Great news that we have a thriving sector. The recruitment sector attracts driven and proactive people - particularly on the sales and consultant side of things, so it is not a surprise that many forge ahead, take the plunge and decide to try and make their own future, doing things their own way. This poses challenges for existing businesses - the loss of key staff, the risk of candidates and contacts following leavers and increased competition. Protecting your assets with effective restrictive covenants and making sure all staff are aware of your data protection and social media policy will help, but think also about staff retention by means of share options - employee engagement and business ownership.
5,110 recruitment start-ups launched in the UK in 2015, according to new research by Startups 100-listed company Sonovate. The data, taken from Companies House, reveals a 144% increase on the 2,092 recruitment agencies launched in 2010 and suggests that entrepreneurs are increasingly looking to disrupt and capitalise on the burgeoning recruitment sector. The UK is now the third biggest recruitment market globally, after the United States and Japan, with the industry turning over £31.5bn. Richard Prime, founder and chief executive of Sonovate, said: “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. “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.”