Employment Hero UK ARR grows 125%, with focus on SMEs

Employment Hero has announced that it has more than doubled its annual recurring revenue (ARR) in the UK over the past year while increasing its UK workforce by 60%.

The company, which specialises in employment management solutions, has achieved a global ARR surpassing GBP £125 million. The UK remains its largest growth market, forming a focal point for the company's expansion strategy.

With the UK's six million small and medium enterprises (SMEs) in mind, Employment Hero has significantly invested in the UK since the beginning of 2024. Staff numbers have increased by 60% year-on-year, with the headcount expected to surpass 150 in the near future. Recruitment has primarily focused on enhancing the sales, marketing, and technology teams, as well as establishing a localised product leadership group to address employment needs specific to the UK.

In the past year, Employment Hero saw its UK ARR grow by 125%, with over 25,000 UK SMEs utilising its Employment OS to manage various aspects of employment, including payroll, human resources, recruitment, and employee engagement.

Ben Thompson, Chief Executive Officer and Co-Founder of Employment Hero, stated, "Our results show the tremendous value that our employment operating system is providing to our UK customers. When the UK's small businesses are successful, there is a huge positive knock-on effect for the economy and the rest of the country, and we want to do everything in our power to support small businesses on this journey. We'll continue to bring innovation in our employment operating system to market to simplify the lives of employers, employees and jobseekers with products that solve real, everyday employment challenges."

Kevin Fitzgerald, UK Managing Director at Employment Hero, commented, "There are six million SMEs in the UK driving more than 60% of employment and contributing 50% of global GDP. Yet, many are navigating tough challenges - from economic pressures to evolving employment laws. Our mission is to make employment management effortless, so business owners can focus on growth. We're thrilled to see so many SMEs already using our technology, and as we continue to invest in the UK market, we expect this momentum to keep building."

In its mission to ease employment management, Employment Hero serves more than 300,000 businesses, covering two million employees globally. Its system aims to facilitate job creation and support GDP growth.

Later this year, Employment Hero is set to launch Employment Hero Jobs in the UK, an AI-powered job-seeking app currently in beta that has already amassed a talent pool of over 40,000 candidate profiles. The app promises to enhance SMEs' ability to recruit by matching jobseekers with open positions, thus reducing hiring times and promoting local employment.

Internationally, Employment Hero has extended its reach with the acquisition of Humi, a Canadian company offering HR and payroll services, at the beginning of 2025.