As 2025 draws to a close, one thing is clear: agencies are navigating a tougher market but also planning for the opportunities ahead. From our conversations with clients, we are seeing a few priorities rise to the top.

Compliance and Risk

With umbrella reform due in April 2026, compliance is becoming a board-level issue. Recruitment agencies may soon be jointly liable for unpaid PAYE tax and National Insurance if an umbrella provider fails to meet its obligations. This is already prompting many firms to tighten their supplier lists, demand clearer audit trails and invest more in oversight.

Technology and AI

AI and automation are moving beyond screening CVs. Agencies are exploring how technology can improve candidate matching, compliance checks and timesheet processing. The key is not more tools, but better integration. Systems that connect funding, operations and compliance will help agencies reduce friction and free up their teams to focus on growth.

International Expansion

Some agencies are preparing to enter new markets in Europe and the US. Others are holding back until they have the right structures in place. Local compliance, payroll rules and multi-currency trading are all challenges that need planning. For those who get it right, international expansion will be a big opportunity in 2026.

Efficiency and Trust

Operational gaps can cost both time and margin. Senior teams are looking at how to connect their processes, from funding to back office, to build scale. At the same time, building trust through transparency and thought leadership is becoming more important. Agencies want their brand to reflect not just what they do, but how they do it.

Join the Conversation

These are the themes we hear most often, but every agency is different. What are you prioritising as 2026 approaches? Share your thoughts in the comments.

Final Thoughts

At Sonovate, we see these priorities shaping how agencies plan for the future. By combining capital with the right technology and infrastructure, we aim to give recruitment businesses the resilience and confidence to adapt.

If you would like to explore how this could work for your business, get in touch — we would love to continue the conversation.