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5 Reasons Staffing Agencies Should Focus on a Niche

Posted by Karen McMullen

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Jul 4, 2016 9:00:00 AM

5_Reasons_Staffing_Agencies_Should_Focus_on_a_Niche.jpgOnce you’ve gotten your funding figured out and mapped out the business plan for your new staffing agency, it’s time to decide what sector of the market you want to serve.

It can be mighty tempting to want to start a general staffing agency that markets itself to all sectors of the industry, all business types, and all candidate types. But this isn’t the best idea. Choosing a niche will offer you a better chance at success in the market.

Here are some reasons why you should focus on a niche.

1. Become an Expert

The most important advantage staffing agencies receive when they focus on a niche is the ability to become an expert in their field. When you only work in one subset of the industry, you can devote all your time and resources to one narrow field, so you can easily stay on top of all current trends, information, and news. This in-depth knowledge means that you’ll be able to better select the most qualified candidates and attract clients due to the expert advice, recommendations, and help you can offer. You’ll be able to show clients that you fully understand their needs, which will build their confidence in your agency. There is power in being an expert.

2. Don’t Spread Yourself Too Thin

If everyone is your potential client, you’ll spread yourself too thin trying to keep up with news and trends in all industries, trying to learn the lingo of all sectors, trying to meet the varying needs of everyone with your limited services, trying to find out where candidates in all sectors seek out work, etc. In the end you might only be able to do everything mediocrely. You’ll end up stressing yourself and you’ll likely end up disappointing many people while trying to please everyone.

3. Limit Your Competition

If you were to start a general staffing agency, you’d be competing with all other staffing agencies in your area, no matter their specialty. Whether they work in administration, construction, IT, medical, or any other field, you’ll be competing with them because you might seek out candidates and clients in all of those sectors.

When you choose a niche, however, you’ll only need to distinguish yourself among the staffing agencies that provide similar staffing services—if there are any in your area.

4. Reduce Marketing Efforts and Costs

When you need to market your services to all candidates and companies, you’re going to end up spending far too much money on marketing. But when you choose a niche, it’ll be very easy to identify and target your audiences. Your pool of prospects will be smaller, so you’ll be able to target your marketing efforts, and in turn, reduce your costs.

5. Referrals and Repeat Business

When it’s easy for people to understand exactly what you do and who you do it for, it becomes easier for them to refer more and better clients and candidates to you. With a niche, you can build up credibility and trust due to your specialization. In addition, because you can provide specialized services based on your clients’ unique needs, there’s a better chance that you’ll get repeat business. Your services will also be more difficult to find elsewhere, so people will come back for more, time and time again.

Choosing a niche can offer staffing agencies marked advantages. But remember to choose the right niche. Choose a subset of the industry that pays well and has potential for future growth. Choose a sector will low competition in your area, but also one where there is a need. And perhaps most importantly, choose a niche you’ll love—this will not only allow you to use previously gained experience and expertise, but it will allow you to enjoy your work every single day.

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Topics: Niche Staffing Firm

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