Frontline Recruitment is reporting sales growth of over 20 per cent – and is putting the upturn down to uncertainty caused by the introduction of the National Living Wage and upcoming EU Referendum.

Frontline Recruitment, which has offices in Nottingham, Derby, Leicester, Mansfield, Hull and Weymouth has seen a 23% uplift in new client sign-ups in the first three months of 2016, with like-for-like sales growth of 21% over the same period.

Tony Wilmot, director at Frontline Recruitment, said: “The first three months has been another record performance for the company – and is testament to the hard work we’ve put in over the last two years. We’re now looking to expand our temporary division across all six offices.

“What we have noticed is that the vast majority of new business and growth has come through out temporary division. This only goes to show that whilst our clients are winning work and staffing up, they’re also very nervous about taking on people on a permanent basis.

“We put this down to the uncertainty caused by the introduction of the National Living Wage on 1st April which is hitting many firms’ bottom line already, and the limbo caused by the EU Referendum. We understand the quandary some firms are in – and we’re responding.”

In a recent survey of its clients, Frontline Recruitment found that some 25% of firms said that they’re cancelling all permanent recruitment this year because of the introduction of the National Living Wage.

Meanwhile, the same survey showed that 29% said the UK needs less migrant labour, with 57% thinking the UK had about the right number of overseas workers.

Tony added: “The EU Referendum is causing a certain degree of anxiety; on the one hand some businesses will struggle badly for staff if the migrant workforce disappears – on the other hand: would it better to take control of who enters the UK? All these factors are more and ensuring HR managers turn to temporary workers until there is a more settled domestic picture.”

On 12th May Frontline Recruitment be hosting an exclusive breakfast seminar at the offices of RSM in Nottingham city centre aimed at assessing the immediate impact of the wage rise on employers. The event will be free to attend and is sure to provoke lively debate.

Places at the seminar are limited, please secure your place to take part.