The Growth Strategy Most Recruitment Agency Owners Never Actually Build
Miles Lloyd • October 29, 2026

A growth strategy for a recruitment agency is a three-year plan outlining where the business is going and why, broken down into a 12-month execution plan and a set of 90-day sprints. Most owners have a to-do list instead. The difference between the two is the difference between growing on purpose and growing by luck

I’ve spent more than twenty years going into recruitment businesses. The same thing comes up almost every time. The owner is working incredibly hard, the team is busy, the numbers are decent, and nobody in the building can tell me where the business will be in three years, or why.


That is a direction problem. And the last few years have punished agencies that only know how to react. The KPMG and REC UK Report on Jobs recorded a 45-month decline in permanent placements before the market finally stabilised in the middle of 2026, with more employers shifting to flexible and temporary hiring to manage the uncertainty. In a market like that, the agencies that drifted got found out. The ones with a clear plan adjusted and kept moving.


Problem solving is not strategy, and the difference is costing you

Problem solving keeps you alive this quarter. Strategy determines whether the business will be worth more in three years than it is today. Both matter. They are not the same job, and when you do the first instead of the second, you end up busy, profitable enough, and quietly going nowhere.


I constantly watch owners confuse the two. They show me a list of things to fix and call it a strategy. A list of fixes is a to-do list with ambition. A strategy is a decision about where you are going and why, and everything on the list should serve it. Get that the wrong way round and you spend years solving problems that a clearer direction would have stopped you from creating.


What is a growth strategy for a recruitment agency?

A growth strategy for a recruitment agency is a clear, agreed answer to three questions.

  • Where is this business going over the next three years?
  • Why, and for whose benefit?
  • What has to happen in the next twelve months to get there?


Done properly, it covers your purpose and vision, your ideal clients and how you are positioned, your value proposition, where your profit comes from, and the handful of strategic moves that will genuinely change your trajectory. Then it turns all of that into a 12-month plan and 90-day sprints, so it lives in the business rather than in a drawer.


Why do most recruitment agencies stop growing?

Usually for one of three reasons, and none of them is the market.

The first is owner dependency. The business cannot grow because everything runs through one person.

The second is a direction problem. There’s lots of activity, no shared answer to where any of it is heading.

The third is that the growth they are chasing is external. Always looking for more new clients, when the value they already own in their existing clients, their people and their proposition is going untapped.

None of those is fixed by working harder. They are fixed by stepping back and building a plan the whole team can deliver against.


The 4-Stage Strategy and Planning Process

The 4-Stage Strategy and Planning Process is a structured way to turn an owner’s ambition into a three-year strategy, a 12-month execution plan and a set of 90-day sprints. I have been refining it since 2005, and it runs in four stages.

  1. Shareholder Strategy Session - Start with the owners. Define what wealth, enterprise value and exit mean for you, and the key value drivers behind them. Purpose first, always.
  2. Stakeholder Strategy Workshop - Bring in the leadership team and align them on purpose, growth vision, ideal clients, market positioning and profitability.
  3. Build Framework and Review - Draft the skeleton of the roadmap, the three-year growth strategy, the 12-month plan and the 90-day sprints, and refine them with the team.
  4. Full Bespoke Strategy and Plan - The complete, actionable roadmap: vision, mission and values, objectives, ideal client profiles, market opportunity, growth plan and value proposition, and the 12-month execution.


What you’re left with: a roadmap, not a document

The point is not the deck. The point is a roadmap you can run the business by. You leave with a three-year strategy, a 12-month execution plan, 90-day sprints, and the working documents. More importantly, you leave with clarity and a leadership team who can all articulate the same plan.


That last part matters more than people think. If I asked your team today what your strategy is, would they all say the same thing? If the answer is no, you do not yet have a strategy. You have an intention.


What this looks like in practice

Years ago, I worked with a recruitment agency that turned over more than £20 million a year and made less than £150K in profit. Same top line a few years later, and it was making around £1.5 million net. We did not sell harder. We re-engineered the business around a clear strategy. What to stop doing, where the value really sat, how the whole thing fitted together. The growth was already inside the business. It had been leaking out of the gaps for years.


Start with purpose, or do not start at all

Every plan I build starts with why. Not because it sounds nice, but because without it you cannot make a single good trade-off. Purpose is your North Star. It is what tells you which opportunities to say no to, which is usually the harder and more valuable decision. Grow a business for a reason, not just because growth is the thing you are supposed to want.


What to do this quarter

You do not need me to make a start. If you do nothing else, do this, in order.

  1. Write down, in one sentence, why your business exists beyond making money.
  2. Decide where you want to be in three years and be specific about what done looks like. Revenue, profit, enterprise value, your own role.
  3. Get your leadership team in a room and align them on it. If they are not aligned, nothing downstream will hold.
  4. Turn the three-year picture into a 12-month plan, then into 90-day sprints, so it is small enough to act on.
  5. Book a monthly slot to review it, or you will quietly slip back into firefighting.


That is the shape of a strategy. Do it roughly and honestly, and you will already be ahead of most agencies in the market.


The bottom line

Growth without a plan is guesswork. Growth with a roadmap is close to inevitable, because you stop relying on luck and start making deliberate decisions in the right order. The market will keep moving, as it has for the last few years. The agencies that come out ahead will be the ones who knew where they were going before the market told them.

If you have read this and realised your strategy is really a to-do list, that is worth a conversation. No pitch. Just an honest look at where your business is heading, and whether the plan you have will get you there.


Frequently asked questions

What is the difference between a business plan and a growth strategy?

A business plan usually describes what the business does and its finances, often for a bank or investor. A growth strategy is a decision about where the business is going over the next three years and why, turned into a 12-month plan and 90-day sprints your team can act on. One describes. The other directs.


How long does it take to build a growth strategy for a recruitment agency?

The core of it can be built in a matter of weeks, not months. My 4-Stage Strategy and Planning Process includes a shareholder session, a leadership workshop, a framework build, and a full plan. The bigger commitment is not the building. It is the discipline to execute the plan over the following twelve months.


Do I need a strategy if my agency is already profitable?

Profitable and directionless is more common than people admit, and it is fragile. Profit tells you this quarter worked. A strategy tells you the business will be worth more in three years than it is today. If you want to build enterprise value or keep an exit option open, a plan is not optional.


What should a recruitment agency growth strategy include?

Your purpose and three-year vision, your ideal clients and market positioning, your value proposition, where the profit actually comes from, the few strategic moves that change the trajectory, and a 12-month execution plan broken into 90-day sprints. If any of those are missing, the plan has a hole in it.


Can I build it myself, or do I need help?

You can absolutely start it yourself, and the steps above are a real beginning. Owners often bring me in for two reasons: to align a leadership team that is too close to the business to align itself, and to hold the discipline of execution once the day job takes over. Do it alone or with help, but do it on purpose.


By Bishopgate • October 19, 2026
Definitions Widen The scope of Right to Work (RTW) obligations is expanding significantly. Under the new framework, organisations will be required to consider not only employees, but also subcontractors and other workers engaged within their supply chain. This broadens the responsibility for verifying legal working status and increases the number of individuals who will require RTW checks. Liability Permeates Through the Supply Chain Reflecting the direction taken by the April 2026 Joint Liability provisions, liability for illegal working will no longer sit solely with the direct employer or labour provider. Responsibility can now extend up the labour supply chain, meaning organisations may face enforcement action where illegal working occurs within their workforce ecosystem, even where they are not the direct engager. How Will RTW Changes Affect Contractors? Historically, it was not uncommon for self-employed workers to provide documentation at a later stage, as many engagements sat outside the traditional RTW framework. This approach is unlikely to remain viable under the new regime. Workers should now expect to undergo full RTW verification before commencing work. In many cases, checks may be carried out by multiple parties, including labour providers, umbrella companies, agencies and end clients seeking to protect their own statutory position. As a result, duplicate checks are likely to become commonplace across the supply chain. The changes will also require greater operational discipline. Informal processes, where workers begin work before compliance checks are completed, will present a significant risk. Organisations will need robust onboarding procedures to ensure all workers are fully verified, recorded and authorised before accessing site or commencing work. Under the previous framework, where an umbrella company supplied a worker to a client, liability for an illegal worker would generally rest with the umbrella company. Under the proposed changes, liability may extend beyond the direct engager. While the umbrella company remains responsible for conducting compliant RTW checks, organisations further up the supply chain may also face exposure where due diligence has not been exercised. For example, where a contractor engages a limited company and an individual working under that arrangement is subsequently found not to have the right to work, both the limited company and potentially the contractor may come under scrutiny. Similarly, where a worker provides a substitute and that individual has not undergone appropriate RTW verification, liability may extend through the engagement chain if adequate controls have not been implemented. It is important to note that workers employed directly by one organisation and deployed to a client's site are generally outside the scope of Extended Liability. In such circumstances, the client would not typically inherit liability for RTW failures of the direct employer. A further consideration is the concept of statutory excuse. If an umbrella company has conducted a compliant RTW check, but the receiving organisation has not undertaken its own verification, the umbrella company may have a statutory excuse against penalty while the client may not. This creates a scenario where different parties in the same supply chain face materially different compliance outcomes. Can the Client or Agency Rely on the Umbrella Company's Right to Work Check? No. RTW checks are not transferable and do not provide a statutory excuse to another organisation. Each party seeking protection under the legislation must undertake and retain evidence of its own compliant check. Organisations should therefore review existing processes and ensure they are not relying on checks completed by suppliers, agencies or umbrella companies. What About Impersonation? Impersonation remains a significant compliance risk. It is anticipated that organisations will be expected to take reasonable steps to ensure that the individual presenting for work is the same individual whose RTW status has been verified. Where a different person is found to be working in place of the verified individual, organisations that failed to identify or prevent the substitution may face liability. Digital identity verification, biometric validation and technology-enabled site access controls are expected to play an increasingly important role in mitigating this risk. What Can We Expect to See Going Forward? The introduction of Extended Liability is likely to drive substantially higher levels of due diligence across labour supply chains. Clients, Managed Service Providers (MSPs), agencies and contractors are expected to take a far more active role in verifying RTW compliance, rather than assuming responsibility sits elsewhere in the supply chain. The use of digital identity verification and workforce management technology is also expected to increase as organisations seek to create auditable compliance frameworks and reduce the administrative burden associated with manual checking processes. Greater collaboration between clients and suppliers is also likely as organisations work together to maintain compliance and demonstrate robust governance. How Should You Prepare for Upcoming Changes? Organisations should consider taking the following steps: Map all workforce engagement models to understand where workers are employed, self-employed, supplied via umbrella companies or engaged through limited companies. Identify who within the organisation is responsible for conducting RTW checks and establish a consistent, auditable process. Review existing worker populations and address any gaps where RTW checks may not previously have been required. Undertake supply chain due diligence and review contractual arrangements with labour providers and subcontractors. Implement substitution controls to ensure replacement workers cannot commence work without appropriate verification. Assess the viability of digital identity verification, facial recognition or access-control technology where appropriate. Establish a secure process for retaining RTW records and evidence for audit and enforcement purposes. Provide training to operational and site-based teams to ensure compliance obligations are understood and consistently applied. In summary, the objective of the changes is to ensure all parties within a labour supply chain take reasonable and proactive steps to prevent illegal working, rather than relying on another organisation to manage the risk. How Does This Affect Bishopsgate Operations? Bishopsgate already conducts comprehensive RTW checks on selfemployed workers and is therefore well positioned for the proposed changes. Online identity verification services may provide additional compliance assurance, subject to client requirements and cost considerations. Bishopsgate provides client education and training sessions to support customers in updating their own compliance processes. Enhanced monitoring of workers with time-limited permissions should be implemented, with regular updates shared with clients where appropriate. Whilst Bishopsgate cannot assume responsibility for a client's RTW obligations, it can support compliance efforts through collaboration and information sharing, such as notifying clients when related compliance checks have been completed.
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By Simon Bliss • August 25, 2026
The latest UK employment data makes uncomfortable reading for the recruitment sector, but it also reinforces why independent recruitment businesses need to work differently in today's market. According to the latest Adzuna UK Job Market Report, reported by Staffing Industry Analysts, the number of UK vacancies stood at 791,490 in July 2026, down 9.6% year-on-year. This represents a reversal of some of the gradual improvement seen earlier in the year and confirms what many recruiters are already experiencing: there are fewer vacancies to compete for and clients remain cautious about hiring. However, the headline figure doesn't tell the whole story, there are still areas of growth Several important sectors continue to expand: Teaching vacancies increased 11.9% year-on-year Trade & Construction increased 8.3% Manufacturing increased 2.2% Travel vacancies increased 348% Meanwhile, average advertised salaries remain 3.01% higher than a year ago at £43,675. 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Smaller recruiters can remain agile, t here is another reason for optimism. Challenging markets often reward businesses that can move quickly. Independent recruiters typically have fewer layers of management, closer client relationships and the ability to specialise deeply in particular markets. Combine that agility with access to a wider recruitment community and suddenly a small recruitment business can have considerably greater reach than its headcount might suggest. TEAM members can draw upon fellow specialists across multiple sectors, regions and disciplines rather than trying to build every capability internally. That means remaining independent without having to operate alone. Focus on what you can control and n obody can control the overall number of UK vacancies. Recruitment business owners can, however, control how effectively they exploit the opportunities that remain. That means: Specialising – Know where your expertise genuinely adds value. Collaborating – Don't automatically turn away vacancies or candidates you can't service yourself. Working your candidate database – Great candidates already known to you are valuable assets. Expanding client conversations – Understand where clients are still hiring and where skills remain difficult to find. Using your network – Access knowledge, candidates, jobs and expertise beyond your own business. Protecting margins – In a more competitive market, quality and specialist expertise matter more than competing purely on price. Tough market. Different opportunity. The July figures show that UK recruitment remains challenging. Graduate recruitment is particularly difficult, with vacancies falling 45.6% year-on-year to a record low of 8,383, while several major sectors continue to experience significant reductions in hiring. But there are still almost 800,000 advertised vacancies across the UK, salaries continue to rise annually and several sectors are growing. 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