Does a staffing agency’s website and job posting reach tell me about its pipeline?
Only partly. A busy site and wide posting reach show the agency can attract candidates, but they say little about whether clients are paying for placements. Treat web activity as one clue. Ask for the real pipeline: open orders from clients, candidates in process, placements made and the source of each one.
A website can look active while the business behind it is quiet. Posting reach tells you how many people see the agency’s ads, not how many become good candidates, and not whether any client is waiting to hire. Ask what the agency does with the response: who reviews it, how fast, and how many applicants reach an interview.
The more useful view is the client side. Request the list of current open orders, how long each has been open and which are repeat clients. Ask where each recent placement came from: a posting, a referral, a past candidate or the owner’s own contacts. If most placements trace back to the owner’s personal network, the website is not the engine.
Finally, check whether the numbers move together. Strong candidate flow with few open orders suggests a client problem. Plenty of orders with a thin candidate pool suggests the reverse. Ask your accountant to compare the pipeline with revenue, and watch for gaps between what the seller says and what the records show. Ask to see how the agency tracks each lead from first contact to placement, and whether that tracking is kept up to date. If it relies on the owner’s memory, the pipeline you are being shown is only as reliable as that memory, and you should price your caution accordingly.
Key takeaways
- Treat website reach as one clue, not proof of demand.
- Ask for open client orders and where recent placements came from.
- Check whether candidate flow and client orders match.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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