Like any viable business, staffing firms are more effective when they have a way to differentiate themselves from their competitors. For these agencies, it often makes the most sense to find a specific talent niche and build up resources to make placements for just engineers, information technology or health fields. When you focus on smaller groups, you become an expert in understanding what makes strong candidates in these fields and where to look for them. But the talent market is in constant flux. How do you know when it’s time to focus on a new talent niche or give up on one?
Examine the local market
Software developers and coders may be in demand around the country, but what really matters is the jobs that exist where your business is located, as Factor Finders pointed out. What industries are the most vibrant in your region? Another way to determine this is to research what companies are hiring for. Where are the open positions? Are there any trends in the positions businesses are looking for?
Do what you know
It’s always easier to deal with professions that are familiar. When considering entering a new niche, think about what you know. Was there a past career you enjoyed? Are there industries you find fascinating or exciting? It’s easier to become an expert in a field you are interested in, as EM Info pointed out.
Specialize even more instead
While a category like IT may seem small compared to the rest of the job market, it’s actually a huge field that continues to grow. Instead of ditching a formerly successful talent category, honing in even more may be the solution. The solution may be to specialize more in the broader talent market.
Consider placement fees
In addition to growing industries and desirable talent, you need to consider other financial questions. Some industries are simply more lucrative than others. Take a look at what fees staffing agencies garner for placements in your area of interest. Are they high enough to make entering the new niche worthwhile, or are you better off looking elsewhere?
Think outside the box
There’s more than one talent niche to pursue in staffing. Think not only in terms of skills but also different groups, such as veterans or even college students. Responsible Outgoing College Students or ROC is a firm Brandon Labman and Tom Moore founded while still in school, Inc. magazine wrote. The firm specializes in connecting recent college graduates with entry-level jobs.
“Think outside the box to uncover new talent niches.”
Predict the future
Of course, it’s impossible to know what professions will be the most sought after in the coming years, but you can make a fairly good guess. Do some research to see what industries are on the cusp of expansion and think about the kind of talent these businesses will need to achieve maximum growth.
Look at your staffing software
Choosing a new niche might be as simple as looking at your staffing metrics. Jobscience staffing software has metrics firms can use to determine what their most lucrative markets are and help businesses decide where to focus their recruiting efforts. Which position offers the greatest revenue per placement? Which position does your firm fill the most quickly? These are all questions the right staffing software can answer.
Because the talent market evolves, staffing firms need to re-evaluate their niches every once in a while to continue to drive revenue. Before making any decisions, research the local labor market and be sure you have the right software tools to back you up.