Watts, 57, who joined the group founded by his mother Constance more than 30 years ago, will retire by 2009, he told Recruiter in an exclusive interview.

The company demerger two years ago means that Pertemps has now grown into a group of five independent companies: ESOS,

its outsourcing arm; the People Development Group, which

works with the long-term unemployed; Network, a group of 30 specialist consultancies; Pertemps Investments, which looks after property, and Ventures, which invests in other companies.

Watts plans to hand overall control of the company to partners Roger Englefield, Mike Owen and Jenny Jackson, who have all been with Pertemps since the 1970s.

Watts says: “Who was going to take over was a decision I made a long time ago. I want the transition to be as seamless as possible – that’s my main goal before I retire.”

Pertemps has become one of Britain’s biggest recruitment companies since its foundation in 1961 in the West Midlands.

Watts also claims that working with the internet is the group’s biggest challenge still to conquer. He says: “Five years ago, 5% of our business came from the internet, but now, it’s more like 50%.

“We were quick to embrace the internet, but we could have been quicker. The internet is becoming the chosen business medium and we are continually striving to improve the internet version of our service.”

The company expects turnover of more than £240m this year and employs more than 1,500 people in 200-plus offices nationwide.