In Focus: A temporary solution
The word "dynamic" is often bandied around companies these days, and all-too-often in my opinion. However, if you want to see one company which fits the bill perfectly, then look no further than Nottingham’s Staffline.
The rise and rise of Staffline seems unstoppable. In the past year alone, the recruitment firm has gobbled up five smaller rivals, boosting its revenue streams and widening its influence over a sector which has suffered just as much as any other over the past three years.
Its latest shopping trip saw Staffline buy Solihull-based FourstaR Employment and Skills for £3m. Staffline says the deal will boost its turnover by around £90m over the next five years.
Truly, here is a company on the rise. Take a look at the figures: in February, Staffline reported a revenue jump of 79 per cent in its preliminary year-end results. Sales leapt from £115m in 2009 to £206.2m for the year ending 31 December 2010. Group operating profit soared 110 per cent to £7.8m.
The company also increased its presence by operating an additional 16 sites, taking the total to 135.
The secret of Staffline’s success? Andy Hogarth, chairman and chief executive, said in February: "Changing attitudes towards outsourcing staff have benefitted us, with many companies reluctant to hire permanent staff in the current economic climate."
Hogarth’s insight has proved invaluable for the success of his company. As Simon Gray at recruitment company Cherry Professional told me this week, the interim or temporary employment market has traditionally been a "stop-gap" solution for businesses looking for a flexible recruitment solution and wishing to avoid taking on an additional permanent employee. It’s also been the choice of many candidates looking for flexibility.
Interim employees parachuted in can bring fresh insight, says Gray, along with specialist skills and expertise that are needed short term or cannot be afforded on a long term basis.
Staffline, like others around them, were quick to make hay whilst the sun was shining on the economy, and clearly horded some cash to go out and aggressively target its acquisitions. In a time when finance is so hard to come by, its tactic is paying off big time. By buying up smaller rivals that specialise in diverse sectors it is also ensuring it has deeper market penetration that the more niche recruitment firms in the East Midlands.
A true lesson is how to make the downturn work, then.
