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How to Run a Recruitment Agency in Canada

This article will detail everything you need to build your recruitment agency to new heights.

One of the factors employment and recruitment agencies persistently rely on is the availability of job vacancies throughout the country. You’ll need to improve your industry ranking to fulfill this demand.

Recruitment agencies are the connectors of organizations that seek employers and prospective applicants searching for a firm to showcase their talent and skills.

In 2020, the emergence of COVID-19 halted the industry, as firms restricted hiring and promoted from within. But as the world moves out of the pandemic, this sector has a lot to offer. Let’s go through some ways you can build and grow your recruitment agency.

Innovate your Agency

The recruitment sector is ferociously competitive. With an ever-increasing number of recruitment agencies proactively joining the market each year, you’ve got to reshape your management decisions and stand out.

Data specialization: data and analytics must be in your DNA. Base your decisions on new, rapidly developing software that can monitor and track the ebb and flow of the industry.

Keep your clients and applicants happy: create unique ways to engage and retain your clients, and prove that you will add value to applicants in different ways.

Build an effective management process: re-evaluate your pipeline to guarantee that you are sustainably generating revenue. Optimize your daily operations to include digital processes.

Legal and Regulatory Considerations

At both the federal and provincial levels, Canada has a plethora of employment legislation. Provincial employment laws protect around 90% of Canadian employees. Familiarize yourself with Canadian regulations, so you can demonstrate to both clients and applicants that you are credible and trustworthy:

  • The probationary period is usually three months long.
  • Check each employee's Social Insurance Number (SIN) to see if they are a citizen or a resident.
  • If you have ten or more employees, you must offer identical compensation to male and female employees for equal or comparable labor.
  • Consider the regulations for foreign employees too.

Understand the Market and Trending Insights

The Canadian employment and recruiting industry has grown more rapidly than the Administration, Business Support, and Waste Management Services sectors. Consumer confidence and corporate profit are two elements affecting this industry.

Allegis Group, Adecco Group, ManpowerGroup Inc, and Randstad NV are the organizations with the highest market share in the employment and recruiting agencies in Canada.

Businesses account for the majority of sales (88.6%), followed by sales to governments (9.7%).

The following are the main activities that you need to consider:

  • Placement that is permanent/long-term.
  • Staffing/placement temporarily.
  • Headhunting for an executive-level and related.
  • Staffing services for co-employment.

Interesting Industry Facts

  • 912,600 job openings were recorded in the third quarter of 2021. This is attributed to the escalation in overall employment opportunities and decline in unemployment rates.
  • The industry generates more than $15 billion in revenue toward the Canadian economy.
  • Ontario is the leading and prominent province that generates employment services revenue in Canada.

Outlook of the Market

Approximately 1.7 million additional jobs are predicted to be created over the next ten years due to economic expansion (174,000 on average every year).

According to the business outlook poll, most businesses across the country and sectors aim to hire in the coming year as COVID-19 limitations loosen.

In 2022, the employment and recruitment agencies industry in Canada is predicted to grow by 6.2% in size.

Customer service representatives, salesmen, and planning specialists, as well as budgeting and accounting professions, are among the "most sought-after professionals" for 2022, according to Randstad Canada's annual career forecast.

Marketing Your Agency

Here are some ways to boost your recruitment agency presence:

Programmatic advertising

This cutting-edge recruiting method helps in streamlining the publishing of job adverts to your "standard" list of job boards.

ATS platforms like Recruitee allow you to build job advertising that targets certain attributes and talents you're searching for in a candidate. Your adverts will then be shown to the proper target demographic, increasing your chances of landing a qualified candidate.

Data-driven processes

Collecting and evaluating critical data can help you determine which approaches are working and which aren't, as well as what decisions need to be made in the future. Whether you use an ATS, HRIS, or another HR tool, you have access to a wealth of relevant data that should be guiding your hiring decisions.

Use chatbots

Beyond recruitment, interested applicants seek a plethora of information before clicking the "apply now" button. Answer them through chatbots. Even Forbes emphasizes the importance of doing so. It can save 40% of required human engagement time while growing revenues by up to 25%.

Financing Your Growth

Depending on your expansion needs, you can take advantage of government-sponsored projects or contact investment professionals.

The Canada Small Business Finance Act – understand the criteria. It intends to boost the availability of financing to help Canadian small businesses start-up, expand, modernize, and enhance.

This interactive map displays all the lenders that are part of the Canada Small Business Financing Program.

Other advantageous platforms include the following:

Exiting Your Agency

When you're growing a new recruitment agency, the last thing on your mind is an exit strategy. A wise entrepreneur would recognize that the choices you make on day one can have far-reaching effects down the road. One of these choices should be to plan for your exit.

Calculate the worth of your company

Analyzing your company's current financial health, future earning possibilities, market value, and other factors will help you obtain a better sense of its economic worth and manage your expectations when putting a price on it.

Choose the most advantageous time to sell

Demand and purchase price are influenced by the economy, competition, industry trends, and your business’s existing profitability. Keeping track of all these factors can help highlight the best time to sell your firm.

Megan Kelly

About the author

Megan is the Content Manager for Dynamis and researches and writes for She is an expert writer and aspiring digital marketer.


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