Recruitment and staffing business is a very lucrative indusry (Billions) and is a very extremely competitive industry.
Many recruitment and staffing business owners and recruitment consultants are apparently very general in EVERY industry and EVERY job function, and they will take on which ever job assignments that is presented to them.
Many a times, the recruitment consultants will have very few clients to choose from, and as such, do not have the privilege to “choose” who they should be serving.
Of course, with very few clients, they do not have the facilities to find a Niche of be specialized in the recruitment and staffing business.
If you are not able find a niche in the recruitment and staffing business, you will be like one of the over ten of thousands of recruitment and staffing agencies in your country and other competitive countries ; and when that happens, the client can SPAM the job assignments to as many agents as possible to get their own quota fulfilled.
This is what we call Market Tumour.
So what are the advantages when you have a certain niche or specializing in the market, in terms of function or industry?
1) Better Branding
You will position yourself out of the normal agents out there, hence reducing the chance of clients SPAMMING their job orders to many agencies.
2) Respect From Client
You will make yourself look more specialized and professional and will receive more respect and attention from the clients.
You will have synergy effect because the candidates you will have contacted may possibly match two or more clients if you have a fair number of job orders.
4) Client Synergy
The clients that you contact may become your candidates when they are looking out for more opportunities.
5) Candidate Synergy
The candidates may become your clients within the same industry too.
6) Lesser Direct Competition
There will be less competition from the recruitment industry because when you niche yourself, it will require more effort and focus. Not many recruitment consultants are willing to go to the extra effort, though.
7) Better Pricing
The recruitment clients will tend not to press your price lower if there are not as many vendors available.
Generally, you will be able to charge more in fees if you are in a specialized industry that not many people are doing.
8) Targeted Job Assignments
Since you are positioned as a specialized recruitment and staffing agency, the job assignment you will get, most of them will be related to YOUR area of focus, saving you in TIME and ENERGY.
There are tons of benefits and advantages when you are specialized and have a certain niche. Remember that specialization means that you focus on ONE area only; if you want to specialize in legal and oil and gas, that is not a niche.
Specialization means you only choose ONE industry or job function and TWO industries or job functions is NOT consider as specialization
Last thing to take note, being specialized is great, but you must really go all the way to do your part and do your best to get to that route.
A specialized recruitment agent who is just around average is the same as any other agent who is not specialized.
The key is to become extremely good in your specialized field, so that you will become better than those around average level within the same industry.
Happy Niching & Specialization!