The Human Resources and Temporary Employment sector experienced strong M&A momentum in 2024. This activity was driven by the increasing digitalization of HR processes, the evolving flexibility needs of businesses, and the demand for integrated HR solutions. These dynamics led to several major transactions, reinforcing the competitiveness of market players. This article offers an overview of M&A trends in the sector, key transactions from 2024, and prospects for 2025.
M&A Landscape in the Human Resources and Temporary Employment Sector in 2024
The M&A market in HR and temporary staffing maintained a positive trajectory throughout 2024, supported by several key drivers:
- Accelerated digitalization: HR service providers continued investing in artificial intelligence and big data technologies to enhance recruitment, talent management, and administrative efficiency. This led to an increase in acquisitions targeting HR Tech companies.
- Service diversification: Players are seeking to provide end-to-end solutions, combining recruitment, payroll, talent management, and training. This expansion is often achieved through targeted acquisitions to complement their existing service offerings.
- Regional and international consolidation: Major groups pursued strategic acquisitions to strengthen their footprint, both nationally and abroad, particularly in Europe and Asia—regions experiencing strong growth in temporary staffing.
At the same time, smaller players exited the market or were acquired by larger groups, accelerating consolidation across the sector.
Beyond transaction volumes and valuations, the temporary staffing market was shaped by economic factors that influenced its evolution throughout the year.
Temporary Employment in 2024: Economic Pressures and Support for Purchasing Power
The increase in the French minimum wage (SMIC) in 2024 —+1.13% in January and +2% in November—helped sustain household consumption and mitigate declines in activity across some sectors. However, this did not necessarily result in a rise in full-time equivalent (FTE) employment. The sector recorded a 5.4% decline in total revenue and a 6.6% drop in billable hours over the year. Certain sectors showed resilience or modest gains, such as the agri-food industry (+0.5% FTE in September), and the service sector limited its decline to -3.3%. Nonetheless, budget constraints and macroeconomic pressures, particularly in manufacturing and construction, held back hiring activity and pushed companies to prioritize productivity gains over workforce expansion. While the minimum wage increase supported certain activities, it did not automatically translate into higher FTEs, as companies sought to balance cost management with competitiveness.
Major Transactions in 2024
Several high-impact transactions defined the HR and temporary staffing sector in 2024. These were largely motivated by diversification, modernization, and geographic expansion.
Strategic Acquisitions by Actual Group
Actual Group continued executing its growth strategy by expanding into the healthcare sector (via acquisitions of Médical 77 and 2ME), skilled construction trades (ENERGIA), and new geographies through the acquisition of Alter Ego (La Réunion). With €1.6 billion in turnover, the group also implemented new governance structures and strengthened its employer brand, aiming to offer localized recruitment, training, and integration solutions.
Franco-Italian Cross-Border Activity
2024 also saw significant cross-border movement between France and Italy. Groupe CRIT (€2.5B turnover) acquired a majority stake in Openjobmetis, Italy’s sixth-largest staffing firm (€750M turnover). Conversely, Italy’s W Group acquired 100% of CAMO, a French temporary staffing firm with €125M in turnover, thereby solidifying its presence in France.
Other Notable Transactions
Among other significant transactions, Groupe La Varappe acquired Groupe EDION, enabling it to broaden its offering in social-impact temporary staffing, including inclusive employment solutions and training programs tailored to people with disabilities.
Meanwhile, INTERACTION Group strengthened its presence in Eastern France through the acquisition of Link Group.
These strategic moves highlight the momentum of the human resources sector in 2024, marked by both consolidation and cross-border expansion aimed at reinforcing the market positions of leading players.
Outlook for 2025
Market forecasts for 2025 remain optimistic. The sector is expected to return to growth, with activity levels projected to exceed those of 2024. However, as of this report’s release, discussions on the 2025 national budget and potential impacts on the Social Security Financing Act (PLFSS) are generating uncertainty around margin stability.
- Growth in HR Technology : The integration of advanced technologies will continue to reshape HR processes. AI and automation will drive transformation, leading to further consolidation among tech-focused players. Companies leveraging data analytics for recruitment and talent management will be in high demand. A notable example is HR Path’s €500 million fundraising, reinforcing its international expansion and investment in AI-driven talent management solutions across key markets such as North America and Asia.
- Ongoing International Consolidation : HR and staffing companies will continue expanding into high-potential markets in Asia and Eastern Europe. These acquisitions will help them diversify and better meet local needs.
- 3. Increased Activity in Niche Segments : Specialized sectors such as IT, healthcare, and sales are expected to see heightened M&A activity as firms seek targeted capabilities.
Industry experts estimate that the total transaction value in the sector could reach €6 billion in 2025, a 10% increase year-over-year, driven by greater consolidation and the acceleration of digital transformation.
AURIS Finance at the Heart of Market Movements
In 2024, the HR and temporary staffing market confirmed its momentum, and AURIS Finance once again positioned itself as a key player supporting transformation in the sector. With 8 transactions successfully completed during the year, AURIS Finance demonstrated its expertise in M&A advisory, identifying high-value opportunities and delivering tailored strategic support to its clients. We are set to maintain its central role in the market in 2025.
Anticipate Tomorrow’s Opportunities
In a rapidly evolving Human Resources and Temporary Staffing market, every strategic decision matters. Whether you are considering an acquisition, divestiture, or fundraising, AURIS Finance offers deep sector expertise and bespoke advisory services to help you maximize the value of your transactions. Don’t miss tomorrow’s opportunities — let’s discuss your ambitions today.
