In 2015, 5,110 new recruitment agencies launched in the UK according to research from the UK’s leading recruitment contract finance provider, Sonovate.
The data, taken from Companies House, reveals a 144 percent increase on the 2,092 agencies launched in 2010.
Richard Prime, CEO of Sonovate, comments:
“The UK recruitment sector is growing faster than ever before and these figures are just the latest indication of the robust health of our industry.”
This news from Sonovate follows research from the Recruitment and Employment Confederation (REC) which revealed that last year industry turnover increased by 9.7 percent to reach £31.5 billion making 2015 the best year yet for the recruitment industry. This makes the UK the third biggest recruitment market globally after the United States and Japan.
“The way people work is changing. With the well-documented skills shortage more and more skilled workers now view contract work as both an attractive and lucrative form of employment. This presents a huge opportunity for recruitment companies but crucially they need the right finance to help them succeed.”
Recruitment agencies must pay contractors weekly but receive payment from clients monthly. It is for this reason they are forced to turn to the banks which offer off-the-shelf products that are not tailored to the requirements of recruitment companies.
Prime continues: “The UK banks have had a monopoly over the industry for too long and have profited massively as a result, offering agencies very little in return. This has to stop.
“At Sonovate, we help recruitment agencies of all sizes gain access to the finance and support they need to take advantage of this market growth.”
Founded by former recruiters Richard Prime and Damon Chapple, Sonovate provides high-tech working capital solutions to UK recruitment companies. Unparalleled in the sector, Sonovate eliminates both the cashflow and administrative burden faced by recruitment companies working with contractors.
Launched in January 2014, Sonovate has overtaken UK banks in terms of new deals recorded to become the number one provider of contract finance to the recruitment sector.