People power: Rising demand, particularly for more extensive services, has boosted revenue

The human resources provision industry has expanded rapidly over the past 10 years. This has largely been due to the UK’s strong recovery following the financial crisis, which enabled firms to spend more on non-core activities. In addition, the range of services provided by the industry has also expanded past tasks that are necessary for the daily functioning of a business. Over the five years through 2018-19, the industry is expected to rise at a compound annual rate of 3.3% to reach £871 million, growing in every year of the period with the exception of 2014-15.Over the past five years, the total number of businesses in the United Kingdom is expected to have grown consistently, increasing operator’s potential client pool. The size of the UK’s workforce has also more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • The industry has grown significantly over the past five years, as business profit has risen
  • The strong performance of several key downstream markets supported demand over the past five years
  • Many downstream firms are expected to use cloud-based HR software, to the detriment of the industry
  • Industry Report - Industry Key Buyers Chapter

    The Human Resources Provision industry exhibits a high degree of fragmentation, despite the involvement of a number of global businesses in the market. The four largest firms in the industry are estimated to account for 14.5% of industry revenue in 2018-19, with only two firms achieving a market share of over 5%. The majority of the industry consists of small enterprises; few operate from more than one establishment. This is highlighted by the fact that 89.6% of all industry operators employ fewer than 10 people.One of the main reasons for the significant number of small firms is the ease with which new human resources firms can be established. The industry has low barriers to entry, with skilled employees making up the biggest costs for industry firms. In ...purchase to read more.

    Additional Insights for the Human Resources Provision Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Human Resources Provision Industry are

  • Ability to provide goods/services in diverse locations
  • Access to highly skilled workforce
  • Aggressive marketing/franchising - given the high level of competition
  • IBISWorld analysts also discuss how external factors such as Number of businesses and Total labour force in the Human Resources Provision industry impact industry performance..

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    What's in this report

    What is the Human Resources Provision Industry?

    Human resources providers manage resources relating to employees. They complete tasks and duties for, and provide information to, client businesses relating to employees, payroll, employee tax contributions and other issues. However, they are not responsible for management and supervision of employees. The provision of HR software is not included in the industry.

    Industry Products
  • HR consultancy
  • Payroll services
  • Other services
  • Industry Activities
  • Payroll activities
  • Developing and overseeing employee benefits
  • Providing complex advice
  • Implementing employee training programmes
  • Employee relations guidance
  • Labour relations guidance
  • Excludes the development of employee wellness programmes
  • Excludes staff selection and recruitment
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of businesses
  • Total labour force
  • Business confidence index
  • Demand from banks
  • Real government consumption expenditure

  • Current Performance
  • Outsourcing demand
  • Downstream markets
  • Profit troubles
  • Chart: Revenue Growth

  • Industry Outlook
  • Passporting problems
  • Tech competition
  • Enterprise trends
  • Table: Human Resources Provision Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Human Resources Provision Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Banks
  • General Insurance
  • Financial Technology

  • Key Selling Industries
  • Computer & Peripheral Equipment Manufacturing

  • Products & Services
  • Payroll services
  • HR consultancy
  • Other services
  • Chart: Human Resources Provision Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other
  • Banking and financial services institutions
  • Public sector
  • Retail
  • Telecommunications firms
  • Chart: Major Market Segmentation for the Human Resources Provision Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Human Resources Provision

  • Basis of Competition
    Internal competitionExternal Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Human Resources Provision Industry

  • Industry Globalization
    Automatic Data Processing Limited, SD Worx UK Limited,
  • Table: Automatic Data Processing Limited - financial performance
  • Table: SD Worx UK Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Human Resources Provision Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Human Resources Provision Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • General Data Processing Regulation. This came into force throughout Europe in May 2018. The regulation aims to standardise and strengthen the rights of European citizens.
  • Hr Consultancy
  • Complex advice provided by many firms in the industry to client firms. HR consultancy covers a range of issues including health and safety, employee well being, regulation compliance among others.
  • Passporting
  • The right exercised by registered firms within the European Economic Area (EEA) to buy and sell products and services in any other EEA state without the requirement of any further authorisation.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Human Resources Provision market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
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    This report on Human Resources Provision:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Human Resources Provision market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Human Resources Provision, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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