text end

new text begin This section is effective January 1, 2025. new text end

new text begin Subd. 13. new text end

New text begin small employer. new text end.

new text begin "Small employer" means an enterprise whose annual gross volume of sales made or business done is less than $500,000, exclusive of excise taxes at the retail level that are separately stated, and covered by the Minnesota Fair Labor Standards Act, sections 177.21 to 177.35. new text end

Minnesota Statutes 2022, section 177.24, subdivision 1, is amended to read:

deleted text begin (a) For purposes of this subdivision, the terms defined in this paragraph have the meanings given them. deleted text end

deleted text begin (1) "Large employer" means an enterprise whose annual gross volume of sales made or business done is not less than $500,000 (exclusive of excise taxes at the retail level that are separately stated) and covered by the Minnesota Fair Labor Standards Act, sections 177.21 to 177.35 . deleted text end

deleted text begin (2) "Small employer" means an enterprise whose annual gross volume of sales made or business done is less than $500,000 (exclusive of excise taxes at the retail level that are separately stated) and covered by the Minnesota Fair Labor Standards Act, sections 177.21 to 177.35 . deleted text end

deleted text begin (b) deleted text end new text begin (a) new text end Except as otherwise provided in sections 177.21 to 177.35 deleted text begin : deleted text end new text begin , new text end

deleted text begin (1) deleted text end every deleted text begin large deleted text end employer must pay each employee wages at a rate of at least:

deleted text begin (i) deleted text end new text begin (1) new text end $8.00 per hour beginning August 1, 2014;

deleted text begin (ii) deleted text end new text begin (2) new text end $9.00 per hour beginning August 1, 2015;

deleted text begin (iii) deleted text end new text begin (3) new text end $9.50 per hour beginning August 1, 2016; and

deleted text begin (iv) deleted text end new text begin (4) new text end the rate established under paragraph deleted text begin (f) deleted text end new text begin (c) new text end beginning January 1, 2018 deleted text begin ; and deleted text end new text begin . new text end

deleted text begin (2) every small employer must pay each employee at a rate of at least: deleted text end

deleted text begin (i) $6.50 per hour beginning August 1, 2014; deleted text end

deleted text begin (ii) $7.25 per hour beginning August 1, 2015; deleted text end

deleted text begin (iii) $7.75 per hour beginning August 1, 2016; and deleted text end

deleted text begin (iv) the rate established under paragraph (f) beginning January 1, 2018. deleted text end

deleted text begin (c) deleted text end new text begin (b) new text end Notwithstanding paragraph deleted text begin (b) deleted text end new text begin (a) new text end , during the first 90 consecutive days of employment, an employer may pay an employee under the age of 20 years a wage of at least:

(1) $6.50 per hour beginning August 1, 2014;

(2) $7.25 per hour beginning August 1, 2015;

(3) $7.75 per hour beginning August 1, 2016; and

(4) the rate established under paragraph deleted text begin (f) deleted text end new text begin (c) new text end beginning January 1, 2018.

No employer may take any action to displace an employee, including a partial displacement through a reduction in hours, wages, or employment benefits, in order to hire an employee at the wage authorized in this paragraph.

deleted text begin (d) Notwithstanding paragraph (b), an employer that is a "hotel or motel," "lodging establishment," or "resort" as defined in Minnesota Statutes 2012, section 157.15 , subdivisions 7, 8, and 11, must pay an employee working under a contract with the employer that includes the provision by the employer of a food or lodging benefit, if the employee is working under authority of a summer work travel exchange visitor program (J) nonimmigrant visa, a wage of at least: deleted text end

deleted text begin (1) $7.25 per hour beginning August 1, 2014; deleted text end

deleted text begin (2) $7.50 per hour beginning August 1, 2015; deleted text end

deleted text begin (3) $7.75 per hour beginning August 1, 2016; and deleted text end

deleted text begin (4) the rate established under paragraph (f) beginning January 1, 2018. deleted text end

deleted text begin No employer may take any action to displace an employee, including a partial displacement through a reduction in hours, wages, or employment benefits, in order to hire an employee at the wage authorized in this paragraph. deleted text end

deleted text begin (e) Notwithstanding paragraph (b), a large employer must pay an employee under the age of 18 at a rate of at least: deleted text end

deleted text begin (1) $6.50 per hour beginning August 1, 2014; deleted text end

deleted text begin (2) $7.25 per hour beginning August 1, 2015; deleted text end

deleted text begin (f) deleted text end new text begin (c) new text end No later than August 31 of each year, deleted text begin beginning in 2017, deleted text end the commissioner shall determine the percentage increase in the rate of inflation, as measured by the implicit price deflator, national data for personal consumption expenditures as determined by the United States Department of Commerce, Bureau of Economic Analysis during the 12-month period immediately preceding that August or, if that data is unavailable, during the most recent 12-month period for which data is available. The minimum wage rates in paragraphs new text begin (a) and new text end (b) deleted text begin , (c), (d), and (e) deleted text end are increased by the lesser of: (1) deleted text begin 2.5 deleted text end new text begin 5 new text end percent, rounded to the nearest cent; or (2) the percentage calculated by the commissioner, rounded to the nearest cent. A minimum wage rate shall not be reduced under this paragraph. The new minimum wage rates determined under this paragraph take effect on the next January 1.

deleted text begin (g)(1) No later than September 30 of each year, beginning in 2017, the commissioner may issue an order that an increase calculated under paragraph (f) not take effect. The commissioner may issue the order only if the commissioner, after consultation with the commissioner of management and budget, finds that leading economic indicators, including but not limited to projections of gross domestic product calculated by the United States Department of Commerce, Bureau of Economic Analysis; the Consumer Confidence Index issued by the Conference Board; and seasonally adjusted Minnesota unemployment rates, indicate the potential for a substantial downturn in the state's economy. Prior to issuing an order, the commissioner shall also calculate and consider the ratio of the rate of the calculated change in the minimum wage rate to the rate of change in state median income over the same time period used to calculate the change in wage rate. Prior to issuing deleted text end deleted text begin the order, the commissioner shall hold a public hearing, notice of which must be published in the State Register, on the department's website, in newspapers of general circulation, and by other means likely to inform interested persons of the hearing, at least ten days prior to the hearing. The commissioner must allow interested persons to submit written comments to the commissioner before the public hearing and for 20 days after the public hearing. deleted text end

deleted text begin (2) The commissioner may in a year subsequent to issuing an order under clause (1), make a supplemental increase in the minimum wage rate in addition to the increase for a year calculated under paragraph (f). The supplemental increase may be in an amount up to the full amount of the increase not put into effect because of the order. If the supplemental increase is not the full amount, the commissioner may make a supplemental increase of the difference, or any part of a difference, in a subsequent year until the full amount of the increase ordered not to take effect has been included in a supplemental increase. In making a determination to award a supplemental increase under this clause, the commissioner shall use the same considerations and use the same process as for an order under clause (1). A supplemental wage increase is not subject to and shall not be considered in determining whether a wage rate increase exceeds the limits for annual wage rate increases allowed under paragraph (f). deleted text end

new text begin This section is effective January 1, 2025, except that the amendments to paragraph (c) are effective August 1, 2024. new text end

Minnesota Statutes 2023 Supplement, section 204B.19, subdivision 6, is amended to read:

Trainee election judges..

(a) Notwithstanding any other requirements of this section, a student enrolled in a high school in Minnesota or who is in a home school in compliance with sections 120A.22 and 120A.24 , who has attained the age of 16 is eligible to be appointed as a without party affiliation trainee election judge in the county in which the student maintains residence, or a county adjacent to the county in which the student maintains residence. The student must meet qualifications for trainee election judges specified in rules of the secretary of state. A student appointed under this subdivision while enrolled in a high school or receiving instruction in a home school may continue to serve as a trainee election judge after the student graduates and until the student reaches the age of 18.

(b) A student appointed as a trainee election judge may be excused from school attendance during the hours that the student is serving as a trainee election judge if the student submits a written request signed and approved by the student's parent or guardian to be absent from school and a certificate from the appointing authority stating the hours during which the student will serve as a trainee election judge to the principal of the school at least ten days prior to the election. A trainee election judge shall not serve after 10:00 p.m. Notwithstanding section 177.24 to the contrary, trainee election judges may be paid not less than two-thirds of the minimum wage for deleted text begin a large deleted text end new text begin an new text end employer. The principal of the school may approve a request to be absent from school conditioned on acceptable academic performance at the time of service as a trainee election judge.

new text begin In each of the statutory sections listed in Column A, the revisor of statutes shall replace the statutory citation in Column B with the statutory citation listed in Column C. new text end

MISCELLANEOUS LABOR POLICY

Minnesota statutes 2022, section 177.24, is amended by adding a subdivision to read:, new text begin subd. 3a. new text end, new text begin gratuities; credit cards or charges. new text end.

new text begin (a) Gratuities received by an employee through a debit, charge, credit card, or electronic payment shall be credited to that pay period in which they are received by the employee. new text end

new text begin (b) Where a gratuity is received by an employee through a debit, charge, credit card, or electronic payment, the full amount of gratuity indicated in the payment must be distributed to the employee no later than the next scheduled pay period. new text end

new text begin This section is effective August 1, 2024. new text end

new text begin [181.173] SALARY RANGES REQUIRED IN JOB POSTINGS. new text end

new text begin (a) For the purposes of this section, the following terms have the meanings given. new text end

new text begin (b) "Employer" means a person or entity that employs 30 or more employees at one or more sites in Minnesota and includes an individual, corporation, partnership, association, nonprofit organization, group of persons, state, county, town, city, school district, or other governmental subdivision. new text end

new text begin (c) "Posting" means any solicitation intended to recruit job applicants for a specific available position, including recruitment done directly by an employer or indirectly through a third party, and includes any postings made electronically or via printed hard copy, that includes qualifications for desired applicants. new text end

new text begin (d) "Salary range" means the minimum and maximum annual salary or hourly range of compensation, based on the employer's good faith estimate, for a job opportunity of the employer at the time of the posting of an advertisement for such opportunity. new text end

new text begin Salary ranges in job postings required. new text end

new text begin (a) An employer must disclose in each posting for each job opening with the employer the starting salary range, and a general description of all of the benefits and other compensation, including but not limited to any health or retirement benefits, to be offered to a hired job applicant. new text end

new text begin (b) An employer that does not plan to offer a salary range for a position must list a fixed pay rate. A salary range may not be open ended. new text end

Minnesota Statutes 2023 Supplement, section 181.531, subdivision 3, is amended to read:

new text begin (a) The commissioner shall develop an educational poster providing notice of employees' rights provided under this section. The notice shall be available in English and the five most common languages spoken in Minnesota. new text end

deleted text begin Within 30 days of August 1, 2023, deleted text end new text begin (b) new text end An employer subject to this section shall post and keep posted deleted text begin , a deleted text end new text begin the new text end notice of employee rights deleted text begin under this section deleted text end new text begin created pursuant to this subdivision in a place new text end where employee notices are customarily deleted text begin placed deleted text end new text begin located within the workplace new text end .

new text begin This section is effective October 1, 2024. new text end

Minnesota Statutes 2022, section 181.950, is amended by adding a subdivision to read:

New text begin subd. 9a. new text end, new text begin oral fluid test. new text end.

new text begin "Oral fluid test" means analysis of a saliva sample for the purpose of measuring the presence of the same substances as drug and alcohol testing and cannabis testing that: new text end

new text begin (1) can detect drugs, alcohol, cannabis, or their metabolites in levels at or above the threshold detection levels contained in the standards of one of the programs listed in section 181.953, subdivision 1; and new text end

new text begin (2) does not require the services of a testing laboratory under section 181.953, subdivision 1. new text end

Minnesota Statutes 2022, section 181.951, subdivision 1, is amended to read:

Limitations on testing..

(a) An employer may not request or require an employee or job applicant to undergo drug and alcohol testing except as authorized in this section.

(b) An employer may not request or require an employee or job applicant to undergo drug or alcohol testing unless the testing is done pursuant to a written drug and alcohol testing policy that contains the minimum information required in section 181.952 ; and deleted text begin , deleted text end new text begin either: (1) new text end is conducted by a testing laboratory which participates in one of the programs listed in section 181.953, subdivision 1 new text begin ; or (2) complies with the oral fluid test procedures under section 181.953, subdivision 5a new text end .

(c) An employer may not request or require an employee or job applicant to undergo drug and alcohol testing on an arbitrary and capricious basis.

Minnesota Statutes 2023 Supplement, section 181.953, subdivision 1, is amended to read:

Use of licensed, accredited, or certified laboratory required..

(a) new text begin Except as provided under subdivision 5a, new text end an employer who requests or requires an employee or job applicant to undergo drug or alcohol testing or cannabis testing shall use the services of a testing laboratory that meets one of the following criteria for drug testing:

(1) is certified by the National Institute on Drug Abuse as meeting the mandatory guidelines published at 53 Federal Register 11970 to 11989, April 11, 1988;

(2) is accredited by the College of American Pathologists, 325 Waukegan Road, Northfield, Illinois, 60093-2750, under the forensic urine drug testing laboratory program; or

(3) is licensed to test for drugs by the state of New York, Department of Health, under Public Health Law, article 5, title V, and rules adopted under that law.

(b) For alcohol testing, the laboratory must either be:

(1) licensed to test for drugs and alcohol by the state of New York, Department of Health, under Public Health Law, article 5, title V, and the rules adopted under that law; or

(2) accredited by the College of American Pathologists, 325 Waukegan Road, Northfield, Illinois, 60093-2750, in the laboratory accreditation program.

Minnesota Statutes 2023 Supplement, section 181.953, subdivision 3, is amended to read:

Laboratory testing, reporting, and sample retention requirements..

new text begin (a) new text end A testing laboratory that is not certified by the National Institute on Drug Abuse according to subdivision 1 shall follow the chain-of-custody procedures prescribed for employers in subdivision 5. A testing laboratory shall conduct a confirmatory test on all samples that produced a positive test result on an initial screening test. A laboratory shall disclose to the employer a written test result report for each sample tested within three working days after a negative test result on an initial screening test or, when the initial screening test produced a positive test result, within three working days after a confirmatory test. A test report must indicate the drugs, alcohol, drug or alcohol metabolites, or cannabis or cannabis metabolites tested for and whether the test produced negative or positive test results. A laboratory shall retain and properly store for at least six months all samples that produced a positive test result.

new text begin (b) This subdivision and the chain-of-custody procedures under subdivision 5 do not apply to oral fluid testing under subdivision 5a. new text end

Minnesota Statutes 2023 Supplement, section 181.953, is amended by adding a subdivision to read:

New text begin subd. 5a. new text end, new text begin oral fluid testing. new text end.

new text begin (a) When drug and alcohol testing or cannabis testing is otherwise authorized under section 181.951, an employer may request an employee or job applicant to undergo oral fluid testing according to the procedures under this subdivision as an alternative to using the services of a testing laboratory under subdivision 1. new text end

new text begin (b) The employee must be informed of the test result at the time of the oral fluid test. Within 48 hours of an oral fluid test that indicates a positive test result or that is inconclusive or invalid, the employee or job applicant may request drug or alcohol testing or cannabis testing at no cost to the employee or job applicant using the services of a testing laboratory under subdivision 1, and according to the existing laboratory testing standards in subdivisions 1 to 5. The rights, notice, and limitations in subdivision 6, paragraph (b), and subdivisions 7 to 8 and 10 to 11 apply to an employee or job applicant and a laboratory test conducted pursuant to this paragraph. new text end

new text begin (c) If the laboratory test under paragraph (b) indicates a positive result, any subsequent confirmatory retest, if requested by the employee or job applicant, must be conducted following the retest procedures provided in subdivision 6, paragraph (c), and subdivision 9 at the employee's or job applicant's own expense. new text end

new text begin (d) Nothing in this subdivision is intended to modify the existing requirements for drug and alcohol testing or cannabis testing in the workplace under sections 181.950 to 18.957, unless stated otherwise. new text end

new text begin [182.678] SURGICAL SMOKE EVACUATION SYSTEM POLICIES. new text end

new text begin (a) For purposes of this section, the terms defined in this subdivision have the meanings given. new text end

new text begin (b) "Surgical smoke" means the gaseous by-product produced by energy-generating devices including surgical plume, smoke plume, bio-aerosols, laser-generated airborne contaminants, or lung-damaging dust. new text end

new text begin (c) "Smoke evacuation system" means equipment that effectively captures and filters surgical smoke at the site of origin before the smoke makes contact with the eyes or the respiratory tract of occupants in the room. new text end

new text begin (d) "Health care employer" means a hospital as defined in section 144.50, subdivision 2, or an ambulatory surgical facility or outpatient surgical center as defined in section 144.55, subdivision 2, paragraph (b). new text end

new text begin Surgical smoke evacuation system policies required. new text end

new text begin A health care employer shall adopt and implement policies to prevent exposure to surgical smoke by requiring the use of a smoke evacuation system during any surgical procedure that is likely to generate surgical smoke. new text end

new text begin Enforcement. new text end

new text begin This section shall be enforced by the commissioner under sections 182.66 and 182.661. A violation of this section is subject to the penalties provided under section 182.666. new text end

new text begin Minnesota Rules, part 5200.0080, subpart 7, new text end new text begin is repealed. new text end

Presented to the governor May 16, 2024

Signed by the governor May 17, 2024, 4:27 p.m.

Official Publication of the State of Minnesota Revisor of Statutes

IMAGES

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  6. A Day In The Life Of A Recruiter: My Actual Day Plan as a Recruitment Consultant

COMMENTS

  1. Staffing Agency Business Plan [Free Template]

    Writing a staffing agency business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan: 1. Executive Summary. An executive summary is the first section of the business plan intended to provide an overview of the whole business plan. Generally, it is written after the whole ...

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    Here is a free business plan sample for a recruitment agency January 29, 2024. ... Compared to other business plans, a recruitment agency's plan must focus on the intangible aspects of service delivery, such as building a strong candidate network, maintaining client relationships, and the importance of a skilled internal team. ...

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    A comprehensive startup business plan for a recruitment agency should include: Executive summary: Start with a clear and concise overview of your business — your elevator pitch. Highlight your business goals, mission statement, and the services you plan to offer. Market analysis: Conduct thorough research on the staffing industry, focusing on ...

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    A business plan has 2 main parts: a financial forecast outlining the funding requirements of your recruitment agency and the expected growth, profits and cash flows for the next 3 to 5 years; and a written part which gives the reader the information needed to decide if they believe the forecast is achievable.

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    Writing a business plan in recruitment has always played a crucial part in the interview process for a number of recruitment agencies around the world. A comprehensive business plan can demonstrate a recruiter's commitment, knowledge and commercial acumen. During economic uncertainties in 2023, these qualities are more important than ever. Arriving at an interview armed […]

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    Thorough market research is the best first step when you're writing a business plan. Market research means examining the industry your business will exist in, and finding out the needs and preferences of that industry's consumers. For a recruitment agency, a key research topic for your business plan would be finding out the impact COVID-19 ...

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  10. Sample Recruitment Business Plan

    Sample Template for Starting a Recruitment Business. Business Niche. Creating a business plan involves making some decisions upfront. This means choosing a niche. By doing so, you'll be deciding the type of recruitment agency to start and the industry to serve. Observing Competitors. Observe how your competitors' work provides an excellent ...

  11. Recruiting Company Business Plan Template

    Traditionally, a marketing plan includes the four P's: Product, Price, Place, and Promotion. For a recruiting company business plan, your marketing strategy should include the following: Product: In the product section, you should reiterate the type of recruiting company that you documented in your company overview.

  12. Recruitment Agency: get a solid business plan (example)

    Crafting a well-structured business plan will help you to: get familiar with the recruitment agency market. be aware of new consumertrends and apply them to your project. recognize profitability factors for a recruitment agency. understand the hiring needs, job requirements, and talent preferences of client companies.

  13. Sample Staffing Agency Business Plan

    The Staffing Agency industry in the United States, valued at $152.5 billion in 2020, is on a steady growth trajectory, with projections suggesting it will reach $178.3 billion by 2025. This growth is fueled by the increasing demand for flexible and specialized staffing solutions across various sectors. HireHorizon Staffing, by entering this ...

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    You've come to the right place to create your staffing agency business plan. We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their staffing agencies. Below are links to each section of your staffing agency business plan template: 1. Executive Summary. 2. Company ...

  15. The #1 Recruitment Business Plan Template & Guidebook

    How to Write a Recruitment Business Plan in 7 Steps: 1. Describe the Purpose of Your Recruitment Business. The first step to writing your business plan is to describe the purpose of your recruitment business. This includes describing why you are starting this type of business, and what problems it will solve for customers.

  16. The Complete Recruitment Agency Business Plan Blueprint

    A well-structured business plan is the cornerstone of success for recruitment agencies. It serves as a blueprint outlining your agency's vision, mission, goals, strategy, and financial projections. Here is why it is crucial for the success of a recruitment agency. A well-crafted business plan is a strategic tool that enables recruitment ...

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    Hiring a specialist website designer would also increase startup costs considerably. As an example, in our recruitment agency business plan template the total initial funding requirement amounted to €30,000 (c. $32,000 or £26,000), with the founders contributing €20,000 (c. $21,400 or £17,000). In order to assess the exact budget for your ...

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    Step 3: Management and key personnel. A business is only as good as the people behind it. To really make your recruitment agency a success, you'll need the support of a great team. In the management and key personal section of your plan you should detail your management, staff, and plans for further growth.

  19. Staffing Agency Business Plan [Sample Template]

    A Sample Staffing Agency Business Plan Template 1. Industry Overview. It is on record that the staffing, recruiting, and workforce solutions industry makes a huge contribution to the economy of the United States of America, and they provide jobs and career opportunities for about 14 million employees annually.

  20. How To Start A Recruiting Business: 2024 Guide

    Techees was a contingency recruiting business, which means she only got paid when she got someone hired. She wanted more reliable income, so she started TalentPerch, a recruitment process outsourcing (RPO) company, in 2020.She sold Techees for seven figures the next year.. Since then, Talent Perch has grown and combined RPO and contingency strategies to help businesses find engineers ranging ...

  21. Where to start with a recruitment business plan

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  23. Staffing Agency Business Plan Operations Plan

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  24. Build a Successful Recruitment Plan with Our Proven Template [FREE]

    Interviewing and assessment costs: $15,000. Employee referral incentives: $5,000. Miscellaneous expenses: $10,000. This recruitment plan is designed to help ABC Tech Solutions attract and select the best candidates for our software engineering and project management positions.

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  26. Chapter 110

    Subd. 5. Limitation. The provisions of sections 326.02 to 326.15 shall not apply to the preparation of plans and specifications for the erection, enlargement, or alteration of any building or other structure by any person, for that person's exclusive occupancy or use, unless such occupancy or use involves the public health or safety or the health or safety of the employees of said person, or ...