When recruitment companies first hit the market many moons ago, it was an open playing field. You could set up shop and recruit for a wide spectrum of roles across multiple sectors.
It’s how the recruiting giants like Adecco, Michael Page and Randstad built their brands.
Then the market started to change. The arrival of the ‘internet’, social networks and the rise in status of thought leadership has changed the business landscape.
We have written on this topic in the past, and it is so VITAL to your ongoing success I want to focus in on why it is so important.
“Focus your sector using the inch-wide mile deep strategy.”
Regular readers have heard the phrase at least once, if not many times, from me, and I suspect others on their journey from great recruiter to 7 figure + business owner.
The inch wide and a mile deep phrase is a different way of saying that it would be wise to pick a very specific target market and a niche if you want to achieve sustainable results.
For example, rather than being a recruitment company that has a focus on the ‘Healthcare’ sector, instead, you work with Biotech companies and recruit for medical science managers only. Much more specific and profitable.
Picture the scenario; Healthcare could mean any role from; admin assistants, laboratory assistants, team leaders, sales representatives, scientists, data scientists, pathologists,marketers and the list goes on and on…..
Imagine how challenging that would be and what a spread of fees you might ‘have’ to agree; a nightmare!
Yet it still happens as many companies choose to remain ‘general’thinking they will make more placements.
What The Market Wants: Our Obsession With Experts And Knowledge
We now live in a society where we have the ability to search out and find experts to help us. The truth is we can jump onto Google and search on a phrase and potentially find the perfect expert service provider.
In our own business, we have people that help with specific functions because they are experts themselves. I might pay a little more, and I gladly do this because of the results it brings.
Guess what; your clients are willing to do that too. Imagine if you are a Biotech company, and you have a number of business critical medical science manager roles to fill, suddenly a specialist recruiter in that field becomes appealing, and the 25% fee they command is well worth it.
It Starts With A Decision
Let me share my own story.
Katy and I are a classic example of this too. When I started Centredexcellence many years ago, I knew my skills could help business owners across many sectors. I had clients I was coaching in a whole range of markets, not only recruitment.
I was stretched in all directions and to be honest it was draining.
I then had that lightbulb moment!
I had run a successful recruitment organisation for years; maybe I could help others do the same?
Ta-dah; I know you might have thought I would work that out wouldn’t you? The truth is I was worried that it wouldn’t work and I wouldn’t be able to win enough business to support my family and our lifestyle.
I’ll be honest; it felt uncomfortable at first to turn work down that was no longer in my chosen sector.
However, literally within a matter of a few weeks, the trajectory of the business shifted. The exact opposite to my fears became was true. I understood more about my market and especially my ideal client. Suddenly it was like everything aligned.
It’s a similar story with our clients.
One recruitment company we worked with had the, “everything and anything” mentality when it came to accepting roles across multiple sectors. We then carried out an analysis and the director we were working with realised that a specific engineering sector was profitable and growing nationally.
Their focus switched and placing candidates at a higher fee level became easier.
This is one area we focus on with all our clients because we see, time and time again, the difference it makes to their growth, and how easy it is for them to become experts in their sector and gaining the respect and business they deserve.
The good news is that could be you too; it’s only a decision away……..
P.S. Lack of niche focus is a mistake many recruitment companies make. It is one of the 5 biggest mistakes recruitment organisations make that stop’s their growth. If you want to find out what else you might be doing that is curtailing your growth then download our new free guide here.