> More articles on the HOT 100

This group covers the main professional candidate segments – accounting, finance, legal, HR, sales & marketing, media etc – and accounts for 34 or around one-third of the whole HOT 100.  

The November 2012 print issue of Recruiter features the annual HOT 100 survey of the 100 UK recruitment companies who have balanced their people costs with productivity and delivered the most efficient performances in terms of net fee income. The HOT 100 is researched on behalf of Recruiter by Agile Intelligence and sponsored by Microdec.

Although the major bounce back from recession came in 2010 and early 2011, while overseas growth continued into early 2012, it is clear that these companies sought to capitalise further by aggressively rebuilding internal staff numbers. 

This has not paid off for many yet with some reversal in GP/head, although the current accounting period may see some yield. Financial specialists are well represented in the Hot 10 with insurance boasting three niche players. 

However it is the single legal permanent specialist, Shilton Sharpe Quarry, which tops the table for the first time. Interims and ‘Digital, editorial & market research’ were each represented. The mix of permanent placements was broadly similar to last year, perhaps very slightly higher. 

Summary of findings

The Hot 10 professionals list represents £190.6m in turnover generating £93.5m in net fees.

The sector’s ‘majors’ have lost further ground on productivity to the SMEs. Badenoch & Clark and Morgan McKinley were 37th and 39th, with Michael Page dropping to 35th and Robert Walters to 65th. 

Net fee growth among the Hot 10 rose 13.3%, broadly in line with the wider market following substantial recovery in the previous year. Average GP/head declined 9% as productivity could not keep pace with the near one quarter expansion in the workforce of these 10 companies.

Seven companies are common to 2011’s league table, but Eames, Digby Morgan and Randstad Interims make way, the latter as its employee numbers dropped below the minimum criteria for entry following the transfer of some operations to other group entities. It would otherwise have made 8th in the Hot 10 and 18th in the HOT 100 this year.

Oliver James, Aspire Global Network and High Finance have entered the Hot 10 for the first time. Aspire is the first digital/media type company to make the shortlist. Oliver James and High Finance are two of three (IPS is the third) insurance specialists in the Hot 10 and both are expanding rapidly.

Nine out of the 10 expanded their workforce, only Aspire was unchanged and none contracted. Seven increased gross profit but only two simultaneously expanded GP/head and employee numbers. Seven companies saw GP/head contract – a sure sign that people expansion was prioritised above productivity.

Turning to gross margin trends: 

• Shilton Sharpe Quarry, Sheffield Haworth and Selby Jennings are almost wholly permanent recruitment firms.

• Green Park is the most temporary biased (interims) – while several others may be around a 50/50 perm/temp net fees split. The remainder average between 60% and 80% with a permanent bias. 

• Average gross margin at 49.1%, a drop of 670 basis points caused partly by a major split change at High Finance but also some sharp split-driven drops from Oliver James, IPS and Selby Jennings.

• Only Aspire increased its gross margin, estimated to be the result of modest temporary margin improvement.  

Hot 10 Professionals:

1 Shilton Sharpe Quarry

2 Sheffield Haworth

3 Green Park Interim & Executive

4 Oliver James Associates 

5 Walker Hamill 

6 Selby Jennings

7 Investigo

8 Aspire Global Network

9 IPS Group 

10 High Finance (UK)

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