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UK recruitment start-ups on the rise and managing costs

uk recruitment startups on the rise and managing costs

UK recruitment start-ups on the rise and managing costs

It’s quite optimistic to note that UK recruitment start- ups have actually increased in the last year.  According to data provided by Companies House, during the first and second quarter of 2016, recruitment agencies increased by 10% and 7% respectively compared to the same periods last year. In 2015, a total of 5,110 new recruitment agencies launched in the UK: a 144 % increase on the 2,092 agencies launched in 2010.

Sonovate co-founder and co-CEO, Richard Prime stated “The UK recruitment sector is thriving, and the industry’s rapid growth is showing no sign of slowing. This is good news for the economy, especially during the current climate of uncertainty following the Brexit vote.”

The increase in recruitment firms has also prompted owners to learn more about how to minimise overhead costs while maintaining consistent profits. So what can owners do to keep their costs down?

Overhead and ongoing expenses are part of any new business however, a silver lining for recruitment start-ups is that they can utilise resources such as outsourcing to keep overheads low.  In fact, many UK recruitment agencies are running bare bones operations while outsourcing the bulk of their cost-heavy tasks to countries like India where processes are in place according to UK standards to maintain the quality and efficiency. 

The other upside to outsourcing is that the agencies can focus more time and energy on streamlining their recruitment processes rather than focusing on non-revenue generating areas such as managing timesheets and payroll activities. To find out other methods of saving money on recruitment start-ups, see our other article titled Top 5 tips to run a successful recruitment startup.  

At QX Recruitment Services, we appreciate that recruiters and agency proprietors don’t want to spend their time doing tasks that don’t generate or add value to their business. Why should you focus on back office admin tasks when you should be concentrating on building your business? At QXRS, we provide a fully outsourced solution so you can concentrate on why you got into the business in the first place.

As a recruitment outsourcing service firm, we provide analysis and skill mapping, assistance with effective processes, in addition to sourcing and screening suitable candidates to streamline the recruitment process. If you are considering outsourcing, please call us on +44 845 838 2462 or email us: for a confidential and no cost discussion.  

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