How to Chose the Right Recruiting Agency Niche

One of the most important things you can do when setting up a recruiting agency is to choose your niche.

Choosing a niche is like specializing in what type of doctor you’re going to be…only it’s not that serious, it’s more casual as in, what industry do you want to place candidates in?

Now the list is endless, you can start with the basics like Information Technology, Medical, Construction, etc etc…

But it can get even crazier, and more specific like highly specialized investment bankers that only work with certain financial tools. Or specialized disease research scientists that are in a highly unique field.

Obviously…the more “NICHE” you go..the harder it is to find candidates to fill positions for those niches. It also goes that certain niches just have much higher pay scales than others, such as IT VS. Warehousing/logistics.

Before we go any further,

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Alright now….HOW DO YOU FIND YOUR RECRUITING NICHE?

1. Look at the job demand. Who’s hiring for what, and how consistent is it? Where are they hiring? What sectors? Which level? In general, what is in the highest demand and the most consistent demand? This will give you a great outlook on what’s needed in the marketplace and will help you determine partially what your niche could be in.

2. Audit yourself and your own experiences and skills. This is the “sell what you know approach”. If you’ve been a software developer for years, prior to entering recruitment, it would be natural that I.T is your thing, right? If you have a long history in construction, that might just be your niche. Checkout your own skills/abilities and match them against what’s out there to recruit for.

3. Examine your capabilities. This is different from auditing your skills/experience. This is actually identifying if you can do what any given niche will require you to do. To be blunt, can you hold a conversation with a senior level technology manager talking about coding languages and the team they need to build? Or is it more your style to have a casual chat with a logistics manager about the need for truck drivers and forklift operators?

4. TEST! This is where you figure out what’s real and what’s not, because before this step, everything is theoretical. You need to actually try out some niches for size. If you literally have no clue what you want to do and you know you want to run an agency, you’ve got to just give it a shot. How? Start connecting with hiring managers and decision makers in IT, Construction, the medical field etc. Then see how those conversations go. If things start going well you might get some contracts, if that happens you’re off to a good start, if not, at least you get some good data on what’s weak and what’s strong.

OKAY…SO WHY DO YOU NEED A RECRUITING NICHE?

1. You can’t be a generalist in this industry, you have to be a specialist. That doesn’t mean you have to be so laser focused you can’t dabble on a small scale, but you can’t be everything to everybody. It won’t work, for you, or them.

2. You want to be the “go to”..eventually right? Finding your niche and being good at it, makes you the “go to”. People start talking about you, sending referrals your way, that sort of thing. That’s what being “the go to” is all about. You want this, and by creating and developing your niche you’ll get there.

3. It literally pays to have a niche. You know the market, you know the players, you know the game, you know what you can charge, you know the competition. You can charge your worth because you know your worth once you’re embedded.

4. It’s easy! Having a niche is 100x easier than having a generalist approach to recruiting. You simply cannot look over 10 different niche job orders every single day and possibly search for them, source for them and keep it all straight. It’s not going to work out. Having a niche makes it easy to make one simple search for a candidate and find hundreds of potentials by doing so.


That, my friends is HOW and WHY to find a recruiting niche, when starting your recruiting agency from scratch.