Welcome to our Annual Report for the year 2025. We all know that our profession has been changing fast over the past few years, driven both by a weaker hiring market and the march of technology. 

Yet at the heart of every major economic issue you find one uniting theme: people. Their skills, how they deploy technology, their ability to drive the economic growth that is so vital to our prosperity. 

That is why I remain so optimistic about the future of our work, as I approach the end of my term as REC Chair. The music may change – but our dance will go on. I saw that last year talking to members all around the country. We can’t hide from the fact that trading in the past few years has been challenging for recruiters, but the resilience and adaptability shown then has set so many firms up for the future. 

As this report sets out, the same resilience was needed from your organisation last year. I want to pay tribute to the team at the REC who took timely action to ensure that your organisation went into 2026 in good and improving shape, as this report sets out. It is no small thing to address your own business with clarity of thought while helping thousands of others. 

And I am proud of the REC’s achievements. From new ways of supporting members like the REC Academy, to first class events and networking, and campaigning that has put the REC in the front rank of business lobbyists with Governments across the UK – the REC has been on the front foot. 

Thank you in particular to the many volunteers who make sure the REC meets your needs. It has been a joy working with you all, from the Board to Council, Committees and task group Chairs. I am more convinced than ever that member-focus is at the heart of keeping the REC relevant and effective, which we certainly were in 2025. 

I have hugely enjoyed my three years as your Chair and will hand the organisation on to my successor in a state of good health. I look forward to cheering the REC on as it builds from here as the leading voice, support and standards-setter for all businesses that truly care about talent. 

Michelle Mellor
Chair

This is my eighth introduction like this. In that time we have seen so much change, from a global pandemic to a government with a huge regulatory agenda.  And change is constant. The leadership of the REC itself will pass into new hands this September. My successor will have the visibility, skills and financial headroom to take the next step in the service of you, our members. 

In 2024, the Board decided to absorb the costs of the downturn in the interests of protecting member services. Last year, a new, more sustainable, operating model was required to maintain those services in the face of a long downturn in members’ market. 

The REC harnessed new technology and focus on member service to build productivity into how we do what we do. While the financial outcome for 2025 looks superficially similar to 2024, in 2025 we are carrying several large one-off costs associated with making our transition. Underlying financial performance was much stronger. 

The place that members will be able to see this most clearly is in the 2026 trading update. I am pleased to say that the REC has run ahead of budget for several months now.

The Board is now reviewing what we do next, to further embed efficient, technology-enabled member service. This internal progress did not derail our work. As Michelle noted, the REC was a visible and effective champion for members, including leading on delivering change to the Employment Rights Bill in December. But we also launched the new REC Academy to support professional development and ran a huge range of events, from local meetings and sector groups, up to our RECLive conference and the Awards. 

I always particularly enjoy the Awards, because they give us a chance to celebrate the good this profession does. That is the main thing I will take from my time here – the difference you make. 

Thank you for giving me the privilege of captaining the ship for a while. And particular thanks to Michelle as she steps down, for all she has done for the REC across a decade on our Board – but many more years as a member. 

All the best to you and your business, 

Neil Carberry 
Chief Executive