Expand Your Recruitment Business – Tackle New Locations and Industries (Part 2 of 3)
Are you thinking of expanding your recruitment business to cover new locations or industries? Perhaps you're running your own recruitment agency and you’ve been ready to expand since Day One. The prospect of expansion is exciting!
Whether you wish to expand your recruitment business into different industries or physically into new locations, there are many factors to consider. So, let’s examine why you might choose to grow, the benefits of expansion, and explore a few tools and tricks to help you on your way.
When Should You Consider Expansion?
There are two main reasons why any business — recruitment included, should consider expansion:
- You lack the capacity or resources to meet current client needs.
- Your business could significantly benefit from another location’s or industry's market demand for your services and an expanded candidate pool.
If you have so much demand that you are turning away profitable business, invest in the people and tools to address it. Careful growth backed by solid market forecasts is the way to go. If your business has reached the limit of its current addressable market, it’s time to pursue expanding into other niches. In either case, investing in expansion should be a top priority.
The Benefits of Expansion by Location
Expanding by location could entail one or more of these scenarios:
● Relocating to an area with more demand for your services.
● Covering more locations, either from your local office or by adding offices.
● Hiring remote employees to cover more locations.
All of these options bring a range of benefits, including:
Reaching a Wider Talent Pool
The talent pool may eventually run dry when you’re limited to hiring candidates within a specific location. Consequently, candidates are far less likely to have the right skills, experience or education.
In contrast, you’ll simultaneously open yourself up to a more diverse talent pool by expanding your location. The further you cast your net, the more likely it is you'll find candidates with broader skillsets, education levels and employment backgrounds.
The result? You improve the odds of finding suitable candidates for your clients, which in the long run should help improve their staff retention rates.
You’ll Build Credibility Along with Your Client Base
If you’ve been in the recruitment game a while and choose to expand by location, you’ll instantly add credibility to your brand. You're literally telling the world you're ready to take your business to new heights — this goes a long way to inspire client and candidate confidence.
Working in recruitment should always be more about helping others than increasing profits. While you may need to invest in additional recruiters or efficient recruiting tools, when you choose new locations wisely, the additional revenue will exceed the additional cost. It stands to reason that generating extra profit is the natural result of any successful expansion.
The Benefits of Expansion by Industry
Even if you become the go-to name for a specific industry, the time may come when work starts to run dry and you’re left struggling to source fresh candidates and clients. This is when expanding into new sectors may be worth its weight in gold, which is most likely why 66% of U.S. recruitment companies¹ planned to expand in 2019, alone.
Many of the benefits that come with expansion by industry overlap with expansion by location — most notably:
- Business and profit growth
- A boost in brand awareness and credibility
- Reduced risk your business will experience 'stagnant' periods
Expansion: Making Informed Decisions
However, despite all these perks, expansion isn’t something to rush into. Instead, you’ll need to plan ahead to ensure you make your move to the most suitable locations and industries. But how do you know which of these are the most effective strategies for your recruitment agency?
To answer this question, you’ll need to dig deep into some informed and reliable data. More specifically, search for the kind of data that helps identify the specific industries and locations most likely to bring you success.
Fortunately, there are AI-fueled recruitment platforms that provide the insights you need to help plan your expansion strategically and efficiently. LaborIQ® is an innovative and dynamic talent intelligence solution that combines labor, wage and economic data with a unique methodology to help you:
- Analyze cities by employment and diversity data, workforce trends and recovery forecasts.
- Monitor demand and supply levels by location, job, or industry.
- Identify cost-effective cities to target when recruiting workers.
- Find market-driven compensation recommendations pinpointed to location and industry that provide reliable data to power your expansion efforts.
With the most current data at your fingertips, you’ll soon be able to spot the most lucrative areas for expansion and, conversely, which industries and locations to avoid.
AI is changing the face of recruitment. From the way recruiters source candidates and clients to planning opportunities for growth and expansion, the right insights can take your business and the success of your immediate networks to new heights.
Part 3 is coming soon and will cover a different aspect of business expansion.
- Expand Your Recruiting Business – Elevate Your Reputation (Part 1 of 3)
- Don’t Fence Me In: The Growing Challenges of Remote and Gig Work
*Sources: 1) smallbizgenius.net/by-the-numbers/recruitment-statistics/#gref*