Recruitment firms in Yorkshire are failing to keep up with the expansion seen in the rest of the UK with just 29 per cent reporting business growth, according to the latest research into the success and failure of recruitment companies.
Despite this, a third of respondents in the region have seen increased demand for temporary and contract work with the retail, manufacturing, construction and healthcare sectors most in demand.
The data, from Hitachi Capital Invoice Finance who questioned over 100 managing directors of temporary recruitment firms, shows that while the recruitment sector is growing, Yorkshire business owners are spending too much of their time on back office administration.
Nearly two thirds said that this is their most time-consuming task and nearly half of respondents said that 50 per cent of their time is spent on approving time sheets, producing invoices and managing payroll.
Half of the managing directors said that investing in back office functions will play a key role in the future success of their businesses and 14 per cent of firms in the region said that a lack of infrastructure investment is the reason most recruitment firms fail.
John Atkinson, head of commercial business at Hitachi Capital Invoice Finance, said: “The potential growth of recruitment firms in Yorkshire is being hampered by a lack of investment in back office functions.
“Having an efficient back-office function in place such as a product that takes care of payroll and cash flow removes the administrative burden recruitment businesses are often loaded with, allowing owners to focus on the day job of growing the business.”
Half the respondents have seen rivals close over the past year.