lawyers to entrepreneurs 15
Talent, or more exactly the shortage of it, is currently increasing recruitment competition among confident companies aiming to grow as the UK economy recovers. Recruitment agencies are at the coalface of that demand for talent. Coffin Mew Solicitors spoke to one that is using entrepreneurial methods to meet its clients’ requirements
Matchtech Group: a matter of good placement
As a specialist recruitment company Matchtech successfully places thousands of people in jobs every year, but just as impressive is its own placement as an entrepreneurial company and driving force within the recruitment sector.
It has astutely adapted to maintain a leading place in its field. Since 2004, Matchtech Group revenue has risen from £100 million per annum to £450m. Now the Fareham-based company of 450 staff is repositioning again to exploit fresh recruitment markets, writes John Burbedge.
CEO Adrian Gunn (pictured) explained: “Matchtech Group, whether by luck or business development techniques, has ended up in an enviable position, operating in the engineering, technology and professional staffing space, as specialist recruiters filling the more difficult to fill roles for market- leading UK clients.“
Luck or techniques? Gunn was highlighting the growing skills shortages in his markets three to four years ago. But, perhaps Matchtech Group was lucky to adopt its successful specialisms after founder George Materna established his general recruitment agency in Southampton in 1984.
The 1991-92 recession forced the company to focus its operations. Matchtech had two key clients DEC (IT engineering) and Warings (construction). “Surprise, surprise, we focused on those sectors. It wasn’t strategic. It was reactive, opportunistic and led by our clients.“
By 1998 turnover was topping £20m, and in 2002 the company merged its two operating companies Matchmaker Personnel and Matchtech Engineering, creating Matchtech Group with a £70m pooled turnover. “Almost overnight we moved up the value-chain from Conference League football to a Division Two team.“
Matchtech Group’s size opened new doors for business development director Gunn, who gained contracts at Vosper Thorneycroft, and later Babcock, BAe and Portsmouth Naval Base. “Those contracts gave us a reference springboard. We had a proven story to tell, things snowballed.“
Gunn was CEO when Matchtech Group successfully floated on AIM in 2006. Matchtech Group began staff share option schemes at the same time. Shares fell below £2 a share when the 2008 recession hit. Today they approach £6.
Even in the downturn depths Matchtech Group generated revenue. While competitors shed staff, Matchtech fought to retain its valued team.
“We also realised that our business going into recession was going to be a different one coming out.“ It was time for recessionary repositioning.
aims to be the specialist recruitment partner of choice – a credible sector thought leader, not just a recruitment provider. “Our success is tapping into a candidate pool that doesn’t even know it wants new jobs.“
A sharper sector focus on clients and candidates, a move up the value-chain, and true global operations are the future Matchtech Group strategies. ’Engage our staff, delight our clients, and promote our candidates’ is the new company credo.
“Our higher-value clients and candidates will also naturally take us into international markets.“ Only 3% of Matchtech Group income is international, yet it recruits to 33 countries. Gunn aims to hit double- digit income by 2017, placing candidates globally 24/7 from the UK.
Matchtech Group diversified its business model with a multi-brand offering. Connectus (technology), Barclay Meade (professional staffing) and Alderwood (employability and skills) were established as complementary operations to Matchtech (engineering).
While underpinned by long-term framework procurement agreements with major clients, Matchtech also adopted a simpler cost-effective recruitment process for its recession-troubled clients. It used technology to streamline its operations and established a master vendor solution – ideal for clients with peak and trough recruitment needs and a long supply chain tail – with Matchtech Group acting as the single recruitment company harmonising the management of clients’ entire staffing requirements.
“That sustained us through the recession, but now my challenge is to recoup margins, maintain delivery to our large clients within a candidate- short market, and grow our business in the SME community and further afield.“
In September 2013 Matchtech Group acquired Provanis, a global provider of Oracle applications. “We are now shifting, looking at lower volumes but with higher margins.“ Profit not turnover growth is the target. Competitors that win under-priced pitches simply become busy fools, states Gunn. “My challenge as CEO is guiding my sales team to find the right business that matches our product offerings.“
Gunn says the new focus is working out well because UK tech and engineering SMEs are innovative and entrepreneurial, and “they are currently really motoring.“
But, the diverse nature of SMEs also demands true recruitment specialism. Matchtech Group
THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – DECEMBER 14/JANUARY 15
www.businessmag.co.uk
Technology has also changed recruitment, enabling companies to undertake online resourcing. But, as Gunn explains, technology informs but it doesn’t provide specialist skills and knowledge.
“Coming out of recession we have deliberately positioned ourselves as sector specialists. We are moving to a more consultative relationship model, complementing client internal recruitment, and allowing us to progress.“
Other professional sectors face the same technology-led challenge, says Gunn. “You have got to make your play, generalist or specialist, otherwise you are giving your clients and candidates a mixed message. We chose in 2009 and have stuck to our guns as a specialist sector recruiter.“
Ironically, Gunn sees staff churn as the number one risk for his relationship-led company. Fortunately, a recent employee engagement survey of comparative companies placed Matchtech Group in the top 5%. It’s all about placement you see.
Details:
Matchtech Group
www.matchtechgroupplc.com
Coffin Mew Amanda Brockwell, Partner
amandabrockwell@coffinmew.co.uk www.coffinmew.co.uk
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