The benefits of niche staffing

While some staffing agencies choose to be jacks-of-all-trades, staffing within a niche provides a more narrowly defined opportunity for targeted specialization.

A niche can include only a few, or even just one, industries or job types. Common staffing niches include light industrial, administrative, IT, construction, health care, legal, clerical and others. Some staffing firms work only with executives or talent with college degrees.

Casting a wide net certainly has its advantages, as doing so increases the amount of business your staffing service has access to and improves your chances of profitability and growth. But spreading yourself too thinly can also backfire.

With a narrower focus, niche staffing allows you to provide more personalized and tailored service, with a deeper understanding of the industry you are staffing. It also allows you to stay up to date on current needs and trends and to decrease the amount of competition. In addition, you’ll build a pool of talented, reliable candidates that you and your clients can count on because you’ll have an in-depth understanding of what traits to look for in an ideal candidate.

“I’m a big believer in staffing within a niche,” says TemPay President Larry Holstein. “When you staff more generally, you typically will not know your entire market, and that’s how you get burned, as you don’t know what to watch out for.”