Cwmpas supports Hoop Recruitment into employee ownership
Hoop Recruitment, one of Wales’s leading independently owned recruitment companies, has transitioned to employee ownership with business support from Cwmpas and legal support from Acuity.
Established in 2016, the business turns over around £20million, has offices in Cardiff and Swansea, and employs around 40 members of staff. It specialises in recruiting for the nursing, social care, social work, education, HR and professional services sectors.
Employee ownership is one of the fastest growing business succession models in the UK. It places employees at the heart of corporate decision-making and wealth creation, and can boost business resilience and profitability, and maximise community and employee commitment.
Employee owned businesses tend to be more resilient in the face of economic challenge, and often have lower turnover rates and higher levels of job satisfaction.
The Welsh Government committed to doubling the number of employee-owned businesses in Wales by the end of this Senedd term. With support from the Cwmpas Employee Ownership Wales team, that target has been achieved two years ahead of schedule.
Founders Paul Lewis and Hywel Roberts worked together earlier in their careers, and developed Hoop Recruitment as a customer/client focussed recruitment company.
Paul, as CEO, and Hywel, as COO, have no plans to leave the business, and both will remain on the Board.
Paul and Hywel feel that the employee ownership trust (EOT) model is critical for the future success of the business and are more excited than ever about the change being created in the recruitment industry.
Paul explains:
“At Hoop, we pride ourselves on doing things differently. My co-founder, Hywel Roberts, and I started the business with a clear mission – to create a recruitment agency that genuinely puts people first, breaking away from the industry’s sometimes challenging reputation. Since then, we’ve grown steadily, and this year we reached a significant milestone by transitioning to an EOT. This change has given our team a real stake in the future of Hoop and aligns with our commitment to building a business based on trust, collaboration, and long-term thinking.
“As a CEO, you want your business to grow and thrive in line with your values and beliefs, and we feel that Hoop can and will do this even more under the ownership of our employees.
“We have always had a great working culture here at Hoop. We have worked flexibly since the business started and find that, being flexible and family friendly, we attract the best recruitment professionals in the industry to work for us. Now, being employee owned, we can give even more back to our team, effectively creating a company full of business owners. Our workforce is more determined and focused than ever to deliver on our vision, mission and purpose.
“We are now massive advocates for EOTs. Using this business model, we hope to expand and make Hoop one of the largest independently owned business in Wales, and to create a business that we are even more proud of, a business that gives back as much as it can to clients and staff alike.”
Acuity provided legal advice to Hoop Recruitment on its EOT transition, with BPU advising on its valuation. The business was also supported by Social Business Wales, delivered by Cwmpas.
The Employee Ownership Wales service from Cwmpas is part of Social Business Wales and of the Business Wales family, both funded by Welsh Government.
Branwen Ellis, specialist employee ownership consultant for Cwmpas, said:
“It’s been a pleasure to work with Paul and Hywel and it was clear from the outset that the employee-ownership model would work well for them and the business, as it was clearly aligned with the organisational culture. I think they both considered the EOT model not only to be a good succession planning option, but also a way to further enhance their organisational culture, to empower their workforce, and to give something back.
“I look forward to seeing Hoop go from strength to strength under its new ownership, and wish them all the best for the future.”
On Employee Ownership Day in June last year, Jeremy Miles, then Cabinet Secretary for Economy, Energy and Welsh Language, said:
“Employee ownership delivers numerous benefits for employees and businesses alike, with evidence showing employee-owned businesses are more productive and more resilient. These are places rooted in their communities, providing quality, long-term jobs for the local area.”
Employee ownership in Wales is not just about recognising and educating businesses about the business model. It is about championing a vision for a more resilient, equitable and innovative economy. It is about building stronger communities, and creating a fairer Wales where everyone has a stake in success.
