The recruitment sector is worth over £38.9 billion* to the UK economy per year, of which £33.4 billion is from temporary and £5.5 billion is from permanent recruitment. Recruitment plays a pivotal role in all stages of a company’s evolution from setting up to exit.
*according to figures from the Recruitment & Employment Confederation (REC) published January 2020.
With over 38,000* recruitment businesses active in the UK and a 43.4 per cent* rate of survival, we understand how critical it is for recruitment businesses to get their strategic plans right."
*ONS, Business demography, UK, published November 2019
RSM helps recruitment companies at all stages of their development.
What to consider when setting up a recruitment company?
Issues you need to consider include:
- financing, such as set up costs, contractor payments and payroll;
- structuring your company;
- tax efficiencies; and
- attracting talent.
How do recruitment companies attract, recruit and incentivise talent?
RSM can offer the following solutions:
- share ownership and share options; and
- equity incentives
How to manage your compliance needs?
We can assist you with your HMRC compliance, audit and corporate governance needs.
This includes advice on the proposed changes to off-payroll workers (IR35) from April 2021 which will impact the recruitment sector.
How can recruitment companies improve business performance?
RSM offers a range of back office solutions for recruitment companies to drive business performance and efficiency:
- Cloud pay and bill software: InTime;
- pay and bill outsource service powered by InTime;
- PAYE payroll outsource service;
- Cloud HR software: PeopleLog; and
- Cloud Accounting software and outsource management accounting service.
RSM can also advise on:
- company structure options tailored to your strategic needs;
- consulting advice on ERP systems eg Netsuite;
- employment law advice - including guidance on people structures and status and managing workplace disputes;
- tax planning efficiencies - ways to limit tax liabilities;
- outsourced HR services - from basic administration tasks through to complex people projects;
- finance function outsourcing;
- corporate legal advice regarding company reorganisation/simplification;
- digital and IT strategy;
- financing for working capital, growth, acquisition, MBO/MBI’s and cash out transactions; and
- protection against bad or doubtful debts.
How to use corporate finance options to meet your strategic plans?
- Mergers and acquisitions advice (M&A).
- Due diligence services – buy and sell side.
- Growing your recruitment business.
- Exiting or selling your recruitment business.
- Raising debt and private equity finance.
- Valuations and financial modelling.
How to expand a recruitment business overseas?
- International expansion advice.
- How recruitment clients benefit from our international network.
- Financing working capital for growth/expansion into international markets.
- International trade credit risk protection reducing the potential for bad or doubtful debts.
|A dedicated team that works as an extension of your own in-house team|
|Sector expertise combined with tailored, partner-led service|
|Full spectrum of specialist advice from corporate finance to talent management|
|UK and global capability to match your organisation's current and future needs|
|Flexible service to meet the short timeframes of this fast-paced industry|
What do our clients say?
RSM specialises in working with recruitment businesses, from start-ups through to multi-national businesses, including:
- executive search;
- contract agencies;
- temporary work agencies;
- permanent placement agencies; and
- sector-specific recruitment agencies.
RSM has clearly demonstrated expertise in working with clients in the recruitment sector, which was important to us when choosing an adviser. We were very impressed with the tax service RSM provided for our recent transaction. We particularly valued the way the team communicated with us in a direct, understandable fashion and the no-nonsense delivery of the tasks required. We felt reassured throughout the entire process because RSM was by our side - they felt like part of our own team."
CEO from a sector specific recruitment agency based in London.
Getting anything done is about building strong, collaborative relationships. With RSM, throughout the process, one of the big successes of the delivery was that it was built on those deep partnerships that have been created. The fact that RSM is internationally present and in multiple different regions and different countries is helpful because we’ve seen throughout the project it’s helpful to lean on that global network."
Global Recruitment Company.