IT & technology recruiters forge ahead in the latest listing
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Contract
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A NEWS
05 Structuring the pay packets of recruitment consultants
Recruiters share secrets to achieving top net fee income (NFI)
06 Recruiters praised for filling roles for UK employers
07
industries
C INTERACTION
18
The hottest recruiters have continued to defy the odds and demonstrated resilience in the face of tough
conditions. IT and technology recruiters have forged ahead of the field, showcasing the greatest gross profit per employee, as presented by our expert partners
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Leader
It’s hard to be modest about this issue of Recruiter – allow me a measure of big-headedness because this March-April 2025 edition is really bangin’ – if I do say so myself (totally unbiased!).
To start with, we have the monolith of recruitment business rankings, Recruiter’s HOT 100, analysed to the nth degree by our partners and associates, Gambit Corporate Finance. The year that the recruitment industry has just completed was rough and tough, and achieving profit in this stormy weather was precisely that – an achievement. So well done to our HOT 100, and thank you to Gambit for your expertise.
“The year that the recruitment industry has just completed was rough and tough”
And there’s more: a hard-hitting Last Word from Sid Barnes about how you should really be paying your consultants, sales insider talk from Ben Browning, a very cool My Brilliant Recruitment Career focused on Luke Davis of Matchr and expert-as-ever insight from Tara Ricks.
Get warm and let’s all look forward to spring!
DeeDee Doke, Editor
Sharing secrets to achieving top NFI
BY DEEDEE DOKE
NET FEE INCOME (NFI) and recruiters’ salaries are key issues in this March-April issue of Recruiter. To seek out insight from the front line, we polled a few recruiters to hear about the challenges they find in structuring consultants’ pay package to achieve top NFI.
Joshua Sprigg, CEO and founder of nursing recruitment specialist Enferm Medical, told Recruiter: “At Enferm, we turned traditional incentive models on their head; our profit-sharing scheme isn’t just for consultants, but for every employee. This approach has driven above-average revenue per head, prioritising innovation over headcount and leading to higher profits and broader wealth distribution.”
Sprigg said that the company was built to be lean, fast and disruptive, and not just relying on one person to achieve success. “Traditional commission models attract a certain type,” he explained, “but Enferm was designed to reflect a different mindset; one of ownership, ambition and collective impact. That’s why we’ve built a business that rewards innovation, not just sales.”
Sam Ford, recruitment director at talent specialist Ford & Stanley, said: “Ford & Stanley Talent Services Group don’t employ people whose sole motivation is commission – someone is always going to pay more to try and disrupt our team.
“Our billers achieve maximum NFI by personal development, personal coaching, desire to do well and belief in the business mission to do the job properly.” He added that the firm’s people earn well for doing a great job: “We do well because the good people stay with the business.”
What’s happening in your business? Drop us a line at recruiter. editorial@redactive.co.uk
• See Recruiter’s HOT 100 2024, analysed by Gambit Corporate Finance, from p23 and The Last Word by Sid Barnes on p42.
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Recruiters praised for helping the UK in the fight to find skilled workers for employers
BY DEEDEE DOKE
STRUGGLING TO FIND workers is “the number one impediment” for employers growing their businesses today, while preventing the country’s economic growth.
This is what the chair of the House of Commons Business and Trade Committee Labour MP Liam Byrne (pictured below) has told recruiters.
Speaking at the Recruitment & Employment Confederation’s (REC) Parliamentary reception at the House of Commons in February, Byrne was commenting on top line findings from a national consultation his committee held in England, Scotland and Wales in December to help set their work priorities for the short and longer term. The government’s goal is to achieve the highest sustained growth in the G7 group of countries.
The committee heard from
businesses, educators and local authorities in Exeter, Cardiff, Oxford, Warwick University, Manchester, Glasgow and at Westminster in London, on topics ranging from the Apprenticeship Levy to trade regulations. Their findings were contained in a report published on 13 February.
“Over and over again, place after place after place, businesses told us that the struggle to get the workers that they need was their number one impediment, the number one barrier to growing their business, and therefore growing our economy faster,” Byrne said at the reception.
The report echoed Byrne’s comments, saying: “Issues around the labour force were the single most important set of concerns we heard from the business community. Many businesses told us that access to skills is one of the biggest barriers to
investment and growth and that difficulty finding and recruiting people with the right skills is an ongoing challenge.” (See News article opposite, p7.)
In speaking to the gathered REC audience, Byrne went on to praise recruiters for “all of the work that you do each and every day helping our businesses grow, a heartfelt ‘thank you’.”
Byrne also praised the REC itself. “You’re quite lucky in that you are members of one of the most effective business organisations that turns up here,” he said. “I’ve been in this game for about 20 years now. I’ve seen the good, the bad and the ugly, and the way that the REC comes to present your case in Parliament, I think, is second to none. And that is going to be more and more important over the course of this Parliament.”
He highlighted the historic significance of current world and national affairs, saying that parliamentary colleagues “have got to do something that we have to try and do only once every 40 or 50 years in the country… over the long arc of history, there are big geopolitical shocks. There are new debates about the sovereign capabilities that we need as a country, and there are then questions about what the government and the state need to look like in the future. And we know that… the way that we’ve got to change is a much better partnership between business and the public sector.
“So, your input over the course of this Parliament in helping ministers get that right is something that is incredibly important.”
New industries’ struggle to find skilled workers damaging to UK growth
BY DEEDEE DOKE
THE LACK OF skilled workers may be holding back the development of new industries in the UK, such as electric car manufacturing and other technologies needed for moving away from a carbonbased economy to a more sustainable future.
This is the warning from business leaders and educators to the House of Commons Business and Trade Committee.
Further damaging the UK’s potential for economic growth and improving workforce skills are “a lack of awareness of career pathways and local skills needs”, a “burdensome and inflexible” Apprenticeship Levy, and too little professional recognition for skills in industries such as hospitality and retail, committee members were told during a round of national engagement meetings in December 2024, of which the findings have been published in a new report.
Published in February, ‘The Priorities of the Department of Business and Trade’ reflects what the committee members heard at sessions in Exeter, Cardiff, Oxford, Warwick University, Manchester, Glasgow and at Westminster in London from a wide variety of organisations. Michael Page and RGB Recruitment were among the employment businesses that sent representatives to attend, according to the list of attendees.
In launching the national engagement drive, “we have begun to create a shared space for the British business community, trade unions, consumer groups, academics and Parliamentarians to consider the immediate and longer-term shifts needed to deliver faster growth of the UK economy”, said committee chair Liam Byrne MP. Industrial relations and the Employment Rights Bill will be in the “first wave” of inquiries to be held by the committee “to reflect
both the government’s bill and the messages we heard about business’s number one challenge: securing the best possible workforce”, the report said. The priorities list also includes export-led growth, the promised industrial strategy, and access to finance and investment such as for scale-up businesses.
Proposals for improving the skills of both the existing workforce and the next generation of work call for:
• Economic clusters must be able to “tailor training” for local workforces, especially when large-scale projects create new opportunities.
• Curriculum reform should include skills for work and schools’ career education must be improved with “clearer pathways” to apprenticeships.
• Devolution of skills policy can help employers grow, foster innovation in recruitment, improve employment standards and support local businesses that are rooted in communities.
• The Apprenticeship Levy should be reformed to enable greater flexibility.
• A training system must be built that can continuously upskill the workforce “at the speed of industrial change”, the report said.
• Businesses would value more direct involvement with the education system “to help school leavers with the right skills for the future job market”, the report said.
• The government was urged to “formally recognise” roles in sectors such as retail and hospitality as “highly skilled”. Feedback said: “Perceptions… must be changed so that jobs in these sectors are seen as a lifelong career and not simply starting off points for the young.”
• The visa system for securing skills and talent from overseas into specific sectors will require simplification and cost reduction.
Commenting on the sessions, committee member Charlie Maynard MP described them in the report as “completely fascinating”, but added: “Some of it made hard listening.”
The government has two months to respond to the committee’s report.
DO IT YOUR WAY WITH ZODEQ
Achieve
your recruitment goals with Zodeq’s
‘Do It Your Way’ campaign in 2025
Starting or growing a recruitment business can be one of the most exciting and rewarding challenges, but it also requires the right support and resources to succeed. That’s why leading invoice finance specialist Zodeq has launched its ‘Do It Your Way’ campaign to help more recruitment businesses thrive in 2025.
Whether you’re a start-up founder aiming to take control of your career or an established recruiter seeking to scale, Zodeq’s tailored solutions and expert support will empower you to run your business on your terms.
A year of milestones and momentum
Part of the Praetura Group, Zodeq has positioned itself as a key player in supporting recruitment businesses across the UK. In 2024, Zodeq joined Elite Leaders, a select group dedicated to driving positive change in the recruitment industry. The company also contributed significantly to the Praetura Lending Group surpassing the £500m loan book milestone, highlighting its commitment to providing businesses with the financial tools they need to grow.
“We know that the recruitment industry has faced significant challenges in recent years,” says Paul Cooney, managing director at Zodeq. “Thanks to strategic team growth and our increased lending power, we’re ready to help even more recruitment businesses achieve their goals in 2025.”
Comprehensive support for each step of your journey
Zodeq offers a range of invoice finance solutions with flexible contracts and bad debt protection as standard, ensuring peace of mind even when unforeseen financial issues arise. Their expertise extends across various sectors of recruitment, including healthcare, education, tech, engineering, and logistics, as well as working with RPO/MSP and vendor businesses.
By partnering with Zodeq, you’ll gain access to:
Business finance: Flexible funding solutions with no hidden fees, allowing you to move your business forward without worrying about unclear costs.
Back-office support: Streamlined services like payroll, credit control, and admin support that free up your time to focus on growing your client base and delivering exceptional service.
Dedicated recruitment specialists: A UK-based team of experienced professionals who understand the challenges of the recruitment industry and provide expert guidance tailored to your goals.
Flexibility to grow on your terms
One of the standout benefits of working with Zodeq is the flexibility they provide. As your business grows, their services can scale with you, giving you the ability to meet higher demand without committing to long-term overheads. Unlike hiring in-house admin staff, Zodeq’s back-office support is
there when you need it and doesn’t add unnecessary costs during quieter periods.
Simplifying success for recruitment entrepreneurs Zodeq’s online portals streamline the funding process, saving you time and effort while giving you full transparency over your costs. As part of the Praetura Lending Group, their funding capabilities are more extensive than many competitors, ensuring you have the resources to grow without hassle.
“We understand that every recruiter has a unique motivation,” says Cooney. “For some, it’s about autonomy, flexibility, or financial success. For others, it’s a combination of all these factors. Our ‘Do It Your Way’ campaign embodies this, offering personalised support that empowers recruiters to succeed on their own terms.”
Ready to ‘Do It Your Way’ in 2025?
If 2025 is the year you’ve decided to start or expand your recruitment business, Zodeq is ready to help. From financial support to back-office solutions, their expert team is here to guide you every step of the way.
With Zodeq, you’ll have the freedom to focus on what matters most – building your business, serving your clients and achieving your vision.
Visit zodeq.com today and take the first step towards doing it your way in 2025!
CONTRACTS & DEALS
Gattaca Solutions
Gattaca Solutions has signed a multi-year contract with UK air traffic control services provider NATS as its sole temporary workforce solutions partner. Gattaca Solutions provides managed services in recruitment process outsourcing and total workforce solutions in the UK. The five-year partnership extension follows a competitive tender process undertaken by NATS following a review of current workforce strategy. The deal means that Gattaca Solutions is accountable for all contingent labour within the UK.
Ford & Stanley Talent Services Group
Ford & Stanley Talent Services Group has secured a three-year contract to provide staffing solutions for Buckland Rail, a newly integrated rail services company. This partnership involves Derby-based Ford & Stanley’s three divisions – TalentWise, Recruitment and Executive Search – and will place staff across a number of roles from shop floor positions to boardroom leadership.
Buckland Rail was formed last year by integrating W.H. Davis, Davis Wagon Services and Yellow Rail under the Buckland Group.
Adecco Group
Adecco Group is expanding its partnership with recruiting software firm Bullhorn to enhance AI-driven recruitment processes. By integrating Bullhorn’s search and match technology and Recruitment Cloud solutions, Adecco aims to improve talent matching efficiency and streamline recruitment operations. As part of this collaboration, Adecco will implement Bullhorn’s applicant tracking system (ATS) across its platforms.
DEAL OF THE MONTH
Serco
Serco, the international provider of critical government services, has been awarded a landmark UK contract by the Ministry of Defence (MoD).
Serco will deliver the MoD’s nextgeneration recruiting solution for the Royal Navy, the British Army, the Royal Air Force and Strategic Command following a rigorous competitive process. The contract sees recruitment for these branches of the military brought together for the first time.
Nicholas Associates Group
Nicholas Associates Group (NA Group), a provider of talent management solutions across the UK, has acquired Smart Temporary Solutions. This strategic acquisition strengthens NA Group’s presence in the blue-collar temporary recruitment sector, according to the company statement. Hull-based Smart Temporary Solutions provides high-quality temporary and temp-to-permanent staffing solutions within the blue-collar sector.
Pro-Force
UK labour provider Pro-Force has acquired recruitment specialist Driven Recruitment, which has been based in Birmingham since 2002. This strategic move marks a milestone in enhancing Pro-Force’s Worcestershire-based driving division, Pro-Drive, which has been operating since 2019 under the leadership of Thomas Blewett and Neal Morris.
Taylor Higson
Taylor Higson, a print and packaging specialist recruitment consultancy, has announced its affiliation with the British Printing Industries Federation (BPIF). The firm will gain access to the BPIF’s network and resources, while the BPIF will leverage Taylor Higson’s recruitment expertise to further support its members in finding the best talent.
The Armed Forces Recruitment Service (AFRS) contract will be for seven years, plus options for further three one-year extensions. A 21-month mobilisation period is expected to begin this April, with the new service beginning in early 2027.
Serco will be the prime contractor and, in conjunction with a team of delivery partners, will provide an end-to-end service from candidate attraction through to assessment, enlistment and onboarding into initial training.
Pierce F. Tandcated
Senior data analyst
PROFESSIONAL SUMMARY
Experienced Senior Data Analyst with 8+ years of expertise in transforming complex data into actionable business insights. Strong communicator and strategic thinker, adept at collaborating with cross-functional teams to manipulate truthbased outcomes.
PROFESSIONAL EXPERIENCE
LEAD DATA ANALYST
Led a team to develop a churn prediction model that reduced churn by 25%, saving $2M annually.
data-driven process improvements. None of the above is true.
DATA ANALYST
Created machine learning models to optimize product recommendations, improving conversion rates by 18%.
A complete fabrication - this is a fake CV, and I am a fake candidate.
JUNIOR DATA ANALYST
No-one reads the “Junior Data Analyst” section, so it’s not even worth coming up with lies for this bit. Bleep bloop bleep bloop bleep bloop blah blah.
EDUCATION
Graduated: 2015
BSc in Mathematics and
Graduated: 2013
KEY SKILLS
Data Analysis & Reporting: Python, SQL, R
Machine Learning, Predictive Modeling, Truth Engineering
Data Visualization: Tableau, Power BI
Big Data & Cloud: AWS, Google Cloud, Hadoop
Database Management: MySQL, PostgreSQL
Business Acumen & Stakeholder Communication
CERTIFICATIONS
DAFSCA
Tableau Desktop Scam Artist
Technical Skills
Languages: Python, SQL, R
Tools: Tableau, Power BI, Apache Spark
Cloud: AWS, Google Cloud
Databases: MySQL, PostgreSQL
HISCOX INSURANCE
Not all fraudulent candidates are as easy to spot as this one.
If it turns out your candidate is not who they claim to be, and an employer brings a claim against you, Hiscox could help protect you. *
To learn more about the insurable risks that recruitment companies face from new threats like AI deception, visit hiscox.co.uk/theperfect-candidate
*Subject to already holding a relevant Hiscox policy, & subject to policy eligibility, terms & conditions.
CONTINGENCY RECRUITMENT – WORK THE SYSTEM!
THE GLOBAL STAFFING market is projected to grow to $650bn (£523.4bn) in revenues in 2025, which illustrates growth of about 5% – not bad in an era of average GDP growth rates of 1.8-2.2%. The bulk of the market, about 85%, sits within what is commonly known as ‘staffing’ –and a significant proportion of the staffing market is contingency recruitment.
Unlike retained recruitment, where fees are guaranteed, contingency recruitment operates on a success-only basis, meaning the recruiter only gets paid when you place a candidate. And with average job fill rates across the recruitment industry sitting at roughly 25%, it is a sobering realisation that 75% of all the efforts of your hardworking teams may not be paid for.
However, look again at the market size numbers: contingent recruitment is alive and well and a small percentage of that 85% of the market would keep most of us very happy. Smart recruiters understand that if you are going to be active in this contingent space, and make it highly lucrative, there is a strategic approach to adopt. Here’s how, in my humble opinion, to make it work:
Work with clients that value your service This might sound contradictory, but even if a client decides they want to work with a preferred supplier list (PSL) of four or five firms, they can still appreciate the value of a skilled recruiter. Avoid the companies that view recruiters as a distress purchase and only to be used as a last resort; target those that you know will have an ongoing need for talent, that recognise the cost of unfilled vacancies and are willing to pay fair fees – and on time.
Negotiate competitive fees What ‘competitive’ means will vary depending on your cost to fill, but understand your profitability constraints and stick to them.
Build a strong candidate pipeline Having a robust network of qualified candidates will always position you advantageously. If the contract is significant enough, think about creating a dedicated delivery team who source and nurture specific candidate types, creating communities that are ready to go. You will be able to respond quickly – a key factor when part of a PSL. Reduce your time to fill and increase your placement success.
Master speed and efficiency Since a key factor in contingency recruitment success is speed, efficient processes are key. Utilising a great applicant tracking system is paramount, so you can consistently manage all candidate data, track all applications, and processes and
Tara Ricks
Co-chair of Elite Leaders
streamline all internal and external communications. Automating tasks like scheduling and transcribing will free up time for higher value activities.
Mitigate risk with a solid contract To protect your revenues, always aim to have a clear and legally sound contract in place. Ensure it includes clear payment terms; refund/rebate terms that are fair and exclude scenarios outside of your control; minimum hiring commitments where possible; clear service level agreements and a commitment to the process, including not extending the PSL and/or not accepting speculative approaches outside of the list.
Develop fantastic client relationships Repeat business and the ongoing renewal of preferred supplier arrangements is key to making contingency recruitment sustainable. Provide exceptional service and value add and you will reduce the need for constant new business development.
Choose the right niche and target high demand roles One of the biggest mistakes SME recruiters can make is to serve too many industries or client types. Specialising in a sector or niche allows for credibility, deeper market intelligence and understanding of workforce dynamics and stronger client and candidate networks. Contingency recruitment remains a powerful and profitable market – even more so with the right focus on cost and speed of delivery, and target client. Good luck! ●
TARA RICKS is a non-executive director, co-chair of Elite Leaders and director of Consulting Eve
Gamification as a productivity booster How to use gamification to make work more interactive and motivating
BY MARISA PEREIRA
In a working world increasingly characterised by remote work, companies face the challenge of developing innovative strategies to motivate employees and increase their productivity.
One method that is receiving more and more attention is gamification – the integration of playful elements into work processes. Given that 52% of employees worldwide are actively looking for a new job or are at least open to offers, factors such as job commitment, corporate culture and work-life balance are becoming increasingly important. But how can gamification be used to strengthen these central aspects and, at the same time, make everyday work more interactive and motivating?
From an early age, people love to play. Gamification in a professional context exploits this natural need for fun, success and recognition. By establishing models and systems in which employees can collect points, badges or rewards for achieving goals, companies transform everyday tasks into motivating challenges. Tools such as Zoom, Microsoft Teams and Slack already integrate playful elements to promote user interaction.
Psychologically, gamification is based on principles such as goal setting, feedback and competition. Clearly defined goals and visible progress promote motivation, while a healthy level of competition among colleagues can stimulate ambition. At the same time, gamification strengthens the feeling of autonomy, competence and belonging to a team.
How do we use gamification and what are the most important success factors?
1 Missions and characters:
Create scenarios in which teams act as characters with specific skills. This encourages creative problem-solving and collaboration. For example, a marketing team could act as discoverers to ‘develop’ new customer segments.
2
Unlocking skills and progression:
Develop systems in which employees can learn new skills or demonstrate progress by completing tasks. This approach motivates and supports individual development.
3 Challenges between teams:
Organise competitions in which different departments compete to create the best solutions to common goals or to work together across departments. This can strengthen collaboration and add a playful component at the same time.
As an example, the IT team develops a QR code that the marketing team uses at events to collect contact details from visitors. In recognition of creatively supporting other departments with a useful solution, the IT team receives special benefits from the company.
Creating a content strategy to implement gamification
Gamification is more than just using game mechanics; it’s about making them meaningful and strategic. A
well-thought-out digital content strategy plays a key role here. Companies should create content that matches the preferences and motivations of their employees.
Gamified workshops or further training show how effective this method can be. According to a survey by learning management system
The central success factors of gamification
1 Personalisation and relevance: Game content should be tailored to the individual needs of employees. Prizes and recognition, such as birthday wishes or badges that can be shared on LinkedIn, create a personal connection. Some gamification systems award certificates for successful completion.
2
Define clear workflows for creating and maintaining gamification content: Regular feedback and adjustments keep the mechanics contemporary and exciting.
TalentLMS, the engagement rate for workshops and training courses with gamification elements increased by 80%. Such content not only increases willingness to participate but also promotes collaboration and a sense of belonging within teams.
“Companies should create content that matches the preferences and motivations of their employees. Gamified workshops show how effective this method can be”
3 Integration into existing tools: Choose platforms that integrate seamlessly into existing work environments. This makes it easier to introduce and accept gamified approaches.
4 Measurable results: Monitor key metrics such as engagement, productivity and employee satisfaction to assess and optimise the success of your gamification initiatives.
Gamification as a game changer at work
Overall, gamification offers companies a promising opportunity to promote productivity and engagement in the workplace. Supported by strategic content, companies can create a motivating and entertaining work environment. To fully exploit the advantages of this method, companies should always think employee-orientated, select platforms sensibly and regularly review the results. The first step? Ask your employees what motivates them. Gamification isn’t just a game – it’s a way to reimagine work. ● ↗
MARISA PEREIRA is vice president of people at Storyblok
BUILD A BUSINESS WITH HG VENTURES
A recent
recruitment
survey showed many fancy creating their own startup, so why not get essential help from the best?
‘GOING OUT ON YOUR OWN’ to start a recruitment business is something plenty of people have thought about – but many will face the similar concerns: “How will I do it?”, “It'll be very expensive”, “I don't have that kind of money”, “Where do I start?”. The list goes on and is a familiar one. To that end, HG Ventures wanted to hear first-hand from recruiters in a similar predicament, so deployed a survey titled ‘Have you got what it takes to start your own company?’. The responses were intriguing. It transpires that a whopping 85% of recruiters have thought of going it alone at some point or another – spurred on by the prospect of owning their own recruitment business and reaping the rewards of striving to make it a success.
The barriers to entry
The HG Ventures survey revealed that the main concern for those looking to break free and go it alone was how to obtain financial backing – with more than half of respondents (56%) citing a lack of
securing initial financial capital as one of the biggest challenges. Others said that they were put off by the hassle of navigating legal and compliance problems (29%), while one in five (20%) were afraid of failing. Just 6% felt they weren’t experienced enough to succeed.§
The
driving forces
In terms of the main motivations for branching out and stepping into an entrepreneurial future, more than a third of respondents (35%) said they valued a high degree of personal freedom and greater independence than they have at their current job. A desire for financial success was also a significant reason, with 29% saying this motivated them. Some 27% said their passion and drive continued to keep them motivated in their quest for success, while just 9% said it was about ‘shaping your own lifestyle and life choices’. Respondents were also asked to state which factors they believed were most critical to the success of building a recruitment company
and equipping it for growth. Respondents listed the eight options in the following order of importance:
Targeting the right market at the right time
Access to experienced advice
Strong financial backing
Efficient back-office operations
Effective leadership
A dedicated work ethic
Having the right team in place
Consistent discipline
Judging it as the most vital component of starting up and growing a business, more than a quarter (27%) of respondents believed that entering into a particular market at the right time was paramount. Only 15% felt that it was down the list of priorities, with almost 60% agreeing it was important to varying degrees. Interestingly, one in five (20%) said getting strong financial backing was not the be-all and end-all but, as you might expect, most felt it was still important to have that economic backing available to them.
Although 15% of respondents felt access to experienced advice was a vital component to business success, almost 40% responded that this was not the most beneficial factor. This might be explained by those respondents likely having strong experience and viewing other elements as critical to success, such as efficient back-office operations and effective leadership.
Indeed, more than a third (36%) of those who responded agreed that effective leadership could help a lot. Efficient back-office operations, such as the kind HG Ventures offers, were seen as key, with 45% of people saying it was one of their top four factors to becoming a successful business. Although just over one in five (21%) believed that working hard was a critical aspect of positive progress, interestingly, more than
a third (39%) thought any particular business needed more than just hard work to achieve success. To that degree, 44% of respondents said that having the right team in the right areas would help a fledgling business negotiate any early troubles and grow bigger and better. Surprisingly, being
CASE STUDIES
consistently disciplined was ranked as the lowest preference of the eight factors by more than a quarter (27%) of respondents, although almost one in two (48%) agreed discipline was one of the top four important factors for a new operation in the sector.
STUART BARNES, FOUNDER, NAVITAS RESOURCING GROUP
HG Ventures has been instrumental in funding, supporting and accelerating the launch of Navitas Resourcing Group, a specialist recruitment business in renewable energy. From the very start, they provided the initial investment, and to this day they continue to support us with payroll, back-office support, marketing, HR, compliance, and learning & development (L&D) services – everything needed to scale at speed.
HG Ventures approached me in 2022 with the idea of launching a renewablesfocused recruitment firm. It began with just me, but I was soon joined by my co-director, Josh Bayliss. Fast forward to today, we’re a team of 25, growing rapidly with HG Ventures’ full backing. Their ongoing support means we can focus entirely on sales and scaling, while they take care of the operational heavy lifting. They even built and maintain our website.
What sets HG Ventures apart is their long-term commitment – there was never an expectation to repay the initial investment quickly. Instead, they take a genuine, handson approach to helping businesses scale. Their leadership team, including CEO Gavin Johnstone, has first-hand experience in recruitment exits, giving us the confidence that we’re being guided by people who truly understand the market.
And with Russell Clements, former CEO of SThree, backing HG Ventures, there’s a wealth of recruitment expertise driving their approach. They’re not just investors –they’re experienced, hardworking people who care about the success of the businesses they support.
For any entrepreneur in recruitment looking to launch, scale and accelerate growth, HG Ventures is a game-changer.
DECLAN CONNOR, FOUNDER, HUNTER GATHERER MENTAL HEALTH
We run a healthcare recruitment business, helping the NHS fill urgent staffing gaps with locum professionals. HG Ventures provided the infrastructure, investment and support to build on our initial setup. The team at HG Ventures including Gavin Johnstone, Benton Robertson and Russell Clements have really helped us develop and scale, focusing our minds on future-proofing the business with a platform for growth. We’ve developed our own modus operandi with what’s called the HG ingredients. The wider operational support team have also been exceptional in helping us execute the day to day and really feel like an extension of our company.
I was only five years into my recruitment career when we launched. From day one, we could focus entirely on recruitment, without getting bogged down in the operational challenges that usually come with launching a business.
When we started, it was just three of us. Now, we’re a team of 45 and still growing. We’ve come a long way, but we’re aiming even higher. Over the next few years, our goal is to double or even triple in size. On reflection, I don’t think we could have done this without the right support.
One of my biggest concerns in the beginning was trusting the people investing in us – it was a huge step, but I have to say HG Ventures have really been a great partner and I can’t recommend them highly enough. Having experienced counsel, and a dedicated team behind us, has really given us the confidence to succeed and bring our aspirations to life.
STRAP IN FOR A BUMPY RIDE
Despite hiring predicted to rise, recruiters are bracing themselves for a less than smooth journey
Increased hiring is anticipated for 2025, recruitment industry suppliers cautiously predict, following a less than stellar 2024 that found employers delaying or curbing their numbers of hires.
But a few factors hint at a less than smooth journey for recruitment professionals even with more hiring ongoing, because of budgets that likely won’t increase to meet their needs and dissatisfaction around talent acquisition (TA) challenges generally.
As 2025 moves into full bloom, there’s less optimism around TA teams’ budgets to hire, Symphony Talent’s ‘2025 Talent Acquisition (TA) Outlook Report’ found.
Symphony research suggests that 53% of organisations plan to increase hiring in 2025, with 41% saying they plan to increase the TA budget, but 30% expect to maintain flat TA budgets despite higher hiring volumes.
There’s also rising dissatisfaction within the TA ranks with current TA efforts, Symphony revealed in its report, citing an 8% year-over-year increase to 33% from 25%. The issues include systemic issues such as process inefficiencies, a high influx of unqualified candidates and limited technology usage to “enhance recruitment quality”, the report said.
According to Symphony, the most
pressing recruitment concerns beyond budget constraints are manual/ time-intensive processes (43%), misalignment with hiring managers (20%), outdated or inadequate technology (19%), lack of strategy (19%), all under the ‘resource and process’ banner. Under ‘talent and sourcing’, their concerns are the high volume of qualified candidates(48%), lack of skilled candidates (40%), candidates accepting other offers (32%), candidate drop-offs or ghosting (31%) and reaching the right target audience (31%).
Rec-tech company Gem reports that hiring has already started to come back with a “modest rebound”. This
conclusion is one of 10 takeaways from its recently released ‘2025 Recruiting Benchmarks Report’, which covers data from over 140m applications, 14m candidates and 1.3m hires in identifying key trends shaping the recruitment industry in 2025.
Based on data from January 2021 to December 2024, the Gem report reflects the outcomes of significant changes in the recruiting landscape over the last few years, “making benchmarking crucial for [organisations] to stay competitive”, it says.
Here are the top 10 takeaways, identified and compiled by Gem’s SJ Niderost, from the report:
1
Hiring is experiencing a modest rebound, after a steep decline in 2023. Companies with fewer than 500 full-time staff saw the most significant relative increase in 2024, with mid-sized organisations also showing steady recovery, though slower than their smaller counterparts.
2
Recruiting teams are leaner than before. The average recruiter headcount per team dropped from 31 in 2022 to 24 in 2024.
3
Doing more with less is a reality. The average recruiter manages 56% more open job requisitions (14) and 2.7x more applications (2,500+) than three years ago. “AI and automation are key investments for teams looking to avoid burnout,” the report said. “As workloads continue to grow, utilising more technology is no longer optional – it’s critical for sustaining productivity and maintaining a positive candidate experience.”
4
Teams are taking longer to hire with more interviews. A 24% increase in average time to hire has developed between 2021 and 2024. Also, the percentage of interviews per hire has increased by 42% during the same period, the report found. “This makes managing candidate relationships more crucial than ever, as prolonged processes risk disengaging top talent,” Gem’s Niderost said.
5
‘Post and pray’ is popular, yet inefficient. Job boards and social sites account for nearly half, or 49%, of all applications, but contribute to less than a fourth (24.6%) of actual hires.
6
Sourcing attracts the top talent. A sourced applicant is 5x more likely to be hired than an inbound applicant. “This underscores the value of proactive outreach and personalised engagement in attracting high-quality candidates,” Niderost said.
7
Talent rediscovery is the key to building deep, qualified pipelines. The proportion of hires that are rediscovered within companies’ CRMs or ATS has shown a “clear, upward trend”, from 29.1% in 2021 to 44% in 2024. This means that talent teams can accelerate hiring by starting their search within their existing database.
8
For candidates, getting hired is harder than ever. Candidate passthrough rates are lower at every stage of the funnel, partly because application numbers have outgrown the number of job openings. A prospective applicant is 3x less likely to get hired for a role today than three years ago.
9
Offer-acceptance rates are on the rise, suggesting a shift in attitudes. This suggests that candidates are more confident in job market stability and more selective in considering long-term career growth.
10
Mixed results in diversity hiring highlight ongoing opportunities. Women face lower passthrough rates at the top of the funnel but see greater success in later stages and are more likely to receive offers. Disparities across racial and ethnic groups are more nuanced, the report said. Conversion rates across all groups have dropped in recent years but considerable variability depends on the industry, department and other factors.
In the Symphony report, looking ahead over the next 18-24 months, 25% of TA professionals surveyed say that improving their reach to attract and connect with top talent is their top priority. At the same time, improving brand reputation and visibility is a top priority for only 8% with just 2% focusing on the improvement of brand visibility. Finally, upskilling and reskilling existing employees was the top priority for 17% of TA professionals. ●
TECH & TOOLS
IN FOCUS: Humans and AI: a blended approach
BY SUE WEEKES
Artificial intelligence (AI) began its march into recruitment several years ago in areas like search and match, but recent months has seen a big focus on the efficiency gains such technologies can bring.
Speaking in last year’s ‘11 Most Influential In-House Recruiters’ showcase, Yasar Ahmad, global vice president, people, at the recipe box company Hello Fresh, cited recruitment’s biggest challenge in 2025 as eliminating redundant daily tasks that should have been automated “long ago”, using AI to optimise processes.
Many sectors are still wrangling with exactly how they can make the shift to using AI in their work. The recruitment industry is fortunate in that a raft of AI assistants and tools, along with a proliferation of AI integrations by recruitment platform providers is
providing an accessible route into incorporating AI into daily workflows. But is AI creating problems as well as solving them for recruiters?
Rebecca Foden, early careers transformation leader at Join Talent, said companies are drowning “in a tidal wave” of applications, many of which are indistinguishable from one another. “They [recruiters] are overwhelmed, stretched thin, diverted into operational, reactive roles and bogged down by outdated processes that can’t scale with the flood of talent,” she says.
Gopi Polavarapu, chief solutions officer at Kore.ai, which has a suite of AI-based solutions, agrees that the rise of AI in recruitment has not been without its challenges: “Reports of bias in AI-powered recruitment tools have sparked concerns for both recruiters and candidates, while candidates using
AI to support their applications pose various challenges for recruiters with difficulties in differentiating between factual information and that which is fabricated by AI.”
He adds: “Recruiters who rely solely on technology to source candidates may risk missing out on talented applicants who struggle with digital application processes.”
He advises recruiters to ensure they strike the right balance and consider blending technology with “human oversight”. Kore.ai’s RecruitAssist tool automates background screening, and cross-checks applications with public citations, academic databases, professional certifications, developer community tools and social media profiles.
“This ensures recruiters can filter through fabricated claims in AI-generated applications and
make decisions based solely on accurate, fact-checked information,” says Polavarapu.
Euan Cameron is founder and CEO of video-interviewing platform Willo, which uses AI to help recruiters make sense of interview data and to ask the right questions, as well as filter out poor fits. It also takes care of routine tasks such as rejection emails and scheduling follow-up interviews.
Cameron says the two significant trends in recruitment are the increasing use of AI tools alongside the surge in application volumes. And he believes the second has led to the former, not the other way round, because some job boards have made it easy for candidates to apply to multiple jobs with minimal effort. “Unfortunately, this ‘spray-and-pray’ approach often results in poor-quality applications, leaving employers overwhelmed,” he says.
The right AI tools can provide the solution though, says Cameron. “AI tools are playing a critical role in helping employers navigate this challenge by surfacing the right candidates from a sea of applications,” he says. “These tools extract meaningful insights, such as skills, motivations and cultural fit, helping recruiters focus on the most suitable candidates.”
Similarly, Polavarapu sees misplaced blame on AI when it comes to bias. “The inherent bias in recruitment is not just seen in some AI tools – it has long been a systemic issue,” he says.
“RecruitAssist is powered by GenAI backup with humans to focus on an applicant’s skills, experience and qualifications. It acts as a dormant participant in the interview process and this eliminates the risk of unconscious bias impacting hiring decision-making, resulting in fairer and more inclusive hiring practices.”
Ultimately, there is a consensus from recruiters and developers that the future is a blended one when it comes to AI. Foden recommends the use of hybrid models for early careers that combine AI, automation and human touch to authenticate candidates, while Polavarapu urges recruiters to implement AI “thoughtfully” and with “effective safeguards” like masking names and ages.
And as Cameron points out, the key takeaway is always that technology should serve as an enabler, not a replacement.
“Whether it’s video interviews, remote hiring or AI tools, the goal is to streamline processes and improve outcomes for both employers and candidates,” he says. “At the end of the day, the human element remains at the heart of great recruitment.” ●
IN BRIEF
Taking a holistic approach to recruitment marketing
Recruitment marketing platform
AppcastOne is now available to UK employers. It claims to bring a holistic and data-driven approach to recruitment marketing, enabling employers to manage job board advertising budgets and optimise performance through automation and tracking. It also deploys search and social campaigns to drive leads and generate attendance for hiring events, as well as oversees vendor relationships to streamline contract negotiation, centralise invoicing and enhance reporting.
https://www.appcast.io
Managing recruitment sandboxes
SmartRecruiters is introducing a tool to help recruiters manage their sandbox environments, where they experiment with different configurations of the platform. Sandbox Pro enables users to customise and control the sandboxes to match their unique needs and provides automated self-service features that ensure a smoother workflow.
https://www.smartrecruiters.com/
Software provider launches online trust hub
Recruitment software provider Eploy has launched the Trust Centre online resource library providing information and transparency around the current privacy policies, compliance, regulations and certifications that govern its products and services. The hub aims to simplify the publishing and maintaining of such critical information. Customers can also use it to request access to Eploy’s security and compliance documentation.
Iris Software Group is launching an end-to-end, cloud solution to help inhouse recruitment and HR teams manage every aspect of the recruitment process. Iris Recruitment is an amalgamation of existing recruitment products Networx and Blue Octopus, which Iris acquired in 2022 and 2023, respectively. It offers full integration with HR software such as Staffology and Cascade, includes an ATS and online candidate and onboarding portals.
https://www.iris.co.uk/
Insights into sales strategy
The
state of sales in recruitment 2025
BY BEN BROWNING
Agencies and search firms are looking to drive revenue and bounce back in 2025 after a volatile 2024. Yet many have started the year with an unsettling feeling. For 12 months sales has been the top priority, and yet for many, the results just aren’t coming. While some look to the market, others are asking: “What more can we do?”
Findings in a new report (see end of article) now offer recruitment leaders clues as to how to improve the performance of their business development (BD) strategy and boost revenue in the year ahead.
Positive sentiment
Recruiters have an upbeat outlook on BD. Respondents cited positive beliefs about recruitment (85%) and sales (84%) that drive their work.
These numbers point to a healthy relationship between what has become a key focus for most businesses, as the amount BD consultants are expected to do has increased.
However, a closer look shows that only half ‘like the way they sell’. So why do recruiters, who believe so strongly about their work, have misgivings about the way they approach BD?
No clear plan
The data around BD strategy may shed some light. Less than a quarter (24%) of consultants say they have a clear plan for winning new business. Over half (52%) confessed to often being unsure of the next steps. More alarmingly, nearly two-thirds (62%) of respondents are uncertain how many sales emails they send and or calls they make each week. Could this lack of clarity be causing recruiters to doubt their sales approach? If so, might the key to better revenue results be as simple as implementing a more structured plan?
Making progress
Further insights come in how recruiters are improving their performance. Most (55%) take steps to improve their performance each week. Yet a huge 83% say they get no weekly coaching, and 75% rarely get to review their calls. Perhaps, then, it is little wonder the vast majority (73%) don’t know which areas of their BD strategy needs most improvement. Is the lack of support in improving their skills causing recruiters to have doubts about the way they sell?
BEN BROWNING is managing director of Resonant, a sales training company
Looking forward
Recruitment leaders invested time, money and effort to develop their teams’ sales activity in 2024. The data shows that today, the industry has a strong foundation of positive beliefs about recruitment and sales.
Yet while recruiters believe in what they do, the lack of clear planning, activity tracking and coaching support appears to be undermining their confidence in how they sell.
As agencies seek to bounce back, addressing these gaps could be key to helping recruiters align their sales performance with their positive outlook.
• ‘The State of Sales in Recruitment in 2025’ is a new report (available now) revealing key insights into the way over 500 recruitment businesses approach BD. The wide-ranging report creates a distinct picture of the state of sales in the industry, covering the seven pillars essential for an effective business development strategy, from culture to closing. ●
CFOS STAY THE SUSTAINABILITY COURSE
Global consultancy Kearney’s new report, ‘Staying the Course: Chief Financial Officers and the Green Transition’, reveals that 69% of CFOs expect higher returns on sustainability initiatives compared to traditional investments.
Regardless of geopolitical uncertainty and increased financial pressure, the data highlights CFOs’ confidence in the long-term value and profitability of sustainable investments. Adding to this optimism, 92% expect their organisations to significantly increase net investment in sustainability this year.
The research, conducted by Kearney and climate action media platform
We Don’t Have Time, surveyed 500 CFOs across the UK, the US, the UAE and India, to understand how CFOs are embedding sustainability within their strategies.
The research highlights that CFOs are focusing on sustainability investments that offer clear, shortterm benefits in reducing emissions. The top three investment areas that ranked highest include:
1. Increasing the use of sustainable materials
2. Driving sustainable innovation and partnerships
3. Enhancing energy management and waste reduction.
• The Kearney report is available here: https://bit.ly/411n7ia
“In the wake of President Trump’s election, what changes are you making when dealing with US-based clients or your US offices?”
DAVE BOWERS
GROUP CHIEF GROWTH OFFICER, AUXO TALENT
“At Auxo Talent, our technology division has already established a strong presence in the US, and we are now planning to open a dedicated office to further capitalise on opportunities in the sector. Additionally, our engineering & construction divisions are preparing to enter the US market, recognising that President Trump’s administration is likely to drive investment in infrastructure, manufacturing and technological innovation. Alongside this, we will also be exploring opportunities for our healthcare and education brands, as changes in policy and funding could create new demand for skilled professionals in these sectors. With potential policy shifts favouring domestic industry growth, we see significant opportunities to support businesses in securing top talent to meet increasing demand.”
JONAS HELGESSON CEO, EREVENA
“We see the tech industry as inherently global and highly interconnected, with the US playing a pivotal role. We are optimistic that improving economic conditions could help the US tech sector recover from recent challenges. Pro-business reforms and rapid advancements in AI are likely to drive growth across the industry. However, we remain mindful of how policy changes around immigration, regulation and trade could impact companies reliant on global talent and international partnerships. Our focus is on staying agile and proactive, helping clients navigate these shifts and secure the talent they need to thrive in this dynamic and evolving market.”
BEN WALLIN CO-FOUNDER, EDISON SMART
“I think this is a very liquid situation. Given President Trump’s volatile nature, it’s difficult to predict the actions he might take. A large portion of our business stems from the US, so we’re analysing the situation regularly and keeping in contact with several trusted industry experts around immigration, visas and tax implications. Then there’s the tariff topic! Fortunately, we’re a relatively young company so we remain lean and agile, meaning we can make decisions very quickly. For now, we’ll continue to assess, grow responsibly – and follow strategy.”
SUSTAINABILITY
INSPIRING CHANGE, DRIVING GROWTH
The Barton Partnership is an award-winning talent solutions firm providing executive search, independent consulting and consulting services from strategy through to execution – helping businesses grow by connecting them with top-tier strategy and transformation talent worldwide
Transforming talent solutions through niche expertise
Founded in 2007 by Nicholas Barton, The Barton Partnership was created to evolve beyond traditional recruitment models. Initially focusing on placing professionals into corporate strategy roles within FTSE 100 companies, the firm has grown exponentially. Today, it maintains its commitment to remaining a true niche and specialist firm with a strong growth agenda by diversifying across multiple sectors, geographies and service lines.
The Barton Partnership prides itself on offering premium service. Its expertise spans FTSE-listed and Fortune 500 companies across all sectors/ industries: SMEs, strategic, innovation & management consulting firms (large and boutique), public sector, global financial services and private equity organisations. It specialises in four core areas: strategy & M&A, transformation & change, technology & data and ESG & sustainability across three service lines – executive search, independent consulting and consulting services –thus ensuring it meets the diverse needs of clients across EMEA, the US and APAC through its offices in London, New York, Singapore and Sydney.
Delivering talent that drives success
Its unique approach sets it apart from other executive search firms. It focuses on the skill set and capability of the individuals they represent, ensuring it
People are treated with respect and care, ensuring excellent customer service and building a positive market reputation. Understanding clients’ and candidates’ drivers allows the team to provide the best service.
It has a high rate of repeat business from clients who trust the team to deliver, and over 90% of independent consultants returning for further engagements. The focus is on placing individuals into long-term career options, not just jobs.
delivers the best talent for its clients’ needs. The Barton Partnership is transparent about its capabilities and only takes on projects where it can excel, maintaining its reputation for quality and specialisation. In 2024, it won APSCo’s Recruitment Company of the Year award.
The journey has been marked by many strategic milestones, including the launch of their independent consulting network, recognised by the Financial Times, international expansions into the US and Asia, and recognition by Forbes as one of the World’s Best Management Consulting Firms.
The Barton Partnership is not just a recruitment firm, it’s a strategic partner. Whether navigating economic challenges or capitalising on growth opportunities, its clients trust them to deliver the talent that drives success.
Inspiring positive change globally
The team empowers people and organisations to grow through innovative talent solutions, solving complex business challenges while championing diversity and sustainability. A unique blend of consulting firm and recruitment agency, it is dedicated to accelerating growth and transformation as a true talent solutions provider.
The firm’s values – human, aware and committed – shape its daily operations.
Creating the right environment for growth
The Barton Partnership is committed to fostering an environment where team members can thrive both professionally and personally, and is Best Companies 2025 accredited. It offers extensive training, competitive compensation, and incentives like unlimited holiday and high-performance trips.
Giving back: The firm cares deeply about its employees and the community, planting a tree for every placement, sponsoring various charities including War Child and Cancer Research, and engaging in numerous charitable activities such as the Three Peaks Challenge. Its B-Corp accreditation holds the firm accountable for its social responsibility.
Looking to the future: With Oliver Phoenix promoted to CEO, fresh energy is set to accelerate growth, allowing founder Nick to focus on brand ambassadorship. Key priorities include expanding its international presence, particularly in the US, and enhancing its key account strategy.
The Barton Partnership remains niche and specialist, setting it apart from other firms, with its future exciting and growth-focused. If you are interested in joining the team on their journey, please visit www.thebartonpartnership.com/ join-our-team
Tech & IT recruiters continue to forge ahead in the latest HOT 100 listings
espite a challenging year in some respects for the UK recruitment sector last year, the 2024 Recruiter HOT 100 list showcases companies that have continued to demonstrate resilience, leading their respective sub-sectors in both navigating a turbulent hiring environment and maintaining high fee-earner efficiency.
Amid growing acute skills shortages across several key sectors, uncertainty surrounding the UK election, and subsequent changes to hiring policies and fiscal policies, this year’s featured companies continue to lead in technological integration and sector specialisation. These factors are increasingly vital for enhancing efficiency and maintaining growth as competition in the sector intensifies.
This year’s list features 22 new entrants, a significant decline compared to the 2023 list, which saw 72 new entrants. Companies featured in this year’s top 10 exhibited greater fee-earner efficiencies than both larger entrants and their less established peers. The resilience of the companies featured in this year’s list is further evidenced by a year-on-year revenue growth of 8.8%, with total revenues reaching £6.6bn, demonstrating that dynamic and well prepared recruiters can continue to achieve growth, despite the challenging trading environment experienced by many operating in the sector in 2024.
As was also observed in 2023, technology and IT sector recruiters continued to dominate, reinforcing the sector’s importance amid the global adoption of AI and automation and further advancement of innovative technologies. As technology and IT infrastructures become increasingly intertwined across the economy and acute skill shortages in the sector persist, large corporates continue to pay premium placement fees to attract top talent, boosting the
Gambit Corporate Finance
Establishedin 1992, Gambit (www.gambitcf.com) is an independent corporate finance advisory firm specialising in advising private and public companies on mid-market transactions in the UK and overseas. With offices in London and Cardiff, Gambit is widely recognised as a market leader in M&A advice in the Human Capital sector, having built up detailed industry knowledge and an enviable track record in deal origination and execution.
Gambit’s dedicated Human Capital team has deep relationships with investors, vendors and acquirers in the sector and has significant M&A market experience across acquisitions, disposals, management buy-outs, fundraisings and restructurings.
Gambit operates both in the UK and internationally as part of Corporate Finance International (www.thecfigroup.com), a global partnership of leading independent investment banks and corporate finance practices in 20 countries, which is ranked by Experian as 18th in Europe for transactions up to €200m.
Gambit’s recent human capital M&A credentials include the sale of Astutis to Wilmington, the acquisition of Oxford Medical Training by Reducate EdTech Group, and the management buy-out of Access Training.
profitability, efficiency and growth of recruiters servicing the sector.
In addition to technology and IT, other sectors that were prominent in this year’s HOT 100 include energy and health & social care, which continue to demonstrate resilience to wider market cyclicality, driving consistent hiring appetite and continued competition for talent. As competition continues to surge in the UK recruitment sector, private equity companies are increasingly focused on the highest performers, particularly those operating in specialist subsectors that demonstrate high growth and macroeconomic resilience.
This is made further evident with this year’s list featuring 23 PE-backed companies compared to 14 in 2023. The benefits of PE activity in the sector can be attributed to four key factors:
1 Access to funding for acquisitions, geographical expansion and technological integration.
2 Increased emphasis on enhancing efficiency and key performance indicators (KPIs).
3 Access to specialised expertise and strategic inputs, driving a competitive edge.
4 Dynamic synergies made possible via partnerships with a PE firm’s other portfolio companies.
Significant supply chain disruption, rising costs of materials, energy, labour and new carbon-reducing regulations have resulted in a slowdown in hiring activity across the built environment sector in 2024. However, it remains a key sector among recruiters in the HOT 100, with 18 companies featured servicing the sector. The sector is likely to see a resurgence in hiring activity in 2025 as significant government expenditure acts as a catalyst for growth, driven by pledges to build 1.5m homes over the next five years, ending the de facto ban on onshore wind projects, to develop a taskforce to accelerate stalled housing sites and restore mandatory housing targets.
In light of continued inflationary pressures, slower-than-expected
8 ↓ CD Recruitment- £6,627,520£9,902,255£184,098£260,586Software sales, sales engineering
9 - Trilogy InternationalKorn Ferry£10,997,638£9,763,050£180,289£187,751 Business change & transformation, technology
10 ↑ The Portfolio Group- £8,309,707£7,102,751£173,119£173,238Finance and HR 11 ↑ The Select Recruitment Group - £5,138,677£3,854,540£171,289£167,589Technology
77 ↓ Carrington West- £10,389,427£9,873,893£97,097£109,710UK built environment
78 ↓ Premier Group- £12,231,962£10,878,852£96,315£99,806Technology (56%), engineering (44%)
79 ↓ National Locums - £16,044,053£14,683,775£96,072£106,404Healthcare
80 N Leaders in Care- £3,260,024£3,113,931£95,883£124,557Healthcare, social work
81
2017/2018
2018/2019
2019/2020
2020/2021
2021/2022
2022/2023
2023/2024
Margin trends
Amid a volatile macroeconomic and geopolitical backdrop and increased operational costs in 2024, the number of companies achieving gross margins below 20% in 2024 increased by 20% relative to 2023. The average GP margin achieved by the 2024 HOT 100 was 30%, down from 34.1% in 2023. It should be noted that
the reduction in the average NFI margin achieved by companies in this year’s list relative to the 2023 list is also influenced by the higher proportion of recruiters specialising in temporary recruitment, which generates lower NFI margins relative to permanent recruitment models.
interest rate reductions and uncertainties surrounding the UK budget for much of 2024, recruiters saw a slowdown in hiring activity, particularly in the permanent market, as large corporates became increasingly concerned about the rise in associated costs. As a result, companies featured in this year’s list saw a year-on-year reduction in average gross profit (GP) per employee from £129,238 to £126,426, a decline of 2.2%. However, the total number of employees working for the recruiters featured in this year’s list increased from 10,989 to 11,483 year-on-year, indicating a sustained drive to attract experienced fee earners in anticipation of a rebound in hiring activity in 2025.
Size and productivity
A notable trend in this year’s list is that bigger isn’t always better. Companies generating revenues close to the median of the entire HOT 100 list outperform their larger peers in terms of GP per employee. The top 10 entrants generated revenues 12.1% higher than the average of the list, while the bottom 10 generated revenues 101.1% above the average of the list.
The most successful companies operate at an optimum scale, achieving efficiency through three key factors:
Medium-sized companies benefit from increased agility and can quickly adapt to emerging market trends, integrate advanced technologies and react to legislative changes, while maintaining a strong reputation in their respective sub-sectors.
Compared with larger entities, medium-sized recruiters can remain more focused on optimising internal KPIs and fee-earner efficiency, aided by preserving smaller, more specialised teams.
Medium-sized companies benefit more from greater marketing capability and can leverage a more established brand and reputation relative to their smaller peers.
Notable mentions
SSQ Group, trading as SSQ, exhibited outstanding performance, placing number one on the list, generating a GP per head of £308,720.
Optimus Search recorded the highest year-on-year revenue growth in this year’s list at 188.8%, operating at the forefront of high growth STEM markets.
Finatal has achieved the highest year-on-year increase in GP at 161.3%. Its strategic involvement across finance & accounting, data & technology and private capital sectors positions it exceptionally well to meet the growing demand for talent across its end-markets.
The Barton Partnership has significantly expanded its team, recording the highest annual growth in employee numbers at 72.4%. The company specialises in private equity, professional services and the commerce and industry sectors with offices across Europe, the US and Asia.
Key findings
The success of the recruiters featured in this year’s list is illustrated by the total revenue of the list reaching £6.6bn, a 8.8% year-on-year increase, and a headcount expansion to 11,483, up 4.5% from 2023.
Technology is the most prominent sector specialism, with 34 technology recruiters featured, highlighting the sector’s sustained growth, profitability and long-term
HOT 100 COMPANIES BY SUB-SECTOR
2024 key trends & outlook for 2025
A trend in this year’s list is the improved performance of recruiters servicing highgrowth, candidate-short sub-sectors such as technology, IT, and finance. Technology remains the most prominent sub-sector specialism, with 34 featured companies operating in the sector. The rapid growth of technological innovation and the importance of reliable IT infrastructures is driving increased confidence that technology will continue to be a key sector for growth in the UK recruitment sector in 2025.
The outlook for the recruitment sector in 2025 is optimistic, driven by a focus on agility and talent acquisition. The Bank of England’s anticipated interest rate cuts are expected to increase stability, boost confidence and drive investment and hiring, particularly across high growth critical sectors, supported by the government’s pledges of significant investment in infrastructure, clean energy, technology, creative industries, life sciences and advanced manufacturing.
The ongoing adoption of flexible working patterns continues to evolve recruitment practices, widening talent pools and necessitating changes in candidate engagement and company culture. However, the recent change in government and the subsequent tax increases and expected changes to employment rights require recruiters to remain vigilant and adaptable to the ever-changing market in the UK. Recruiters that can successfully navigate these challenges while maintaining large, active candidate pools in high-growth, candidate-short sub-sectors will continue to lead the way in growth and efficiency throughout 2025.
We would like to congratulate all those that featured in this year’s Recruiter HOT 100 list and we look forward to observing their growth as they continue to play a key role in sourcing talent across the UK economy.
prospects as the economy continues to embrace innovations in software, automation, and AI.
This year’s list saw a 20.4% increase in the lowest GP per employee required to feature relative to the 2023 list, now standing at £50,724, underscoring the heightened levels of competition among leaders in the sector as fragmentation increases.
The list exhibits a larger proportion of recruiters specialising in temporary staffing, with an average 64%/36% temp/perm split as corporates continued to delay permanent hiring strategies.
23 companies are PE-backed, marking a 64.3% rise from the 2023 list, echoing the benefits of PE
investment in instilling greater focus on productivity optimisation, driving KPIs and providing a competitive edge. Companies operating smaller teams (than the list’s average of 115) exhibited greater fee-earner efficiency relative to their larger peers, with an average headcount among the top 10 of 71, in stark contrast to the average headcount among the bottom 10 of 232. ●
Methodology
The data for this year’s HOT 100 list, showcasing companies with the highest gross profit (GP) per employee, underwent thorough analysis and validation based on the following criteria:
Size To qualify, companies are required to generate a minimum GP of £1.5m and have at least 20 employees.
Accounts Latest available accounts for 2023 or 2024 have been used. Accounts must be externally prepared or audited in order to be eligible.
Groups and subsidiaries
For companies which are part of a Group, either the consolidated Group entity or its subsidiaries can be considered, but not both.
Jurisdiction (Geography)
Eligibility for entry was restricted to companies that are UK-controlled or derived entities. Companies that place talent worldwide which are controlled/delivered from the UK are also eligible.
Hi John, welcome to your dashboard
Ma ers Recruitment
Employment Rights Bill
THE VIEW AND THE INTELLIGENCE
Act now to join team op mism p2
BIG TALKING POINT
What will our award winners do next? p4
LEGAL UPDATE
HMRC focuses on umbrella companies p6
Q&A
Crea ng the best culture and winning p7
Minister asks REC to help boost growth
The government wants the recruitment industry to help it achieve greater stability and protec ons for people at work, while also achieving much-needed economic growth, according to Jus n Madders, Parliamentary Under Secretary of State at the Department for Business and Trade (pictured right).
Madders’ comments at a key parliamentary recep on are significant given his responsibity for the Employment Rights Bill, the Low Pay Commission and the Advisory, Concilia on and Arbitra on Service (Acas). He was speaking at a recep on hosted by the REC at the House of Commons in February.
The event was part of the REC’s campaign to improve poli cians’ understanding of the value of the industry, before forthcoming parliamentary debates on employment rights. The REC’s message is that the temporary labour market is cri cal to the government’s plans for growth.
Madders’ key message was that the recruitment sector is vital to achieving this. “We are under no illusions that
whatever the talk about AI and robo cs, growth is s ll a people thing. It is about ge ng the right people into the right jobs – and that can only happen when we have a recruitment sector that is cul vated and championed by people such as the REC,” he said.
“We are very aware of how important the sector is for suppor ng vital services and keeping the economy going and giving people their first structured work. We absolutely understand the importance you have in terms of ge ng people into the workplace and suppor ng employers to ensure they get the right fit.”
He added that people deserve to be treated with dignity and respect at work “and that is something we share absolutely with the REC”.
Madders also commented on the REC’s recommenda ons to exempt recruiters from the zero-hours provisions in the Bill. “For businesses, workers, those on zero-hours contracts and
agency workers, [the REC’s] input has been invaluable in ge ng this balance right. Making work pay is a core aim of this government and, with your help, we aim to deliver that in the best possible way.”
Ge ng the Employment Rights Bill correct means the provisions must work – for everyone.
See the full report on page 8.
Leading the industry
the view...
TNo more gloom-loop. Neil Carberry, REC Chief Execu ve, explains why we all need to join Team Op mism –and act to get results.
he phrase that I have talked relentlessly about so far this year – so much so that some REC colleagues are star ng to roll their eyes – is about us being on Team Op mism. That’s not an empty gee-up. I am a real believer in a world where you have to go a er posi ve goals, even when the risks are unpredictable and the weather changeable; what could be more like recruitment in 2025?
Whatever you think of the president of the United States, one of the things that underpinned his electoral appeal was a sense that he could get things done. My discussions with the government here are of a similar sort. We spent most of the autumn in a poli cal gloom-loop. But these things are selffulfilling: we need to set targets to get some results. Again, what could be more like recruitment?
Hence our commitment to Team Op mism. As I set out in the column at the start of the year, the UK’s economic fundamentals are good, and there is poten al as well as risk. For us as recruiters, the complexity and lack of supply in the labour market, driven by changing demographics, should also underpin our hopes.
So when we talk to the government about its spending review, we are asking ministers to shi away from the ‘same-old, same-old’ ways of thinking. Come to the table to discuss be er, more sustainable public sector sta ng, rather than complaining that workers make di erent choices today. Back our work on verifiable digital ID – simplifying right-towork checks – to put pace into job finding and reduce red tape. Make the Industrial Strategy something that drives businesses to take their people planning more seriously.
But, as professionals, we also need to act – inves ng in our understanding and development ma ers. The REC’s new AI hub and Academy are key to the support we o er you. We must use our skills to help clients reach the talent pool they need – our new guide to career returners reminds us, for example, not to drop people from a shortlist just because they have had a career gap, so check it out.
Team Op mism isn’t about empty words. It is about ge ng stu done, being on the stage, not in the audience. With clients, our teams and regulators, let’s make a di erence.
If
CAMPAIGNS
What we need from the Spending Review
Shazia Ejaz, Director of Campaigns at the REC
The Spending Review expected in June is a big deal. It is the first under a Labour government for 17 years and will set out how much money departments get, and what for, and shape policy for the rest of the parliament.
The same challenges that helped cause the Conserva ve’s defeat last year are now Labour’s to resolve. Its ‘mission led’ approach to governing makes economic growth a priority.
A posi ve outcome of the delayed review is that the REC has more me to influence it: hey spenders, spend a li le me with us. One hope is that clear spending commitments (even when money is ght) will lead to decisions that deliver the outcomes the government is priori sing and the public want. A funding for missions rather than government departments would be radical and requires joined-up working across government.
The test of the Spending Review will be whether it lays out an op mis c plan for long-term growth, instead of focusing on short-term financial gains at the cost of future prosperity. It should support UK businesses, not create financial strains and curtail investment.
We require specific strategies to ensure businesses can expand and hire without unnecessary obstacles. Government ac ons should promote investment in recruitment, while safeguarding current jobs.
Inves ng in people and o ering access to quality employment, including temporary and flexible posi ons, can boost produc vity, lower the tax burden, improve wellbeing and drive sustained economic growth. If the government works closely with the REC and its members, they can create a public sector procurement model that not only meets sta ng needs, but also cuts costs and, in the NHS, improves care.
The government needs to work closely with businesses to create prac cal policies that support growth. To keep the UK an a rac ve investment des na on, we need a compe ve labour market and a stable economy. Our industry is central to that mission.
the intelligence...
The impact of the UK’s Employment Rights Bill on youth recruitment
Mukul Tiwari,REC Research Manager
The employment landscape will shi because of recent legisla on aimed at enhancing worker protec on. It is vital that the outcome is for be er protected young workers and not fresh obstacles to hiring them.
A research brief on youth unemployment from the House of Commons Library, based on data from the O ce for Na onal Sta s cs, shows that between September and November 2024 628,000 people aged 16 to 24 were unemployed, 98,000 more than in the previous year. The unemployment rate for young people was 14.5%, a rise from 12.4% the year before. The employment rate for young people was 50.4%, down from 51.8% the year before.
Even more concerning is the 3.02 million young people economically inac ve (not in work and not looking for work) between September and November 2024. This is close to the highest recorded level since records began in 1992. The inac vity rate for young people was 41.1%, a rise from 40.8% last year.
The government is determined to deliver economic growth and it passionately believes it is pro-worker and pro-business to have genuine, two-sided exibility for both employers and employees.
A recent survey on probable responses to the Employment Rights Bill, conducted by the REC in collabora on with Whites-
Between September and November 2024
628,000 people aged 16 to 24 were unemployed, 98,000 more than in the previous year.
tone Insights, reveals that 60% of employers (out of a sample of 233) expect no change in youth recruitment during this period of sluggish hiring. In the public sector, 79% of employers do not an cipate any change in youth recruitment, with a similar figure of 74% for the Northern region generally. Furthermore, 13% of employers expect that the Employment Rights Bill is likely to lead to a decrease in youth hiring, with this percentage rising to 28% in London and 26% in the Midlands.
This suggests that increased fears of regulatory requirements in the Bill may prompt employers to be more cau ous about recrui ng young and inexperienced workers. Entry-level posi ons could become less accessible as businesses seek to mi gate poten al costs associated with enhanced worker protec ons.
The government’s own impact assessment for its employment rights legisla on es mates that the measures could cost busi-
nesses up to £5 billion annually. Small businesses con nue to express their concerns about the a ordability of compliance loudly, and some say they are scaling back recruitment plans. Addi onally, Na onal Insurance Contribuon increases for employers from April 2025 are compounding cost pressures.
The REC is clear that the labour market needs reform, but managing these risks relies on improvements in other areas to help develop young people’s skills, so they can take advantage of be er opportuni es.
To ensure that young people can transi on into the workforce successfully, employers, educators and policymakers must collaborate be er. For example, strengthening career guidance programmes can help young people to iden fy opportuni es that align with their skills and aspira ons. We must provide a structured entry point into the workforce as appren ceships not only o er hands-on experience, but also foster skills development in high-demand sectors.
Financial incen ves, such as tax relief or grants, could encourage businesses to invest in youth recruitment and training. These measures can o set the perceived risks associated with hiring inexperienced workers. By addressing the unique needs of young jobseekers, the UK can create a more inclusive and resilient labour market.
big talking point
Social success
What did winners of the REC’s 2024 awards do to make a di erence to society – and what will they do next?
Companies that win the REC Awards make a di erence to society by suppor ng the people and businesses crucial to our economy. This is par cularly true of the winners of awards related to social ini a ves –those for Community Impact of the Year, Sustainability Impact of the Year and Diversity Ini a ve of the Year reveal the ways in which recruitment firms generate tangible benefits.
The winners’ stories are inspiring. What are they doing? What lessons have they learned? And what do they plan to do next?
Community Impact of the Year: Hays
Every employee at Hays gets 16 hours of paid volunteering me. Some of this is spent on fundraising or collabora ve ac vi es, such as beach clean-ups, tree plan ng sessions and working at foodbanks. Some focus on using
recruitment skills to help disadvantaged young people into jobs and provide IT skills and marke ng support to chari es.
In total, Hays calculates that it generated £1 million in social value for communi es in the UK and Ireland over the past financial year.
“We’ve always done lots in this area, but I was asked to pull it together,” explains Karen Young, Hays social purpose lead. “The external environment is challenging, so we are asking how we can help.”
They work with several partners. “We started working with homeless charity EveryYouth doing fundraising ac vi es, but then realised that we could do more for homeless people using our skills to support them to get housing and jobs,” Young says. “We try to inspire people with targets – we once did 10,000 hours of volunteering in 10 working days – but we work with partners to ensure we provide what they need.”
They found that a blended campaign of ac vi es worked best. The 16 hours of paid leave can be split, so someone can mentor a young person for an hour a month, or do half or full days.
Working with charity Neighbourly, they connected 1,300 sta to 190 events around the country. Another, Project Flourish, has placed five young people in jobs and created a pipeline of 40 poten al job opportuni es. Work with Band of Builders focused on suppor ng mental health in the building sector.
“It’s early days,” Young says. “It’s important to have execu ve sponsorship and to choose partners who know what they’re doing and are culturally aligned with us.”
It’s also vital to make it easy for people to par cipate, she adds. “We needed robust internal communica on to convince people to use this me.”
The feedback from beneficiaries and the benefits for sta mental and physical health from volunteering have been hugely rewarding.
The work has also generated good publicity and Young knows it has a racted talent. “People have told us they feel posi ve about us because of what we’re doing,” she says. “You can’t buy that.”
Diversity Ini a ve of the Year: Oyster Partnership
Successful diversity ini a ves need not be expensive. This is the message from Oyster Partnership – one of its most visible events was a women’s networking event in the main square in Cannes during the property sector’s pres gious
MIPIM conference. In a male-dominated sector, women were invited to wear bright colours and gather for co ee.
Annelies Kruidenier, principal consultant at Oyster, describes how she was inspired by seeing a “sea of suits” around her. She put out a message hoping to make the women more visible and was delighted when 150 came to join her. “People asked me how I organised it. It’s a free loca on and I used my network,” she says.
Another highlighted people with disabili es working in property, while a fashion show in November 2023 raised £3,000 for a charity helping women from disadvantaged backgrounds into the workforce.
Mentoring is an important element and, in addi on to suppor ng about 90 women directly, Oyster hosts mentoring events and webinars. This work led to requests for presenta ons to clients who wish to improve their DEI programmes. Kruidenier has devised a seven-step guide to support this.
Most recently Oyster hosted an event at which four panellists discussed how companies can embed DEI to make it business as usual and keep costs down. They also prac se what they preach. “We didn’t set out to hire from specific backgrounds. We just focused on finding good people, which created a great environment and a racted more diverse applicants,” explains Hannah Clarke, Oyster’s director of people. “We don’t focus on where you’ve been, but on where you want to go.”
This means they interview a far wider group of people. “You don’t need a host
of qualifica ons to do well.” Clarke says. “We have 80 members of sta and being di erent is normal.”
What would they advise others wan ng to improve their DEI? “Just start” is the key message. Don’t change everything at once – small changes can have huge impacts. Get commitment from the top and create a network.
Kruidenier says they will con nue to develop what they do. DEI is s ll in demand, she says. “We say to clients give us me and we will look more broadly and find be er people – who wouldn’t want that?”
Sustainability Impact of the Year: Ga aca Plc
Three years ago, Ga aca had “minimal” procedures and policies to hold it accountable against its environmental impact. Today it has measurable targets approved by SBTi, a silver sustainability ra ng with EcoVadis, annual sustainability reports, and plans to improve its carbon footprint further in complex areas, including supply chains and contractor roles.
By the me Ga aca entered the awards, it had set up a green jobs microsite and reduced its scope 1 emissions by 49% and its scope 2 emissions by 63%, with clear year-onyear reduc ons. Scope 3 emissions had reduced by 12% and reducing these further will be a focus in future work.
The impetus came from various sources – clients were asking for sustainability data, the board wanted ac on and a new CEO was keen to back
developments. Ga aca operates in the STEM skills sectors, so works with firms that tend to have large carbon footprints, but there are also many emerging green roles.
“Our purpose is ‘building a be er future’, so we realised we needed to act on sustainability,” says Lucy Pope, head of ESG and sustainability. Ongoing employee engagement and educa on is an important element to maintain enthusiasm and interest.
Leadership from the top is vital to culture change, so Ga aca appointed leads in each area essen al to success. “Winning the award is great because it puts a stamp of approval on what we’ve done,” she says.
For others keen to improve their sustainability, Pope stresses that you can start small. “This is a complex and evolving area. I had no previous knowledge and found it overwhelming at first,” she says. “But there are steps every business can take that are not expensive.”
Ga aca worked with a specialist consultancy, but Pope points to free advice online, plus tools and technology for all levels. “Start measuring your impact first, then you can look at se ng targets (however small) and repor ng against them,” she advises.
While gathering data and ge ng o cial ra ngs is me-consuming, Pope says it has been good for business. “We’re now working to provide data on our contractor footprint and to help under-represented groups into green jobs,” she says. “It starts conversa ons with clients, improves our reputa on and keeps our employees engaged.”
Annelies Kruidenier at Oyster Partnership helped women stand out at a property conference in Cannes
legal update
HMRC focuses spotlight on umbrella companies
By Emma Anglade-Ravez, Legal and Compliance Advisor at the REC
AHigh Court injunc on against a widely used umbrella company focuses a spotlight on the risks involved in the use of such companies.
In December 2024 HMRC obtained a freezing order against umbrella companies Ducas Limited and FL Capital Holdings Ltd, e ec vely preven ng them from removing their assets from the UK. Such an order is o en sought to stop a poten al defendant from moving its assets un l a judgement is obtained.
HMRC sought the order because of an alleged fraud rela ng to non-payment of employer’s NICs. The High Court believed that HMRC had credible evidence to establish a case.
This development emphasises the importance of undertaking in-depth due diligence before engaging with umbrella companies, but also the need to monitor them throughout the rela onship.
Recruitment businesses should take steps such as rou nely verifying payments made to agency workers to spot evidence of fraud at the earliest opportunity.
The umbrella company market is
Unlocking the growth from within: we’re be er together
Roger Brown, Head of UK Partnerships, Bibby Financial Services
unregulated, leaving agencies and agency workers open to the risk of engaging with a non-compliant company. To mi gate that risk, the government has announced a ra of measures to tackle persistent non-compliance.
In the Autumn 2024 Budget it announced that from April 2026 it will make recruitment agencies responsible for accoun ng for PAYE on payments made to workers supplied via umbrella companies. Where there is no agency, under the new measures this responsibility will sit with the enduser. The aim is to protect workers from unexpected tax bills resul ng from the ac ons of non-compliant umbrella companies.
On the 30 October 2024 a policy paper en tled ‘Tackling non-compliance in the umbrella company market’ was published providing details of these measures. It also explains the next steps, including their introduc on in dra legisla on as part of the Finance Bill 2025.
Predictably, this announcement has caused apprehension in the recruitment
With around one in 10 of our clients opera ng in the recruitment sector, we regularly talk to businesses in the industry to get a sense of their reality. Last month the Chancellor spoke of “going further and faster” to kickstart economic growth. Against a backdrop of subdued hiring, and the upcoming rise in payroll costs, it may seem hard to feel the substance behind the statements.
The January S&P Global UK services PMI showed employment declining for the third month in a row and input cost infla on accelera ng to an eight-month high. A number of high profile large businesses, including Sainsburys and Tesco are cu ng jobs. One of our clients supplying highly qualified candidates into the tech sector talked of a sta c market where many businesses are seeking a safety net, security, and a helping hand. It’s tough out there!
sector, as it shi s the responsibility for tackling fraud and tax avoidance in the umbrella company market further towards recruitment businesses and their clients.
On 17 January 2025, HMRC published the ‘Guidelines to Compliance’, a product aimed at helping businesses such as recruitment agencies to iden fy, mi gate and reduce labour supply chain risks. This tool provides guidance on carrying out compliance checks on companies within an agency’s supply chain, including intermediaries such as umbrella companies and personal services companies. By following these guidelines, businesses can strengthen their due diligence processes, reduce legal and financial risks, and ensure compliance with HMRC’s expecta ons.
As labour market regula ons con nue to evolve, staying informed and proac ve will be essen al for companies relying on complex supply chains. Recruitment agencies are encouraged to review the guidelines in detail and implement the recommended best prac ces to safeguard their opera ons.
Yet businesses need the right people. This was evident in our research of 1,000 SMEs across sectors. More than a quarter (27%) iden fied taking on new sta as a key opportunity for their business in next six months and 17% believe sta and labour shortages are key challenges. Among the 250 construc on sector businesses responding, almost three-quarters believe skilled labour shortages threaten their industry.
You are the people to help businesses find the right people! We are the partner to help you fund that ambi on. Almost a third of the businesses we surveyed cited cashflow as their key issue. We have been a funding partner to the recruitment sector for 40 years. We can help smooth out cashflow so you can support your exis ng clients and seek new contracts. Whether your goal is growth or stability, ask us how we can help.
The value of culture, influence and celebra on What I know Q&A
James Fernandes is managing director at Carrington West
A s cky culture aids reten on. We specialise in temporary and permanent technical roles in the built environment – such as engineers, town planners and surveyors. Our aim is to work with clients to develop be er teams, so culture is hugely important. In our own business, we aim to create a ‘s cky’ culture, so people love coming to work. Our emphasis on wellbeing and development has led to a 90% staff reten on rate.
Clients benefit from long rela onships. Our work on our culture benefits our clients. We believe we have the most highly trained and mo vated recruiters in a world-class team. They develop longterm rela onships with clients and pass on the lessons we’ve learnt.
Culture is key. Engineers and building professionals are in short supply. There is a push to a ract more women to these roles and improve inclusivity. It is improving, but reten on is vital. We have long-term rela onships with clients and culture is o en the main issue. We’ve worked with the Trellis Collec ve on training for early-stage career women, and this informs our advice to our clients.
Be consistent
Many firms say they put people first, then make them redundant in tough mes. During Covid we furloughed a few people briefly, but most stayed on full pay and we focused on learning and wellbeing. Do the right things, and the right things will follow. We want clients that value this, not a race to the bo om.
James Boyce is general manager, Corporate Accounts, at VHR and REC Recruiter of the Year 2024
What is VHR?
VHR provides contract and permanent staffing solu ons across engineering industries worldwide. With offices in the Middle East, Asia, Europe and the US, we build long-term rela onships with clients and candidates. Beyond matching CVs to jobs, we ensure candidates are happy and supported.
What do you do?
I focus on avia on recruitment. Our sector has an ageing workforce, and I aim to encourage more women into engineering roles. Many candidates come from less developed regions, and I collaborate with clients to rethink workforce strategies. With three stepdaughters, I’m proud to create opportuni es that didn’t exist before. We travel with clients to countries including
the Philippines, Sri Lanka and India, conduc ng three-stage interviews so we fully understand candidates. Onsite, we offer full candidate support and representa on, and aim to elevate diversity prac ces in all regions where we operate.
In London, we’re speaking to MPs about suppor ng careers advice in schools for engineering jobs and addressing the gender gap in STEM subjects.
What does the award mean to you?
The ceremony was on my birthday! Becoming Permanent Recruiter/ Recruiter of the Year was unbelievable and unexpected. It reflects years helping clients to scale teams and candidates to lifechanging opportuni es. It is a testament to my team and to all those I’ve worked with during my career.
Recruitment industry takes centre stage at House of Commons event
On Wednesday, 5 February, REC members gathered at the House of Commons for a celebra on of the industry’s contribu on to the UK economy at a parliamentary recep on. The well-a ended event provided a pla orm for members to engage with policymakers, discussing the impact of legisla on on the labour market and sharing concerns about aspects of the Employment Rights Bill.
The recep on a racted a strong poli cal presence, with two government ministers and several MPs and peers from across the House, including members of key select commi ees. A standout feature of the event was the ‘data sta on’ run by the REC Research Team, where MPs could access valuable informa on on labour market trends within their cons tuencies.
Key speakers and industry insights
The event featured an impressive line-up of speakers: The Rt Hon Liam Byrne MP, chair of the Business and Trade Select Commi ee; and Jus n Madders MP, parliamentary under secretary of state at the Department for Business and Trade (responsible for employment rights).
To open the event, REC chair Michelle Mellor highlighted the £44 billion contribu on of the recruitment industry to the UK’s GDP – which surpasses both the legal and accountancy sectors combined. She emphasised the crucial role of temporary employment, showcasing the REC’s Voice of the Worker campaign, which champions opportuni es for those facing employment barriers, including individuals with disabili es, career returners, and young professionals entering the workforce.
A construc ve rela onship with government
During his speech, Minister Jus n Madders rea rmed the government’s commitment to working collabora vely with the REC. He acknowledged the construc ve engagement of REC Chief Execu ve Neil Carberry on key issues, including the consulta on on agency worker regula ons.
The Minister emphasised the need to balance support for the recruitment sector with maintaining stability and protec on for workers. He acknowledged the REC’s vital role in shaping policies that ensure fairness in the labour market, saying: “For
businesses, workers, those on zero-hours contracts, and agency workers, your input has been invaluable in ge ng this balance right. Making work pay is a core aim of this government and, with your help, we aim to deliver that in the best possible way.”
Championing the temporary labour market
Also speaking at the event, Liam Byrne MP praised the REC’s strong working rela onship with the Business and Trade Select Commi ee – to which Neil Carberry gave evidence just a few weeks ago.
He also recognised the organisa on’s e orts at championing business interests while scru nising the Employment Rights Bill, sta ng: “Workforce issues are probably the number one concern for Bri sh businesses. That’s why your work is so important.”
Carberry echoed these sen ments, reinforcing the cri cal role of the temporary labour market in driving economic growth. The recep on highlighted the REC’s ongoing advocacy for policies that support both businesses and workers, ensuring the UK’s labour market remains resilient and dynamic.
The event underscored the REC’s standing as a key business voice, demonstra ng how its insights and exper se are ac vely shaping policy discussions at the highest levels. As the industry navigates ongoing legisla ve changes, the REC remains a strong advocate for a fair and thriving labour market.
Powerful perspec ves: Jus n Madders MP, Michelle Mellor, Neil Carberry and Right Honorable Liam Byrne MP
Prestige, competitive advantage, vast publicity, happy clients, delighted bosses, happy HR Directors, a huge boost for your business and team morale, excellent employer branding... Winning a Recruitment Marketing Award demonstrates that you have created results: you produce stunning and imaginative recruitment - promotions that deliver real business benefits and work!
Before you can dust off your glad rags though, you need to enter first!
WHAT HAVE YOU BEEN UP TO? GET IN TOUCH!
From helping kids in care, currying favour with your fellow recruiters to bee-hiving yourselves in the environment, you’ve been busy since the last Recruiter…
THE RECRUITMENT CURRY CLUB: CURRY WITH NO SALES CHAAT
If you’re rather partial to a curry and a conflab after work, you’re not alone. The Recruitment Curry Club gives people working in the recruitment industry a place to chew the fat about life and business or to just check in with other like-minded individuals and make sure everyone is staying sane. Founded by Bobby Banerjee, with support from Barry Cullen, James Whitelock and Nitin Sharma, the Recruitment Curry Club has quickly gained momentum, from an idea in November 2024 to clubs in London, Birmingham and Manchester, and four events in February 2025. Interested in becoming part of the club? Follow the Recruitment Curry Club on LinkedIn to stay updated on upcoming events and announcements. Whether you’re a seasoned recruiter or just starting out in the industry, the club will welcome you – with a curry and a chaat!
ENGAGE COMMITS TO BEE-ING RESPONSIBLE FOR THE ENVIRONMENT
Staffing energy expert Engage Consulting has donated £500 to the British Beekeepers Association (BBKA) to support its Apiary Garden and Education Centre appeal. The Apiary Garden provides hands-on learning for schools and community groups, helping them understand the importance of honey bees, pollinators and beekeeping. As Engage’s day-to-day work focuses on the energy industry, “we recognise the importance of supporting initiatives that help build understanding of environmental protection across our communities”, says the company statement.
SF RECRUITMENT HELPS POLARIS COMMUNITY SUPPORT CAREEXPERIENCED CHILDREN
Through a transfer of its Apprenticeship Levy funds, SF Recruitment is enabling Polaris Community to further its mission of transforming lives. Polaris Community is a leading UK organisation providing fostering, adoption and residential care services for vulnerable children and young people. The funding will support two apprentices on the Level 6 Social Worker Integrated Degree Programme.
L-r: Clare Makepeace, apprenticeship service manager at Polaris Community and Kirstine Archer, CFO at SF Recruitment
ryone is from Whitelock
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DIGITISING RIGHT TO WORK CHECKS
The impact on recruitment since Right to Work checks went
It’s been over two years since the introduction of the UK Digital Schemes, which allow recruiters to remotely confirm
Right to Work and check identity documents for DBS by verifying the identity of people with suitable documents using an Identity Service Provider (IDSP). So, what has been the impact of Digital Schemes on recruiters?
HR teams across many sectors have welcomed the change Before the Digital Schemes, the sectors choosing technology to support onboarding were mostly those with high-turnover, multi-site recruitment. However, since digital has been an option for all organisations, recruiters across all sectors have turned to IDSPs.
digital
Unsurprisingly, digital uptake has been particularly strong among software and technology companies who are familiar with the benefits of digitising manual processes and largely embrace remote and/or hybrid working. This is now almost universally offered amid a staff shortage, with companies looking for ways to efficiently onboard remote teams. The efficiency gains are also widely recognised across the charity sector which saves time and money by not having face-to-face meetings to verify ID, especially among remote or in-the-field workers.
The size and shape of these businesses is broad, ranging from SMEs with no physical office locations, recruiting a few candidates a month, to multi-site employers such as retailers and restaurant chains who want greater confidence in their compliance.
The fraud landscape continues to evolve
Whenever the guidance around Right to Work checks changes, the strategies attempted by illegal workers also change. Since 2022, recruiters making remote checks have had to watch out not only for
fraudulent documents, but also for genuine evidence being used by ‘imposters’. We have seen the imposter trend accelerate through two different routes: ‘share code imposters’ – applicants using genuine share codes that belong to someone else to produce real Right to Work evidence via the Home Office online service; and ‘document imposters’ – applicants presenting genuine identity documents that don’t belong to them. IDSPs can protect against these fraudulent attempts thanks to biometric face matching technology, which compares a selfie image with the one on the evidence presented.
Integrating digital verification with other recruitment technology is a winning combination Candidate and employee experience is a major differentiator, especially in a competitive recruitment environment. Many of the organisations we speak to are looking for integrated solutions and streamlined processes to onboard new employees. Often, they are looking for technology to integrate into their applicant tracking systems (ATS), payroll programs or customer relationship management (CRM) software so they can create bespoke candidate journeys, improve the employee experience and effortlessly share data between systems.
To sum up what we have seen since the introduction of Digital Schemes, recruiters across all industry sectors have turned to IDSPs. They have benefitted from a reduction in their administrative burden and saved a significant amount of time to devote to other valuable HR processes, while protecting themselves from fraud.
To read the full report, please visit the TrustID website: www.trustid.co.uk/2-years-guide
“I love working with colleagues from all over the world who share my passion for people”
MY BRILLIANT RECRUITMENT CAREER
What was your earliest dream job?
What was your earliest dream job?
Easy. I wanted to be a radio DJ –
I my up resident DJ
be a radio DJ –specifically, hosting the Top 40 on Radio 1. I was absolutely hooked. I wouldn’t be surprised if my retirement gig ends up being the resident DJ at the retirement home. Watch this space!
What was your first job in recruitment and how did you
What was first in recruitment and how did you come into it?
Fresh out of university in 2000, I was applying for grad schemes and temp jobs when an agency consultant suggested I might be good at ey sent my CV to their brother, the legendary Aidan Anglin, who’d just joined Parity Resources. The rest, as they say, is history.
Who is your role model – in life or in recruitment?
My parents, Merv and Elizabeth. Both were teachers, and they instilled in me the importance of kindness, treating everyone equally and staying humble. These are the values I live by and bring to my work in recruitment every day.
What do you love most about your current role?
I love working with colleagues from all over the world who share my passion for people. Having genuine connections with an international team feels more important than ever.
What would you consider to be the most brilliant moment of your career?
A week into my first role as
Fresh out of in 2000, I grad an agency consultant suggested I be at recruitment. They sent my CV to their brother, the Aidan ine connections e eam more m sider nt e as after interviewin to 60-minute candid whe ove wa no lau
LUKE DAVIS
an onsite RPO manager at an investment bank, a team member made a typo in a job advert: ‘Shift Operations Manager’ became ‘Sh*t Operations Manager’. We didn’t catch it for 24 hours, and by then, the Evening Standard had picked it up, calling it “the dirtiest job in the City”. Suddenly, every senior leader at the bank knew who I was, so is there such a thing as bad publicity?!
Laugh or cry, what did your most memorable candidate make you want to do and why?
Early in my career, a client called me after interviewing my candidate. They’d only managed to ask one question in a 60-minute interview because the candidate talked non-stop when asked to “Give an overview of your CV”. I was mortified then, but now I can’t help but laugh about it.
What would you regard as your signature tune?
According to my friends Good Vibrations by The Beach Boys. I’ll take that.
The last few years have been a bit of a rollercoaster – what have you learnt about yourself during these turbulent times?
I’ve learned how important it is to separate business success from personal happiness. Tough times always have lessons hidden in them.
What personal qualities do you think are needed to lead through change and uncertainty?
Heart, empathy and the willingness to change your mind without seeing it as a weakness. We’re all navigating uncharted waters, and that’s ok. ●
Luke Davis, head of RPO Talent Solutions at Matchr, spoke with Roisin Woolnough
LUKE DAVIS Head of RPO Talent Solutions, Matchr
Specialist talent solutions provider The Barton Partnership has promoted group managing director Oliver Phoenix to CEO.
Previous CEO Nick Barton will continue in his role as founder, adviser and brand ambassador promoting the values and vision of The Barton Partnership brand globally and supporting the leadership team, led by Phoenix.
ANNE CORDER RECRUITMENT
Oliver Porter has been appointed head of national recruitment at the regional recruitment agency. This marks a significant milestone as Porter takes the helm in the firm’s efforts to expand beyond its Peterborough-base and drive a national growth strategy.
APSCO OUTSOURCE
The trade body for the professional recruitment outsourcing sector has appointed Brian Huggett as
its new managing director. Huggett has worked in corporate talent sourcing and recruitment roles, including at organisations such as PwC, Goldman Sachs, BNY Mellon, Lloyds Banking Group and Deutsche Bank.
AUXO TALENT
The global talent solutions partner has appointed Dave Bowers to the new role of group chief growth officer. His appointment signals the company’s commitment to accelerating its global presence and delivering innovative talent solutions to clients worldwide.
BALTIMORE CONSULTING
The Bristol-based recruiter has promoted Leah Overend to assistant director of sales, having joined the firm’s children’s social care division
A company statement said Phoenix has been instrumental to the success of the business in the past 10 years and is well-positioned to guide The Barton Partnership through its next phase of growth. He has successfully driven expansion across the UK and throughout the EMEA region; continually developed The Barton Partnership’s proposition globally; and driven key account growth and diversification across all sectors.
in 2018. Overend will be supporting the business’s newly promoted director of sales Jordan Groves.
BE PERSONNEL
Ethan Bews has been promoted to operations director at the Inverness recruitment firm. Bews, who joined the recruiter in the food processing, commercial, industrial and driving sectors in 2016 as a
recruitment administrator, will work closely with Iona Currie, group recruitment director at Be Personnel owner GEG Capital, to drive sectoral and geographical growth across Scotland.
CALIBRE ONE
The global executive search firm has announced that Venesa Klein has rejoined the company to co-lead its recently formed consumer division as partner. Klein and Luis DeAnda, who joined the firm in 2023, will head up the consumer practice together, working from Calibre One’s US Los Angeles office.
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CIRCLE
Dean Kelly, co-founder of RDLC Pirates, has joined the recruitment organisation as chairman. Kelly brings extensive experience in scaling businesses, strengthening operational frameworks and driving international expansion.
ENERGIZE GROUP
The leading provider of SAP and cloud technology talent solutions has appointed Dave Rees as non-executive director to its board. Rees brings experience from his 20-year tenure at SThree.
EREVENA
The London-headquartered search firm for board and C-suite executives has made a number of leadership changes. After 21 years as CEO, Dan Hyde will transition into the newly created, full-time role of executive chair. Jonas Helgesson will be promoted to CEO (effective immediately), marking a new chapter for the business.
HEIDRICK & STRUGGLES
The executive search firm has hired four new leaders to strengthen its sustainability work in Europe and beyond. Uroš Zver, Rafe Jackson and William Gibbs will play pivotal roles in advancing its global technology and climate and sustainability practices. Additionally, Edmund Thomson Jones will
help accelerate the growth of its venture capital practice.
RAMP GLOBAL
Lenna Thompson has been promoted from head of client services to chief commercial and customer officer at the HR technology firm. Thompson will enhance client services and accelerate the company’s international growth, according to a company statement. In addition, the firm has appointed Dan Martin strategic board adviser. His operational leadership roles have included eight years as MD at Broadbean Technology where he oversaw the exit of the business to CareerBuilder.
THE IN GROUP
The global talent solutions provider has appointed Richard Eardley CEO of Investigo, InX and Definia. Joining from nearly 18 years at recruiter Hays, Eardley brings 35 years’ industry experience to the role. He takes over as CEO from Derek Mackenzie, who has left to follow other pursuits.
WHATJOBS.COM
The London-based job search engine has appointed Mary Johnson director of enterprise sales, bringing 16 years’ experience from firms including Snagajob and JobGet. Her appointment coincides with WhatJobs’ introduction of AI-driven recruitment tools.
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The holy grail of profitability in recruitment businesses was always the ‘a third, a third, a third’ model, which related to how net fee income (NFI) should ideally be proportioned to cover staff costs, central costs, profits. In the late 90s, many followed and ran their businesses by this mantra, and the industry enjoyed a sustainable safe-haven, high-profit culture.
But over the past 25 years, this way of operating has become increasingly difficult to maintain; now only the few can claim to achieve it.
In the 90s and 2000s, it was common for the average biller to invoice 10x to 20x of basic salary. This meant the fixed costs within a business were relatively low. Low salaries were accepted, in return for higher upside on-target earnings (OTEs).
The need for urgency, productivity and results were very much owned at desk
level. If you wanted to eat, you had to hunt. However, as the industry professionalised and evolved, and competition has intensified, the salaries have increased to match those offered in other more so-called ‘reputable’ sectors.
While this solved part of the retention and attraction issues, it simultaneously bloated the fixed-cost base. This was seen and accepted as the necessary precursor to the expected and subsequent increase in productivity that would follow.
Unfortunately, the last quarter of a century has seen salaries rise as quickly as average productivity and performance have declined. Today, the average biller is invoicing just 3x to 4x of basic salary. Staffing businesses were quick to hire and hope that higher-paid recruiters would deliver more NFI. Declining margins, diminishing negotiation skills and regular ‘race to the bottom’ price wars have all contributed to the pressure
“Anyone can cut costs, but only true leaders can increase productivity”
Sid Barnes
Recruitment used to be about low basic salaries and high commission – not any more
on NFI, profitability and conversion ratios.
In addition to rising salaries, central overheads have risen too. These slow but steady yearly increases in salaries (National Insurance, pensions too), in addition to central services costs rising at the same rate, have meant that the ‘third, third, third’ model has moved out of reach for many. It is more normal now that staff costs and central costs swallow up to 75%-85% of NFI.
The war for talent has affected the recruitment sector as badly as the sectors that it serves to support. Many recruiters have been overpaid in comparison to the NFI that they generate. In too many cases, this has been accepted and become the new normal.
NFI of 4x basic as an expectation should be the minimum expectation when budgeting and analysing performance and returns. This would normally generate 0-20% profit; 5x
would deliver 20-25% profit. I believe 6x of basic as an average would revive the ‘third, third, third’ model and restore 33% profit.
I see this done today by the best businesses out there –those that focus on productivity and efficiency, not headcount and ego.
With staff costs and central costs unlikely to come down, salvation comes from increasing productivity, efficiency and results. We need to believe we can do better and raise our standards. Best-in-class operating models, coupled with thoroughness of execution, is the only way.
Anyone can cut costs, but only true leaders can increase productivity. These will be the businesses that thrive, while many continue to see break-even as the new profit. ●
SID BARNES is owner of Mastermind Consulting and Elite Leaders
