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Specialized or General Recruitment Agency

The recruitment agency has to select the way, it will be set up and how it will develop its business. It has to choose the way of the general recruitment agency or the specialized recruitment agency. Both ways have the pros and cons.

The specialized recruitment agency has the competitive advantage. The specialized recruitment agency has a smaller market competition and it is has a higher chance to be called by the HR Recruiters, when they need the external help.

On the other hand, the specialized agency has to fight for its recognized name more among the HR Recruiters. The good recommendation spreads quickly, but it has to be quick enough to build a solid client base. When the recruitment agency is specialized, it has to be focused on the business function, which offers enough job positions as the recruitment agency can keep a positive cash flow.

The specialized recruitment agency is in a danger, when the conditions on the job market changes dramatically. The companies can look for many job vacancies, but the job candidates can be a very scarce resource. The recruitment agency has to develop a process to identify the job applicants in their current jobs, but is not the recruitment agency; it is the headhunting, which has significantly higher costs. Additionally, the job openings can be closed and the specialized recruitment agency can miss enough opportunities to keep its growth and cash flow healthy.

The general recruitment agency has to fight with its marketing. The clients can miss the focus of the recruitment agency and they can be worried to use the services of the agency, which is focused on “everything”.

The general recruitment agency has to plan huge marketing budgets as the clients can see the agency on the job market, actively helping the clients to fill the vacancies. The website of the recruitment agency has to be full of the job vacancies as the companies can see a high flow of the job applicants through the recruitment agency.

The general recruitment agency has many competitors trying to steal the job vacancies from it. The specialized recruitment agencies can steal the job positions, they are strong in and other general recruitment agencies can go into the price competition.

When the general recruitment agency starts to be successful, there is always a competitor, which wants to steal the success. The general recruitment agency has to be ready to go through the extremely hard competition with the selected competitors.