The data from this year’s FAST 50 shows higher rates of growth as confidence returned to the recruitment industry post-Covid and the ongoing Ukraine war, and candidates took advantage of a tight labour market to secure enhanced pay packages in new roles.

With 2024 being the final year that incorporates the Covid lump, there were always going to be questions about if this would provide a deceptively positive growth story by starting from a lower point and capturing the subsequent rebound. This is certainly supported by the data, which shows the average compound annual growth rate (CAGR) up by 7% on last year to 66%, and a minimum CAGR of 37% to feature on the list.

While interest rates in the UK remain elevated, business confidence has increased and concerns about macroeconomic volatility have fallen. Consequently, companies can plan accordingly and take advantage of improving sentiments as recessions have largely been avoided. Unemployment rates have remained at near 50-year lows, vacancies remain high and wage growth is now positive on a nominal and real-terms basis. All of this continues to point to a structural skills shortage in the UK. Companies are once again looking for talent, and willing to reward it, giving strong incentive for both employers and employees to find high quality talent and increase labour efficiency.

It comes as no surprise that agencies serving the Hospitality, Aerospace, Healthcare, Warehousing and Food Production sectors performed exceptionally well and held all of the top five places in this year’s ranking. Sectors that are either experiencing structural growth or slowed significantly through Covid before are rebounding rapidly. The trend of strong representation from Technology firms continued, with Covid-19 accelerating the adoption of digital technologies and budgets being drawn across all business functions to invest in digitising customer and supply-chain interactions and internal operations.

The standout performers this year were that of The Recruitment Co. and iCare24 Group, which both reported growth in excess of 120%. The two companies successfully deployed different strategies, with The Recruitment Co. operating across multiple verticals, while iCare24 Group focuses exclusively on the healthcare market. The other notable difference in the companies is the ownership structure, with The Recruitment Co. being owned by Twenty20 Capital, and leveraging available capital to merge Cordant People and Premiere People to create the group.

A sector which is experiencing structural growth and therefore a growing number of FAST 50 participants is that of the Energy sector, specifically those serving wind and solar, alongside a key subset of minerals essential for energy transition and storage technologies. To deliver carbon neutrality will require developing renewable energy technologies at unprecedented levels, a process reliant on skilled labour to ensure efficient global supply chains. The highest performer in this year’s list was that Select Offshore, which generated a CAGR of 69%, with strong growth in its offshore wind practice. Future year’s lists are expected to see even more specialist renewable agencies feature, particularly if Labour is successful in the upcoming election and implement a number of their large-scale green energy commitments.

As we look forward to next year, Clearwater very much expects agile and entrepreneurial agencies to continue to thrive. Whilst it is easy to point to economic challenges and early signs of a softening labour market with some potential rebalancing of power to employers, it is no more daunting than the operating environment faced by business over the last five years. It will be the same sectors that continue to dominate due to high levels of investment and structural undersupply of talent.

Methodology

The Recruiter FAST 50 prepared by Clearwater International lists the fastest-growing, privately-owned recruitment companies in the UK according to a revenue compound annual growth rate over the three most recent annual reporting periods.

CRITERIA FOR INCLUSION: To qualify, companies must be unquoted, registered in the UK and not subsidiaries, although their ultimate holding companies may be based offshore. Companies which are backed by private equity or other financial investors, either minority or majority equity stake, are also considered for inclusion. All companies considered for inclusion must achieve minimum annual sales of £5m in each of their last three financial years.

EXCLUSIONS: Companies that have filed abbreviated accounts at Companies House without disclosing audited sales are excluded from the FAST 50. Companies that are not pure play recruitment companies are also not considered. Recruiters that are co-owned by foreign trade recruitment companies or where a listed recruitment firm holds a minority stake are also discounted.

DATA COLLECTION METHODS: Qualifying companies are identified through independent research, which utilises a number of financial databases, Companies House information, press coverage and other research sources. Entry submissions are therefore not required, although any firm which believes that it may not be automatically assessed in the 2024 FAST 50 may contact Clearwater International to discuss. Please email [email protected]

PDF OF THE FAST 50 CHART

Daniel Shrimpton, director of corporate and finance house and international M&A specialist Clearwater International, compiler of the Recruiter FAST 50

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