MAYACHI Ltd

The latest Office for National Statistics (ONS) figures reveal mixed signals for the UK labour market. While the employment rate has shown modest growth, increasing by 1.2% over the past year, there’s been a marked slowdown in payrolled employee growth, down to just 0.7% for the June-August 2024. This deceleration in job growth, fewer vacancies, and rising economic inactivity suggest a challenging landscape for recruitment agencies moving forward. But what does this mean for recruitment agencies financially? The pressure continues. With fewer vacancies and slower job creation, agencies are at risk of seeing reduced revenues from placement fees. Additionally, the decline in economic activity may result in more candidates seeking opportunities, potentially increasing the administrative load of processing applications. Recruitment agencies may need to diversify their service offerings, including temporary or flexible workforce solutions, to offset the impact of slower permanent hiring. Financial agility continues to be key. Recruitment agency Directors must manage cash flow carefully, possibly relying on funding solutions to bridge periods of slower income. Ensuring your back-office operations are efficient and exploring funding partnerships will help navigate the current market volatility. The ONS will release updated figures in December 2024, which might further adjust the broader understanding of employment trends, so it’s worth keeping an eye on these developments. #ONS #RecruitmentMarket

Between recent REC and ONS reports, and news of recruitment agencies closing their doors over the last few weeks, it's important to us that agency owners know we're here if they need us - not just to talk about their financials, but also to discuss the difficulties of running a recruitment agency when times are tough.

With the Employment Rights Bill on the horizon, recruitment agencies working with temps and contractors should be mindful of potential changes to employment protections. This could impact how contracts are structured, obligations around worker rights, and even agency liability. It's critical to assess current practices and ensure flexibility to adapt quickly. As we await the government’s autumn budget at the end of the month, Mayachi will provide a full round-up on how the announcements will affect recruitment agencies. Stay tuned for updates on the financial impact! #EmploymentRightsBill #AutumnBudget #WorkersRights

Having reflected on the success of the live Finance, Scale, Exit event held recently, it only seemed right that we share some of the key points discussed by the panel, which included me, Adam Truluck from Nordens Chartered Accountants, and Andy Knight from Metro Bank (UK). We covered a huge amount in a relatively short space of time, thanks to some excellent questions from the audience, including the following: How can recruitment agencies strategically manage cash flow to ensure sustainable growth, especially regarding financing options like invoice financing or working capital facilities? What are some of the best practices recruitment agencies should consider when setting up employee incentive schemes, such as EMI schemes, and how can they impact long-term growth? For agency owners looking to exit or sell their business, what are the most important factors they should consider to maximise the value of their recruitment agency? You can read the answers here, and more right here: https://lnkd.in/eExFeBGA Let me know your thoughts on the answers, and if you want to discuss these in more detail regarding your recruitment agency, send me a message. #RecruitmentAgency #BusinessExit #RecruitmentLeaders

Would you like to get your hands on one of these Mayachi travel mugs? Tomorrow is your opportunity! Stewart will be heading to the Recruitment Agency Expo in Birmingham with as many of these as he can carry. If you're there, look out for him in his purple Mayachi t-shirt and say hello! And if you want to talk about how a non-exec FD could benefit your recruitment business while your there, drop Stewart a message now! #RecExpo #RecruitmentFinance

Your client hasn’t passed a credit check – what’s your next move? This situation can be challenging for recruitment agencies, but it doesn’t have to stop the deal. At Mayachi, we help agencies navigate these hurdles by offering alternatives like upfront payments, invoice financing, or tailored credit insurance solutions. Don’t let a failed credit check stall your business – explore your options and keep the deal moving forward.

Thank you to everyone who joined us for the first Scale, Finance, Exit event at Metro Bank's offices in Holborn! Our very own Stewart Roberts, along with Adam Truluck from Nordens Chartered Accountants and Andy Knight from Metro Bank (UK) made for a fantastic panel, expertly chaired by Ashlee Cooper. A lot of ground was covered to help recruitment agency directors navigate starting, growing, and exiting their business. A special thank you goes to Paula Webb for your support and help in making this event a success. We're looking forward to more events like this in the future! 🍻

Are you a new recruitment agency director? Starting your own agency can be exciting, but many directors make some common mistakes that they must overcome on their journey. That's why we put together a guide on "10 Common Errors New Recruitment Agency Directors Make" to help you avoid these challenges and set your business up for success. This guide provides practical insights into the mistakes you don't want to make, from financial missteps to strategic oversights, and how you can overcome them. 🔗 Download the guide now and arm yourself with the knowledge to build a successful recruitment agency: https://lnkd.in/ezhEMvxv #AgencyDirectors #RecruitmentAgencies #FDAdvice

A huge thank you to Danielle Padfield for the invite to what was a fantastic afternoon at the NatWest High Growth Event at their conference centre in Liverpool Street. The talks over the afternoon were insightful covering everything from the economy to how to grow your business and how to be a great place to work to aid staff retention. Petrina Carmody PhD CPsychol and Marcus Wright were brilliant speakers. It was also really good to catch up with William Bird who is helping some MAYACHI customers with their invoice finance needs. All round, a brilliant start to what is going to be a busy, busy week!

If you’re in the recruitment industry and thinking about how to scale your business or maybe even plan an exit down the line, this event is definitely one to check out. The Finance, Scale & Exit Panel is coming up, and it’s packed with industry pros sharing real-world insights. Whether it’s sorting out your finances, getting a grip on payroll compliance (especially if you’re in education recruitment), or figuring out your long-term game plan, there’ll be plenty of takeaways. 🗓 When: This Thursday! 🌍 Where: Metro Bank (UK) - 1 Southampton Row London WC1B 5HA Grab your ticket here: https://lnkd.in/egpPMEPP No jargon, just straight-up useful advice for those of you trying to make your recruitment businesses fly! Hope to see you there!