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Selecting a niche for a recruitment agency is a pivotal decision that can determine the agency's success, branding, and expertise. Here is a scorecard that recruitment agencies can utilize to evaluate potential niches:

Recruitment Niche Selection Scorecard


Score (1-10)


Market Size & Demand

1. Number of potential clients

How many companies or employers operate in this niche?

2. Current job vacancy volume

Are there many job openings within this niche?

3. Growth potential

Are industries within this niche expected to grow in the coming years?

Competition & Positioning

4. Existing recruitment competition

How many agencies are already operating in this space?

5. Differentiation opportunities

Can you offer unique services or adopt a unique approach?

Candidate Availability

6. Available talent pool

How large is the current pool of job-seekers in this niche?

7. Candidate acquisition ease

How easily can you source and attract candidates?

Operational Considerations

8. Familiarity with the niche

Do you have prior experience or knowledge in this area?

9. Ease of building relationships

Can you quickly establish trust with employers and candidates?

Profitability & Sustainability

10. Expected profit margins

Are the roles typically high-value? Is there room to negotiate fees?

11. Long-term viability

Is this niche expected to remain relevant and in-demand in the future?

Miscellaneous Factors

12. Alignment with agency values

Does this niche align with the moral, ethical, or branding values of the agency?

13. Passion and interest

Is your team passionate and interested in this niche?


  • Rate each criterion on a scale from 1-10, with 1 being "Not at All Favorable" and 10 being "Highly Favorable".
  • Make notes for each criterion to provide context or rationale for the score.
  • Calculate a total score out of 130 to get an overall perspective.
  • Repeat for other potential niches and compare scores.

This scorecard provides a structured approach to evaluating a niche, ensuring that recruitment agencies consider a comprehensive range of factors. The actual weightage of each criterion may vary based on the agency's specific goals and priorities.

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