Recruitment business is a very competitive business to be in. Many business players are apparently very “specialized” in EVERY industry and EVERY function, and they will take on whatever business is presented to them.
Many times, the recruitment consultants will have very few clients, and as such, do not have the privilege to “choose” who they want to serve. Of course, with very few clients, they do not have the facilities to find a Niche in their business.
If you are not able to find a niche in the recruitment business, you will be like one of the over the thousands of recruitment agents out there; and when that happens, the client can SPAM the job order to as many recruitment agents as possible to get their own jobs fulfilled.
What are the advantages when you have a certain niche in the market, in terms of function or industry?
1) 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) You will make yourself look more specialized and professional and will receive more respect and attention from the clients.
3) You will have the 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) The clients that you contact may become your candidates when they are looking out for more opportunities.
5) The candidates may become your clients within the same industry too.
6) There will be less competition from the recruitment industry because when you niche yourself, it will require more effort and focus. Not many agents are willing to go to the extra effort, though.
7) The clients will tend not to press your price lower if there are not as many vendors available.
8) Generally, you will be able to charge more in fees if you are in a specialized industry that not many people are doing.
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 and not TWO….
The final 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 that way. A specialized 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.